When it comes to any business, credibility is a key to success. Put simply, do people trust your business and why (or why not)? This is especially important in the Network Marketing industry. After all, we're asking people to not only purchase our products, but to trust us, and our MLM company, with their future and their dreams. That's asking a lot. If you doubt that credibility is important, just look at your own buying decisions. If you were looking for tires for your car, would you be more likely to buy Firestone or Big O as opposed to "Joes All-Purpose Radials?" Probably. Now, in truth, Joe's tire may be very good, but you don't really know that company. Firestone and Big O are long established brands and they come across as more trustworthy. Each year, companies spend billions of dollars trying to establish credibility with you. They want you to know them and to trust them and the products they produce. How does this apply to Network Marketing? Well, let's take a look. Suppose you've just signed up with the latest and greatest health supplement MLM. I mean this product is great. It will cure every disease known to mankind, including the common cold. It will cure mange in a horse and ease the suffering of epileptic dogs. This stuff is great. It really is. So anyway, you buy your kit and you're all ready to take on the world and to make everyone healthier. What happens when you talk to your first prospect? Well, first off, you have to convince them why you are qualified to recommend a health supplement to them in the first place. Secondly, you have to convince them that your product is more than just "snake oil." After all, how many "hot new nutrition products" have been introduced in the past ten years? Hundreds. How many of them have stood the test of time? Very few. You have to show why yours is different. Then, thirdly, if you want this prospect to consider your business opportunity, you have to convince them that your company will even be around five years from now. The sad fact is that most upstart MLM companies won't be around in five years. When they close, they take your business with them. You have to start all over again. That's why you have to convince your prospect why this won't happen to your company. Here you have three reasons why I always tell people, especially those new to network marketing, to choose established companies who offer products that are in demand in the market place. When you represent an established company with a good reputation, you don't have to spend valuable time explaining them and why they are stable. Odds are that your prospect has heard of them and already has a favorable impression of them. Secondly, you don't have to spend even more time convincing your prospect of your qualifications. In most cases, the company's credibility will flow over onto you. As long as you are operating your business in an honest and ethical manner, most prospects will give you the benefit of most doubts. Thirdly, you don't have to explain the products. If the company has been around for a long time and has been successful, it stands to reason that the products must be good and offer a real value. Now, you will hear people argue that it is better to choose a new company because the older companies are already saturated and there is limited growth potential. In 99.9% of the cases, that is unadulterated hogwash. I don't know of ANY MLM company that is even close to capturing a majority of the marketplace. Sure, you may make a lot more money in the short term by hyping a "hot new company," but what happens when the company folds? That's right, your bonus checks stop coming and you have to start all over again. Usually, companies and distributors who play the "you've got to get in now before it's too late" game are only in it for the short term and/or they are offering a product that has no real value to anyone who is not participating in the compensation plan. That should really send up a warning flag. Let me put this plainly. If your business does not offer a product that will appeal to the general public without the business opportunity attached, you are walking the thin line between a legal MLM business and an illegal pyramid scheme and your credibility is at risk. That is why I always say, if your MLM company doesn't promote (and reward) the retail sales of products to non-distributors (i.e. the general public), you should RUN away from that company as fast as you can. Most people will never sponsor more than two downline distributors. That's a long-proven fact. If you don't have a way for people to earn some money without sponsoring (i.e. retail sales), these people will get tired of not making any money and they will quit. When they quit, they will be sure to tell their friends about how your business didn't work and, once again there goes your credibility. Can you make a lot of money and be successful with new, unproven companies? Sure you can, but the more important questions would be: Do you want to work that hard to provide the credibility for your company? And Do you want to take the risks associated with an unproven business? Your answers to those questions will be determined by your goals. Are you in business for short term profits or long-term success? If you're like me, you're more concerned about long-term security and you don't have the time or patience to work harder than you have to in order to make up for your MLM company's lack of brand name recognition or credibility. That's why I strongly urge people to first consider established companies with good reputations and proven track records. They may not be as flashy as some of the hot new upstarts, but you don't have nearly as much risks either. Remember, today's bright and shining new star may be little more than a flash in the pan. |
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