6 Tips To Choose A Good Network Marketing Company

With so many network marketing companies to choose from, it can be tough to figure out which one is right for you.

Picking a network marketing company is a big deal. It’s like choosing your career path for the next ten years or more. When you decide, you’re committing to a business, a product, and a sales team. It’s not something to take lightly because it’s a long-term commitment. Your days, and maybe even your evenings, will be all about recruiting, training, and sales.

There are plenty of companies out there with good network marketing business ideas and valuable products. But finding the best and most genuine ones can be a challenge.

This article will give you some helpful tips on what to look for when evaluating different companies.

How To Choose The Right MLM Company: Top 6 Tips

1. Look at the stability and longevity of the company

You should consider the stability and longevity of the company. It’s possible to jump on board with something new and achieve the heights of success, but one way to make success far more likely is to go with a system that is proven. Think of the most commonly known examples of multi-level marketing companies – Amway, Avon, Mary Kay Cosmetics, etc.

Why are these companies so well known? One reason is they offer high-quality products, and they have a system that flat out works. Remember Avon has been around since 1896! They must be doing something right.

You can’t go wrong by going with something that is proven to work. That doesn’t mean you have to go with the oldest company around, but you should consider the history of the company. If you find a company that has only been around for a year, it might fail. It may be that the product is a fad product and not sustainable over the long term.

Some companies end up in legal trouble for various reasons, maybe they are selling a bad product that could harm consumers, or they are a veiled pyramid scheme that isn’t the best fit for sincere people who want to do network marketing as a legitimate business.

So, longevity is clearly in the companies favor. If a company has been around a long time, we know that:

  • It’s selling products that the buying public wants.
  • It’s not primarily based on short-term fads. The company probably adds new products to its line, but it probably has a secure base that works in evergreen fashion.
  • The company treats members well; it won’t survive if people are not able to become successful multi-level marketers.
  • It’s not getting into constant legal trouble.
  • Simply put – it has a proven system that works to move product and make for successful multi-level marketers.

Also, look at the earnings of the company. Are they growing, or at least stable? A long-term company can be a sinking ship. So make sure that even if the company has demonstrated longevity that it’s still pulling in respectable revenues that are not declining.

Stability fits in with these points listed here. As we said with Amway, it had even been investigated by the FTC for being a pyramid scheme, but they found out that was not the case. Amway has been around for more than fifty years, making it a solid bet – it’s legal, it sells products people want, and with more than $8 billion in sales, it’s making money.

2. Evaluate the products and services

Before jumping on board, you’ll want to check out and use the products and services offered by the company. To be effective at selling something, knowing the product inside and out is crucial. For example, suppose a company is selling a keto diet meal plan for home delivery.

Do you think you’ll be more successful selling that product to others if you’ve actually tasted some of the meals? What if they taste lousy or are too hard to make? You may come across as shallow and foolish if you try to sell something you’re not familiar with.

Also, you’ll want to evaluate the products and services offered by these companies so that you’re more likely to choose a winner. If you can actually experience the product and see that it’s high quality, then you’ll have more confidence in going with that company because you’ll know it will be easier for you to make sales and have happy customers.

You may also find subtle differences between different products and services, helping you weed out similar companies to find one that is most suitable for your goals.

3. Learn about the compensation plan

Compensation plans can be simple or complex, with various shapes and sizes. If the plan is too complicated, it’s hard to figure out how much effort is needed for a specific task. When examining the compensation plan, try to answer the following questions:

  • Do you understand the system of compensation?
  • Is it clear to you exactly what is required of you to make the best possible paycheck?
  • Do you have a reward or bonus with each new recruit, or do you have to recruit dozens before you can make a good bonus?
  • Do you have specific requirements regarding inventory or purchase volumes?
  • Do you know what the average income is per level, and how long it takes to move up in commission?
  • Are the paychecks issued weekly, monthly, or by some other method?
  • Do you draw a salary plus commission, are you directly on commission only, or do you “draw” against future commissions or sales?
  • Is there a tier or level that changes the compensation? 

Learn more: 3 Main Types of MLM Compensation Plans

4. Pay attention to the team you are joining

When you join a network marketing organization, you’ll begin by joining an existing team, and then you’ll be building a team of your own as you begin to grow your own business. High commission rates are good, but you’ll also want to be comfortable with your team.

  • Are these people you are comfortable spending time with?
  • Do they seem honest and sincere?
  • How do their goals align with your goals?
  • Do they share your same values?

Evaluating the team you are joining is as important as evaluating the products and services the company offers. If the team is not a good fit, you aren’t going to be happy and may not do well as a result.

When you need training and mentorship, if you don’t feel comfortable with the team members, you may avoid getting all the help you need. Instead, look for a team you gel with, and your success is more likely.

If you can’t get along with the team at the first company you look at, consider finding a new one instead.

5. Check if the company offers free training 

Are you required to purchase a training kit? Is the cost excessive (over $100) to buy into the program? Are the conventions located in a convenient location for you? Will it be very costly for you to attend the required events? 

Most MLM programs have monthly, and even weekly meetings with the new recruits. Will you be able to attend these meetings or are they located more than 50 miles from your home? What are the repercussions if you don’t attend them faithfully?

When you are required to attend training events, who pays for the training? Do you have to purchase training programs or special notebooks, ebooks, or manuals? All of these considerations can add up to a significant cash outlay for the new distributor that has not established a regular income.

6. Determine if the business fits your goals

Aligning with the team is important, and so is aligning with the company. In order to maximize your success, you’re going to want to seek out a business that fits your goals.

First and foremost determine whether or not the company will help you achieve the financial goals that you’ve set out to achieve. Remember that you can’t take shortcuts in life, and if you’ve set high goals, then you need to find a company that can deliver those results if you put in the hard work. You are not going to want to be joining up with a company that will limit your financial and personal growth.

You’re also going to want to look at the values of the company as well. Do you believe in the company’s mission and the products or services they offer? Do they share your views on the environment, health, and religion? If not, then you might be better off looking for a different company.

There is no shortage of good MLM companies these days so don’t think you have to get on board with the very first one that you find.

Making The Final Pick

To summarize, you’re going to want to learn:

  • When was the company founded and how long has it been in business? Has it been embroiled in any controversy or even legal trouble? If so, how did those situations work out?
  • Educate yourself on the team members at the top! Learn who they are and what their backgrounds are. Are the members in the c-suite well-suited to the long-term success of the company? Are they outsiders or did they work their way up?
  • Evaluate the company’s products or services. You should obtain samples, buying them if necessary. The best way to know the company is by using its products. Do you want to attach your name and personal reputation to a second-rate product?
  • Know the company’s compensation plan and study its advantages and disadvantages.
  • Determine how much time you’ll have to spend training, mentoring, and team building. While network marketing derives profits from the sales activities of new members you recruit if too much effort must be devoted to activities related to recruitment, how much time is left over for sales? Remember that ultimately you have to sell actual products. Examine the ability of the company to help you reach your ultimate financial goals.
  • Determine if the business aligns with your values.
  • Do the products the company offers align with your passions? Remember to choose a niche you are interested in so you can maximize success.

Remember, the world is full of network marketing companies – you don’t have to settle. At the same time, you don’t want to keep pushing goals forever to the future by not picking one and going with it. When you’re just getting started, you should probably move forward with a company and see how it works out for a few months.

If it isn’t to your liking for one reason or another in the future, there is no rule that says you have to stick to that company for life. Value the fact that you’re more experienced with network marketing, and find a new company that is a better fit. Check out our list of the best MLM companies

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