MLM Evaluation: How to Evaluate a MLM Company Before You Join

by Chuck

What is a MLM evaluation and what should you know about it? I define a MLM evaluation as the process of thoroughly analyzing a MLM Company before you join it. Let’s face it; it only makes sense to research a company or business opportunity before you invest your time and money. Does that make sense? I don’t see any logical reason why anyone would join any type of business opportunity or business venture, until they did their homework about the opportunity/company first.

With nearly ten years of experience in this industry, I’ve noticed that most people join a company out of pure excitement. And they rarely spend any time researching the company, its history, policies or compensation plan, before they sign their name to the dotted line. This frequently leads to heartache and disappointment later on down the road.

Before you join any business, you need to do your research. At a minimum, you need to learn more about the following things.

1) The Company: Try to find out everything you can about the company. Is it approved by the Better Business Bureau? What type of products do they offer? What can you find out about the company leadership?

2) The Company History: How long has the company been in business? What are their historical sales figures? Does the company have sufficient capital for future growth? Is it privately or publicly owned?

3) The Compensation: How do you get paid? How many downline distributors will it take to make $1000, $5000 and $10000 per month? How often do you get paid?

4) Upfront Costs and Ongoing Costs: What is the actual start up cost? What type of monthly investment will you need to make with auto-ship? Are there training or website costs?

5) Support Systems: What type of support system is in place to help you grow your business? Will you have someone helping you? Will this cost extra money?

6) Rules and Policies: Read the distributor agreement carefully. What limitations are there placed on you? Can you use the company name in your advertising? Are you allowed to build your business online?

7) Training: What type of training is available? Does the company offer seminars and training events? How often? How much does it cost?

I truly believe that if you followed these seven steps when conducting a MLM Evaluation, you would be able to make a much better and “educated” decision about the business opportunity. You might find out the company isn’t what you expected. Or, on the other hand, you might found out the company is even better than expected. But, if you don’t do your homework you will never know!

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