I recently met with a colleague in the industry, a successful CEO for quite a while now. We came across the interesting topic of what the three most essential elements of running a successful network marketing company were.

Believe it or not, they still hold true to this day — almost 6 decades later.

I wrote a blog about this over 10 years ago, and I thought it might be great to revisit the topic to remind everyone in the industry just how important it is to look for the right company. One that encompasses these three essential elements.

So by now, I’m sure you’re wondering what H to the power of 3 means. In my opinion, it’s the most infamous yet simple set of factors and true metrics, often looked past when searching the right company.

Although it is very simple, and a given fact, often, the majority of companies lack one or the other. Unfortunately, it’s not an option to go without any of the three, if you want to run a company long-term.

H³ = Perfection

These are what I also refer to as the pillars of longevity (I’m not referring to the actual company, lol).

The First H To Be Successful In Network Marketing: Happy customers

This is one of the most crucial factors of having a successful company, often referred to as its “lifeblood”.

Happy customers simply translate into amazing testimonials, reorders, loyalty, and more importantly, referrals. Without happy customers, no company can survive past their first year. In my 20+ years in the industry, I have never seen any company last through their first year without them.

To me, a happy customer is someone whose mind is not diluted with the financial placebo effect or monetization of any sort; these are true customers who are not distributors and have no financial benefit.

The Second H To Be Successful In Network Marketing: Happy distributors

This is a big category and incorporates many factors; however, the most important to the majority of distributors is financial benefits.

Simply put, are they earning the income they feel their worth. 

Of course, it’s also important to be happy overall, be it with their upline, relationship with their company management, or even the market they work in.

Think about this: each happy distributor could potentially translate into 300 more promoters of the product and company. So, if you want your company or your team to grow, it’s imperative to keep the majority of your distributors happy.

The Third H To Be Successful In Network Marketing: Happy company

Simply put, a company that is profitable illustrates a healthy and prosperous future. You can have happy customers and distributors rolling in cash, but if the company is not profitable its lifespan could be in jeopardy… That is one of the reasons we often witness companies go out of business.

Keep in mind, it is understood that the majority of companies in their first 12–24 months are rarely profitable. However, if the company is much older, then it becomes a vital issue.

So as you can see, these three elements are independent; however, in my perspective they are truly interdependent, meaning you can’t have one without the other two.

If you’re in a company, or looking for a new home, I highly recommend you to ensure these three factors are present. If they are, use them as an impulse to reach your goals faster. By combining them with a self-developed set of organic principles polished throughout my life, I was able to lead teams around the world by the time I was 33. Now I want to share them with you. You can get them here.