MLM Marketing: Would an Investor Choose Your MLM Company?

MLM marketing is serious business. If you want to have a serious shot at becoming wealthy in network marketing, then knowing how to dissect the right network marketing company is vital…think like an investor, not a distributor!

mlm marketingI’ve seen thousands of mlm marketing companies coming on the scene over the years and witnessed only a select few ever making it to amount to anything. I’ve been fortunate to have  picked the right companies for the most part of my career. But along the way, I also experienced a few major disasters causing emotional heart break, loss of time and money.

What can I say; you can’t win every ball game, right?

But  isn’t when we fail that we sharpen up and learn the most?  My failures, more than my successes, allowed me to recognize what qualities and characteristics a successful network marketing company must have compared to those that bite the dust.

Believe me, nowadays there are more network marketing opportunities  failing then succeeding. They just don’t tell you until the last minute.

The formula I’m about to share is critical. Most savvy networkers use it when making a move in their career and choosing an MLM company.

Let me start with an important question that will bring into focus what to look for first in your search for a highly successful network marketing company.

MLM marketing importance of corporate leadership?

This one should be a no brainier, really. Look at any MLM company like an investor, not like a distributor. If you had to put up four million dollars  to finance the venture what you look at first?

The executives involved, right?  If you didn’t think they where capable, experienced, honest and straight forward, would it matter what the product or the compensation plan are?  I don’t think so. That’s exactly what investors do in the real world. They look at the owners and the executives running the company first before they invest in it.  It’s a fact, that great management teams with vision and experience make great companies.

And if you think about it, you are an investor other than a distributor. In my opinion, putting time, effort and money  to grow your distributorship in a  network marketing company is a significant investment and should be treated as such.

Make no mistake about it. The best multi level marketing companies have a strong corporate leadership, beginning with the CEO all the way down to the receptionist answering the phone.

Unfortunately, most network marketing distributors are so product oriented that  will over look the strength of the leadership when they find a good product.  It never works. I’ve seen it a gazillion times. And personally experienced it a few times.

I have been in companies with a fantastic product and a great chance at being the “next big thing,” but they totally blew it! They came from a position of “using” distributors rather than “serving” them. Their good product didn’t save them, when their bad management and lack of integrity lost the trust of people.

Remember, corporate leadership is the backbone of your business. If the company executives and/or owners, do not have any prior experience either as distributors or corporate officers or lack integrity and a serving mentality, I would stay far away from it no matter what product they have. Experience teaches me that they will not make it. I’ve seen too many good products in the wrong hands.

The next thing to look for when choosing  a good network marketing company is capitalization.

In this industry a good product and management team goes nowhere without a huge pile of money in the bank. A network marketing  company is an expensive business to start. Without money you will see late shipments, poor marketing materials, lousy websites, lack of customer service, no functions and overall poor performance. The days where you can start a company from a garage are over…lol!

On the other hand, capitalization is a blade that cuts both ways. Under capitalized companies are poor in money and lack a real chance, but many times over capitalized network marketing companies are poor in experience, patience and heart for the industry.

I see thousands of people being mislead by believing that  being part of a company owned by a Wall Street tycoon or a billionaire will automatically make you rich and you should jump right in!

Think again! Many of these billionaires think they can “buy” their way into network marketing, but if you look at the companies owned by billionaires with no prior experience in network marketing, most have failed or are on the verge of failing or are doing mediocre volume.

Most of the successful, thriving billion dollar giants are ran by people with  a strong distributor background or experienced corporate veterans in the multi level marketing industry.

Now let’s discuss the marketing strategy and sales funnels a top network marketing company should have.

Without effective marketing and powerful online sales tools that do the work the distributors, your really out of luck. If a network marketing company does not build their case through a highly effective presentations that can convert and close a cold prospect, then duplication will suffer.

Statistically distributor-made funnels are not as good. Most distributors are not good marketers or good writers. Forcing distributors to make their own funnels or do prospecting presentations is simply bad marketing. The “average Joe” cannot make sales materials and present. He shouldn’t have to.  Not in this day and age.

If you study closely, the biggest organizations today are built with great branding and sales funnels (webinars and online presentations) that can convert viewers into distributors.

Most companies you see out there really do not understand their full role in network marketing. They leave the marketing up to the distributors who usually produce junk web sites and hype-loaded presentations.

They think that product buzz and word of mouth is all it takes. In reality, it takes a lot more than that. MLM Companies that don’t understand this usually remain small companies stuck in their own igorance.

You see word of mouth is just like Google. Its only a marketing channel where a message is exposed. But what determines the effectiveness of the opportunity is the entire corporate show behind it.

Today you need a strong combination of new school/old school methods to make things happen. It’s about having a killer online presence and sales funnels, then backed by great corporate shows and substantial super Saturday trainings.

If a network marketing company is not properly using technology in unison with highly effective offline strategies that bond the distributors to the company, they will be left behind.

The importance of product value and timing in choosing the best network marketing company.

Now that we cleared the corporate leadership and marketing issues, let’s talk about the product. Many people in the industry believe that the product is not as important as the marketing.

That’s foolish. Good marketing may sell a product one time, but a product reorders (or doesn’t reorder) all by itself. If you have a lousy product that people won’t reorder, your business will not grow, no matter how good the marketing is.

Online we see good presentations behind lousy products every day or, many times, products  that may seem a good idea, but really don’t fit the network marketing model.

Don’t let anyone tell you that product has nothing to do with success in network marketing. The secret behind a stable residual income is your alignment with a specific, highly-effective product whose time has come. Given good corporate leadership and killer marketing you product has stand on its own.

There are specific categories that are proven to be particularly successful in network marketing:

– Nutritional/ Health Food

– Skin Care

– Personal care

– Weight Loss

– Household goods

All other categories have never created big companies. Education, telecommunication, Forex, software, gas pills, discount clubs, travel coupons, travel clubs, waters, water filters, air filters, ect., are not your best bet.

I have learned how to not argue with the market a long time ago. Study the big giants and you will see that are selling products in these categories.

3 of the 4 multimillion dollar runs I’ve had in my career were with nutritional products. They worked, brought huge benefits to  people around the world and reordered well. I enjoy huge residual incomes because of these products decades after they were launched.

Product timing is another piece of the equation. Is your product just a good product…or is in the right place at the right time?

It’s becoming increasingly difficult to come up with new unique product ideas, but guess what? It always happens. There’s always that unique product with great sexy appeal coming on the scene. There’s nothing like being first to market a unique idea.

If it’s backed by a great company and the timing is right for you,  jump on it! There’s nothing like being ahead of the crowd with the next big MLM marketing company. If a product is  a consumable, can create excitement, build and sustain momentum, then it’s the right product! If the market wants it, give it to them.

Now you see that success in network marketing is highly dependent on company choice.

Product validity, timing, culture, leadership, branding, marketing, training, functions, momentum, rewards, trips, conventions and success stories are the ingredients of the big tasty cake called network marketing.

Now you know how to choose the best MLM marketing company. Now it’s time for you to take action. Get out there and build a story for yourself. Start generating  MLM leads an make money!

See you at the top!

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To Your Success!

Riccardo Ferrari

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riccardo ferrari

Riccardo Ferrari is a former naval engineer. For years worked in the maritime industry as an officer on cruise ships. He is in direct marketing full time since 28 years and become the #1 income earner in five major direct marketing companies and top earner in several internet ventures. Along the way, worked as VP and senior consultant for several companies. Some were owned by billionaires, doctors and celebrities.