THE CRITERIA FOR SELECTING A COMPANY
How to select the right
Network Marketing Company !!
The following free report is the result of years of network marketing research. It was designed exclusively for individuals who are serious about becoming successful in network marketing. The first step in launching a successful MLM career is to select the right product and company. We encourage you to study and apply the principles outlined in this report in order to have the knowledge and the tools necessary to select the best company in network marketing.
THE CRITERIA FOR SELECTING A COMPANY
Rather than simply run through the criteria we used for selecting the best company in network marketing, we decided to walk you step-by-step through the evaluation process. It is valuable for network marketers to understand the importance of each criterion. You can use this system to rate any business opportunity. Listed below are the six criteria we will review in this report. While reviewing these criteria, ask yourself the following questions associated with each criterion.
Product Industry
Which product or service am I going to represent & why ?
Timing
During which "Phase of Growth" should I join a company?
Compensation Plan
Which of the five widely used pay plans is best?
Now select any network marketing opportunity and scrutinize this company using the following rating system. This report will explain in detail the above six criteria for selecting a company. After each criterion is explained, we attached a simple rating system for scoring each of these six criteria. Page seven is simply a list of the top 10 companies in network marketing and their total point scores. The final page is a list of instructions on how to proceed for individuals who have reviewed this report and are interested in taking action. We are taking serious inquiries only. Please follow the instructions carefully and then contact us immediately on our direct line.
Study #1: Selecting The Best Product Industry
In our analysis of over 200 programs, we were able to determine which product industries within network marketing are the most viable now and which industries will be the most viable during the next 20 years. Here are the top industries in network marketing ranked in order of profitability, stability, and long term growth potential:
Nutritional Supplements/Health Aids·
Skin Care, Cosmetics,· Personal Care
Household Products·
Telecom/Pre-Paid Cards·
· Jewelry/Gold
Financial/Debt Elimination Services·
Water/Air Filters·
MLM Leads Generation·
Travel·
Wholesale Buying Clubs·
Alternative MLM Industries with limited exposure and appeal:
· Computers/Internet Services
Legal Services·
Satellites, Hardware· & Service
Home/Personal Security Products·
Books, Reports,· Newsletters
Information Services·
Auto Care Products·
· Groceries/Coupons
Test #1: Product Industry
If the company you are evaluating markets products or services through one of the following industries, apply points accordingly. Please do not select more than one industry for each company. Select the industry which best describes the company's product focus. Then, move points to the subtotal line
Company's Primary Product Industry Focus Points Given
Nutritional Products 10 Points
Personal Care/Skin & Hair Care Products 8 Points
Household Items 6 Points
Telecommunications 4 Points
Jewelry 2 Points
Financial Services 2 Points
Travel 2 Points
The Nutritional Supplements Industry will continue to grow at a phenomenal rate based on the aging of the 60-70 million baby boomers. In 1993, Nutritional Supplements did $27 billion. In 1995, this industry did over $92 billion. Currently over 10,000 boomers are turning 50 every day. When the leading edge of the baby boomers reach age 60 in 10 years, trend experts predict the nutritional industry to be 5-10 times larger than it is now.
Study #2: Choosing The Best Time
To Start Your Business
What does SUCCESSTM Magazine say about timing in Network Marketing? In an article which appeared in SUCCESS Magazine entitled "The Curve of Prosperity" Charles King, a Harvard Business School Ph.D. diagrams the growth stages of successful network marketing companies.
In summary, a company experiences several major growth stages as it matures into a stable, long term opportunity. The first growth stage is know as the "pioneering stage." This is the time when companies are most vulnerable and usually go out of business. If and when a company reaches $50 million in annual sales, that company experiences a phenomenon known as "critical mass". This "critical mass" marks the beginning of the company's "momentum growth phase." During this momentum growth, a company can go from obscurity to becoming a household word within 5 years.
