Network Marketing – Success Point 6 – The Right Executive Team

Point SIX of The 12 Points to a Successful Network Marketing Company.

The Right Executive Team!

It’s the catch 22 of every company today. With Corporate greed and selfish purposes, it is difficult to know who is being honest and who isn’t. I don’t have any official data to prove it but 80-90% of all Network Marketing companies start up with a 2-5 year exit strategy to sell off. It is the simple truth! Look into the history of various companies and you will see this obvious truth. Here is the problem!

Is Network Marketing the right industry for the sell off executive mentality? Is it fair to distributors? Motivate, excite, and promise long-term residual possibilities with the goal to sell off in 2-5 years?

The obvious answer is NO IT IS NOT! Network Marketing has become a platform for executives to quickly grow and sell despite how this may hurt distributors. They treat distributors like employees rather than independent business owners. To be bought and sold. Executives can be so worried about their sell strategy that they deceive and care less about distributors other than short term necessities. Simply ask executives what their exit strategy is. Do they plan to sell? Are they in it for the long haul? Recognize when they skirt around these questions and run fast if they do. WHY WOULD YOU START AN INDEPENDENT BUSINESS IF THE PARENT COMPANY IS SHORT-TERM AND WILL SELL OFF UNDERNEATH YOU ONCE YOU HAVE GROWN? If you thrive from jumping from company to company and live off of the world of short-term business life cycles, I certainly hope you do not preach the principle of residual income to your downline. This would be the greatest unethical ploy and lie you could make to others. Residual income is all about long-term sustainability of your organization and the parent company. So does this mean 80-90% of Network Marketing companies are unethically teaching residual income? You decide.

The next piece of the puzzle is EXECUTIVE EXPERIENCE.

Do the executives have vast experience and proven track records of growth?…or…Is this a first attempt at Network Marketing for them. Ready! Set! Go!

I personally know a handful of people that have started Network Marketing companies with little to no experience in the industry. Simply put…they have all failed, are failing, or sold off out of desperation. Scrutinize the executives and their experience. If they are new to the industry, do not fall prey to their own learning experiences and failures. Make sure your company is rich with experience and proven track records.

You are investing time, money, reputation, and emotional energy in Network Marketing. Is the Executive ship you are in stable and built soundly or is it a structure that will sink as soon as some heavy waves hit? Be wise, choose the right company with a sound executive team, and your odds for long-term success will be greatly increased.

Success Point 7 in my Next Blog: “The Right Funding.”

Network Marketing – Success Point 5 – The Right Story

Point Five of The 12 Points to a Successful Network Marketing Company.

The Right Story!

Leadership is about trust, example, and experience. Individuals want something and someone they can believe in. Something that brings loyalty and excitement. Something that proves credibility. Something that can be long-term. A story isn’t just about one experience or one product, although that is part of it. The right story is a combination of you, your product, and your company.

Too many Network Marketers have no story or rely only on one compelling story, often times not theirs, to try and prove they are the best leader and opportunity to follow.

What is your story? What is your companies story? What is your product’s story? What is the story of your upline organization that sets them apart? Here is an example of a story…mine. “After being a top sales rep for a top 5 technology company and seldom getting rewarded for my efforts, I went into business for myself. I invested hundreds of thousands of dollars in franchising and franchise development just to learn that even in franchise ownership unethical corporate behaviors can destroy many. I entered the network marketing world and grew an organization but despite Headquarters best intentions, they lacked finances and experience and folded, forced to sell off. My downline and I were left hanging. It was then I committed to research and understand what makes  successful Network Marketing companies and to never bite again until the criteria I researched were met. After searching for over 2 years, I have found that company.”

Leadership and an organization are made up from a series of stories. Does your product have an amazing story that will motivate?

If your product does not have a unique and exciting story, it is likely that competition and/or something better will ultimately win.

