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The Harvard Criteria







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How to Choose a Network Marketing Company  The Harvard Criteria 


Network marketing is being taught in
colleges
across the country.
 


After extensive research into the network marketing
industry,
 The Harvard Criteria emerged, a set criteria
for choosing a network 
marketing company.  


               The Harvard Criteria


1.  The company should be at least 18 months old, as 90% of
all network marketing companies that fail do so in the
first 18
months.



2.  The company should have a product which is unique and
highly consumable, unique in this case means that you have
an
exclusive product that can only be purchased from your company’s
distributors.


Having a product that is highly consumable means
repeated
sales,thereby guaranteeing customers loyalty
versus a one time sale
and having to locate new customers.



3.  It needs to be a "ground floor" opportunity.

The Harvard Criteria 
suggests that in order for the
opportunity to qualify as "ground
floor" the number of
existing active distributors should be less than
½ of 1%
of the population (300 million in the United States)
in the
country wherethis network marketing company exists.

In the United States this figure is equal to 1.5 million people.



The Harvard Citeria 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,
The Harvard Criteria
 considers it to be a once in
a lifetime
opportunity.




There are four states of growth in a network marketing
company:

Foundation stage:  This usually lasts 6 months.

This is the period
when a company develops its product
and marketing
plan.



Concentration:  This period lasts from 2 to 4 years when
distributor network is started.



Momentum:  This period lasts 2 to 4 years also.

T
his is when the company experiences phenomenal growth.

Both retail and distributorship explode in terms of
expanding growth.


It is during this period that a company virtually sweeps
across the nation.


When a company’s sales reach $50 million annually,
they reach what is called "critical mass",
(sales go vertical right off the graph).

Also, approximately 2/3 of the company’s growth of
new distributors occurs during this period.
When "Herbalife"
reached 50 million in retail sales, they jumped to 151 million
in retail sales in only 12 months.



They also added over 800,000 to their
organization.



Let us assume you have an organization which is producing
an override bonus check to you of $1,000 per month.



When the company reaches 
"critical mass", distributors
automatically experience a ten fold increase in their earnings.



In other words, $1,000 per month becomes $10,000 per month.


This is the reason for getting involved on the "ground floor"
so you will
experience the benefits of explosion
growth.



Stability:  This period lasts for the life of the company.


A network marketing company that is dedicated to the success
of its distributors will
continued earnings and growth.  


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