During the webinar featuring Jack Kerk, he shared about the top 5 key areas to explore before you make a decision to join a Multi-Level-Marketing network.

If you really want to think about getting in to the business of Multi-Level Marketing or even any other business that you want to look at, here are five areas that you can explore. First when you’re entering in to any business – direct-selling or the so-called Multi-Level Marketing business – you should know if there is a “Trend.” Is there a market for you to prosper in the business? The second are is that you want to a look for is if there is a Product and a good Science for the business. The third one is what you call a  great “Company”, the fourth one is the right “Compensation” plan and the last will be “Timing.”

#1. Trend

Let me go through the first area called “Trend.” A lot of people, no matter what type of business they’re coming into, really need to see that whether there is a market or not. It shouldn’t be whether you like the business or not.

These four areas are the biggest markets in the world right now. We’re talking about Nutrition and Supplement, Cosmetic and Beauty, Anti-Aging, and Weight Management. Let’s look at the two biggest one, Anti-Aging. Anti-aging in 2009 is reported at $170 billion turnover yearly. We are expecting that in 2016, this industry segment will rise to about $300 billion. The other bulk of the business is on Weight Management. Weight Management in 2009 for the whole world only has about $363 billion turnover. We are expecting this to grow to about 586 billion.

So, if you were to actually branch out to a business or a multi-level marketing business, you might really want to see the “Why?” This is because these businesses are human network businesses. These are the biggest markets that you should actually take a look at.

# Product and Science

Second is what we call Product and Science.

Let’s take a look at this company called Apple. Everybody by age twenty something to forty would have heard or used an Apple product.  Many years ago,  Apple is nothing. In fact, we just know Apple by their diskettes or computers. None of these people would realize that Apple would dominate the phone market, because the phone market is dominated by Nokia and Sony Ericsson. Why this company was able to dominate phone market was purely because of the company’s Technology and Science. They introduced iPod to the world, then the iPhone, and then came the iPad. This company then becomes a $600 a share; a company whereby the turnover will be equal to the amount of many phones there were over the last twenty years.

This also applies to multi-level marketing businesses. You really want to take a look at whether your product is exclusive. Are you actually having the exclusive “Science?” Is your technology actually patented? This creates a big barrier for your competitor that would keep your business safe.

#3 Company

Third is the Company. In Malaysia we have about 700 MLM businesses or MLM companies. This figure is fluctuating. I’m talking about 754 networks – so many Multi-level Marketing companies. And yet, many people and companies are still operating in an improper way. If you really want to build a network, like what we saw just now, it would take some time. It takes at least about three to five years time to be stable. For the whole organization to grow to a certain size that you want, it takes at least about five to ten years time.

There is also many of what I call minimal companies. These companies will show you a beautiful plan, but by the end of the day, they wouldn’t be able to sustain it. This is purely because, first of all, they don’t have size. Second, the company doesn’t have a vision and a culture that prepares them to stay long in the industry. Also, one very important thing, if you’re actually looking for a partner, you really want to transparency in your accounts. If these companies are not transparent with your accounts, I don’t think they are worth venturing into.

Also, you need a rock solid cash reserve for a company. It means that these companies are not in some form of debt or that their funds will not divert to other places. How do you do that? I think it is better to be a public listed company. It is best if it is a U.S. public listed company, not just local.

#4 Compensation

Fourth is something that we have shared before, which is what we call a “Compensation Plan.” We are all coming here for business; we are not coming here just to use the product. If you really want or love the product, you can just buy it. We’re talking about multi-level marketing business. You should always take a look at how much you get. If you get a job done, what is the compensation?

Other multi-level marketing companies are only set in such a way that the plan is pretty much like a sales plan. What do I mean by “Sales plan”? Sales plan means that the are actually more commission built-in on your front tiers. When it comes to the fifth generation, sixth generation, seventh generation, deep down, they are getting less and less commission. If this happens in a compensation plan, that tells me that this plan is pretty much like a sales plan. All the networking people in this compensation plan will focus in building their front generation, which is what we call sales.

To see what a good compensation plan is, you really want to look at whether they are actually designed to promote your network growth, so that you are moving up the network. The company should put in the good commission in every single level.

A lot of people don’t realize how the company pay out commission and they quickly rush in to a network business. So after a while, they start to realize that after a few years of hard work, they don’t actually give what they promised.

#5 Timing

Last that we’ll talk about is very important in any business. This is called Timing. Timing is everything. I hope you don’t get me wrong like you have to wait for the right timing to actually come into a business. I just would like to say that if you come into a business, and you know the timing is right, it will eventually save you a lot of effort.

For example, we take a look at Apple. Apple had been building the business for over the last twenty years. If you were to look at Apple, they are operating in such a way that you can take part in to the business. Don’t you think that as an investor or as a business partner, the best time to buy Apple share is not about ten years ago but about this recent five years of time? Why? Because of the new technology; because of the iPhone, iPad, or whatever is dominating in the market right now. Timing is everything. If you wouldn’t be able to actually tap into the right timing, you may take an even longer time to succeed.

These are the five areas that I really want to share with you. Every single area will present a bit of your success towards all your businesses. Most importantly, if you really want to understand more about network marketing or multi-level marketing business, you also need to understand that it takes time to create results and create your network.

In the past two or three years in my career in network business, I realized that a lot of people are telling me that they have failed in multi-level marketing, and they have failed in some sort of direct-selling, so they are very worried in coming into this business again. Often then, after I chat with them and understand more about why they say that they’ve failed, I realized that these people only tried out the business for one year. Then there are some that are just using the product. There are even people who just tried the business for about three months. A lot of hard work is needed, especially at the beginning stage.

Watch the full webinar replay.


Personal finance author and trainer

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