HARVARD BUSINESS SCHOOL NETWORK MARKETING CRITERIA

HARVARD BUSINESS SCHOOL NETWORK MARKETING CRITERIA


Network Marketing is being taught in more than 200 colleges including Harvard Business School. After extensive
research into the network marketing industry, Harvard Business School developed three criteria that a network
marketing company must have in order to make it a most desirable opportunity. They are:

1. 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. MXI is 3 years old and debt free


2. 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.
Having a product that is highly consumable means repeated sales thereby guaranteeing customer loyalty
versus a one-time sale and having to locate new customers. XOCIA Healthy Chocolate


3. It needs to be a “ground floor” opportunity. Harvard Business School suggests that in order for the
opportunity to qualify as a ground floor type, the number of existing distributors should be less than ½ of
1% in the country where this network company exists. In the United States, this figure is equal to 1.5 million people. Harvard Business School also states that if there were less than ½ million people involved you would be on the cutting edge of a great opportunity. If the company has less than 100,000 distributors,
Harvard Business School considers it to be a once-in-a-lifetime opportunity. MXI has 50,000 distributors in 5 countries.

There are four stages of growth in a network marketing company. They are:

FOUNDATION. This stage usually lasts approximately six months. This is when a company develops its
product and marketing plan.

CONCENTRATION. This period lasts from 2 to 4 years, when the distributor network is started.

MOMENTUM. This period lasts from 2 to 4 years also. This is when the company experiences phenomenal growth. Both retail and distributorships explode in term of expanding growth. It is during this period that a company virtually sweeps the nation. When a company’s sales reach $50 million, they reach what is called “critical mass” (sales go vertical, right off the graph). Also, approximately 2/3 of the company’s growth of new distributorships occurs during this period. MXI is going into this phase right now

When “Herbalife” reached $50 million in sales, they jumped to $151 million in retail sales in only 12 months. They also added over 800,000 distributorships in 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 reached critical mass, distributors almost automatically experience a ten-fold increase in their earnings. In other words, $1,000 per month could become $10,000 per month. This is the reason for getting involved on the ground floor, so you can experience the benefits of explosive growth.

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 insuring that an active distributorship will realize continued earnings and growth. MXI is debt free and committed to the Distributor and the customer in providing the best products available.