What is network marketing?
Network marketing is THE Business Model of the Future.
Network Marketing is for people who don’t want to be stuck living a mediocre life.
Here is a definition of Multi-Level Marketing
Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant’s “downline”, and can provide multiple levels of compensation. – Xardel, Dominique (1993). The Direct Selling Revolution.
SO. Did Harvard Business School develop criteria for the perfect Network Marketing Opportunity?
Apparently, there has been a rumor circulating that Harvard Business School came up with criteria for the most desirable network marketing opportunity… since the 1960’s.
I’m not going to even take the time to cite how many places on the internet there are that back this up. Feel free to Google, Yahoo, and Bing away.
BUT I could not find any mention that anyone ever taught or published anything like the criteria from Harvard Business School.
These Criteria are more likely to have come from Dr. Charles King, who did graduate from Harvard but did not teach there and who is a prominent supporter of the industry.
The “Harvard Business School Criteria”:
1. The company must be at least 18 months old.
90% of all network marketing companies that fail do so in the first 18 months of operations. Lack of adequate financing and inexperienced senior management are two of the more common pitfalls of start up companies so be sure to find out what you can about the MLM’s funding and management.
2. The company must have a product that is both unique and highly consumable.
Meaning it must be an exclusive product that can be purchased only from your distributors with repeated sales thereby guaranteeing customer loyalty versus a one-time sale and having to locate new customers.
Pam was introduced to the It Works! Wrap that was created by Luis Mijares. The It Works! Wrap is It Works Global’s number one selling product to this day. Also, all of our products are consumable. We have the It Works! Wrap, our top-notch supplements, and our skin-care line.
3. It needs to be a “ground floor” opportunity.
“Harvard Business School” suggests that in order for the opportunity to qualify as a ground floor type, the number of existing distributorships should be less than ½ of 1% in the country where this network company exists. In the U.S., this figure is equal to 1.5 million people. Harvard Business School also stated that if there were less than 500, 000 people involved, you would be on the cutting edge of a great opportunity. If the company has less than 100, 000 distributors, Harvard Business School considers it to be a once in a lifetime opportunity.
It Works Global has approximately 40,000 distributors working worldwide… we are in momentum. And it’s so true that TIMING is the key.
DR. CHARLES KING’S CRITERIA
1. The Company needs to have a Consumable product or service.
(The It Works! Wrap.)
2. A Unique product or service
(The It Works! Wrap.)
3. Integrity and strong leadership in top management.
(Mark Pentecost, Pam Sowder, Mike Potillo, Wally Neeson.)
4. At least 18 months in business.
(We have over 10 years!)
SO. Network marketing may not be taught/endorsed/published at Harvard Business School.
That doesn’t change the fact that it is an INCREDIBLE industry.