What about you parent company? Are they just a bunch of cool executives wrapping up a product that is already in the marketplace, selling it under the MLM umbrella, and expecting to make millions? This is commonplace actually! Executives should have a unique story and unique product(s) that people will rally behind. Do your executives have Network Marketing experience? Have they grown other multi-million dollar companies or are they new? THIS INDUSTRY WILL EAT UP EXECUTIVES WITHOUT EXPERIENCE! Do they understand lead generation and the trenches or are they just suits with money?

If you want long-term stability and a company that will be around for a while…the right stories must be in place!

BE HONEST! Work with your upline to put your own personally compelling story together. Run fast if the red flags of corporate inexperience show themselves or if your product(s) all of a sudden seem “boring.”

Success Point 6 in my Next Blog: “The Right Executive Team.”

Network Marketing – Success Point 4 – “The Right Team/Motives”

Point Four of The 12 Points to a Successful Network Marketing Company.

The Right Team and Motives!

These are your direct upline and team above them. Ever been involved in a business deal where you are left hanging? Network Marketing is a commonplace for the quick sign up with little to no followup, support, or training. I was shocked when a friend of mine explained how he had signed up for a $5,000 buy-in package for one MLM and had never received communication from upline again. Even worse is that he knew about 5 other people who experienced the same thing with the same company? This company eventually folded…what a shocker!

Before joining any MLM you should know the motives of your sponsor and upline? Do they preach the expensive signup and shotgun sponsoring or do they FOCUS ON INDIVIDUALS AND SUPPORT, TRAIN, and BUILD THEM?

Run fast and never look back if you have any notion that you may be signed up and then left without support. If you do not have a team that is working together for success you will get discouraged and eventually be another attrition stat. Building an MLM is just like building any small or medium business. It must be done honestly and ethically. MLMs have gotten a bad rap for dishonest business practices and the fact is that there is a lot of dishonesty in MLMs. There is a lot of good as well and that should be a criteria in choosing.

Make sure there is a culture that will create long-term distributors and success. Watch out for the programs that only reward those who buy in at high prices. The playing field should be equal and based off of hard work and building a large downline, not large buy-ins.

Collective service and success must be a primary motive or individual failure and attrition occur quickly.

Here is to success in your businesses and in choosing and creating teams with the Right Values and Motives.

Success Point 5 in my Next Blog: “The Right Story”

Network Marketing – Success Point 3 – “The Right Process”

Point Three of The 12 Points to a Successful Network Marketing Company.

The Right Process!

IF you were planning to buy a $250,000 franchise would you make sure that the processes were the best of the best to assure your success? Why would you do any differently in an MLM?

O.K…this is not about comp plans (that is another point for later on) but here is the scary truth. Many MLMs are set up to benefit the few distributors on the top. The .05%. Be honest with yourself! Seriously!  Often times Master Distributors are paid hefty sums of money just to come on board to do “their thing.”  These master distributors are usually very rich and VERY picky most of the time. Want to know their general criteria? Huge $$$ benefits for the top guys.  SO HERE IS THE KICKER!

Most processes coming from the top tier are created to maximize the benefits for the master distributors and others on the very top! NOT YOU!

How can I say this!!!? How dare I!!! They are so cool and such great people up top!? Maybe so…maybe not. Do you really know? I am not saying 100% of Network Marketing Companies have crooked master distributors. Some have great and honest distributors up top.  There are some organizations that REALLY do have no nonsense processes that create an equal playing field. Most of you will say, “YAH THAT IS MY COMPANY.” All I am saying is to really look into the internal workings and people in your organization. Every MLM out there preaches honesty and ethics, so how can you really know and overcome this “PROCESS” barrier?

1. Assure that you are in an upline with marketers and sound business people. INNOVATORS. MOVERS and SHAKERS! ETHICAL BUILDERS. WHY? Solid and experienced business people can build their own processes and help those in the downline succeed as long as the comp plan and top organization are sound. Get to know them and find out a little about them. Are they accessible or do they just sign someone up and walk away. Relying only on Corporate is not enough even if HQ is amazing!

