In part three, I discussed the pros and cons of the three basic types of Internet Marketing businesses from the perspective of a newbie. Part three concluded with various reasons I believe Network Marketing is the best play for those new to internet marketing. Those reasons include the following.

The internet and other developments in technology have created more opportunities to market to a wider variety of people. Before the internet, the most successful companies taught their members almost exclusively warm market tactics, however with a “world wide web” distributors no longer have to rely on friends, family, and acquaintances who may or may not have the necessary marketing and selling skills or even the desire to build a business. The internet has also eliminated the need for distributors to actually have to handle the transactions themselves. The cost of the products marketed by the distributor are paid directly to and distributed by the company. Many network marketing companies also offer free or low cost training to their members. Once someone learns to apply internet marketing principles to successfully build a network marketing business, then those same skills can be used for other types of marketing on the internet.

So what should a prospective distributor look for when choosing a company? The following are indispensable, products, compensation, and system.

PRODUCTS: While the least important of three aspects one should look for in a network marketing company, quality products should not be overlooked entirely. In fact, unless a product is being conveyed for end use by a consumer, network marketing ceases to be legal and becomes an illegal pyramid scheme. Ideally the product will be consumable. Nutritional supplements are particularly well suited for distribution by Network Marketing. Some companies distribute services and others shopping discounts. I am personally more skeptical about the companies that distribute information products as some are of dubious ultimate value.

COMPENSATION PLAN: A fair compensation plan is the second most important of the three aspects one should look for when choosing a network marketing company. The compensation plan should avoiding front loading, which is a practice where an inordinate amount of the compensation is paid for signing people up. It should also employ a forced matrix which causes people who are initially unable to sponsor or sell successfully to benefit from spillover of upline sponsorship. Ideally, while only one company I’ve seen offers it, the compensation plan should include a way for members to earn credits for continued membership enabling them to participate in bonus pools to encourage loyalty.

SYSTEM: A marketing system should be in place with any company that you chose and it is the most important aspect to consider when looking for a network marketing company to join. No matter how good the product marketed or the compensation plan offered, the ultimate success of the company and its distributors will be determined by the marketing system employed by the company and its distributors. The system should teach a variety of tactics for its distributors to employ. Every good system will include the use of warm market tactics, however it shouldn’t stop there. The system of a Network Marketing company should also include good sources for purchasing leads. The system should definitely offer training on how to generate your own leads by free, and paid methods and how to develop a presence on the internet .

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