With thousands of network marketing, direct sales, and multi-level marketing opportunities to choose from, finding the right one is daunting at best and must be undertaken with due diligence. A quick screening method is to check if the company is a member of the Direct Selling Association (DSA), which is the national trade association for major companies that manufacture and distribute goods and services that are sold directly to consumers. If a company is not a member, your first step would be to contact DSA to find out why.
As you browse the internet looking for business opportunities and, more importantly, ways to evaluate them, you will come across many sites and blogs that offer “unbiased reviews” for MLM and network marketing businesses. Some will offer, for a small price, “the secrets” to finding the right trading opportunities. Eventually, you will realize that these sources, while useful for gathering information, are usually trying to sell you on your business opportunity.
In my own selection process, I started with a list of objective criteria that any savvy investor or entrepreneur has used when evaluating a business. Successful entrepreneurs and investors like Trump and Buffett will tell you that for any business to be successful, certain key elements must be present:
Market demand. There has to be a demand for the product of the technology being offered. If people don’t like them, it won’t matter what you do. Nobody will buy them. Are the products or technology addressing an emerging trend that will mean increasing demand or are they just a “me too” solution to an aging market trend? Are the trends supported by demographic developments? For example, a predominant demographic today is the 85 million aging Baby Boomers who are looking for ways to look, feel, and stay young.
Exclusiveness. Many of today’s most popular new products and technologies have been introduced through direct sales or network marketing companies. Again, with thousands to choose from, you might as well narrow it down to those companies that have a “big moat.” That is, companies that offer products and technology that are not only exclusive to that company, but where there is little or no competition. If you can legitimately say “we’re the only company offering this” then you have an immediate advantage.
Rock solid company. You can have the best products in the world that everyone wants, but if the company can’t ship the products, pay your people, tell you what’s going on with your business, keep accurate records, and send out the checks on time, it all falls apart. . . Only companies that have a well-documented track record spanning several years should be considered. Better yet, consider publicly traded companies because the SEC requires full disclosure and transparency of all financial information. Be careful though, as some companies may go public and yet their share price and earnings projections indicate very low investor confidence. One way to eliminate all but the most financially stable companies is to highlight those that have a Dunn and Bradstreet rating of 51A, which is another indication of their profitability and creditworthiness.
Right moment. The rare moment in the market is when exclusive and patented technology meets the growing demand of an emerging demographic. When you find a strong company or organization that can help you break into that market with the right product, training, and support, you may be in the right place at the right time.
Seizing the Opportunity. A key element of direct sales or network marketing that sets it apart from a standard small business is the ability to leverage your time to create residual income. Most of our lives we have earned income by exchanging time for money. The right business model for network marketing allows you to leverage your time so that you can generate your income through the efforts of others in your own organization. The more people you help your organization succeed, the more residual income you can generate.
The bonus element: duplicable business model. When all other criteria are met, a close examination of the business model should be the final determining factor. Aside from “start-up cost,” it includes the time it takes to get your new business up and running to the point where it’s generating revenue. While training, support and mentoring are important, if the model or system employed is not easily repeatable, you will not only have a hard time starting your own business, but you will have a very difficult time launching people under you. This would be disastrous and a waste of all your resources.
Once you’ve narrowed down your options, take a close look at the deal building system. It should consist of a simple three to five step process fully supported by effective marketing materials and administrative support. These days, it would be almost impossible to run a business without a website; therefore, make sure that the company provides a free replicated website that can be used as your internet base.
By applying these criteria, evenly and objectively, across the universe of companies offering direct sales or network marketing opportunities, you’ll find the field narrows pretty quickly. I can tell you that in my own assessment, the list of companies dropped from thousands to less than a dozen that had at least 4 of the 5 items. Only a few had all 5.