Harvard Studies Network
Marketing
Network marketing is being taught in amore than 200 colleges
including Harvard Business School. Afer extensive research into
the network marketing industry, Harvard Business School developed
three criteria that a nework marketing company must have in order
to make it a most desirable opportunity. They are:
- The company must be at least 18 months old, as 90% of all
network marketing companies that fail do so in the first
18 months.
- The company must have a product which is both unique and
highly consumable. Being unique in this case means that
you have an exclusive product that can only be purchased
from your company's distributors. Havin ga product that
is highly consumable means repeated sales, thereby
guaranteeing customer loyalty versus a one time sale and
having to locate new customers.
- It needs to be a "ground floor" opportunity.
Harvard Business School suggests that in order for the
opportunity to qulify as a ground floor opportunity, the
number of existing distributorships shoould be less and
1/2 of 1% in the country where the company exists. In the
United States, this figure is equal to 1.5 million
people. HBS also stated that if there were leass than 1/2
million people involved, you would be on the cutting edge
of a great opportunity. If the company has less than
100,000 distributors, HBS considers it to be a once in a
lifetime opportunity.
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