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. In Malaysia, Network Marketing was introduced as early as 1970's.

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 summarised 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 organisation.

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 honoured and recognised for your achievements.

10. There are plenty of opportunities to develop yourself. You will be exposed to lots of training and motivation programmes. 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 realise their dreams. This is a business of giving hope to people. Teach Others to Teach Others to Teach Others.

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.

In the world of business, Networking has a fair ranking of Millionaires and Billionaires (Forbes Magazines).

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... Go around and ask. Especially if any company that wavers or has nothing concrete in its rules and regulation......Give it a pass...

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. Refer to 1.

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 (AMWAY been practising since it's inception)
-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. Refer to 1.

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. Refer to 1.

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.