I hope youve already read my article When Network Marketing is Wrong, or When Youre Wrong for Network Marketing. Once youve read that, this article will make more sense!

Network marketing has the potential to be absolutely brilliant, providing individuals and societies with the most amazing benefits: financial, economic, educational, social, political and philosophical. Although I might seem to really hate MLM (and youll know me as the person who banned all MLMers and network marketers from My Speed Business Network) I want to assure you that on the contrary I have enormous goodwill and respect for MLM done properly.

Points to Look for When Choosing an MLM or Network Marketing Company

Here are some simple points to be aware of in choosing a network marketing company that help you achieve sustainable success:

It should provide training in good business standards, including marketing training. If it tells you to promote your business by hitting on friends, family or strangers, then it doesnt know what its doing, and is setting you up for failure. If it cant teach you how to operate your business successfully, trust me, it doesnt know how. You only have to think about this to realise how logical it is. Theres only one way the company can make money, and thats through product sales (yes I know several make money out of lousy training programs etc, but the majority make their profits out of product). If they knew a way to help you sell more product, can you honestly believe theyd withhold that information? Have they got a foolproof marketing system or not (and this does NOT mean hitting on family! That is not only totally unnecessary, but will actually do more harm than good.) or not?

It should provide training in team management so that you acquire the skills needed to build a sustainable downline. Most downlines degrade, and most downlines fail. Good marketing and good management can prevent this. If the company has been established for some time, then it should have an excellent pool of management expertise, and this should be being pushed down via ongoing managerial development of the team.

It should not emphasize recruitment over product sales. If the whole emphasis is on the opportunity instead of product sales, then that company will collapse because it is operating in a similar fashion to a pyramid scheme. So make sure that while recruitment growth is a part of the plan, that the main focus, and the majority of commissions, comes from product sales.

This point relates to the one above and it is about market demand. You can only be successful in any sustainable way if there is demand for your product. If your MLM company cant demonstrate public demand for the product (at a price the public is accepting) then you will struggle to make money, and you will not recruit intelligent or experienced business people who understand market forces a whole lot better than that. Make sure your MLM company has research proving market demand, at the prices set.

It should be open about net commissions paid (the difference between commission paid and purchases or other expenses the company charged for), and to whom. I dont mean that they should say how much individuals earn, but they should be able to tell you what proportion of people got paid how much. If theyre selling you the story of financial freedom, find out just what percentage of people who join are actually getting there. Also make sure you know their failure rate. A good MLM company will ensure its people are fully informed on these vital statistics.

It might or might not require you to buy product in order to enter. If the product is well priced, and if there is a good strong demand for it, then this is in most cases a sensible requirement. However if the product is unreasonably priced (according to the market) or if the market doesnt really want it and youre going to have to work hard to promote it, or even give it away so people experience it for themselves, then its probably not in your interests. After all, that would mean that youre bearing the brunt of the cost of launch and that stinks. Only join a company if it is fair and equitable in its dealings.

Is the product being offered one that you have a real interest in? Similar to the point above, if you have no passion for the product, youre going to find it hard going. No matter how much you love the money, youll find thats not enough to keep you going. Youll struggle to sell product, and youll struggle to recruit people who will sell product. Without product, the whole thing becomes unsustainable. So pick a product that matters to you, which youve researched comprehensively (so you know its not a scam and so you know theres a real market for it at that price.)

You might want to take a look at the MLM Code of Ethics, and discover whether your company has a written commitment to that.

MLMProfessionals.biz does not have an association with any MLM or network marketing company, and does not receive payment for product sales or recruitment.

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