Transparency in Network Marketing
A Requirement for Every Network Marketing Business
There should always be complete transparency in network marketing. What should happen and what actually happens are two distinctly different things.
When in the courting phase of prospecting, the presentation process is usually conducted with smoke and mirrors. There is little substance to the presentations and only hype. Is there something to hide?
Start From the Beginning
For anyone that has been involved in a network marketing opportunity you know the feeling of being prospected.
You have an individual who is willing to share with you information they feel is necessary for you to join their opportunity. They will say just about anything to make you feel as if the opportunity is right for you, and while we are not saying there are not a lot of great and viable network marketing business opportunities out there, you must first start at the beginning.
Remember this is about being transparent. The same transparency that big business utilizes should be applied here as well, albeit on a smaller scale.
Key Features of a Network Marketing Company
We are not here to discuss what the most important parts of a network marketing opportunity are, that we will save for another article.
We are here to discuss transparency in network marketing, and for there are three key features that you need to focus on to get the information you need to make an informed decision. Those three key features of any network marketing opportunity that you need to focus on and have transparency in are leadership, compensation plan and products.
While some may disagree with the three key features we have listed, it is in these three features where the transparency happens; first in the leadership, then in the compensation plan, and finally in the products.
Think about this; after you get started with the network marketing opportunity, what will be the three things that you will deal with most? The Corporate staff? No. Celebrity endorsements? No. Conventions? No.
You will be dealing with the leadership in the field, the compensation plan and the products every day in some way. So for this reason, complete transparency is required before you get started so that you can be clear on what you will be required to do to be successful.
Field Leadership Transparency
When discussing leadership, many times the discussion revolves around the corporate leadership of a network marketing opportunity.
While we agree that this is important to have a stable and innovative corporate staff, it pales in comparison to the field leadership that is actively building the network marketing opportunity. When you are investigating, make sure to keep your focus on the leadership that is in the field. The leadership that will be helping you build your business will be the leadership that comes from the distributor base, not corporate.
Some factors to look at regarding the field leadership are longevity and history. The expression “time will either promote you or expose you” is one that is often shared with our clients. When you are looking at the field leadership of a network marketing opportunity what does time have to say about them?
Are the leaders “opportunity jumpers” here today, gone tomorrow, or are they legitimately building their business long-term? Another question that rarely gets asked but is almost important as the first is, how long has the leadership been together? Is there just one leader and all others are used simply in a support role, or is the leadership truly a team?
This is important as you want to be sure that your business has the ability to draw from all the leaders and not just one. This allows you much more leveraged knowledge and building power as you have the collective minds of successful network marketing professionals working with you.
Compensation Plan Transparency
Whether you are venturing into your first network marketing opportunity or you are a seasoned professional, you should not have to be a math major to figure out the compensation plan. The truth has developed a reputation in the network marketing industry, and depending on how you look at it, it may work for you or against you.
The bottom line of any network marketing opportunity and of course its compensation plan is something has to be sold. Whether it’s a product or service a sale is required. When looking at the network marketing opportunity the way in which these sales occur and how you get paid must be explained.
Too many times the truth of having to make a sale is hidden from the individual investigating the network marketing opportunity. They only find out after they join that they have to sell a product or service to make any money. At this point they feel betrayed and most likely will quit, which in the end helps no one.
Do not be afraid to ask questions about the compensation plan and learn the truth. Understand the methods that you will be paid and what is required to build a successful business. You want to be able to build a business that will pay you today and build a residual income long term.
While product transparency sounds somewhat strange, it is something that every traditional business knows all too well. What products are in demand, which products are not, and what are the customers saying about the products they have purchased?
Being an entrepreneur is not about products that you like, it is about products that the masses like and ones that you can earn a comfortable living from. Many people look at the products and think that if they like them others will too. That is not the case.
The simplest thing to start with on the products and/or services is the sales numbers. How many units have been sold, how much revenue has been generated, how many markets are they being sold in and what is the growth rate being experienced. Then take this line of questioning one step further and ask, “How many products have been returned?”
This last question will show you just how good the products are. Yes you can have great testimonials from satisfied customers, but if you have 1 satisfied customer for every 3 unsatisfied customers, eventually time will expose the truth that the products and/or services are not doing what they promised.
Complete Transparency in Network Marketing
When investigating a network marketing opportunity and focusing on the three key features discussed, you will have a much clearer picture of what the opportunity is all about. For any opportunity that is successful, it must have proper field leadership, a well-established and lucrative compensation plan and have products and/or services that are in demand. With these three items being inline, being transparent is never an issue.
The issue is with the opportunities that want to convince you of their validity based on smoke and mirrors. Learn from those that have done this before you, learn from those in traditional business that have learned the hard way; transparency in business, any business is essential to your success.
*Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependant on the person using the products, ideas, techniques and efforts put forth on Engineered Lifestyles. For our full earnings disclaimer click here.