Every legitimate, successful and experienced network marketer agrees that the network marketing opportunity you’re looking at should have a good, value for money product.
This should be a bona fide product that you can hold in your hand, not some nebulous investment scheme. It should be something you can buy at wholesale from the company and sell at a competitive retail price to genuine customers. If there isn’t a product you’re probably not looking at a network, but at some money go round or chain letter scheme. Many of these are illegal -- but that doesn’t stop them proliferating widely, sometimes for 18 months or more, before they are shut down. I’m always extremely suspicious of anything where you have to be a distributor to buy the product. You should be able to buy anything you want from another distributor without joining the company, providing you are willing to pay a reasonable retail price.
Assuming the opportunity you’re looking at has a product, would you be prepared (after you have researched it) to pay the retail price that is asked for this product by the company? If YOU wouldn’t, then you must ask yourself -- will your potential customers? I do say after you’ve researched it, because you must be clear on the benefits of the products and how much is charged for similar products by other manufacturers. Most networked products are excellent but may be new or unknown to you -- If you’re not sure, ask to speak to some customers.
You should consider carefully if there will be regular, repeat business. Not as simple as it sounds. Some products are so good that it takes customers a long, long time to need to purchase more. Which may be good for the customer -- but does it make business sense for you?
There should be NO requirement to invest a significant amount of money. Also NO inducements should be offered, extra commissions perhaps, to buy more stock than is strictly necessary. This is networking not franchising, you’re requesting distributorship rights -- not offering capital or purchasing stock, premises etc.
Good networking companies supply product to order in 4-7 days. It’s normal to be asked to buy a training package or manual. This should not cost more than £75, many cost as little as £15 or £20, consider the contents and use your common sense. It’s also normal to buy a very small amount of stock for demonstration and immediate sale purposes (£100-200 max). This should be purchased at wholesale price from the company.
Finally does the company have a 90% money back scheme. The legitimate ones do.
The new law that covers networking makes it quite clear that companies have a responsibility to encourage and support their distributors in their retailing efforts. With this in mind, you should also consider the company’s marketing or compensation plan. If they insist you only have to buy one or two small items a month to qualify for your networking commissions they’re obviously not expecting you to retail. And if you’re not prepared to why should your network?
At the opposite extreme if they insist that you buy dozens of cases every month to receive your bonuses they probably expect a sales effort worthy of a double glazing rep. Which goes against the spirit of networking where most of the top earners have never had or needed a conventional sales background. So unless you are a frustrated salesperson I’d suggest you look for a happy medium between a buyers club which is not a true network and an all out sales operation.
A final thing to consider is how does the company suggest you market their products? Will you be expected to do parties or drop catalogues both work -- but is that what you want? Many companies now have far more sophisticated ways of marketing which may suit you better.
Next month we’ll be looking at international expansion. If you have specific queries about any aspect of choosing or running a NWM business write or fax marking your letter “Dear Linzi”.

This article was originally published in the UK in May 1997 under the title ‘Productive Nets’ ©1997 ESG

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