It is probably safe to say, there are a lot of misconceptions and assumptions when it comes to startup companies in the network marketing arena. I want to take you through the good, the assumptions, and the reasons people should consider a start-up company when entertaining the industry.
Throughout my 12 year career in network marketing, I’ve been fortunate to see a lot of what works and what doesn’t across the board. I’ve been privileged to see some great success and help many others achieve the same. I’ve worked along side some of the best in the industry, mastering my own craft and learning the best places to, plant a flag or call home.
Now, perhaps we should first qualify what a startup company is.
Commonly, a start-up company is often referred to as a company that is less than two (2) years old. This may be true in a traditional or technology based business, however, in the network marketing space this could look much different.
As an example, ARIIX, where I call home, could be looked upon as a startup company, despite entering the industry in 2011. They are still new in terms of companies comparable in their size, and distributor/customer volume. They have created a solid foundation for growth, infrastructure, and leadership which will propel them through their approaching, momentum phase.
Consider this, with more than 3,000 network marketing and direct sales companies in existence, and are surfacing every week, how does one decide? A startup company or not.
Is a ‘first movers advantage’ a real thing? 
What do you look for in a network marketing company?
What if it hasn’t reached a momentum phase?
Who owns the company?
Is the market saturated?
It is safe to say, these are the questions you should be asking yourself when looking at any network marketing company, not solely a startup. Let’s go through a list of things to consider when making your decision.
Research the company, carefully. Consider how long they’ve been in business, investigate their financial situation, publicly traded or private. Who are the owners and management teams? Consider how decisions are made, and how they would affect customers and/or distributors. Bottom line, how solid does the company look?
Find a service and/or product you are passionate about. Consider if the products and/or services are in demand, and will continue to be. If they don’t excite you now, they won’t later either. Have a look at where the products are manufactured, pay attention to shipping costs and times. Will the company be able to handle rapid growth? If the company is service based, it’s important if the company delivers or performs it themselves, this is important as outsourcing can cause unnecessary variables long term.
Compensation Plan. One of the best places to start in this area, because no one can expect you to learn it overnight unless of course you’ve had some experience and are familiar in this industry, but determine if it is the customer or recruiting driven. Will the average person be set up to succeed here? Consider asking for estimated earnings per consultant, and weigh that against the monthly costs (if any). A great way to determine how lucrative a compensation plan can be is to consider what percentage the company pays out on the dollar. For example, the company I partnered with is 51%.
Fun Fact: Income growth for ARIIX for 2012-2013 was 244%; industry average was 26%. Sales growth during this same period for ARIIX was 562%; industry average for all network marketing companies was 31%. And, over the next five years (from 2017), ARIIX is projected to cross 1 billion dollars.
Not bad for a … ‘startup’.
When you find several companies that meet your criteria, do yourself a favor, don’t count out the startup. Then, you have to use your gut instincts to make a final decision. Speak to the leadership, consider looking for a sponsor that will align with your goals, beliefs. Now, don’t get me wrong, when the company inception into the field occurred, is definitely part of the equation, but such a small fraction when you consider all sides of the coin.
Ask yourself this, ‘Does this company feel right?’ If so, you’re ready to change your life, and others live along the way.
If you have done your due diligence, with any company, I think you will find that startup doesn’t need to be a negative word. It doesn’t need to carry the assumption of struggle. In fact, it could mean bigger potential, wide open possibilities, huge room for growth, and long term vision.
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I look forward to hearing from you!
And, definitely, check this out in the event you are looking to see how it is I have changed my life through the Network Marketing Industry over the past 12 years (and how you can too!)
Rick Billings
COACH. TRAINER. HOME BUSINESS ENTREPRENEUR.
Email: rick@rickbillings.com
Facebook: http://facebook.com/rickbillingsentrepreneur/
Skype: rbillings3
