TIPS ON HOW TO EVALUATE NETWORK BUSINESS OPPORTUNITIES
Hey, Alan Noble here and today I want to give you a few tips on evaluating a networking marketing business opportunity. Out of the thousands of companies out there, how do you decide which one is right for you?
It is usually said there are five key things to look out for when it comes to choosing an opportunity. I didn’t invent these 5 things. These five things have been talked about for decades. I just want to simply draw your attention to them. But let’s first get the small print out of the way! I am biased towards ASEA, and so maybe a better description of this video is WHY ASEA? How does ASEA check each one of these 5 boxes?
Of course, it all starts with the Product. Does what are you bringing to the marketplace have real value? Now, this may sound like common sense, but unfortunately there are some companies that will masquerade as network marketing companies and yet the truth is, they are illegitimate scams. The product is only there to try and give it the façade of being a network marketing business. Here is the simple test to know whether you are in a legitimate MLM or a shady scam. Ask yourself “Would I use the product or service if there was no opportunity attached?” You have got to find something that has real value, that impacts people in a positive way. Here’s the other part, you’ve got to be excited about it. You see its not the words that you say, it’s the song that you sing that’s important. Its not what you say, its how you feel about what you say. Most people are not natural born salespeople, so you’ve got to find something that really resonates with you. You want to get to the place where you truly believe that everyone deserves to know your product or service exists.
The second P to consider is the People behind the company. Although most peoples first exposure to a network marketing business, is of course the product, the company is in truth even more important. After all, you could have the greatest product in the world, but if your company goes out of business, does it really matter how great your product is? You’ve got to look at several things in the company. Is it run by people with a proven track record of success? Do they know how to run a business? I don’t mean do they run how to run a business into the ground! Do they know how to run a business for LEGACY success? The CEO of ASEA Chuck Funke says something very smart, “There are levers you can pull to get fast growth but they are not the same levers you can pull to get legacy growth.” There are a lot of companies that know how to get off to a fast start, but then go out of business and disappear, and with it your residual income! It’s very simple. The longer you can receive RESIDUAL income, the more powerful that income is.
In addition to their business acumen, you should also look at the company owner’s ethics and integrity. How they treat people. Success leaves clues, and so does failure.
The third thing to look at is that compensation Plan. Is it fair? Is it generous? Does it reward good business building activities? Is there something for everybody? Is there something on the front end, the beginning of the compensation plan for the part timers? Is there something in the middle for the full timers? Is there something on the end of the comp plan for the big thinkers, the big dreamers, the people who believe they deserve to have it all? You have got to be able to satisfy all groups in your compensation plan. Personally, I think it is a mistake to join a company because of the compensation plan. For example, I didn’t join ASEA because of their compensation plan. I joined because of their product and the people! The details of compensation plan come after those first 2 boxes can be checked!
The fourth thing to look for is Positioning, or timing. I don’t consider this a make-or-break it, more like the icing on the cake. If you can find a company that is post risk but early momentum, where there is still BIG growth ahead. That’s the sweet spot. It’s not absolutely necessary. People make money at the beginning of a company’s life and in a stability phase of a company’s life. However, if you can find the sweet spot, its definitely a bonus! The most dangerous time to join a company is without doubt the beginning. The “ground floor opportunity” with over 95% of Network Marketing companies going out of business in the first 5 years. Just as people make the mistake of joining a company because of a certain compensation plan, I think others make a mistake just because of positioning. “Hey, it’s ground floor everybody, you’ve got to get in.” Then 6 months, a year, two years later that company is gone and now you have got more wounded networkers wondering if the network marketing business model really works.
The 5th P is often overlooked by people, especially if they are joining a network marketing company for the first time. The 5th P stands for Partners. Who are you working with day in, day out? Who are you linking arms with? Is there a duplication system, a presentation and training system, and a support system where you can really grow and flourish as an entrepreneur? The great thing about network marketing is, anyone can join! The bad thing about network marketing is, anyone can join! Sometimes it can become a case of the blind leading the blind. Somebody with little or no experience, guiding somebody else with little or no experience. The experience you are looking for does not have to be your sponsor, or even your sponsor’s sponsor. However, somewhere in the upline leadership team there has to be somebody who knows what they’re doing and there are systems and tools in place that allow you to be successful.
So, those are the 5 P’s that are important to look at when choosing a Network Marketing business opportunity. The Product, the People, the Plan, Positioning and your Partners. In future videos, I will take a closer look at each of these P’s and show you how ASEA checks each one of these boxes beautifully and why it became my Network Marketing company of choice.
I wish you all the success that you believe you deserve.