2. Get to know the master distributors. Here is the secret? Have they been a master distributor with more than 2 or 3 companies over the past 5 years? If so, be weary…these are the game players. System jumpers. It’s all about the money no matter what they say on stage. They move to where the top tier money is despite how the downline is financially effected. Not all are this way but many are. If Corproate did not choose the Master Distributors wisely, then you should not choose them. Actions, history, and motives are more important than great speaches and motivational media.

3. MOST IMPORTANT – Do the Corporate Executives really understand this business? ARE THEY IMPLEMENTORS? Can they develop processes in-house that are more than just replicated sites, payment systems, and out-of-the-box back office software that was purchased? Do they have the in-house team, skills, talent, executives, and technical expertise to really create processes that benefit distributors long-term. (Many farm all this out, meaning…Hey we don’t want all the in-house expenses becuase we are planning to sell off within a couple years!) DO THEY GET MLM!!!? or are they just trying to build and sell another company.  Trust me on this! Do they walk the walk? Or…..Do they preach big plans and stories about what will come some day once growth occurs?  If you are in a company that is waiting rather than implementing you will be dissapointed.

Best of luck in choosing and building your business!

Success Point 4 in my Next Blog: “THE RIGHT TEAM AND MOTIVES”

Network Marketing – Success Point 2 – “The Right Product”

Point Two of The 12 Points to a Successful Network Marketing Company.

The Right Product(s)!

Let’s admit it…there are product people and opportunity people. Some are a mix.  Product people research, test, and when sold become passionate advocates. Opportunity people simply want a decent product backed by a sound organization so they can build. No matter your type, the flagship product(s) your company has can determine long-term sustainability.

So what is it a product must have?

1.Originality- Just sticking the new berry of the month in a bottle isn’t going to cut it anymore. The branding must be amazing! The benefits must be fresh and new in the market. Not just a couple dozen bottles of vitamins…its already been done. The flagship product must have that WOW factor and look.  If you have products that have been there and done that, there may be initial growth but you will see a FAST growth curve and stagnant waters ahead.

2. Consumable- I’m not here to bash companies with non-consumable products. A couple have succeeded but many have failed.  Simple facts point to the majority of successful MLMs using highly consumable products. Otherwise, the growth curve can be very short. One company I know (before they sold off) used a consumable product but it took 3-4 months for 1 auto ship to be used per household. Whoops! Great product but not HIGHLY consumable. A good rule of thumb is that an auto ship should be easily consumed by one household each month.

3. HUGE Benefits-  A product must have life-changing benefits. Not just antioxidants and fish oils. That has already been done a dozen times. There must be sound science or a completely new, fresh, and sustainable approach to back a product so that it can survive over the competition long-term. First to market by itself is no longer enough in the MLM world. I have seen friends grow organizations quickly and then watch their parent company die off when these things are not in place.

4. Competitive- I have always wondered why some people will buy something from their MLM that they can get down the street at a store for 25-50% cheaper. Obvious loyalty. This just doesn’t work like it used to.  I understand the philosophy of buying from yourself and benefiting but 99% of humanity wants to buy things at a competitive price. The MLM model has to have substantial markups to afford commissions. That is why the “WOW” products work so well. You cannot get them off the shelf.

Good luck to all in your business ventures and in choosing companies with the right product(s).

Point 3 in my Next Blog: “THE RIGHT PROCESS”

Network Marketing – Success Point 1 – “Corporate Marketing”

Point One of The 12 Points to a Successful Network Marketing Company.

Corporate Marketing!

This is the GREAT IRONY of Network Marketing.  NO CORPORATE MARKETING! Many companies rely almost solely on distributors to do the prospect marketing. Sure, they give you a replicated web site and a few tools and brochures but that is about it. There are some companies with so many good distributors/marketers that they succeed despite missing this key. 2009 and beyond will demand that corporate companies provide more marketing tools and lead generation for distributors.

