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Having watched some associates build home-based empires from scratch and make a fortune doing so, I’ve realized that businesses that involve network and internet marketing are viable. Yet, having 10 years of experience in high-tech startups, I could also see the inherent problems associated with most "home-based opportunities," and why they are likely to fail over time. Over the course of 6 years of participation and experimentation, I have discovered 7 considerations that will increase your probability of success, regardless of your background, available time, and level of experience. These criteria are a blend of what I found to be critical in both affiliate marketing plans and traditional business models that work. I have an emphasis on leveraging the internet, but overall I believe these to be good practical suggestions. Some of my considerations may not apply to your business, but some of them will. Many of these are "common sense" if you do the uncommon thing of thinking about your business from a practical point of view. What is the message beyond marketing hype? I have not made a zillion dollars in a company that is easy, free, etc. I can not help you in that department. But, if you’re looking for some things to consider when choosing a real workable business, and want a much better than average chance of success, then my points may be helpful. 1.Look for Limited perceived competition. It is important not to pick a product in a crowded playing field. The average part-time business builder is not willing to take the time or make the effort required to differentiate a product. It is very difficult to do. Ask any sales professional. Most people have a tendency to get excited about market size and never really look at the size or number of competitors. A very competitive market changes the characteristics required to be successful. Product differentiation is usually challenging. To be highly successful will usually require an evolved ability to effectively communicate. For most people this will require time and effort spent on personal and professional development. Not a problem for some, a show stopper for others. 2. Avoid “invisible value” services What is invisible value? That’s a product that you pay for over time, without constantly being reminded that you like what you are buying. Financial, and insurance products fit this category. Nothing against these businesses, they are both needed services. Just realize what you are getting into so that you can plan accordingly. Instant gratification is a powerful component in western culture. This is why you see people that will pay a cable TV or cell phone bill before they pay health insurance. If you are building a source of long term residual income, make sure your products have the chance of being a long term purchase. If there is a disruption in gratification of some sort for nonpayment, that will be an insurance against your income going away. 3. Avoid the “burden of proof” We call the “Burden of proof” products those that make big claims that are hard to prove. You want to avoid these products for two reasons. First, proving value is a tough thing to do. You have to be an expert or use an expert. This creates the need for a double sale. You have to sell the expert, and then you have to sell the product. Most people are not comfortable making even one sale. Many nutritional companies fall into this category. Want to see something interesting? Go to your local bookstore, pick up any fitness magazine, and thumb through the pages. You will see multiple products claiming to be the best, all with doctor’s endorsements, backed by experiments, with charts and graphs, and everything you can imagine. Competitors appear on the same page making the same claims! 4. Avoid third party "Intellectual property" This is the big one. We live in a copycat world. People are reselling others people’s products as their own. The problem with this model is that people join your business under your leadership - not the leadership of the people that actually make the products you represent. People that own the “IP” determine how good or bad your products will be over time. Many good people have joined good companies that did not own their products. And many good people fall victim to the owners and creators of a product taking a different direction than the "marketing company." Do you have to find a company that makes its own products? No you do not, just beware of the liability, know the risk, and ask the hard questions if things do not seem right in the direction a company is taking. 5. Look for Proven and Effective decentralized leadership My simple test for effective leadership is this. Are they creating leaders out of people who do not have big names and who don’t come from big companies with big stories? Have they helped someone, perhaps like you, achieve success? Are they trying to motivate you to go “make it happen” or are they teaching you to use systems? Are they taking feedback from the little man in the field? Remember marketing is a very fluid process. Frontline feedback is essential for strategic success on the battlefield and in business. 6.Look for Good compensation We go into business to make money. Pay plans can get complicated because the good ones are sophisticated. They are designed to drive and reward behavior that is different than most normal companies. You should make money for moving products and services of course. But you should also be compensated for helping someone else be successful. I good litmus test is to take whatever you think is reasonable in terms of product sold and affiliates sponsored by you and forecast it out 12 to 24 months. See where the numbers are. This is the best thing about network marketing. Your compensation is purely mathematical! It’s not personalities or politics! You make what you earn. Actually, you should make more than you earn because of the built in bonus structures and overrides in most good plans. After you run your 12-24 month numbers, ask yourself two questions.
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