MLM's Secret Discovery

This piece by John Venezia would save people a whole lot of money, time, emotion and energy spent on a company that hasn’t stood the test.  This totally omitts brand new companies pushing, in their sales pitch, “Ground Floor Opportunity.”  What do they say when the company is 3 or more years old?  It is actually better to join a company a couple years after it has been established.

Top 10 Ways to Choose a Great Network Marketing Opportunity
There are a few network marketing opportunities that are just scams. There are far more that may be well-intentioned, but have a poor track record, for any number of reasons. So how do you separate the wheat from the chaff? Here are ten tips to help you pick the right network marketing opportunity for you.

1. Has the company been around for at least 5 years?
If you want the efforts you put in today to pay off for many years in the future, choose a company that has proven that it will be around for the long term. 90% of all network marketing companies FAIL within their first 2 years. You don’t want to invest your precious time and resources (not to mention your future) in something that may not be in business next month, do you?
2. Is the company well capitalized?
In other words, does it have the cash that it will need to grow, to maintain a solid infrastructure, to attract talented management, to keep pace with technology — and, of course, to pay your commissions! (I prefer publicly traded companies because they’re required to disclose their financial condition in DETAIL every 90 days to the SEC and other governmental agencies. You may not be able to obtain this information on a private company, so you’ll be taking a risk on its financial condition.)
3. Does the company offer products or services that are unique?
That is, they’re not readily available elsewhere (especially at a discount) and they’re not just another “me too” product that has loads of competition.
4. Is there a genuine need for the product or service?
You’ve probably heard horror stories about people ending up with a garage full of expensive water filters – the reason that happens is because only other distributors will purchase the product at that price! Your product or service must fill a REAL need at a fair price – and there should be a large untapped market for it. In other words, it MUST provide tremendous value, so the customer is the biggest winner.
5. Is the product or service trendy or a fad?
You can’t build long term residual income (i.e., your retirement!) if the product or service only has short term appeal (e.g., beany babies, etc.). Think long term instead. Is the product or service something that your customers will continue to use for a long time?
6. Can you generate immediate income?
So that you can finance your marketing and expansion efforts from cash flow.
7. Does the marketing system take full advantage of technology?
Not everyone is a sales type, but ANYBODY can plug into a system and tools that do the selling and sorting for you!

willing to learn) you WILL succeed. There’s a big difference between a “sponsor” and a “recruiter.” A sponsor coaches. motivates and trains and a recruiter just signs people up and in most cases, abandons them.
9. Is there a way to build your business part-time without losing your full time income?
The company must have automated systems that can do the heavy lifting (i.e., selling and sorting) for you so that you can use your limited time efficiently.
10. Will you have FUN?
Although this may not be an element of your current JOB, we think it’s important! You should have a lot of fun with your business partners while you work together to build a long term business and your financial army.
So there you have it — ten criteria for selecting a superior network marketing opportunity. Of course, even with a great company, there’s no such thing as a free lunch. You WILL have to work! But, with the right opportunity (unlike your job), it won’t have to be forever!

I thought this piece by Mike Klingler was very insightful:

I have a question for you.  If you can answer it correctly you’ve impressed me.

What REALLY creates duplication and success in business?

Is it:

A. a simple system, or

B. your ability to influence people

Think about the most successful people you know.

In your networking company, think about the most successful people ‘under’ the most successful people.

They all have the same system everyone else uses and yet their results are significantly different.  Why?

What’s the difference?  What do they have that others don’t?

It’s called Influence.

Now think about someone else–you’ve heard a lot about this ole’ chap:  Ray Kroc (founder of McDonald’s franchise).

It’s often said that McDonald’s is successful because it has a simple system. Now that makes for a simple sales pitch but it won’t help you much if you put the shovel down here.

If it were actually true that McDonald’s system is the key to its success, why do they change the menu so often?

And if were true, wouldn’t all duplicatable systems be successful?  Of course they can’t all be successful, just because they’re a system that was built for Your Success!

There are lots of failed franchises.  In fact, after the franchise model took off in the 1970s, the FTC almost shut the entire industry down because so many of them were purchased with the belief that ‘it’s a system, its going to make me money,’ when in fact they lost their house, car, and shirt.

It took Ray more than a system to make McDonald’s successful, just as it takes McDonald’s corporate leaders more than its system to keep McDonald’s on top.  Notice how they took the ‘Super Size It’ option away and added a salad menu.  Why would they change the system?!  Because they have to.  Because the answer is not in the system, but in their ability to Influence us to buy.  Having a system in place is a small part of the equation.  .

It was Ray’s influence that allowed him to inspire others to buy his franchises.  It was influence that allowed people to sell unsuccessful franchises (and networking opportunities).

It takes influence to lead people to do anything.  Don’t be fooled.

“The System Pitch” is Like Fools Gold… Looks Shiny But It’s a Waste of Time to Mine.

A system is only a part of a process, and not the most important part.  It’s like a tool (like having a computer).  It’s important, but pales in comparison to what you should be focused on and talking about.

So What REALLY Counts?  What Should You Be Focused On?

Whether you’re in a networking business or a more traditional business (as a coach, service provider or consultant, etc) your “Influence Factor” will determine whether you’re scratching and clawing for every dollar and sell, vs. making more than you need, with ease.

Are you on the right track?  Are you paying attention to what REALLY counts–your “Influence Factor?”

I’ve written a very in-depth article on the topic.  What’s sad is the people who need it most often resist it.  They just want a simple system, when what they need is to be looking at their Influence Factor.