When choosing network marketing companies, once it has been determined that a network marketing home based business is appropriate, the real difficulty is in determining which company’s opportunity to become involved in. Without experience in the industry, unless you’re extremely lucky, it is next to impossible to pick a winner on the first try!

Unfortunately, it seems that experience in the industry is not always sufficient for the proper evaluation of the network marketing information which is available about a home based business opportunity.

As is the case with traditional business, there are good opportunities and bad opportunities.

As is the case with traditional business, unfortunately many people let their emotions cloud their rational judgment when it comes to evaluating a Network Marketing home based business opportunity!

The Evaluation Process

There are certain criteria which must be used rationally when one does an evaluation. Technically, these could be divided into two categories: absolutely necessary characteristics and desirable characteristics.

For me, the desirable characteristics are also necessary; therefore, I will not distinguish between the two and will address them in no particular order.

Competent Management Team

Normally it is very difficult for us to know any more about the Network Marketing Company’s management team than what they tell us themselves.

The evaluation of the management team only becomes an issue with a new company! If a company has been in business three to five years with a well documented and stable growth record, we really don’t need to waste our time.

New companies are starting up at a higher rate than ever before.

It seems that every person who has ever been successful at a home business wants their own company. Surprise, running a Network Marketing company is traditional business and new companies fail at near the same rate as traditional businesses!

The most successful companies are run by people with documented past success in traditional business and have come to understand the tremendous international marketing power of the Network Marketing industry.

Age of the Company

The most common mistake made by the masses is getting emotionally tied up in the “ground floor opportunity” pitch which caters to our “greed” and the “fear of loss”!

If a person is determined to get involved with a new company, they should do so because they understand totally the market for the product(s) and the experience of the management team.

Being on the ground floor is usually not best because a majority of new companies will fail. Even if the new company does succeed, there will be many adjustments and changes during the initial growth and there usually is a lack of proven marketing procedures, materials, and training support.

The attrition rate is usually much higher during those first years because most individuals are not emotionally flexible enough to accept the changes and turmoil.

A Network Marketing company experiences four basic phases of growth and market penetration. The risk of the company failing during phase one (usually first 3-5 years) is 10-20 times greater than in phase two.

Contrary to popular belief, it usually is far better to be involved with a young company after they’re entered phase two. The risk of their failure is negligible. Their success indicates that their products are acceptable and that their marketing procedures and materials work!

Then, either fortunately or unfortunately, our success depends only on ourselves!