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I’ve watched network marketing companies fail for several reasons. Sometimes the 4-5 owners excessively argue over the operation and profits of the company. Sometimes divorce between husband and wife owners can ruin the company. Other times poor management decisions regarding commissions or company profits lead to doom. These company failures can happen to both the Opportunity-Minded Company and the Product-Minded Company.

 

–OPPORTUNITY-Minded COMPANY

An Opportunity-Minded Company is one that survives primarily by focusing on expanding the number of new recruits, its new independent distributors. This company produces innovative products to be purchased by its distributors, but keep the number of products to a minimum. This company heavily invests its efforts in training and encouraging distributors to recruit new prospects.

-Opportunity-minded companies rely on prospecting and recruiting new people

-Opportunity-minded companies keep the number of products to a minimum

-Opportunity-minded companies rarely go out-of-stock on products

-Opportunity-minded companies do not usually manufacture products

-Opportunity-minded companies tend to have low retention of new recruits

-Opportunity-minded companies spend much of their effort teaching about recruiting

-Opportunity-minded companies often have to re-invent themselves to survive

-Opportunity-minded companies usually own office buildings as their only assets

-Opportunity-minded companies frustrate product-minded distributors

-Opportunity-minded companies usually survive less than 15 years

In my extensive experience, the Opportunity-Minded Company has a relatively short life (typically 8-12 years). When it goes bankrupt its independent distributors must find another host company. When sold the company never regains momentum. Owners and executives of the company made lots of money. So did the top distributors. Most of the people end up as losers; for without a host company they have no income.

 

–PRODUCT-Minded COMPANY

A Product-Minded Company focuses its efforts to produce exclusive products that meet the needs to its independent distributors. This company attracts independent distributors using its unique products. This company spends considerable efforts training its independent distributors on using products, product benefits, product features, and how to share products with prospective recruits.

-Product-minded companies focus attention on innovative new products

-Product-minded companies tend to have a wide variety of products

-Product-minded companies frequently experience out-of-stock product situations

-Product-minded companies often manufacture their own products

-Product-minded companies have high retention of active distributors

-Product-minded companies focus efforts on educating about new and existing products

-Product-minded companies typically own manufacturing and farming assets

-Product-minded companies tend to build portfolios of patents and intellectual property

-Product-minded companies frustrate opportunity-minded distributors

-Product-minded companies attempts to follow rules and regulations

-Product-minded companies usually survive more than 15 years

 

The fate of the Product-Minded Company is generally the best choice. The company survives for generations; allowing its distributors to bequeath or sell their leadership position. The company expands to numerous countries providing a 24/7 network of distributors and product orders.

The stability of the company provides comfort and confidence to its distributors. Generations of distributors are committed to purchasing and using the unique products of the company. Cole Woolley, PhD