With the many, many different MLM companies out there, it can be difficult to determine which opportunity is the right one for you. If you’re looking to start a home business then you’re probably doing some research on the various MLM companies. Or perhaps you have a friend or family member who is sharing their opportunity with you and you’re doing your due diligence. Either way, how do you choose? How do you know which network marketing company is right for you? I’ve compiled a list of solid ways to choose below:
5 Steps to Choosing Between MLM Companies
1. Research the corporation and their financial standing. Some people believe that you shouldn’t join a company unless it’s established and has at least a 2-3 year history. Others believe that it’s best to get in on the “ground floor,” which means you have to join early on when the company is just beginning. Seasoned companies can be more stable since their history demonstrates that they have what it takes to succeed. On the other hand, if the new “ground floor” opportunity MLM companies have experienced executives and sound financial backing they can be really solid opportunities as well. Ultimately the decision about which opinion you feel most comfortable with is yours.
2. Gain an understanding of the company culture. Ask yourself whether or not your goals, values, and characteristics will match up with the company’s current culture. What do they stand for? What is their vision and their mission? Who do they associate with in the business world? What are teaching new distributors? What are the company’s reviews like? Do they have any legal problems?
3. Research the company’s niche market. MLM companies range in their target markets. Some companies are service oriented, while others offer physical products. When you’re making a decision on which opportunity to choose, look at what niche market the company is catering to, its opportunities for growth, and how competitive the market is. It’s also a good idea to choose a company that caters to a niche that you have some interest in, as it will help to sustain your passion for your business. Some of the niche markets for current MLM companies include:
- beauty and make-up
- legal services
- health and wellness
- travel and vacations
- money and coin collecting
- success and mindset
- greeting cards and gifts
- candles
- and many more
4. Try the products and be honest with yourself about them. If you try the make-up from the various MLM companies out there, ask yourself if you would wear it. An even better question would be, would you buy it? If it’s a health and wellness company that markets a juice, try out and see what you think. How does it taste? How does it make you feel? If you don’t find anything special about the company’s products, there’s a strong chance not many other people will either. More than that, if you don’t truly believe in the products it may prove difficult for you to sell them.
5. Gain an understanding of the compensation plan. There are a few different types of compensation plans in the network marketing industry, such as matrix’s, unilevel plans, binary plans, etc. They each have different rules that will impact how much you will be paid and how your business will grow. It’s important for you to understand how your prospect company’s works so you can determine what it will take for you to break even. Most MLM companies also have different aspect to their compensation plans. You should look at their fast start bonuses and the long-term residual income commission potential. You want to know how much you’ll get when you sponsor new people (fast start bonuses) and how much you can potetially earn when you’ve put in the time and effort to build your business over time (long term commissions). Both are important to your cash flow and your growth.
Those are my 5 tips on choosing between MLM companies. What do you think? I’d love to hear from you if you found them helpful, or if you have a tip or two of your own that you think should be thrown in. Leave a comment and let me know!
To Your Success and Prosperity,
This is an intriguing topic. We’re always looking for smart resources to share with clients and my colleagues, and your article is without a doubt worth sharing!
Twitter: mikaylasway
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Thanks Raye, I appreciate the positive feedback!
I’m a recent grad just trying to learn more about the marketing business and I really enjoyed your post. Keep up the great job!
Twitter: mikaylasway
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Thanks Dawne, I’m glad that you found the article useful
Whilst a good compensation plan is important to ensure that all the time and effort is well worth it, I think having a through research on the company is important. I have met many people who suffers when the company gets into trouble. However, ultimately, the leadership of your sponsor is probably the most important factor! He may not need to be experienced but he must be responsible and serve as a good mentor.
Denver recently posted..Donald Trump says
Twitter: mikaylasway
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Thanks for your comment and I agree with you, Denver. Leadership is important – in both your immediate upline (sponsor) as well as the company executives. It’s hard to find success in a new network marketing venture when you are sponsored into a business and then left to figure things out for yourself! A good mentor will guide you through your first steps and will always be there to answer questions or help out when needed.
Its such a shame when I see good quality downlines fail because uplines did not own up to becoming a leader. I guess success is really about taking responsibility as a leader even though you may not be entirely prepared. Who would ever be anyway?
Another very strong and powerful post. I’ve been reading through some of your previous posts and finally decided to drop a comment on this one. I signed up for your newsletter, so please keep up the informative posts!
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Hi Dino, thanks for your comments (on this post and the others). Sorry it took me so long to approve, but your comments were trapped in my spam filters (I’ve been bombarded lately *ugh*) and it’s been no fun going through the 900+ that are in my quarantine trying to ensure that no legitimate comments got flagged wrong
I don’t usually allow additional links within the comment itself, but I let yours fly this go ’round 
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I’ve been into blogging for quite some time and this is definitely a great post. I signed up for your newsletter, so please keep up the informative posts!
Good luck on your blog, and feel free to comment and subscribe to my blog as well when you get a chance: Earn Extra Cash Online with Dino Vedo. Also my blog is open to any guest posting and I would love if you would review some of my products I have and we could easily make each other some extra cash!
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Dino Vedo
PS: Like my Facebook fan page and follow me on Twitter and I’ll do the same for you!
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Twitter: mikaylasway
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