Be cautious of any parent company that does not have a SERIOUS Marketing Plan in place with millions allocated for lead generation to help distributors grow.

Yah, I know…who does this!? Trust me…there are a select few companies (most new) that get this principle. If a parent company is only spending marketing dollars on internal growth and expansion and no distributor lead generation, this is a sign that they may have plans to sell off…or they are just not good MLM Corporate Marketers.  A continuous development of distributor tools and lead generation efforts is  something to look for. If a company is stagnant and not constantly improving marketing, that is another sign that you may be in the wrong company. Companies that hit the top of the curve either die off or take their marketing to the next level. Which is yours? Is your company run by a bunch of Executive personalities or are they Marketers?  If they are just stagnant executive buy and sell type personalities, do not expect any real visionary marketing to happen. These are tough questions many MLM companies do not like to answer.

Network Marketing? Is Corporate walking the walk of marketing?

Point 2 in my Next Blog: “THE RIGHT PRODUCT(S)”

Network Marketing/MLMs – Vital! Must Know!

Have you ever been in a company that fails or shuts its doors? Ever been in one that sells off and leaves you hanging? The very organization that preaches loyalty and trust just goes away? Ever been in one that is stagnant although it has 400+ products?

Do you want to know how to pick the best of the best Network Marketing companies?

Over the next 12 blogs I will lay out The 12 Points to a Successful Network Marketing Company. Most of this is the vehicle company you choose, not just your upline organization.

It is VITAL to choose the right vehicle company to build your organization under. You may be the best business person in the world but if the vehicle you get in breaks down or crashes…you and your organization will crash with it. Many have experienced this exact thing… I definately have.  This is the reason I have researched and come up with The 12 Points. One organization I remember had VERY high initial buy ins and deceptive recruiting practices. They built a large company but got class-action litigated and died literally overnight. I have multiple friends that lost thousands and huge downlines were left hanging.

I WARN you Network Marketers out there that the 12 points I lay out will stab to the core many companies that exist. I’m not suggesting to just jump ship. Loyalty is something I believe in passionately! Take a sincere look and decide for yourself if your vehicle company and organization is sustainable long-term. Vehicle companies can survive without all 12 points but it is the exception. An evolution is taking place and hundreds of MLM start-ups are failing. You will see why!

Many MLM executives out there know that their companies are short-term. They have a 2-5 year plan to build and sell off.  I have acquaintances that have been executives and started their own MLMs with that exact goal…build and sell. I feel this is wrong given the effort and emotional connection distributors buy into. Most are failing before they can even sell off! Executives will NEVER admit this to distributors of course. They will bring you in and motivate preaching years of success and big plans. Again, if you just want to sail along and not worry about long-term sustainability DO NOT read the rest of my blogs.

I am NOT a critic of Network Marketing. I actually am a huge believer and supporter. I am a critic of companies that do things the wrong way. I am tired of good people getting hurt by not choosing the right organization. I personally belong to an organization, so please know I am pro-MLM…just done the right way.

The first point I will discuss in my next blog is “Corporate Marketing.” I call this the great irony in Network Marketing.

Network Marketing – What Everyone Should Know!

If you are hugely successful in Network Marketing, you have already figured things out. This blog is not for you.

Do you want the secrets that will be used from 2009 and beyond to be successful in this industry?

If you are just starting or want to figure out this industry, then get ready for a paradigm shift through the blogs that will be published over the next few weeks here. First of all, I am a believer in the Network Marketing model. I, like most, have been disenfranchised and disappointed. I have even grown an organization just to watch the parent company run out of money and sell off. I could go on about my accomplishments, failures, and successes but you are not here for a motivational story about me.  The goal of this blog is to discuss the revolution of Network Marketing. The industry is alive and well but it is evolving and there is NEED TO KNOW information. It’s not just about one magic bean or super affiliate system. It is about the evolution of MARKETING!

