The network marketing industry is booming with more than 50,000 people enterning the industry each week. According
to a Money Maker’s Monthly survey, there are approximately 11 million individuals involved in the industry. The first and
possibly the most important step in developing a successful business is selecting the right programme and support system. All of
the systems and personal effort in the world will not be of value to you, if the company you choose to work with goes out of
business or is structured in such a way as to restrict your potential success.

The industry is full of paradoxes. On one hand, you have many testimonies of ‘rags to riches’, and on the other hand, you have a
vast number of network marketers who are frustrated,wandering from one programme to another, trying to find a programme that
will work for them. Another paradox in this lucrative, exploding industry is the great number of network marketing companies that
go out of business within the first five years. For a majority of marketers, the journey to success is like moving through a minefield.
There are certain dynamics involved in our industry that will affect your pursuit of success. It can be of great value to know
these factors.

COMPANY LEADERSHIP

The company leaders must provide their distributors with security and effective leadership. Providing adequate financing, being responsive to market trends and distributor concerns, providing efficient logistic services, being prepared to address challenges quickly and effectively, and mainitaining adequate inventories are all important functions of effective leadership.
With only 29 network marketing companies surviving more than ten years, out of 2000 companies that have started during the past
40 years, effective leadership becomes a major concern.

PRODUCT PHILOSOPY

The right product strategy is important to the success of the networker. Product strategy should have a two fold focus. First, you need a flagship product that is a ”door opener”. Secondly, you need a diversified product line that is focused on a proven market so that the consumer has a broad selection from which to do transfer buying. In a proven market, you can compound your investment by ”piggy backing” the millions of dollars spent by conventional companies in advertising.

COMPENSATION STRATEGY

Success for the company does not always equal success for the networker. How the proceeds are proportioned will determine the boundaries of your success. Traditionally, companies have placed the majority of the commissions deep within the pay structure so that they do not have to pay out the full potential of the plan. This practice has led to an industry wide attrition problem that undermines the viability of the industry. Traditionally, programmes pay out five and ten percents for the first six or seven levels. With these percentages, it requires 10-15 purchasers in your organization for you to break even on your qualifying purchase. This equation guarantees that 85% of your distributors will never get into profit. Since this is a percentage factor, the problem only worsens as the organization gets larger. The ‘cards are stacked’ against the majority of distributors.

Find out more about a company that meets all the criteria here