~Independent Distributor~
What's "Critical Mass" ? Read Below !
Harvard Business School on Network Marketing
I. Criteria
A. The company must be at least 18 months old. The reason for this is that 90% of all Network Marketing Companies that fail, do so within the first 18 months. (NEWAYS is over 11 yrs. old)
B. The company must have a product which is both unique and highly consumable. Being unique in this case means that you have a product which can only be purchased from the company's distributors. Having a product which is highly consumable means repeated sales, thereby, guaranteeing customer loyalty versus a one time sale and having to locate new customers. (NEWAYS has over 150 exclusive and consumable products!)
C. It needs to be a "Ground Floor" opportunity. Harvard Business School suggests that in order for the opportunity to qualify as "ground floor," there needs to be fewer than 1/2 of 1% of the population (300 million) in the country, where this network company exists. This figure infers active distributors in the United States, the figure is equal to 1.5 million people. Harvard Business School also stated that if there were fewer than 1/2 million people involved, you would be on the cutting edge of a great opportunity. If the company has fewer 100,000 distributors. Harvard Business School considers it to be a once in a lifetime opportunity! (NEWAYS has less than 40,000 acitve distributors in the USA)
II. Growth
There are 4 stages of growth
in a network marketing company:
1. FOUNDATION: This is when the company develops its products and marketing plan.
2. CONCENTRATION: This period lasts from 2 to 4 years. This is when the distributor network is started.
3. MOMENTUM: This period lasts from 2 to 4 years. This is when the company experiences phenomenal growth. Both retail and distributorship explode in terms of expanding growth. It is during this period of time that a company virtually sweeps across the nation.
When a company's sales reach $50,000,000 (million), they reach what is called a "CRITICAL MASS" (sales go vertical, right off the graph). Also, approximately two-thirds of a company's growth of new distributors occur during this period.
Example: When Herbalife reached $50 million in retail sales, they jumped to $151 million in only a 12 month period. They also developed over 800,000 distributors 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 during that period of time. In other words, $1,000 becomes $10,000 with very little effort on your part. This is the reason for getting involved on the "Ground Floor", so you will experience the benefits of explosive growth. (in USA, it is still considered "Ground Floor", sales have NOT reached "CRITICAL MASS" yet!)
4. STABILITY: This period lasts for the life of the company. A network marketing company that is dedicated to the success of its distributors will experience longevity, thereby ensuring that an active distributor will realize continued earnings and growth.
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