I have always been intrigued by the Network Marketing industry. Most people have been intrigued at some point. Those beautiful circles, comp plans, great products, and the possibilities of deep growth, huge downlines, and residual income!!! Ahhhhh….we salivate! Get that list of friends and family ready!…wait, you already did that with the last company   Right?  Or even better..now I will just use that too good to be true Internet Marketing Lead system that made 3 people a gazillion dollars while they slept… Nothing can stop me now!!!  Forgive the sarcasm..but keep reading if you are curious.

The evolution of Network Marketing has been intriguing. From soap selling duplication in the 60s through the 80s to the dot com explosion of the 90s and the 21st century. Remember the MLM stigma of the 80s and 90s? Get someone to a meeting at all costs. Be vague and cloak the fact that it is a “multi-level company?”  Just get in front of them and show them the vision of circles and residual glory! Ever get invited to a friendly barbecue and the easel and pen come out of nowhere and circles start flying with the explanation of financial freedom? The industry has gotten a bad rap but there are obvious reasons why. Some people get scared just at the mention of “Multi-Level Marketing.”  HELP!…the evil pyramid is going to suck me in!!! Stay away!  Still the industry thrives and there is much good, if done properly. Lessons have been learned but many still fall into the same old destructive behaviors…it just doesn’t work anymore.

Now M LM companies use everything from large initial buy-ins, perfected compensation plans, and the new best story and product to try and become the next billion dollar MLM giant. Few companies have succeeded and more have failed. Some have been destroyed in class-action suits and hurt many in the name of extreme greed.  New affiliate internet marketing programs are exploding with self-funded attraction marketing systems. The problem here is that saturation is going through the roof! Ever try doing a pay-per-click on the keyword “Network Marketing?”  Can you afford $5.00 per click? Not likely..but those 3 people with the gazillion dollar lead system can

Despite all the trends and changes, good and bad, I have always been extremely intrigued by Network Marketing. The concept is amazing! Business ownership, residual income, team building,  and the “potential” of huge income with persistence. Many have become disappointed for various reasons. Lack of support, unused product in the garage, deceit, poor training, technology lies, laziness, etc…

A few years ago I grew a pretty good organization but I saw the Corporate entity going under so I got out… and I was right…Corporate tanked! It was at that moment I made a couple commitments.

1. I would really do my research into the industry and find what makes top Network Marketing companies successful.     2. I would NEVER get involved in Network Marketing again unless all the criteria were met.

Since then, I have been invited to various meetings and opportunities. Around a dozen or more. I have researched twice that many. Some have been very intriguing. It has been pretty easy to say “no” now that I have a list of criteria. I have watched some friends make great money and tease me for not jumping on the ship…then their company or program dies and I can always pinpoint what was not in place and why I said NO.

Obviously, I have found a company that meets my criteria and that is one purpose of this blog. No hidden barbecue agenda here. Most of you will NOT join me on my venture and that is fine. Only a few will be the right fit. Additionally, the information I provide will absolutely help in your own ventures. Over the next few days I will be laying out the criteria I have researched over the past 3 years that I consider necessary to make a sustainable network marketing company. I will also share my research and findings regarding what makes top earners in the industry. If you do not want to take a serious look into what is necessary for a long-term sustainable Network Marketing Company than do not read this blog. If you want to compare what your company is doing, find out why former companies have failed,  or simply take an educated look at one of the greatest opportunities in Network Marketing history…come back often. The point is that there are multiple criteria and tools that drive Network Marketing success today. Some people may argue that they are making money and not agree with me…my point is…”How long will it last?”  Do you want to find out the secrets of sustainable Network Marketing and residual success for the long term?

One of the first topics I will discuss is the concept of “MARKETING.” Something that 99% of all network marketing companies DO NOT GET! It is what I call the GREAT IRONY in Network “Marketing.”  They rely on the distributors to be the marketing innovators. Is that fair?

Stay tuned and encourage all to join me on this journey of information, I commit to you that you will be a better Network Marketer with the information you will receive.