It's difficult to understand why a company would eliminate a portion of its business model - potentially losing thousands of distributors & hundreds of thousands of dollars. However, that's exactly what iLearningGlobal has done. It has shut down its network marketing division - presumably due to it not being a profitable marketing arm.iLearningGlobal.tv opened for pre-launch in July of 2008 and shut down its network marketing division in March of 2010. Capitalizing on the trend of continuing adult education via the internet made iLG appear to be an excellent opportunity with a lucrative compensation plan.iLG is not the first & will certainly not be the last network marketing company to open its doors with the best of intentions, only to be forced to shut down. No matter how good a new MLM or "start up" business may sound; there is an increased level of risk to the distributor who chooses to join a "ground floor" opportunity.The announcement that the company was disbanding their MLM division has left many distributors upset and wondering what to do next. Before you jump headlong into another network marketing company, first take the time to learn what it is you need to know to decide which company you should affiliate you good name with.Harvard Business School says you should look at these 5 things when evaluating a business opportunityThe Company - is it solid, established, likely to remain in business?
The Product - is the product going to deliver what it promises, is it good quality, can the consumer depend on it? Is the VALUE of the product greater than the cost? Are people who are NOT involved in the business, buying & using the product who are not distributors? How about retention? What are the company statistics regarding how long the average consumer (not just distributors) continues to use the product?
The Need - is there a need in the market place for the product being offered? Is there a unique market niche or is the product just one of hundreds of different supplements that can be found at the local health food store - another brand of cosmetics to compete with Revlon, L'Oreal or Estee Lauder?
The Compensation - if you're going to put your time & effort into something are you going to be paid a fair amount? How much product would you have to sell personally to recoup your investment & get into profit mode? If you're building a sales organization, how many new distributors would you need to join your team to get you "into the black"?
The Timing - now would NOT be a good time to start selling cassette tapes or vinyl records, so how does the timing look for the product or service you're considering? Are you ahead of a trend, at the wrong end of a trend or just one of lots of other companies marketing similar products?Ok, that's all fine & good for a traditional type business - what about MLM??My internet network marketing mentor says that a Successful network marketing business needs these 5 things.A product with an untapped, wide open market.
The business needs to be based on powerful, current trends.
Retention rate needs to be high if ongoing residuals are going to be strong.
The start up cost needs to be low so that the business will continue to grow.
And the comp plan better be good - it should reward not only the experienced associates, but the NEW rep as well so they can make money quickly.If the company you're considering can answer "Yes" to all of these criteria, you've probably got a real winner on your hands.
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