As the image above says, there are so many network marketing companies (call them what you will) that there is something out there for every aspiring millionaire.
As the late comedian Jimmie Durante used to say, there are a million of ‘em! (paraphrased) If you’re not old enough to know the man, it’s your loss. Those were the days of great, clean comedy the whole family could enjoy.
And that’s what a lot of network marketing companies claim; good for the whole family to get involved with. Of course, not every company out there offers PG-rated stuff about which teens, young adults, and full-grown aspiring entrepreneurs can get passionate. You name it, there’s an MLM for it, even porn, although It’s categorized as direct sales.
The variety of business models is as wide as there are product lines. Compensation as every imaginable amalgamation, too. Don’t believe me, just Google it and you’ll find more information on it than you could ever want to read.
Sure, there may be three main ones, Binary, unilevel, and breakaway. But that’s just the beginning.
There are endless variations to these, enough to make your head spin. And that’s where a lot of network marketing companies get into trouble with the FTC. A “Pyramid Scheme” slapped on to many of them when paying commissions on recruitment is slipped into the comp plan. The real kicker is just when you begin to make real money, the comp plan changes by ownership. That’s a real kick in the pocketbook.
As one that has dabbled in network marketing on and off for more than 30 years, I never found success in them. Statistics show that on a national average, the typical distributor signs up no more than two people. You can’t make money that way. It’s all about the numbers, distributer purchases, as well as customer revenues, bonuses, and payouts of every sort.
Choosing the right company is no easy task but go with your gut. If you are passionate about the product offering, maybe it’ll work for you. If you hate sales, forget about it. ”Just share the product, and you’ll make a fortune” is one of the hooks that have been tried on me multiple times. I have been “garage qualified” more than once.
The key to selecting the right company beyond a passion for the product and compensation structure is the density of distributors in a particular region, country, or continent. In the case of one I belong, a 10-year-old billion-dollar company that has produced five consecutive years in a row up to today, they began in Asia, went to Europe, then South America, and have just entered North America within the past 18 -20 months.
Only 8% of their revenues come from the US and Canada. That’s ripe for growth due to their excellent products, fair compensation, and above 50% payout to the field.
The company founders have strong support for initiatives for children all over the globe. 100% of all donations are spent on the mission, and the admin is carried as a cost. They build schools, hospitals, even a college in Africa.
Another great firm I partake in is one that offers more than 90% of profit payments to the field. It’s beyond a start-up but has yet to reach $1 Billion per year in revenues. The offerings are ideal for entrepreneurs due to their educational products (which is their most significant selling product of all time). They offer travel incentives, bonuses, and provide an affiliate program.
As I mentioned earlier, I’ve been involved in more than a few direct sales network marketing companies, so I’m experienced enough to see through the recruiting hype. The reason I like the education-based firm is you cannot be a distributor when you sign up: come in as a customer to tip-toe into the company, and if you like, upgrade to “member.”
My advice to anyone considering joining an MLM, Network Marketing, Social Marketing, Direct Sales company, think long and hard before doing so. Don’t just think about the possibilities of earning a lifestyle income in no time; it takes hard work, perseverance, patience, and, most of all, logic.
Don’t allow emotion overrule logic. Think. Your future depends on it.