How To Choose A Network Marketing Company

Do you know how people used to choose a network marketing company in the past?

It was almost always based on a referral from a friend or relative!

Think about that and you will partly understand why so many people have failed in network marketing. If you were going to start a real business of your own would you rely on the opinions of your friends and relatives?

Most of us wouldn’t.

In this article I want to talk about how to choose a network marketing company as a business and not as a personal referral.

Research The Network Marketing Company

If you were going to buy a franchise business you would look at the company first. You carefully need to do your due diligence when it comes to researching MLM companies as well.

There are almost 100 network marketing companies that do over $100 million a year in business according to Direct Selling News. These are established companies and could be potential business opportunities for you.

I would spend time looking at each company in detail to see what people are saying about it on the Internet. Don’t look so much at opinions, but do look for how long the company’s been in business, and are there any pending lawsuits, and so on.

Also consider the management team. The direction an MLM company is trending can be reflected on the people who are running it.

Buy The Product

What I have found in the past is the best network marketers are people who are passionate about the product they are promoting. Ask yourself this question; Is this the kind of product you would buy if you weren’t in the business?

Often I have seen network marketers claim to be passionate about the product, when in reality what they were really excited about was the opportunity to make more money. Once they dropped out of the network marketing company they were in they stopped buying the product.

Here’s another important point! Is the product in demand today and will it be in demand in the future?

You certainly can make money on a product in network marketing company now, but if you are trying to build a long term business you want to represent products that people will continue to buy from you.

Is competition important? It can be.

Is your main product line something someone can go to WalMart and buy for 1/2 the price you are selling it for? This level of competition is tough to compete against.

How Do You Make Money?

Can you easily explain the compensation plan of the network marketing company you are thinking about choosing?

Many compensation plans are complicated and even existing distributors don’t really understand how they make money.

Can you make decent money selling the product to one customer, or do you have to have a lot of customers before earning good money?

Also, how big of a group you have to build before you begin to see decent part-time, or even a full-time income?

Here’s another question to consider. What does the average distributor earn?

Keep in mind that many people join network marketing companies and never sell any products or sponsor anybody. That is not the fault of the company, so talk to people who are running their MLM business as a real business.

You want to know that if you put in the effort you really will make money with this company. If not maybe you need to look elsewhere.

Who Is Going To Train You?

You should feel comfortable that you’re going to get adequate training from your personal sponsor, your upline, and at the company level. This is important not only for your own success, but you want to know that as you build your own organization those people will have access to adequate training as well.


This gives you plenty to think about. I’ve always felt that if people would spend enough time on research when choosing a network marketing company the success rates would increase.

It’s obviously important that you’re representing quality products and you can make money selling and building a downline of distributors. Also, be sure that you understand your starting a business and not a hobby. If you do that your chances of succeeding, once you chose the right network marketing company for you, greatly increase.

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Related Video – Robert Kiyosaki on Oprah – Why People Should Join A Network Marketing Company

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