How to Evaluate a MLM Company

by Chck
(MD)

What are three good ways to evaluate a MLM Company, before you join? I’ve found that most people evaluate a MLM Company AFTER they’ve joined the company. Most prospects get so excited about the new business opportunity that they don’t spend a few days (or even hours) evaluating the company first.

Let me ask you, if you were going to start a traditional business, or franchise, wouldn’t you do some research before you invested your time and money? Wouldn’t you research the company, the market in your local area, the products, and your competition? And wouldn’t you read all the fine print before you signed your name to anything? I hope you would.

Network marketing is a real business. And one of the reasons so many people fail is because they don’t do their homework first. So, I’m going to help you. I’m going to teach you three ways to evaluate a MLM Company, before you join. Here are my three categories.

1) Policies and Procedures: In my opinion, this is the most important criteria, when you are evaluating a MLM company. Before you join YOU MUST read the policies and procedures to find out what types of marketing restrictions you have. For instance, some MLM Companies won’t allow you to use their name in your online marketing campaigns. Other companies don’t want you promoting their business opportunity on the internet at all.

Other companies have crazy rules such as “minimum monthly purchases” in order to get your bonus. Or they have minimum customer sales, just to get your bonus check. I’ve always found that it’s better to know what you are getting yourself into BEFORE you get yourself into it. Does that make sense? So do yourself a favor and read the company’s policies and procedures before you join. Make a list of questions. And get answers to your questions before you sign anything.


You might just find out the company isn’t all that it’s cracked up to be. And you might not even be allowed to market the business the way you want to.

2) Track Record: In addition to evaluating the company’s policies and procedures, it’s imperative that you research the company’s reputation and track record. Personally, I believe it’s much wiser to partner up with a company that’s been around 5-10 years, than it is to join a start-up company. Obviously, this is a personal decision. And I know that all companies were start-up companies at one time.

But most companies fail. Few MLM Companies stick around for the long haul. Many go out of business in a year or two. And if you are going to form a long-term commitment with a company, you need to make sure it will be around in another five, ten or twenty years from now. When you join a company that is already established, you improve your chances of success.

3) Products: There are so many different types of MLM products. My only advice to you is to pick a company with a product that people want and will buy, even at the retail price. In other words, your products must have good perceived value. If it isn’t a good deal for your customer, at the retail price, don’t join that company. Remember, all companies need customers. If you can’t sell the product to anyone, you won’t make any money.

In conclusion, these are my three most important criteria for evaluating a MLM Company, before you join. Obvisouly, there are other important things such as compensation plan, mentor, training system, etc. Please conduct your research before you join a company. That way, you know what you are getting yourself in to, and won’t be unpleasantly surprised about an “unknown rule” later on.