Whether you’re considering joining a certain company, have just started, or been with a company for quite awhile, it will be wise to evaluate the MLM company periodically. I’ve compiled below a list of 7 factors to consider for your MLM company research process.
Obviously, it’s impossible to cover every single consideration. However, what I’ve listed here more or less captures the important points if you don’t have the time to scrutinise every tiny detail.
- Marketing & Usage of Its Brand Name
- The RISK Factor
- The Product(s)
- Compensation Plan
- Training
- Personal Experience
- Calibre of The TEAM
1. Does It Allow You to Market the Way YOU Want to Market?
The idea is that you are suppose to MARKET your business and products.
- Are there any marketing restrictions the company has in place?
- Do they allow you to market online?
- How easy do they (and their products) make it for you to market?
What about their policy when it comes to using company trademarked names (both company and product)?
- Does the Company Allow You to Use Its Brand Name? Do you get in trouble for publicly mentioning the company’s name?
- Does your MLM company threaten you with legal action on the basis of trademark infringement?
- Some network marketing companies are afraid that distributors will misuse and misrepresent them, thus bringing about a lawsuit on the company. A company that discourages its distributors from using its name only makes it tougher for them to market and make money.
- Ideally, find a company that allows you to use their brand name.
Be very upfront with what you can and CAN’T do when it comes to marketing – because ultimately, that’s going to affect the way you build your business.
2. Analyze the RISK
- What are the risks involved in joining XYZ Company?
- Consider the company’s history and track record. Has it been around long enough to be considered “stable”?
- What are the costs of your investment? It can be the cost every month in the form of autoship (which you might have to sign up for to qualify for certain “benefits”), or training.
Everything in business requires risk, so it’s not a matter of finding a company with NO risk, that’s impossible. It’s a matter of minimising the risks involved and being okay with the possibility of losing your investment of time and money.
3. How Good is the Product?
Although most people join MLM for the business opportunity, the product still matters. If the product doesn’t sell, you’ll just end up with a bunch of distributors with customers who’re also distributors, who bought the products just so they can qualify for their commissions and bonuses.
When evaluating a product, be sure to ask yourself:
- Is it desirable by the masses? Is there a market?
- Is it fairly priced? Would a prospect seriously pay that amount for it?
- Are the products marketable for the long term or are they just a fad that will die off after awhile?
- Does it really does what it CLAIMS or is it just all hype?
You don’t need the best product on the market to succeed. However, you still need a product that delivers on its promise so that it CAN sell.
4. What’s the Compensation Plan Like?
You are looking to join a business opportunity because it is a viable option to produce some side income that just might turn into a lucrative income stream. Make sure that the MLM company you are considering joining will pay you and pay you well. And you do that by examining its compensation plan.
- Fairness: the comp plan should reward the top leader in sales with bonuses and also helps the part-timer, the “Average” person break even fast and become profitable quickly through the retailing of products.
- Stability: you need to know if the company has a history of changing their compensation plan too frequently. It could be a sign that the company is in financial trouble. Having an unstable compensation plan is like getting a pay cut or having your taxes raised. Find out how many times have they changed their plans, and what is the reason for doing so.
It’s easy to get emotional and forget about all these fundamental questions before committing your time and effort to pursue a part-time business in MLM.
Ask yourself:
- What’s the payout like?
- When do I get paid?
- Do I get compensated now AND later?
- Does my pay help do justice to my “rank/level” within the company?
- How is the residual income potential?
- Are there some ridiculous rules in place that will PREVENT me from getting the paycheck I deserve/earned?
- Is the compensation plan structured such that my upline is encouraged and motivated to help ME and such that I am encouraged and motivated to help my downlines?
5. Is the Training All Just “Hoo-Rah-Rah”?
Is the training provided just all “hoo-rah-rah” or does it actually have any substance?
Too many multi-level marketing companies rely merely on the excitement of its members to propel itself and grow. These companies drag on that excitement by holding highly energetic and emotional meetings where no real education in marketing happens You may consider passing on the companies that don’t know how to train their folks.
Look into companies that teach their MLM distributors things like:
- Personal development
- Business sense
- Prospecting techniques
- Overcoming your fear of rejection
- Actual marketing skills
- How to run your business LIKE a business
- Communication skills
Having meetings/events where they do nothing but just “pump you up” does NOT qualify as training.
6. Personal Experience… So Far
From what you’ve seen and know so far, how do they make you feel?
Does the company look “professional” to you?
Does it operate like a fly-by-night company or do they have some true potential?
What about how receptive the market is to their products?
You can tell a lot about the company by some of its distributors. What’s your impression of the member that prospected/contacted you? Did he pressure you? If so, that’s a reflection on the company and certainly on the team you’ll join. Or it COULD just be the distributor doing a bad job.
7. Calibre of The TEAM
Analyse the specific team in the company you’re looking to join:
- how is joining this team going to give you an advantage over the other teams
- training – what kind of training will you have access to? SEO, Social Media, Pay-per-click, copywriting, prospecting, etc.
- system – does this team already have a step-by-step copy-and-paste blueprint in place for you to build your own online marketing funnel to generate leads and convert them into commission cheques.
- skill sets – what are the skill sets of the other members in the team, uplines, up-uplines, and cross-lines? Do they make up for what you lack?
- Bottom-line is this: How much leverage can you gain by joining this team/company?
Whatever the case, listen to your gut feeling, go with your instinct. It is perfectly OK to view everything you read/hear with a healthy amount of scepticism to but always keep an opened mind.
Be smart about your decision to join a company – don’t get easily swayed by talks of compensation plan, about helping you realize your dreams, and all that other “feel-good” stuff. Look at the goods, if it sucks, GET OUT.
Hey Donnychen,
Very interesting, I recently wrote an article called:
Building a relationship with your subscriber is very important
One of the most important things you must do to achieve success online is to build a solid relationship with your subscriber.
doing a relationship is valuable because it can make the difference between making a sale and losing it to your competitor.
You see, simply like in genuine life, if I had to choose between a friend who provides a service like car repair and a stranger who offered the same price, I choose my friend in less than a heartbeat.
Why? Because I’d rather give HIM my company compared to another stranger.
E-mail marketing can be quite competitive at times. Therefore when two marketers are promoting the same product, having a strong rapport with your subscribers will give you a competitive edge.
Kind Regards
Renata Rimkute
Wishes
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