How To Choose A Network Marketing Company

Do you know how to choose a network marketing company? in this article, I will show you what to look for and give you my recommendation.

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 would not.

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 has been in business, are there any pending lawsuits, and so on.

For example, Herbalife recently went through legal problems with the FTC. Unless you are in over with their problems, which many are, you may not want to join them right now.

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

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knowing what is the trend is a good way How To Choose A Network Marketing Company

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 a 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 Wal Mart and buy for 1/2 the price you are selling it for? This level of competition is tough to compete against.

This has always been a problem I have had with nutrition and weigh lost MLM programs, but that is a choice you need to consider carefully.

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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.

Let me add here that big-ticket, or top-tier business opportunities have come on strong recently because you can make more money on one sale then most network marketers earn in a month, or even in a year.

These may or may not even be a network business. Some are strictly a direct selling opportunity, that includes a pass up the sale so you have more than one way to make money.

Others offer a way to make money only on the level you buy in at. This gives a chance to make money on people under you if they buy in at a lower level then you are at.

Just make sure no matter what the pay plan is that you can understand it to see if you want to make money that way.

training to build online memberships is one way of choosing a network marketing company

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.

You will get a back-office or members area when you start. See if the MLM company has good archived training that you can do at your own pace when you have time.

Final thoughts on How to choose A Network Marketing Company

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 you’re 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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PS: Please leave your question or comment below, I would love to get your feedback.

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Home » Affiliate Marketing » How To Choose A Network Marketing Company

10 thoughts on “How To Choose A Network Marketing Company”

  1. Excellent advice David. Sounds like you have lots of experience in the networking industry.

    You are right about people not doing they’re due diligence, they hear about a product or a company from a friend or family member and get involved based on the excitement they hear.

    Would you recommend getting into a company that is less than two years old? It seems that most of them do not last more than 1-2 years.

    I feel that the product is “key” as well – and to make money you have to have repeat sales.

    What are your thoughts on auto-ship?

    Thanks for putting this report together – hope you can reach the masses, they need to read this!

    Dallas McCalister

    Reply
    • Dallas, thank you for the comment and kind words. I have been in the Network and Internet industry for over twenty years now. And I do research products and company very regular to keep my audience informed.

      Getting into company less than two years old can be bad, but it can be a success to you as well. each individual has to determined that on their own. I can’t imagine where I would be if i had get into wealthy affiliate when they just got started in 2005.

      Residual income is  always the best way to go, that is the reasons membership website is growing enormously. One of the main reason i am marketing Wealthy Affiliate.

      Auto-ship is a great way to have massive growth with any company, look at Amway and Mary Kay!

      Thank you for stopping by and yes, my goal is for this article to reach the masses.

      Reply
  2. You’ve got a good list there that can well be a standard checklist. Yes, it’s extremely important that we do a thorough research about the network company we are planning to get associated with. Even though it might not be possible to buy the product of the company every time, but it definitely pays to read reviews from other people. Yes, the million dollar question is “who’s going to train me?” and for an MLM company, I think much of our success will depend on the answer to this question. Thanks for all the information in your post. Personally, this post of yours was timely as I was in the process of signing up for a network company. I’m going to need more research now.

    Reply
    • glad I was able to help, Sukumar, and my timing was right on track. i always recommends on joining a program that offers a free membership, programs like that has credibility, hence the reason for their free membership.

      Make sure that they have a training program that has regular updates, and that the CEO of the company is easily reached. Glad you get value here.

      Reply
  3. This was such a helpful article! I am barely starting on this journey and I’m still so lost regarding which affiliate marketing I should join because I don’t want to promote something that I wouldn’t buy. 

    As you said, research is the key to all good businesses. 

    Thank you so much for this article! Us who are barely starting should have more tools like this on our journey 

    Reply
    • Hi Stephanie, happy to know that you find some value in this article. You should follow your passion and think about what it is you have an interest in, that may lead you to your affiliate business that you would want to promote.

      But please do not rush into your niche until you are sure is that you want to promote. Like you said you do not want to start something and end up changing it in the near future. Thank you for dropping by and leaving a comment.

      Reply
  4. Hi, David.

    A good review on network marketing and your site is well laid out and the RH Widgets give me a lot more 
    opportunities to stay engaged.

    I personally don’t like MLM because you need to put a lot of effort into the company’s behalf.
    you are controlled by their rules so expansion is often hard work.

    The approach sometimes borders on Pyramid selling and that is why Herbalife is in trouble.
    The product is good ( I use some of them)  but the model is on recruitment to get ahead.

    I was recently involved were an outsider considered that the incomes stated were fanciful and that the whole deal was a big scam. The 10-year supervisor produced his pay receipts 
    ( 6 figures a month) to shut the complaints up.

    There are money, capital expenditure and a bundle of time but it can work.

    A good review

    Peter H

    Reply
    • Peter, thank you for your take on things here. Although I made some money on Network marketing, the sole idea is based on recruiting to make a full-time income. And most people find it difficult because they have no knowledge of getting traffic. That is the reason so many fail in this business. The reason for me building this website is to educate my audience about what works and what doesn’t.

      If more emphasis is based on training and how to grow your audience, then more people would be successful in whatever they decide to promote, and that is why I recommend that they start by joining Wealthy Affiliate to gather that knowledge. Thank you for your insight here.

      Reply
  5. Thank you for writing this article on how to find a network marketing company.  I am new to network marketing, and by accident, I stumbled upon Wealthy Affiliate.  I had no intention of becoming a network marketer, but after learning what I know now, I see the endless possibilities and I am hooked!  

    You raised a great point about the training.  Who will train you in the company you’re looking into?  In Wealthy Affiliate, I was trained by the owners, Kyle and Carson.  I don’t know of any other companies where the owners play such a huge role in the success of its members.  

    WA has changed my life.  I am rolling through training and learning every day.  The idea of passive income is no longer just a dream.  It’s a totally attainable goal.  Thanks for writing this post!  I hope anyone reading will see the benefit in WA and stop their searches for other companies!

    Reply
    • They say knowledge is king, and if you can find a solution to a problem, you can build a website and make a lot of money if you follow the training within Wealthy Affiliate. I can see that you are on the right path.

      Being in and out of a few companies you are right about the owner’s involvement. You are right about Kyle and Carson, that is the reason I am so attached to WA and have no problem with promoting this service to people from all walks of life.

      I wish you all the best with your training here at Wealthy Affiliate and if there is any way I can help please contact me. I take this business seriously and I will do whatever it takes to see others have the same success. Talk to you soon!

      Reply

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