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Harvard Business School Suggestions
on choosing a company

The Company

Find out how long the company has been in business. What is there earning potential, are they listed with the Amex or even better, the NYSE. Are you aware that a company has to be INVITED to be on the NYSE?? A company can not just apply and get accepted, the company has to prove themselves so the NYSE will invite them to trade here.

Powerful!! What and who is running the show at the company, what is their Mission Statement and do they hold true to it. How profitable has the company been, not their "projected" earnings, but the past earnings. Almost every company wants this graph to be up and to the right, is it or does it resemble a saw blade (up & down, up & down) or worse, a downhill ski slope?? Research the company and determine if it is cash rich or a start-up company.

The Product or Service

What is the company offering?? Is it something that people or businesses want or need?? You wouldn't want to get involved with a company offering phone cards or cell phones; that market is saturated.

Will the product or service always be needed or does it only fill a temporary need?? A temporary need may be very viable and profitable, although you will need to ask yourself if you will achieve your long term goals.

Will you have to start all over again when this temporary need has been met. For some, this isn't a problem, they will gladly look for another venture. You will need to evaluate this approach for yourself.

From my experience, a company that is only focused in 1 or 2 areas is more attractive than a company that has diversified into many areas.

Here's the problem.... you can't be everything to all people; you can lose credibility. Would you want an insurance company to start selling vitamins and health products??

Or, would you want you doctor to start selling cars when you are at your medical appointment?? Neither of these are very appealing, so goes for companies offering products and services.

The Marketplace

Who will this product or service benefit?? If the product or service will only address red-haired women age 27-35 that live in the south, this may be a tough market to become involved with. That is unless you are a red-haired woman 27-35 and live in the south.

For most of us, the product or service should be one that a wide range of people need or could benefit from. The wider the demographics, the higher potential for success. Offering a product or service with appeal ability to both men AND women increased the interest in the product or service.

The Compensation Plan

Money. This is the bottom line for many people. Although, to take full advantage in any compensation plan you need to:

1. Offer Value

2. Undersell and Over deliver

3. Help Others

4. Have Belief (there's that word again)

5. Commit to "X" hours per week

Compensation plans provide many things to the associate; to me important features you will need to evaluate include:

1. What is your commission for each sale?

2. Are there overrides on your downline and how much?

3. Do you receive residual income on sales and for how long?

4. Does the compensation plan continue to pay if you leave the company?

5. Is your business 'Will-able'?

6. Do you receive bonuses?

7. Can you go past your upline if you do better?

8. Do your commissions increase with increase production?

The compensation plans provided by companies vary widely. Some companies will not let you move past your upline regardless of your performance. Some compensation plans cannot be continued if you leave the company, thereby losing all the business you developed. Huge waste of time in my opinion!

Then again, you will need to weigh the pro's and con's of whatever company you choose and follow your gut instinct and belief in the plan that fits your needs.

"The most difficult thing is the decision to act,

the rest is merely tenacity. The fears are paper

tigers. You can do anything you decide to do. You

can act to change and control your life; and the

procedure, the process is its own reward.?

- Amelia Earhart

Personally, if I'm going to devote my time and effort into a company with a product or service I believe in, I would expect to continue reaping the rewards of my time and effort. Bonuses are also a plus when evaluating any compensations plan, sort of an incentive that will help you increase your motivation and step outside your comfort zone.

The Timing

Meeting a void in the marketplace versus jumping on a band wagon that is already saturated in the marketplace is the difference between succeeding and not succeeding in your home business. It is necessary to look closely at the product or service the company is offering.

1. Is there a need in the marketplace?

2. What demographics are you addressing?

3. Is it affordable?

Every company goes through 3 stages upon its inception along with the "S-Curve" found in economics.

3 Stages

1. Rejection

2. Ridicule

3. Become Self-Evident

An example of the S-Curve would be when HMO's first started. Once HMO's reached 3% market saturation they reached 'critical mass' which means the public now understands the need or benefit of having the product or service.

It took HMO's approximately 10 years to reach 3%. During the following 7 years, HMO's reached 52% market saturation. This identified a huge need and showed benefit to the American public. Huge profits were made during this explosive time.

Finding a Network Marketing or MLM company that fits this model will not be an easy task, although, there are a few still out there and millions of dollars are just waiting to be made by average people like you.

Being ahead of trend with a stable and progressive company that is offering a product or service that is needed in the market place promises an opportunity at unlimited income potential.

Harvard Business School Suggestions on choosing a company

Harvard Business School Suggestions
on choosing a company