How to Choose an MLM Company

December 7th, 2009 | by Chris |

Today there are many MLM companies that someone can choose from in order to join one. Some of them are decades old while most of them are brand new with a large number of them destined to fail in the next months or years only to be replaced by new ones. Of course if you want to succeed in this business you want to find and join a company that would survive for many years. After all you are going to put your money in and the most valuable of all your assets, your time, in order to build a downline that would produce the big commissions that you desire and can lead you to financial freedom.

Of course choosing wisely is not an easy task and many of us made big mistakes in the past that we regretted. But it was part of the learning process and helped many to learn a lot. What I found most disturbing is that you don’t have to fear most the bad network marketing companies because they go quickly bust and besides a few money spent you lose nothing but a few days or weeks of your time. The most dangerous ones is those that seem right in the beginning but eventually in 3 to 4 years they close down. Imagine what it is to waste so many years and when it comes the time that your business is ready to explode in sales volume due to your preparations and work you did all those years to go bust and lose everything.

How Do I Choose a Network Marketing Company? Are All Network Marketing Companies the Same? by Shawn J Taylor

There are so many network marketing companies today. The internet has allowed you to access information on a certain company with just a simple search. The internet is the fastest way to access information. Network marketing companies usually have a website with information about the company, the product, and the business opportunity.

I have learned from experience how to understand what to look for in a network marketing company. The fact is I was in one company that was sold and another company that went out of business. I do not want you to go through the pains and disappointments that I did. I will help define certain terms that might be new to you.

Watch out for front-loading companies. Front-loading means that distributors have to buy a large amount of product each month to qualify for commissions. Front-loading requires you to have large amounts of inventory. This practice damanged the network marketing industry. I bet you know someone who has a basement full of products from this unethical companies. A reliable place to check out a company is to see if the company is listed with the Direct Selling Association. The DSA for short, requires certain guidelines to be listed.

Avoid companies that reward their distributors for anything other than moving products or services. I had a couple friends that were investigated because they were involved in a company that paid distributors based only on enrollment. The Federal Trade Commission investigated this company, the founders were arrested, and the company was shut down.

CCC-ing thru the fog
Photo by Sam Wilson

You want to find a company that is financially stable. Being involved in a company that goes out of business is not fun! Just like a traditional business, a large percentage of network marketing companies will go out of business within the first five years. Unfortunately, I learned this lesson the hard way.

Examine a company like a cake recipe. The cake may look good but it might taste bad. I like to look at the management team. A big indicator on looking into the recipe is the management team. Have the founders of the company been distributors in the past? Were they successful distributors? The reason I like to know this is because it tells two things: network marketing experience and understanding their distributors. I want founders who have actually experienced the ups and down of network marketing.

You need flour and eggs to make a cake. You need to choose a consumable product that you would buy even if you knew nothing about the business. You must beleive in your consumable product if you want to make some serious residual income.

The ingredient to your recipe is knowing the numbers. Have you ever tasted a cake that contained too much salt? I want to know if the average person can become successful in the business. The network marketing industry statistics show that the average distributor only ever sponsors 2.7 people. The numbers are like rivers, you want to work with the flow and not against it. Choose a company’s compensation plan that works with the numbers.

With the right company you have all the ingredients to become successful, but you still need to work it. Implementing the right strategies and marketing tools using a system will be the icing on the cake. I believe the biggest reason why people fail in network marketing is not knowing how to market. Remember the second word in network marketing. Learning how to market to the masses is a must! If you want to make succeed in network marketing you need a effective maketing plan.

Find the right ingredients to the recipe and your cake will be delicious!

Shawn J. Taylor is an expert when it comes to reviewing network marketing companies. To learn how you can generate 50 or more leads a day, visit this website.

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