Timing
One of the most critical aspects of pick a company is timing. You want to ask, "What is the timing inside the marketplace and inside the company?"
All companies, traditional and network merchandising, go through a phenomenon proverbial as the "S" curve.
The "S" curve has four stages: formulation, concentration, impulse, and stability.
Formulation - the time it takes a company to get off the ground. This is when the company's products or services are introduced to the market. During this stage, there is slow and steady growth and the company is elaboration the kinks. However, many companies fail in this stage. This stage can last 1-2 years.
Concentration - During this stage, typically before hit $100,000,000 in gross revenue annually, the company will either work out the kinks toward impulse, or they will fail trying. This is an ideal time to join a company, but watch for the manner in which ownership/management handles this stage. This stage can last 2-3 years.
Momentum/Growth - This is where the magic happens for the few companies that can reach it. The company's product(s) gain acceptance and generally gross revenue grow from $50M annually to over half a billion. Typically this is the phase when a company starts moving toward critical mass. Word is acquiring out about the product or company and people are beginning to jump on the bandwagon.
Stability/Maturity - After the product reaches the saturation point, it will unremarkably level or decline.
Keep in mind that in the network merchandising industry, only eight companies have hit a billion in gross revenue annually. Therefore, the level where the company hits stability/maturity will vary according to the demand of the product, the merchandising plan, and the strength of the leadership of the company.
When do you anticipate the 'tipping point'? In his book The Tipping Point: How Little Things Can Make a Big Difference, Malcolm Gladwell describes the "tipping point". It's the name given to it moment in an epidemic when a computer virus reaches critical mass. It's the boiling point. It's the moment on the graph when the line starts to shoot straight upwards. Having an anticipation of the number of months before this takes place allows you to formulate a scheme around it.
Does the company have Energy or 'Magic'? When a company is in growth and impulse, there is a buzz of excitement and magic that surrounds the chance that will propel your efforts. It doesn't guarantee your success, but your efforts will go further.
Millionaires have been made in this industry JUST because of timing alone. Nothing else. I'll take timing over hard work every time.
So how can you gauge the timing?
It's not easy, but here are some tips:
1. Determine your risk level. If you are risk adverse, don't waste much of time, money & energy acquiring in too early. A large percentage of these companies fail in the first year or two.
2. Don't get in too late. You'll waste much of time, money & energy acquiring in too late. If the company is a family name, its impulse growth period occurred years ago. It has been done, but you will find the work like climb ascending in companies like this.
3. You want to get in AFTER a company has proved it has staying power, but BEFORE its impulse growth period. If you can find a company like this, and which also has the other parts of the formula in place, paddle like heck to stay ahead of the wave.
Here are some additive questions you may want to consider:
1. Is there a plan for Global expansion? If so, what is it?
2. How easily will the product expand in a global market?
3. Because all countries have their own standards and regulations for product requirements, consider the ease with which the product can cross borders.
The bottom line is you want to do as much research as possible about the timing of a company before joining. There are many other factors to consider, but good timing is a must.
