The Company
One of the many points people bring up when presenting an opportunity is that this company is the best company. How are you to know? I would like to give you some yardsticks against which you can measure the company to see if it truly measures up.
One of the first things is the age of the company. Like any industry, network marketing has a large number of failures. The vast majority of companies do not make it to 5 years. Many people pitch a start up as a ground floor opportunity when in fact it’s speculation. If you want to make sure that your income will be around for a long time after you’ve built it, you should look for a company that is at least 5 years old.
Another thing to check is whether it is a publicly traded company. Private companies do not have to open their books and can say almost anything about their financials. A publicly traded company has to be audited and the yearly report has to be filed with the SEC in the U.S. They have to be truthful about their financial information and it’s open for the public to see if they are profitable or not.
Also, check to see if the company has received any recognition from within the network marketing industry and without. What does the BBB say about the company? While all companies get complaints of one kind or another, how many of them are unresolved? Has the company been recognized for being run well?
Are the company’s processes certified by the appropriate standards groups such as government agencies and third party auditors? The company should be run on a consistent basis rather than being in constant chaos mode.
Check the results of the management team. This can be difficult on a start up company but for a publicly traded company older than 5 years old, you should see a consistent growth and profitability pattern.
All this may seem a bit much but remember, the company will be your partner in your business so you need to know who you are dealing with.