How To Evaluate A Network Marketing Company, Based On The Simple Formula Of Industry Leader, Randy Gage.

Randy Gage, checked out hundreds of companies before coming out of retirement and choosing his next vehicle for building wealth. As an experienced Network Marketer I was relieved to finally find a simple formula to explain to prospects, and to understand myself, how to spot a company that is poised for major growth and success. If you’re in the industry already, perhaps you’d like to check out how your company measures up to the formula. (Perhaps not!) As I have often heard it said, it is as important to know where you are, as it is to know where you are not… For those of you who are looking at fresh opportunities – this is especially for you. Finding a good Home Based Business can be very confusing so I hope the following steps will simplify the process for you and empower you to make the best choice for you when evaluating various options. So here goes:

1. You need a ‘Sizzle Product’ that you like.
For example; Randy commented that after 10 years of ‘jungle juices,’ the Nutritional industry was crying out for a sizzle product. This can of course be applied to any industry. A first to market unique product is destined for greatness when all of the other factors (as in the following steps) of the company are aligned correctly. A new product category is where fortunes are created.

2. A Product Line Extension Company
Randy observed that it is very unlikely to attract real wealth with only one product.
In addition to the fresh product idea we also stand to benefit greatly by knowing in advance that there are very clear plans for the product line extension. Personally I like the idea of keeping it simple so I want great new products coming out but prefer to stick to products of the same type, as opposed to developing into a ‘do it all’ distributor, or retail store. As in all fields, specialisation is always a winning strategy.

3. There Are 4 Basic Categories of MLM or Network Marketing Companies.
Category 1: ‘The old dogs.’ These companies are very solid and are already doing billions of dollars in turnover. They are mature, successful, and are not going anywhere. This is a great category if you want to build up a secure income but are not too concerned with the ground floor opportunity, which has obviously already been and gone! Randy doesn’t recommend joining a company like this if you want to build real wealth.

Category 2: ‘The Scams.’ These are the money games and the coupon scams. They’ve been around for ever and often give the industry a bad name. They are of course not part of the real equation so make sure to steer clear of those!

Category 3: The ‘Flatliners’ Randy identifies these companies as the ones that have been around a long time. They are nice companies and people can make a decent living with them. Generally they are very sales focussed and often revolve around catalogue distribution and/or party plan. These companies have sometimes been in business for as long as 20 years but not quite hit the exponential growth that they predicted - yet! Often this is due to the nature of the business, in that the distribution method is not duplicatable by a large group of people over a consistent period of time. So unless you are looking for a little extra income and perhaps expanding your social network then it is probably best to avoid this category too.

Category 4: The ‘Holy Grail of Network Marketing,’ as Randy calls it. This, simply put, is a start up company that has a viable probability to become one of the ‘Old Dogs,’ or Category 1 Companies. If you can join a Category 4 company that meets all the criteria in the steps outlined here, then you can lock in a legacy position. This will benefit you if you are an action person who is willing to do what it takes to be part of the reason for the growth of the company. (At this point I became very excited because I knew that was me!)


4. Compensation Plan
A great compensation plan should reward distributors for taking the correct actions such as building depth and supporting their team duplication. It need not necessarily have the highest overall pay out percentage but Randy looks for the largest number of well paid distributors in the company. It is no use to the distributors if they could earn a lot of money based on the people they have recruited but are unable to collect it because they are in a ‘breakaway’ programme where the qualifications are too high for them to attain on a consistent basis. Then their commission rolls up and they lose heart, not just money.

5. Field leadership
The System is king! Randy Gage has a reputation that precedes him as an expert system builder. It became painfully clear to me during my years with a category 1 company that no matter how great the turnover and the products… without a duplicatable simple system I was lost! The Infrastructure also needs to be in place for you and your team to plug into on a global level. Lastly the ‘Culture,’which is an interesting one. I interpret this as signing up with an organisation that has strong leaders in place who already have an established identity as ethical players, and a clear understanding of the culture they are encouraging in their down line. People who have done it already are the key. That way even with a start up company there is years of experience to draw on.

6. Management Team
A management team that is experienced in the industry. Preferably the management team will also be made up of people who have led the way with other successful companies. There is little point having a CEO who is an expert in Telecommunications, no matter how big the plaques on the office wall, if he or she has no clue about the specialised industry that we are lucky enough to be in.

So there you have it….. Maybe you like it, maybe you don’t! Either way it is essential in this exciting world of Network Marketing that we move with the times and plug into the resources and mentors that are out there. Whichever company you choose, I wish you all the success you dream of in the Next Generation of Network Marketing.

ABOUT THE AUTHOR: Rachel Henke coaches people to work from home with a proven system. Find out how to be an MLM Rockstar at her website: Free Audio and Info Pack