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The Right Choice, Part 2: The "Right" Product Line
By Candy Webb, NetWork Marketing Editor
Candy's Bio
Considerations around the “right” product line are
a little more difficult than compensation plans. After all, numbers are
numbers and product lines are much more subjective. And it should be
said that some types of companies and product lines simply fit a
particular person better than another company. Given equal compensation
plans, one company can be a much better choice in fact, just because
of the product. My personal preference is to avoid companies with huge
product lines; I find the confusion this causes in getting new
distributors started does one very important thing – It slows down
duplication! Duplication is the heart and soul of this business and
SIMPLICITY above all leads to duplication, so I have always looked for a
product line that is focused. An easy to explain product line (my
preference is one product will normally produce the fastest
growth. Here are a few tips on product choice:
- For most people - avoid high-tech products –
even if they are trendy, cutting edge and sexy. You’ll have a real
tendency to think “Wow” this is a real winner, and in fact, for you,
it may be a perfect fit. But remember, in network marketing you are
best served by the Ubiquitous product that can be used by the
largest number of people, regardless of age, sex, training,
education, etc. And look for a product line that is easy and
comfortable for the widest group of people to represent. Now
obviously this line of thinking says don’t do jewelry or cosmetics,
etc. because you have just cut out 50% of the marketplace! True,
but if you are absolutely drawn to these product lines and are not
dissuaded by the fact (and yes, it is fact) that the best paid
distributors are normally not in these types of companies – then
proceed just simply because you love the products. You will be
immediately enthusiastic and in fact, passionate about your
business, and obviously that is a huge plus.
- Consumable products are considered the gold standard; most professionals avoid the “one-time-sale” type of
product. You’re looking for repeat sales, month after month; and
monthly residual income – Nothing is more powerful! Companies that
have a monthly purchase requirement for the distributors are apt to
product the most profitable for the distributor base and the income
is also far more predictable. Without that guaranteed monthly
volume base, steady monthly income growth is hard to maintain.
- Always be thinking about simplicity – Generally programs that offer services where licensure is required
are slow growers – that leaves too large a segment of the population
out. These may appeal to people who are professionals in that
industry segment already and licensed, and that’s fine, but as a
rule, companies that deal in insurance services, real estate,
mortgage services, legal services, energy and power services have
State Regulatory agencies that will constrain trade, require
licensing and be somewhat difficult to work around. Some of these
companies have different rules in different areas of the US, even
State by State, and so recruiting is constrained by geographic
boundaries to some extent. In most of this type of company, your
personal sales are a very key factor because the commissions are
more on the “front end” at the point of sale than in a residual
commission base coming from levels in the organization. If you are
a very good salesperson this may not be daunting.
- This is probably a personal bias, but I WOULD NEVER BE IN A COMPANY THAT DID NOT OFFER INTERNATIONAL EXPANSION so
type of product becomes critical here. The “license required”
service types above are truly out of the international market. Why
is this a big point? Well of course you can build a big business in
the United States, but this is absolutely a global business (thank
you internet!) and you simply cut yourself off from a huge
customer/distributor base if you are only domestic. It’s much like
a product line that only appeals to women; you’ve eliminated half
the population. Most people would believe that the United States
does the largest annual network marketing dollar sales; not so –
It’s Japan! Yes, Japan with half the population base. And there
are marvelously active, productive network marketing areas in
Europe, in South America, in all Asia and basically throughout the
world. In this case, the world really is your oyster, so make sure
your company has a big enough potential to fuel your global dreams!
As you are checking this out, here’s a key question to ask. Is the
compensation plan seamless? By that I mean if I am a distributor in
the US, am I considered a distributor in every country that company
does business, OR, do I have to resign and become a new distributor
in each country with a different compensation plan and the need to
requalify in each country, etc. This happens a lot and is a
nightmare! You want a seamless compensation plan so that when your
check comes in your monies from Japan, Great Britain, US, Germany,
etc. etc. are all on the same check in US dollars – Seamless!
- Avoid “same-old, same-old” – Kind of hard to explain, but you may be looking at a particular company, the
compensation plan looks pretty good it’s a global company, the line
is consumable but the products are indistinguishable from a dozen
other companies. Although this is a problem occasionally in health
and nutrition, there are certainly break-through products with new
technologies and first-to-market status that are superb choices.
Health and nutrition is after all a surging marketplace, in fact
well known Economist, Paul Zane Pilsner refers to the Wellness
Industry as the next Trillion Dollar Industry. The numbers on usage
of supplements are growing dramatically worldwide. So, if wellness
is your right choice, make sure you find a unique product. They are
out there and there is a ready made, growing marketplace for this
industry IF it isn’t just the same old vitamins and minerals.
- I don’t want to step on anyone’s toes here, but I think the statistics would show that it would be wise to avoid
Party-Plan programs if big money is your goal. These older type of
programs are very labor intensive, require a high level of retail
selling and for the most part leave 50% of the population (men)
cold. But if you just love to cook, then pots and pans and cooking
utensils may be your joy, or children’s toys (that need to be
demonstrated – time intensive) can seem like a fun part-time
endeavor for a mom with children. Or, makeup and cosmetics if you
love giving facials and having all the samples. But, these are
specialty companies where you really need to love the product line
above all because the odds are against big money.
Bottom line...I think that the appeal of network marketing is so broad precisely because of the choice of so many
companies and product lines. Virtually any “legitimate” product works
for the industry and the regulators, but they are very critical and
always on the lookout for products or services that are really FREE
offerings on the internet for instance that someone has wrapped some
packaging around and then represented as a viable product. This type of
company is ripe for regulatory intervention and failure. Examples are
“information” products where the same information is available on the
internet free; or discount coupons packaged in some type of consumer
booklet which is just an accumulation of someone else’s free discounts.
These are fairly easy to spot – as are the “gifting” programs that the
Attorney General’s close down. Beware if there is not a tangible end
product that gets delivered either by you or the company to an end
consumer. Be wary! Another dead give-away for a less than legitimate
company is if your bonuses are NOT PAID ON PRODUCT SOLD, but on just
“enrolling” someone. In network marketing, the only commissions should
be paid on product sales – the regulatory agencies recognize that as
legitimate marketing.
I have many friends in this industry who have been successful – VERY successful. Not all of these friends chose the same
company and product line that I chose, so it is obvious that although
these criteria around product should be considered when you are making a
network marketing choice – product is not the only issue. In the next
segment, I am going to talk about “doing your due diligence”. This is a
very interesting segment because I know unequivocally that MOST PEOPLE
DO NOT DO THIS! Most people make an emotional choice and quite
frequently, their choice has almost nothing to do with the company but
has more to do with the person bringing it to them! That can turn out
ok, if the person bringing you a particular company is an experienced,
UCCESSFUL professional. But, I want to go into the many other ways that
anyone can do successful due diligence and what you can find out is
truly valuable, in fact, critical information to help formulate your
decision.
Until then, again – keep networking in the broadest
sense; your life will be richer and the world needs your input. In
fact, I would always appreciate your thoughts on this column, and if you
have topics to suggest for the future within the realm of network
marketing.
My Best, Candy Webb
Please contact Candy at 916 408-3637 or CandyW@TheNationalNetWorker.com.
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