Luckily enough, I began my own network marketing career with a company that was already successful. Unfortunately, like many others, I’ve also witnessed flopped companies that caused stress, anxiety, and a pretty substantial loss of money for a lot of people.

But… “You can’t win ‘em all.”

I think that failures are simply lessons in life, and we grow more when we fail than when we succeed. My own personal failures in network marketing have allowed me to evaluate more thoroughly what traits a company will have if it’s going to be successful versus the traits it will have if it’s going to flop.

Of all of the hundreds of network marketing companies that emerge throughout the years, only a handful ever make it long-term.

Unfortunately for many – which is also the reason network marketing gets such a bad reputation – distributors will be chugging along just fine, no one will let them now that the company is losing money, and then all of a sudden, everything is just gone.

What I’m going to share with you, only a select few number of network marketers know, but this is important to know when you’re searching for your perfect network marketing business.

Do you understand the role of Corporate Leadership?

Just think of yourself as an investor. If you were going to invest an obscene amount of money into a network marketing company – say, a million dollars – what would you look at first? The executives, I hope! Without experienced, capable, honest, straight-forward leadership, the compensation plan and the product wouldn’t matter. You could have the best, most amazing products in the world, but if they’re backed by poor leadership, then what good are they?

Capitalization and Choosing Your Network Marketing Company

A network marketing company backed by lots of money and no experience is just as likely to flop as one backed by lots of experience and no money.

Network marketing companies are expensive to start. You need money to back it up. Without proper funding, you’re left with cheesy web sites, late shipments, lack of support, and marketing materials that don’t work. What a waste!

Unfortunately, money isn’t everything, either. It’s extremely sad to see network marketing companies that are started by billionaires or Wall Street tycoons that mislead thousands of people into believing it will be successful simply for that reason. Most billionaires think they can buy their way into network marketing. If you research some of those companies started and run by billionaires, though, you’ll find that most of them have already failed or are well on their way there.

Most of the successful network marketing companies, the million and billion dollar giants, are run by people with distributor experience or a background in corporate leadership in the network marketing industry.

Sales Funnels and Marketing Strategies

Converting prospects and viewers is essential to making the network marketing business work. If a multi-level marketing company doesn’t have a web site or sales presentation that converts cold prospects into distributors, then duplication will fail.

A lot of these companies don’t understand marketing. They assume that buzz about the products and word of mouth is all it takes to make them a success, have their distributors make their own web sites, and they usually remain small companies stuck in their own ways, ignorant to progress.

If a network marketing company isn’t using a combination of technology and old-school methods to back it up, then chances are the distributors won’t be bonded to the company, which means they won’t be loyal. That means the company will be left behind.

Product Value

Too many people think that the product isn’t as important as the marketing. That’s interesting, because good marketing will sell the products once, but reorders depend upon the value of the product. If your product is shoddy and people don’t want to reorder it, your company won’t grow.

Don’t let anyone tell you that the product has nothing to do with what kind of success you’ll have in network marketing. Stable residual income is dependent on your alignment with a product whose time has come and that can stand on its own.

The most successful network marketing companies are those that sell nutritional/health products, skin care, personal care, household goods, and weight loss products. The products have to be consumable, otherwise there is no residual income. The point is that people have to need and reorder the products on a monthly basis in order for residual income to work.

Timing

If you come across an opportunity that holds value for you – the product is valid and you like using it, the company is backed by a solid leadership, and the timing is right for you, then jump on it! There’ nothing worse than having to wonder “what if” after passing something up that could better your life.

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

Now that you know how to choose the best network marketing company, it’s time for you to get out there and build your story! Take action! Start generating MLM leads and make some money!

To Your Success,

Matias Leiva