If the company you are currently working with or the company you're considering meets all of these Success Factors, then you are probably on the right track! The business my family and I have chosen has brought us over $50,000 in the last 18 months, and we used this criteria when making our decision - I hope this helps you!
FIRST...2 questions...to make sure we're all on the same page.
Would you agree that:
...most people like the idea of a home business because of the flexibility and freedom and options that come with the territory?
If yes, then would you also agree that...
...most people like the idea of owning a business because of the equity that can be accumulated, along with long term, consistent monthly residual income?
If yes again, then check out my criteria - you're probably looking for exactly what I was looking for!
1. Company Track Record - How long has the company you're considering representing been in business? What are the company's annual sales each year since in business? Does the company print average income statistics for business builders? It should and you should ask for them. Proof of long term sales, success and growth is critical with choosing any business.
2. Financially Sound - Does the company have outstanding debt? Choosing a company that is debt free provides huge advantages in this economy, and lowers your risk.
3. Strong Management Team - What are the backgrounds and credentials of the management team? I wanted to work with a company that is run with integrity and strong long term leadership. I looked for management that was/is mission driven, versus money driven.
4. Unique Consumable Products - Are the products relevant? Products that people actually need, use, run out of and repurchase month after month? Do they have any trademarks or patents allowing for exclusive rights - meaning no other company can copy them?
If the products are non-consumable, then brace yourself for constant selling and promoting. If the products are consumable but are the kind of thing that people don't usually buy, be prepared for a big revolving door at the base of your business. This kind of business isn't a new idea, look at some of the 60+ years of history and you'll see what I'm talking about!
5. Unique Consumable Products - Are the products usable by everyone? Is there wide market appeal for the product line? If they are specific to a gender, age group or body size for example, that niche market can be harder to market within, and the market cap (potential) goes down. If you must create the "need" to buy, that is done through marketing and selling, and history tells us the "need" fades and that volume goes away.
6. Competitive Prices - Are the products comparable in price or less expensive than the competition? If they aren't competitively priced, be prepared for the same revolving door effect (people leaving to go shop with the competition).
7. High Customer Reorder Rate - Does the company document and publish it's reorder rate?
If the re-order rate is low, you will experience the treadmill effect (at best)...spending your time trying to replace builders and customers that left. Long term accumulation can only happen with a strong monthly reorder rate. That accumulation is what will bring you a predictable, steady and secure residual income.
8. Low Initial Investment - If the cost to join or start is too high it makes for more risk and difficulty in attracting customers and business partners. In this rough economy, the best case scenario (in my opinion) is a nominal (less than $30) initial registration fee that is fully refundable - creating a marketing opportunity to advertise NO INVESTMENT (investments can be lost - since this is fully refundable, it's not an investment!).
9. Low Monthly Requirement - If there is a high monthly requirement, customers/business builders may end up with inventory they do not need (garage qualified anyone?). If there is a low monthly product requirement, it allows for real consumers, to really buy what they really need and nothing more. Since our aim is long term residual income, it logically follows that we can't go around trying to change people's budgets and at the same time expect long term repeat business.
10. Rewards For Leadership Development - Does the company reward you for helping others in your business succeed? Are you commissions and rewards reduced as your leaders move up the ranks? If so, you'll be right back on the treadmill...indefinitely. It only makes sense to scrutinize the compensation plan and make sure you'll be rewarded for developing long term leadership in your organization.
11. Risk-Free - Is everything 100% guaranteed? Makes for a nice pitch, make sure it's true and know what the terms and conditions are.
12. Anyone Can Be Successful - Is the business plan set up for anyone to be successful at any time? If it's a company that says "Ground floor" opportunity, or "Get in Now", beware of the hype. Aren't we tired of that crap? If only the people who join at the beginning can be successful, then eventually people will get hurt.
Think about the people that will be at the "bottom" in your organization. Are those people receiving ample value to continue to sit at the bottom as consumers long term?
Hope this measuring stick comes in handy for ya!
Kristian Hoenicke
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