The good news is that in most cases it doesn’t matter.  Yes, you heard me right.  The majority of network marketing companies have good compensation plans that offer a fair exchange to you for the work you do.  More than fair if you stick with the company and really do well.

So my advice is not to worry about explaining the compensation plan to your prospects – just let them know what they need to do to build their business and the money will follow!

Our first moderately successful venture involved a health care savings plan for people who couldn’t afford – or couldn’t qualify for – regular medical insurance.  This business was going well until the law changed in Florida (where we were living at the time) and suddenly we could no longer sell that product!

We picked ourselves up, and found a new venture.  We had a respectable residual income still coming in from the first business, and we were able to build this new business even larger, recruiting a great team and building our income to what we considered to be a very high level (over $10,000 per month).  We were happy and doing well and helping others to do the same.  THAT business was based on the mortgage industry.  When the housing marketing crashed our income crashed right along with it.

That taught us our first big lesson in network marketing:

1) Don’t choose a company with a product that is likely to be legislated out of existence!  Pick something simple and safe.  We picked greeting cards because it is unlikely that sending heartfelt greeting cards will be outlawed any time soon!

2) Choose a product that you love and are passionate about.  There is a lot of repetition in network marketing when you make your presentations to your prospects – you had better LOVE talking about that product!

3) Choose a product that other people will love too!  We had a brief foray into a company that offered a video-related technology product.  Being film makers we LOVED that product.  Unfortunately, we discovered that not EVERYONE is dying to be on camera when sending emails to their friends and contacts – who wants to be seen with no makeup and wearing bunny boxers?

4) Pick a company that has no competitors.  With the video technology product there were soon a lot of competing companies in that field as computer technology rapidly advanced.  And hands up who has been offered a Miracle Drink or Wonder Water product in the past 12 months?  Enough said.

There are more ways to choose the right network marketing company – stay tuned!