The Six Criteria for Selecting a Top Distributorship

How to Select a Network Marketing Company Series
Discover the Keys to Scrutinizing, Comparing, and Selecting a Million-Dollar MLM Business

Rather than simply running through the criteria I used for selecting the best company in network marketing, I want to walk you through the evaluation process, step-by-step. It’s valuable for network marketers to understand the importance of each criterion. You can use this system to rate any network marketing business venture.

Listed below are the Six Keys or criteria we will review in this article. Associated with each key are some of the critical questions that this article will answer. Don’t worry if you don’t understand the question before reading the chapters associated with each criterion or key. But keep in mind that eventually understanding these questions and their answers is critical to your success in network marketing.

Key #1: Profit Mindset – How to Think Like a Marketing Pro

In order to be able to recognize a good opportunity, you must be thinking with a marketing mind. This article will help you understand how successful home business owners think about success and money. Adopting these same beliefs and philosophies is your first step in selecting the right company. In my book, How to Select a Network Marketing Company (Chapter Four), I will answer these questions, and many others you might have about what it takes to have the mindset of a millionaire.

• What is your main reason for starting and maintaining a successful business?
• What is the difference between business ownership and self-employment?
• Would you rather be right or rich? Is ego more important than profits?
• What message is the marketplace sending you every day?
• Are you coachable enough to effectively apply what you learn in this book?

Key #2: Product Industry-What to Sell, and Why

The term product industry refers to the type of product or service you will be selling through your independent distributorship. Chapter Five of my book will answer the following questions in detail.

• Should I select a product company or a service company?
• Which product or service will produce the largest income for me?
• Should I go with a new idea or go with something proven?
• Which industries are absolutely not viable this year?
• What role do trends play in selecting a product industry?
• Should I choose a Baby Boomer industry, or does it matter?

Key #3: Timing-When to Join a Company

Many distributors learn how to think like a marketing pro, and how to pick a winning product industry, but they fail when it comes to selecting the right time to join a company. Getting started too early or too late can be detrimental to your success. Find out the best time to get involved in a company’s cycle of success in Chapter Six of How to Select a Network Marketing Company.
• During which phase of growth should I join a company: the start-up phase, the momentum phase, or should I wait unit the company is mature and stable?
• Should I get involved with a ground floor opportunity?
• Is there such a thing as market saturation?

Key #4: Compensation-How to Scrutinize a Pay Plan

There are many different ways to be compensated in network marketing, but not all of the compensation plans are created equal. Discover the differences between the different plans, which plans to look for, and what to watch out for. All of these questions will be answered in Chapter Seven:
• How much commission should I earn as a distributor?
• Which distributor compensation plan is the best? Why?
• What is the difference between the breakaway, binary, unilevel, or matrix plan?
• How can I identify these different plans and how do they compare?
• Which plan has the best track record? Which plan has the worst?
• What is a hybrid, or a 2-Up, compensation plan? How does it work?
• Can a plan pay out too little or too much?

Key #5: Company Leadership-Who are You in Business With

This could be the most important topic of this entire book. You must learn how to investigate a company’s ownership and management team before you get involved. In Chapter Eight, you’ll find answers to these questions and more.
• How can I tell if a company’s management team has high integrity?
• Is it important for the company to be debt-free?
• Is it important for the company to own its own products and facilities?
• Is it an advantage to be involved with a publicly traded company or a private company?
• How can I find out if the management team is experienced, competent, and committed?

Key #6: Product Integrity-How to Scrutinize a Product

We’ve already covered the different product industries available through network marketing and which ones are the best. Now we’ll go into detail on how to scrutinize a specific product. This will make up the contents of Chapter Nine.
• What makes one specific product or product line better than another?
• How can I select the best product for my home-based business without having expertise in that product industry? Which of the four hundred scrutinized products ranked among the top twenty?
• How can I find the time to study and compare all of these products?
• How can I find out if a product is dangerous or controversial?
• Which product is right for me?

Have you asked yourself the questions in this survey? If not, go back and ask each question and really think about the answers. Read every bullet point. Can you honestly answer these questions right now without doing any additional research? Do some of the questions confuse you? Did you know that if you select a company without knowing the answers to these questions, you’d likely fail within months? All of the answers to these questions are buried in my book and throughout this website. It’s time to start digging.

About the Author

Daren C. Falter launched his direct sales career in 1990, and has since become a passionate student and advocate of network marketing / MLM. He started work on the first edition of How to Select a Network Marketing Company in 1995 and published it as a paperback for the first time in 1998. Daren is now a top consultant, master trainer, popular convention speaker, and a full-time independent business owner in network marketing. Daren maintains a close connection to the industry and keeps his finger on the pulse of the independent distributor by continuing to conduct daily interviews with MLM’s most successful leaders. He maintains an active downline of distributors numbering in the tens of thousands. There’s nothing he enjoys more than training aspiring network marketing leaders and high-integrity MLM companies. Contact Daren Falter at www.networkmarketingreview.com or www.networkmarketingbook.com.

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