There thoughts of starting a home business and having control over your financial destiny feels very empowering. You have also decided that the Networking model is appealing and is the right business model for you. So how do you decide which company to partner with?
There are so many companies out there and you want to make sure you pick the one that best fits your needs. You want to avoid the common mistakes of choosing a company either based on your experience with the product or primarily through the recommendation of a trusted friend or family. You want to do your due diligence and pick the right company for you. In this post, I will begin discussing the 6 key criteria to consider when evaluating a company.
1) Company management team
The first thing to look at are the leaders running the company. Who are they, how many are there and what are their past experiences? What has made them successful in their previous positions and business ventures? What are the reputations of the partners on the top?
These information can be found by talking with the owners and other leaders within the organization. You can also get information on the company background by attending company live events and by reviewing the company’s presentations.
2) Company Timing
The timing of a company’s product or service is also very important to consider. Is this a startup company or a well established one? We know that there are some risk in joining a startup company. An established company is desirable but may also have a few things that need to be considered. What is the companies financial strength and long term growth plans? Is there a duplicatable systems in place? Any expansion into the global markets? Is the timing of the product appropriate? For example, one best markets to target now are the baby boomer market as this is a market that is expanding.
3) Product
The most attractive feature of a networking business is the residual (passive) income. Residual income is income generated after the initial effort is expended.This occurs by earning an income from a product that is purchased from a customer every single month. To that point, it is important that you consider representing a product that is consumable and can be purchased on a monthly bases. An example of a consumable product is nutritional supplements verses some beauty care products that are purchased every 3-4 months.
In addition, it is important to understand the target market of the product or service (baby boomer population, women etc) and the marketability of the product. Is this a product that will satisfy a need in that target group? Also, what is the price point of the product and how affordable is it for the target population? Also, do you have passion for the product? To decrease consumer risk, is there a money back guarantee?
The next post will cover the remaining 3 criteria to consider when choosing a company.
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