• Section: Money Guide - Category: Home Business
• Written by William Winch

Chances are good that if you are reading this article you were approached by representative of a fantastic company that sounds just a little too good to be true. You want to work from home and get all of the wonderful benefits this person told you about, but you're just not sure that you want to jump into something you don't really know anything about. If this is you, then pat yourself on the back. You're a very smart individual.

Even though one person does well in a company, it doesn't mean it is the right one for you. You could go ahead and sign up to become a distributor, follow the same techniques as the person who inspired you, and wind up with different results. Nothing is guaranteed...but if you put a little time and effort into researching the company you will have saved a lot of time and effort in case it doesn't work out. Since you have the desire to learn and put forth the effort to read this far, you owe it to yourself to continue. You don't want to be like t

he thousands of people who dropped out of their company because they jumped in before they could test the waters. Here are 10 important factors to be considered before choosing a Network Marketing company.

Factor #1: Can you verify the company's profitability?
If they are a public company listed on the Stock Exchange, their infromation is available for the public. If they are not a publicly held company, contact the CEO or another of the company you want information on for a report. You may or may not get the information, but at least it's worth a try.

Factor #2: How old is the company?
You should be looking for a company that has been in business no less that 7 years. All companies go through fluxuations, and if they've persevered through a rough time, it's a good indication they are strong.

Factor #3: How exclusive is the product or service?
You want to stay away from any oddball products. Chances are if it's strange, then it's going to be difficult to sell and even more difficult to retain those customers. You want an element of competition. Your product should be similar but unique in a certain way. For example, if you offer customer support for your product, that is unique as your customers usually do not receive this service when purchasing from a retail store.

Factor #4: Is your product related to health, wealth or love?
These are the three elements that are the most sought after in Network Marketing.

Factor #5: Are you or can you be passionate about your product?
This is probably the single most important factor to consider. If you are not passionate about the products, you will probably struggle at selling them. If you would still continue taking the products even if you couldn't make money selling them, that a good indication that you are passionate and the odds will be in your favor.

Factor #6: The compensation plan.
In a perfect world, you'd be making 100% on the products you sell. The reason you don't in Network Marketing is because you don't have to worry about inventing or manufacturing the product. It's already done for you. Your profit should be anywhere between 40% - 50% after taking all income and expenses into consideration. If it falls below 25%, it is definately not worth your time and energy to get involved.

Factor #7: Credibility and Integrity.
This is referring to the management team and the CEO of the company. Do they have credibility? What have they done in the past to have established a good track record?

Factor #8: Market Saturation.
How available is the product or service the company markets? You don't want a product that is similar to something that is being mass produced by other companies. Some competition is good, but too much is bad.

Factor #9: Terms, conditions, policies and procedures.
Are you limited as to how you can perform in the company? How much room is there for doing your own kind of marketing? For example, do you have to use their websites and trainings only, or can you use your own methods. If the company offers little flexibility,

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