Network Marketing has been on the rise in recent times. Virtually any product or service that can be bought and sold are being marketed through the MLM business model. Though the industry often touts itself as the solution to financial prosperity for everybody, the truth remains that many MLMs do not last long, and many distributors have seen their dreams of financial freedom fade into nothing due to the failure of the MLM Company that they had put all their hopes in.
While it is true that many MLM Companies do not make it, the fact remains that there are also many Network Marketing companies who have stood the test of time.
This article examines the 7 critical Cardinal factors necessary for a successful network marketing company. My observation and research confirm that most of the thriving MLM Companies have all 7 ingredients in their company’s operations while those that failed are missing either all or some of the critical requirements.
It is important for you to review your MLM opportunity for these structural and Cardinal requirements before you invest a lot of emotion and time into the company.
#1. A Good MLM Must Have A Great Replicated Site With A Lead Capture Page Designed Specifically For Your Network Marketing Company
This is one non-negotiable ingredients of all successful MLM Companies. In the new competitive market, if you business opportunity does not provide a replicated site that has a lead capture page with an effective autoresponder service, the chances are it will not be around for a long time. Gone are the days where distributors have to go search and buy these tools. This must be part of what the company is offering from the very beginning or it may not have a chance to compete going forward.
#2. A Good MLM must have a Free Report or Brochure Designed For Your Network Marketing Company’s Opportunity
This Report or Brochure should explain the features and benefits of joining your MLM opportunity. It must focus on the support and resources available to the recruit to new distributors; explain the company’s Products and Compensation Plan Report/Brochure should include testimonials from successful people in the company.
#3. A Good MLM Company’s System Must Have AN EMAIL FOLLOW-UP SYSTEM
The truth is that most people don’t act immediately after they have opted to review your opportunity or report. Most people must see a marketing message at least 7 times before they take any action. A good MLM company must therefore have a follow-up system of auto responding emails that continually market your leads for you. These emails should be professionally done and contain a strongly worded sales copy.
The Lead Capture page of the company will direct them to the autoresponder that will then start sending the prospect carefully worded follow-up emails on a scheduled basis without you having to do anything. This has become a staple of all successful network marketing companies in recent times.
#4. A Good Company must Have A Continual Feedback System That Uses The Fear Of Loss
Research shows that more people buy out of fear of loss than out of prospect of gain. A good company’s system Invoke fear in prospects that they may forever lose commission on a new prospect if they do not upgrade. Its also shows them there are negative financial consequences if they don’t take action now. This Fear Of Loss concept must be an integral part of the email follow-up system.
#5. Your Company Must Have A Good Product Or Service That People Really Want
While people join MLM because of dreams of making money, the Product still has to be good to sustain the business long-term. It must serve a useful purpose that meets a genuine demand and should be capable of selling even if there is no compensation plan attached.
As a matter of fact, if your MLM does not have this particular ingredient, there is a 100% chance that the government will determine that it is a pyramid scheme. The product itself must have good value for money and distributors should be able to enjoy it even if they are not yet making a significant income.
#6. A Good MLM Company Must Provide A Strong Support For Its Distributors
Many people have the enthusiasm to make money with MLMs but they lack proper training. A good company should be able to provide training and support on a regular basis.
Many people who join Network Marketing these days have no experience and they come in with unrealistic expectations of financial riches. They need to be trained and redirected on how to make this happen by their uplines and by the company.
Most successful MLMs now have a robust trainign site and they have very active leaders involved in training
#7. A Good Company must have excellent Compensation Package
Many people are looking for make extra income and fast. A good MLM must provide opportunities for both the big leaders and the small distributors to make money quickly. The compensation must not only be simple for the ordinary person to calculate, it must also be easily achievable.
In these days of massive promotions by many MLMs in the exploding internet market, people need to see and touch some compensation quickly before they will stay with any company for more than 2 months. If the compensation plan of your company does not have a significant fast start bonus, the chances are that distributors will not be attracted to it long term and it will fail. People are no longer buying into a future that is longer than 3 months before they start seeing money.