"Goodness is the only investment that never fails." - Henry David Thoreau
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Network marketing programs, also referred to as MLM
or downline programs, can bring huge financial rewards if
marketed well. They provide a way of working at home and
building your own monthly income through your efforts to
introduce and sell the network marketing company's products
or services to other people, who then introduce them to
other people, and so on. It sounds simple enough but how do
you know if a company is legitimate and will pay you on time
or even at all, and will they be around in the long term?
In this article I have listed seven factors that I
personally take into consideration before choosing to join
an MLM company:
1. Are the products offered good enough to be sold on their
own without the downline incentive?
The first thing you should look at is the products or
services that the company is offering. If you don't believe
they represent value for money, or you simply aren't
impressed with them, then the likelihood is that other
people won't be either. Therefore you will probably have
difficulty selling the products to other people, and so your
potential profits could be limited.
2. Has the company already established itself?
It's important to find out how long the company you're
considering joining has been operating. Although there's no
guarantees on whether a company will be around in the
long-term, I still favour companies that are at least a year
old. Yes some of these may subsequently go out of business
at some point in the future, but at least you know they're
not a fly-by-night outfit.
3. Does the company offer a good compensation plan?
Let's be honest, this is the factor that most of us are
primarily interested in. Time is a very valuable commodity,
so we don't want to spend it promoting a network marketing
company's products unless we are being well rewarded
financially for our efforts.
4. Does it offer spillover?
Spillover occurs when say for example, if the company uses a
5x5 matrix then when you refer 6 people, the first 5 will
fill the top level, and the 6th person will go under one of
your initial referrals creating an incentive for them to
continue with the program because they are benefiting from
your efforts as well as their own.
5. Does the company have a reputable owner or management
team in place?
This information can be slightly difficult to find out, but
in this internet age it is becoming much easier to carry out
independent research. If you can't find sufficient
information yourself you can almost guarantee that there
will be a forum somewhere which discusses the company, and
where someone has already done a background check on the
owner or management team.
6. Is it strongly endorsed by other members of the company?
Forums and discussion groups are great places to obtain this
information. Although most people will obviously praise the
company that they are promoting in order to get more
signups, you will inevitably find a few negative comments
from disgruntled recruiters. It's these comments that you
should read carefully. Most of the time they will be minor
issues or faults, but sometimes you can come across red flag
signals such as the company suddenly starting to delay
payments, for example.
7. Does the company still have plenty of room to grow, or
has it already reached saturation point?
This is the final point I want to mention, but nevertheless
a very important one. You don't want to join a company that
everyone is seemingly already a member of, and one that is
already promoted heavily. For optimum results you want a
company that has already established itself yet still has
plenty of scope to grow and attract new members, therefore
being relatively easy to promote.
James Woolley is a full-time marketer and a heavy promoter
of network marketing programs. To find out which programs
he is currently promoting click here:
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