It is no uncertainty that MLM / Network Marketing is a huge and highly potential area to work in. It has to potential to earn the dream income you have always wished for.
Because the potential is so huge, there are many abusers of this system. Many scams are created out of the MLM / Network Marketing Platform. Thus you need to be very careful when choosing a company to join, not to fall prey into one of those scams around.
Here are some guidelines about choosing a Network Marketing / MLM company.
Products
You must always remember the core to any Network Marketing / MLM business is products or services with solid quality. Only when there is a good product will there be repeated sales. Without repeated sales, the foundation of the business model wont be strong.
Companies with no clear product are usually running on a money-making scheme and appear like a scam. In the long run, you won’t be able to sustain your income and the company may wind down due to the reduction of incomers.
Compensation Schemes
Different company adopt different compensation plans based on the culture and beliefs of the company. But there is one common factor you need to compare when assessing the health of the company. That is the maximum payout on each sale.
If the maximum payout is more than 70%, you probably happy for only a short while. Such high commissions are not sustainable in the company’s point of view. In most cases, the maximum commission pay out should lie between the range of 50-60%.
And if the maximum payout is less than 30%, your alarm should be triggered. Where did the rest of the money go to?
Background Study
You probably want to check out the history of the company, and background before you join. A reputable company should have a good length of history in operation in this industry. And what was the company doing before this. It may not be the main consideration factor, but it is good to know.
Accreditations
Look for the company’s accreditations award. Some of the basic ones are Direct Selling Association (DSA) in the respective country. When the company has alot of accreditations, it signals that the company is in good health, and should be safe to join.





