There are a few network marketing opportunities that are just scams or fraud. There are far more that may not be unscrupulous, but have a poor profitable track record, for any number of reasons. So how do you separate the wheat from the chaff? The beginners have to be cautious about the following factors:
1. Working Period
If anyone wants the efforts he puts in today to recompense for many years in the future, should choose a company that has proven that it will be around for a long period of time. 90% of all network marketing companies demolish within their first 2 years. People should not invest their hard earned cash in a business which is a tale of one month.
2. Net employed capital
Before investing people should check, does the company have the enough cash that it will need to grow up, to maintain a solid infrastructure, to attract brilliant management, to keep pace with technology — and of course, to pay the investors commissions! Publicly traded companies are more referable as they're required to disclose their financial status in DETAIL every 90 days to the SEC and other governmental agencies. One may not be able to get this information on a private company, so there will be a risk on its financial status.
3. Quality of products and services offers by the company
That is, they're not readily available elsewhere with a discount and they're not just another common product that has tons of competition.
4. Necessity of the products and services
Your sellable product or service must fill a real need at a fair price - and there should be a huge unexploited market for it. In other words, it should provide incredible value, so the end-user is the biggest winner.
5. Trendy ness of the products and services
Long term residual income can’t be build if the product or service only has short term appeal (e.g., beany babies, etc.). Think long term instead.
6. Generation of immediate income
To finance your marketing and expand efforts from cash flow.
7. Technology advantage
Not everyone is a sales type, but ANYBODY can plug into a system and tools that do the selling and sorting for you!
Everyone is not familiar with selling any products, but anyone can demonstrate any electronic gadgets or computers. So, the products must have the advantage of technology.
8. Commitment of the Introducer
There's a big disparity between a "sponsor" and a "recruiter." A sponsor coaches the beginners, stimulates and trains them and recruiters just makes agreement with people and in most cases, ditches them.
9. Possibility to make this business part time
The company must have computerized systems that can do the heavy lifting for you so that people can use their limited time effectively.
10. FUN and FROLIC
There should be an easy and funny environment, so that the network marketers perform their job smoothly and profitably.
Source: http://www.ArticlePros.com/author.php?Abhijit Dey
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