Network marketing is a great way to start a profitable home business. With so many opportunities out there, how do you start the process of evaluating them? What do you look at first?
Some industry leaders suggest looking first at the management of the company and evaluating their history and background in network marketing. Others prefer to focus on the compensation plan as the most important consideration. Still others suggest looking first at the longevity of the company.
While all of these are valid considerations, the first key to success in this business is your products. The foundation of your business is your network marketing products. Excellent products help ensure a stable, long-term residual income. Strong and profitable network marketing businesses are built on a foundation of quality products that have lasting appeal to consumers.
Without a foundation based on quality products, all you really have to offer in the long run is a money-making scheme. Opportunities built around mediocre products tied to highly-hyped compensation plans don’t last, and should be avoided. Your products are the foundation of a strong network marketing business, and the compensation plan is the driving force that makes everything work.
Evaluate your product or service based on the following criteria.
The Best Network Marketing Products Are Not Faddish
A faddish product could be something like the “latest and greatest” weight loss drink. This might be very popular for a while, but will lose much of its luster and popularity when the next “latest and greatest” product comes along.
A few years ago, diet cookies were a hot fad that caused a lot of excitement. Entire opportunities were built around these cookies. They were a good example of fad products. If you are willing to take the chance, good money can be made quickly with hot new items like this. Just be aware that there is considerable risk, because whatever business you build up will disappear overnight if the opportunity folds. If you want a long-term stable business with residual income, your best bet is to look for products with lasting appeal.
The Best Network Marketing Products Should Be Consumable
With consumable products, you can build up a customer base and enjoy repeat sales over and over. Nutritional supplements, skin care, and most personal care items fall into this category. You can make money with non-consumable products, but the residual income potential is not as good. Repeat sales will not be as high, and many of your customers will probably be one-time buyers. With non-consumable items you are always having to find new customers in order to make any ongoing income, and you will need a lot of referral business from your existing customers.
Examples of consumable items that have been sold through network marketing include: nutritional supplements, skin care, cosmetics, and weight loss supplements. Legal, financial, and insurance related services could also be considered consumable since they are usually purchased on a regular basis.
Non-consumable products typically sold through network marketing include: water filtration equipment, air purifiers, and electronic gadgets.
The Best Network Marketing Products Are Premium Quality
Look for premium quality products. They will have high quality ingredients that are not typically used in ordinary consumer products. Your products should work better or taste better than anything you find in a retail store. This premium quality must be real, not just quality based on claims as described in sales literature.
Consider The Value
Is the actual price that retail customers pay reasonable? Whatever opportunity you are considering, be sure to try the products for yourself before making a decision. Would you buy them at the retail prices if there was no potential for profit?
Choose Products With Broad Appeal
The products should have broad appeal with a large potential customer base. Nutritional supplements, home care, and other personal care lines are good examples of this. Ask yourself if the products you are considering are something that every home could use. How can they enhance your lifestyle? Do they really work or perform as advertised, or is it mostly hype and slick packaging?
Take time to carefully evaluate the products offered by any network marketing opportunity you are considering. Whatever opportunity you choose, the products are the secret to establishing a long-term residual income. Don’t pass over this step.
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About Eldon Beard
Well stated. Reminding prospective sellers that a direct-selling company is a product company first, helps differentiate the good from the not so great. In the less-likely-to-be regularly purchased category is gold, now being sold directly too. But value on gold fluctuates (it tanked in the early 1990s). Consumables are the long-term way to go.