Choosing a Network Marketing or MLM Company

Now that you have decided that you want to work from home through network marketing and take on the challenge of building your business you need to choose which company works best for you.This is the most important decision you will make and you have to take your time. Talk to others who have gone down that same path. The fact that you are reading this is a huge step in the right direction. WE have been there and done that. Read everything on this site about MLM, home based businesses, network marketing and work from home. These are all terms for the same thing-FINANCIAL FREEDOM. Below are 10 questions you must ask before choosing your network marketing company.

From John Venezia, CLU, ChFC:

1. Has the network marketing company been around for at least 5 years?

If you want the efforts you put in today to pay off for many years in the future, choose a company that has proven that it will be around for the long term. 90% of all network marketing companies FAIL within their first 2 years. You don't want to invest your precious time and resources (not to mention your future) in something that may not be in business next month, do you?

2. Is the company well capitalized?

In other words, does it have the cash that it will need to grow, to maintain a solid infrastructure, to attract talented management, to keep pace with technology — and, of course, to pay your commissions! (I prefer publicly traded companies because they're required to disclose their financial condition in DETAIL every 90 days to the SEC and other governmental agencies.

You may not be able to obtain this information on a private company, so you'll be taking a risk on its financial condition.

3. Does the MLM company offer products or services that are unique?

That is, they're not readily available elsewhere (especially at a discount) and they're not just another "me too" product that has loads of competition.

4. Is there a genuine need for the product or service?

You've probably heard horror stories about people ending up with a garage full of expensive water filters - the reason that happens is because only other distributors will purchase the product at that price! Your product or service must fill a REAL need at a fair price - and there should be a large untapped market for it. In other words, it MUST provide tremendous value, so the customer is the biggest winner.

5. Is the product or service trendy or a fad?

You can't build long term residual income (i.e., your retirement!) if the product or service only has short term appeal (e.g., beany babies, etc.). Think long term instead. Is the product or service something that your customers will continue to use for a long time?

6. Can you generate immediate income?

So that you can finance your network marketing and expansion efforts from cash flow.

7. Does the marketing system take full advantage of technology?

Not everyone is a sales type, but ANYBODY can plug into a system and tools that do the selling and sorting for you!

8. Is the person who is introducing you to the home based business opportunity committed to YOUR success?

If they are, the company is strong, and the product or service is a winner, (and, of course, you're willing to learn) you WILL succeed. There's a big difference between a "sponsor" and a "recruiter." A sponsor coaches. motivates and trains and a recruiter just signs people up and in most cases, abandons them.

9. Is there a way to build your home based business part-time without losing your full time income?

The company must have automated systems that can do the heavy lifting (i.e., selling and sorting) for you so that you can use your limited time efficiently.

10. Will you have FUN?

Although this may not be an element of your current JOB, we think it's important! You should have a lot of fun with your business partners while you work together to build a long term business and your financial army.

So there you have it — ten criteria for selecting a superior network marketing opportunity. Of course, even with a great company, there's no such thing as a free lunch. You WILL have to work! But, with the right business opportunity (unlike your job), it won't have to be forever! To work from home does not have to be just a dream.

One of the best books out there on this subject is How To Select a Network Marketing Company by DC Falter. I strongly suggest reading this book. Like this web site, it can save you months of frustration.

Here are some additional factors to consider-

POSITIVES TO LOOK FOR WHEN CHOOSING AN MLM NETWORK MARKETING COMPANY

-Established and marketable product line or service.

-Striving to improve or add to the existing line-up

-Easy to sign up new distributors online.

-Solid track record and good work ethic.

-No experience required.

-Training provided.

-Excellent bonus plan with incentives.

-Minimal start up fees.

-Strong support system.

-Successful business and marketing plan

-Can work full time or part time.

Some things to WATCH OUT for-

-Watch out for disreputable MLM companies.

-Building a downline will take longer than and cost you more than you think.

-There are costs to running an MLM that you need to consider: gas for your car, staying in hotels, and taking people out to eat.

IMPORTANT-READ THIS!

-It usually takes a minimum monthly order to maintain your distributorship. This is the one that really pisses me off and where I lose the majority of my recruits. It's called attrition and is the single biggest factor to failure in this business. The high cost of maintaining an auto-ship with some companies (usually super juices like mangosteen, goji berry, noni, etc.)will out way the benefits, if any, of the product itself. I signed up with one of these companies and used all my internet savvy to bring in hundreds of people in less than six months only to watch 85% disappear because either the product didn't work for them or it was just too expensive. You MUST choose a product that is affordable and does not cost hundreds to maintain a monthly auto-ship. Yes, they are out there. Just ask us!

-Watch out for getting paid to just recruit distributors and not on sales volume.

-Even though the companies insist the products sell themselves, it is still going to take hard work to make money.

-In MLM you have to deal with rejection.

-Getting involved with certain MLM companies can cause you to focus all your attention on your business. Some distributors stop attending important family events because the family event falls on the same date as one of their MLM seminars. DON'T let this happen to you. Family should always be first.

Last but not least you must READ THIS if you haven't already seen the 7 Lies of Network Marketing. This will open your eyes to what it really takes to become successful in this wonderful industry.

You can find some of our recommendations at Top 10 Work From Home Businesses