5 Factors to Look for in a Potential MLM Company 

The growth of the Internet and the increase in the number of people looking to earn some extra money from home have paved the way for MLM (Multi-level Marketing, Network Marketing) companies to double over the last decade. With this growing interest in network marketing, many new companies have sprung up to join the ranks of the time-tested, older MLM companies.

If you are considering the option of starting a side career in MLM, or if you just want to see how your current company measures up, take note of these 5 critical points to look for when choosing an MLM company:

1. Stability. Ideally, you should look for an MLM company has been in business for 2 to 5 years. There is really something to be said about companies that have already “stood the test of time”. 

Joining a company that has no history invites a risk that the company may not be around for the long term.  If the company folds, then all the work you have done to build your business in this company will be thrown down the drain.  Regardless of how large your downline is, or whether you are the highest earner in the company, none of this would matter if the company were to shut down tomorrow.  Although there are no guarantees about the long-term survival for any company, in general, an MLM company with a longer track record will have a greater chance of staying around. There are enough things to worry about in network marketing, such as sponsoring and advertising, without wondering if your company will still be around next year.

2. Company details.  Who is charge of the company? Who is the president, and who are the directors? What is their track record like? Have they spent time in the network marketing industry, or are they new to it all? What businesses have they been involved with in the past?

If you do not know the answer to these questions, call or email the company to find out. It is critical to know the answers to these questions from the outset. If you plan to spend many years with this MLM company, you want to make sure you are dealing with people who are honest, savvy, and have integrity in and outside of the business world.

3. The product being marketed. Generally speaking, the more products the better. The fewer products you have, the greater the possibility that your prospects or potential customers might not be interested.

For instance, there was one MLM telecommunications company that recently went bankrupt. Having only a few products in the industry, they didn’t have enough products to sustain the interest of consumers or compete against other companies in the industry. Perhaps if they had added some other products, they might have survived.  Remember, your company’s products are not just competing against other MLM companies with similar products, but it will be competing against all similar products from MLM and non-MLM companies.  Especially in an industry like telecommunications, it can be quite a challenge for an MLM company to compete against the telco giants.

The products available should be competitively priced, and somewhat unique.  As I mentioned above, your company’s products will be competing against other products that may or may not belong to other MLM companies.  If there is no uniqueness to your product and the price is too high, you will be hard pressed to find consumers interested in what you have to sell.

4. The ease of starting in this particular MLM company. For instance, can people join online, or do they have to fill out paper forms?  Having the option to join online makes the whole process a lot easier. On the same note, having the option to join free will open up your opportunity to many more people.

An MLM company that allows people to join free and market the products to earn income helps to overcome any financial barriers from joining.  A free trial period also allows them to try their hand in MLM with nothing to lose.  Once someone has joined free, they will have made a commitment to the business which will make it easier for you and your company to follow up with them, via telephone, mail or email.

5. Automation.  The more automated the MLM company is, the better.  A company that offers you a personal website that you can refer prospects to helps you get started a lot more quickly than one where you are left to create all your own resources for selling the products. All you will have to do is generate traffic to your website and prospects should be able to contact you from that page.

Even better is the MLM company that creates a series of emails that follow up with your prospects. Statistics show that many people need to hear about a product or opportunity at least seven times before they decide to take it up.