LESSON 1 IN NETWORK MARKETING

Lesson 1: The benefits of Network Marketing and Choosing the
right company.


Benefits of Network Marketing

Before you even consider getting involved with Network
Marketing, you should be aware of the benefits of getting
involved with the Network Marketing industry. Network
Marketing is taking the world by storm and is providing hope
for people around the world.

Network marketing enjoys a very large degree of success due
to the excellent benefits offered as compared to
conventional business. The various benefits can be
summarized as follows:

1. Low Capital Investment and set up cost.

2. Risk free.

3. No qualification and experience necessary.

4. A good source of Multiple Sources of Income since it can
be done on a part time basis.

5. Excellent support system to assist you. These are
provided by the company and the upline organization.

6. Unlimited income potential.

7. Generate Passive Income. After building a successful
network the business continues into the future without your
presence. The income will continue and can be inherited to
your spouse and children.

8. There are opportunities to travel because most of the
network marketing companies offer incentive trips to
successful distributors.

9. There are plenty of recognitions in the network marketing
industry. You will be honored and recognized for your
achievements.

10. There are plenty of opportunities to develop yourself.
You will be exposed to lots of training and motivation
programs. You will have a chance to develop your character
and become a good leader.

11. For those who like to help others, this is a good
opportunity to help people realize their dreams. This is a
business of giving hope to people.

12. The business is fun to build since it is a peoples’
business. You will have the opportunity to meet people from
all parts of the world.


Choice of Companies

There are literally thousands of network marketing companies
around and each one of them claiming to be better than the
other. It is crucial to select a sound company to work with
because your decision is for the long term and once you
start building it, it will be frustrating and even
disastrous to find out later that the company has closed
down, change its compensation plans or is a pyramid scam.

The following criteria will be helpful in assisting you to
make a wise decision:

1. The background of the company and its track records.

It is wise to select a company that has a successful track
record of at least 5 years. Check out on the paid-up
capital, cash flows and profitability of the company. The
reason being most networking marketing companies, do not
last more than 5 years. This does not mean that new
companies are not good. You will have to do some extra fact
finding about the company.

2. The Management of the company

It is important to check out the credibility of the
management of the company. Is the management experienced in
the business of network marketing? Is network marketing the
principal business activity of the company? Is the company
involved in other unrelated business operations? It is wise
to choose a company that has an experienced management team
that is focused only on the business of network marketing.

3. The Products and Services offered

This is the core of the business. The following
considerations should be taken into account:
-variety of products and services
-consumable products that are needed everyday
-the effectiveness and quality of the products and services
-money back guarantees
-source of the products and services
-constant supply
-products that are safe to use and are environment friendly
-competitive prices
-after sales service

4. The Compensation Plan

The compensation plan should be generous and fair to
everyone. It should reward distributors based on the effort
put in and not on other criteria. It should be a working
plan and not a quick get rich scheme.

5. Support

The company should have proper support in terms of training
and motivation. This includes training courses, seminars,
workshops, materials like audio visual, etc. There must be
proper infrastructure set up to aid the supply and delivery
of products and services. There must be warehouses or
collection centers set up to assist the supply of products
and services. The availability of genealogy reports,
commission and bonus reports are also important.

6. International

Is the company operating overseas, and is it possible for
distributors to expand their business worldwide? For those
who are planning to build a big and global business, this is
a very important factor to consider. With the Internet, it
is now possible to conduct a global business with ease.

7. Legality

Is the company properly registered with the relevant
authorities? Does the company have a valid direct selling
license and do they follow the rules and regulations of the
countries they are operating in? Are they registered with
the Direct Selling Associations of the various countries
they are operating in? These are important factors to
consider because it will determine whether the company will
continue operation in the long run.