IN MOMENTUM, the name of the company and its exclusive name brand products start to become popular, company sales begin to explode, and distributors experience 5-10 times the level of success they previously experienced or will ever experience again without divisional diversification or entry into foreign markets. The last stage of a companies growth is "stability." This is a great time to own a large distributorship but a tough time to build one. The company is so well known, distributors have to be more skilled at handing objections and many prospects will have already been approached many times. Growth in the stability phase is significant, but slower. The most important criterion when selecting the best time to get involved is annual sales volume.
Test #2: Timing
The following table documents the seven phases of a company's growth. We assigned points to each phase. Find out the annual sales volume of the company you are evaluating. Apply the following points scale to the company's annual sales volume. Subtotal points below.
Phase of Growth Annual Sales Volume Points Given
Start Up $0 to $500,000 2 Points
Pioneering$500,000 to $1,000,000 4 Points
Concentration$1 Million to $5 Million 6 Points
Pre-Momentum$5 Million to $50 Million 8 Points
Momentum$50 Million to $1 Billion 10 Points
Stabiltiy $1 Billion to $5 Billion 8 Points
Maturity $5 Billion + 6 Points
Study #3: Selecting The Best Compensation Plan
Which Compensation Plan is the Best? The five most commonly used pay plans in the network marketing industry are the Breakaway, the Unilevel, the Matrix, the Two-Up and the Binary. Your job here is to review the following five plans and choose the one you feel is the best. Using the information below, you will be able to determine which one we chose.
We took the hypothetical monthly group volume total of $40,000 and applied it to the following network marketing compensation plans w/o bonuses. In other words, there are 400 distributors in your downline purchasing $100 per month...how much do you make?
Type Of PlanApprx $ Range Pros Cons
Breakaway(Amway, Herbalife, LR) $1800 - $3200,Big Money , Heavy Quotas, Level Limitations
Binary(Natures Own) $4000 - $8,000 Fair, Lucrative, Must Balance Legs
Matrix $1200 - $4000 Spill Over Pay Out and Width Limits
Two-Up Widely Varied Nice On Paper No MLM has survived 5+ Years
Unilevel $2000 - $4000 Fair Plan Weak Pay Out in Front End
*Each example is based on the average pay out range for all companies studied. These hypothetical examples are for evaluation purposes only and they do not imply that distributors will make these incomes. Income potential is based strictly on the commitment of individual distributors.
Here is a count of the AVERAGE Number
of pay-out levels in each pay plan.
Breakaway = 6 levels*
Binary = Infinity**
(Binary does not pay on levels,
but on total volume)
Matrix = 2 to 12 Levels
(Varies Widely)
Two-Up = Infinity
(Pays on volume, distributor
sacrifices 1st 2 Distributors to upline)
Unilevel = 7 Levels***
* Some breakaway plans have a function called "compression" which helps distributors dip down to deeper levels.
** The Binary counts volume, not levels. Volume is capped at $5,000 per leg, per week. Distributors can earn over $100,000 per year before "re-entering" into their own downline.
*** Some current pay plans incorporate an "infinity bonus." We have found this bonus to be misleading as it only pays to the next qualified director.
Test #3: Compensation Plan
We ranked the following five compensation plans with the below points scale. The point spread is varied based upon the many variations within each pay plan. For example, a high ranking breakaway plan will score a 6 based upon maximum benefits and limited restrictions within that plan. Another breakaway plan can score a 4 based on limited pay-out, limited levels, or high quotas. Top pay plans ranked high based on fairness to distributors, pay-out potential, and the downline building incentives.
Pay Plan Points Given
Breakaway 4 - 6 Points
Binary 7 - 9 Points
Matrix 2 - 7 Points
Two-Up 0 Points (Unproven Plan)
Unilevel 6 - 8 Points
*A note from the author of this report.
"Please note that I had no special connection or relationship with any of the companies I reviewed when I started my research. I had previously been involved with several other network marketing programs as an independent distributor but before conducting my study, these distributorships had been dissolved. After scrutinizing over 200 companies and choosing one program as the best opportunity, I became involved with this #1 rated opportunity as an independent distributor. I now have a substantial number of independent distributors in my organization. However, I have no "special" ties to any network marketing company including the program that I personally promote. The company I promote does not necessarily agree or disagree with any of the research produced by D.C. Falter Marketing."
