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How To Start A Successful Network Marketing Company
By David Berky
How many times have you heard the siren calls: "join now before this thing explodes", "get in on the ground floor", "a once in a lifetime opportunity"?
How many times have you jumped in only to find that the company was just a marketing shell? Or didn't have the resources to survive? Or was just plain full of crap?
Who cares if you get in on the "ground floor" if the foundation crumbles beneath your feet?
So what does it take to start a successful network marketing company? What are the characteristics you should be looking for to find that true "once in a lifetime opportunity"?
There are three crucial elements found in a company that will be successful in network marketing: a solid financial backing, a solid product, and a solid management team. To illustrate these elements I will use a relatively new company named Agel (www.whyagel.com).
SOLID FINANCIAL BACKING
Did you ever try to build a business on a shoe-string budget? Tough wasn't it? Imagine trying to build a business with hundreds of thousands of customers/distributors with little or no money for product development, product production and distribution, marketing materials, advertising, customer/distributor support, and the list goes on.
Yet so many new companies neglect probably the single most important part of the company's foundation: financial backing. Yes the old adage "it takes money to make money" is true in starting a network marketing business. While it is possible to shoe-string a new network marketing business, it is highly unlikely that the business will be successful. It's unlikely the business will even survive the first year.
When the Agel company was in it's development phase one of the first items on the to-do list was to secure solid financial backing. After developing the business and marketing plan, the Agel founders presented their plan not to other network marketers, but to financiers. They knew that substantial seed money was needed to get their company off the ground the right way and to set the stage for the successful launch of the company.
They were so successful in finding their financial backing that at one point they even had two suitors bidding for the right to finance the start-up phase (one of these suitors was another world-famous network marketing company who saw the great potential, but then pulled back when they realized that the power of this new product AND their new - first of it's kind compensation plan - would literally draw away a major part of their distributor base!).
SOLID PRODUCT
A business without a product is like a battleship without ammunition. A business with a weak or inferior product is like a battleship that shoots water balloons. A network marketing business must have a solid product. Not just a solid product, but a product that is unique in some way. Copycat products from copycat companies never become the industry leaders that the "first to market" products achieve.
Ideally a new product will be the first in its category. It will create a whole new category of product. With the many thousands of network marketing companies in existence today it is very unlikely that a new product will create a new category unless there is some technological breakthrough on which the new product is based.
Agel is a company that has been able to do just that. By using it's proprietary Gel Suspension technology, Agel has been able to create a nutraceutical product suspended in a gel format (dubbed "gelceuticals"). The appeal is that rather than choking down pills or mixing powders, the gel formula is easy to take and helps the body rapidly absorb the nutrients.
SOLID MANAGEMENT TEAM
Regardless of how much money is backing a company and how great the product is, without a strong management team the company is doomed to failure. But with most network marketing start-up companies it has always been a chicken-and-egg problem. How can you get financial backing without a good management team and how can you get a good management team without financial backing.
It is very hard to lure successful executives into a new unproven company no matter how zealous the founder's vision. A business plan alone is not enough to lure top performing management executives from successful established positions into a risky venture. So how can a new company solve this "Catch-22"?
Agel has apparently solved it by moving in both directions at once. For starters, their founder and president already have strong backgrounds in the network marketing industry. Agel Founder and CEO, Glen Jensen, helped NuSkin grow into an $800 million per year company. Glen later took Neways to Japan and Russia, introduced Enrich to Russia adding 200 thousand distributors, and most recently founded Synergy Worldwide, successfully launching in Japan.
Agel President, Craig Bradley, served as Vice President of Sales for Melaleuca, served as Vice President of North American Sales at USANA Health Sciences and most recently, was serving as the President of VíaVienté, a successful network marketing start up. Like Craig, all of Agel's management team is made up of network marketing professionals who have been executives in successful businesses.
These professionals joined Agel not just because they were swayed by the solid product but also because of the solid start-up financing Agel was able to obtain.
So the bottom line when looking at a new network marketing company is the evaluation of the three critical ingredients: solid financial backing, solid product and solid management team. Sure the compensation program and distributor support is also important but there is little need for them if the company can't even survive the start-up phase.
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How To Start A Successful Network Marketing Company - Article - Agel Vitamins In Gel
Revolutionary vitamin delivery system - Agel. Vitamins suspended in a gel matrix that is easily absorbed by your body so you get the full value of the nutrients. Agel is also a great network marketing opportunity. Keywords: agel, how to start a successful network marketing company, agel article, network marketing article, network marketing company, vitamins, vitamins in gel, multi level, mlm, network marketing opportunity, referral marketing, multilevel, vitamin, health food, healthy diet
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