Business & Finance Electronic Commerce

7 Secrets to Choosing an MLM Company

Here are the 7 critical factors to consider when choosing a multi-level marketing company.


There are a few things to look for here. First, you need to know that most MLM companies fail within their first 5 years. So it's wise to focus on those that have survived this long. The companies that survive their first 5 years are the ones that explode and build wealth for thousands of people. Look at the progress made by the company during the first 5 years, as well as last year's growth.

Then, look at the founder and management. Are they experienced? Are they sound businessmen? Do they carry a vision you agree with? Find a company you can identify with and that you can believe in.


Are the products they offer part of a growing market, or are they being phased out? Do they offer something people really want, and would actually buy? Great companies are versatile, and change their product line depending on what is popular and what will sell.

Beyond what products they offer, look at how the products are distributed. Will you have to fill your garage with inventory, then distribute and collect yourself, or does the company take care of this for you? Companies that offer products that you don't have to distribute yourself are great, because you save lots of time and headache.

Compensation plan

There are a few different basic compensation plans, and most of them are good, but make sure you understand their compensation plan before you join, so you know what you need to do, and that you'll be happy with your pay when you get it. The best compensation plans offer no limits to income, achievable commissions and bonuses to infinite generations, and results in months, not years.

Initial investment

How much you are willing to spend on your company is up to you. Some MLM companies cost thousands of dollars, and many of them are good deals, but you can find great MLM companies that cost only a few hundred dollars to start. Regardless of how much you are willing to pay, the most important thing to look at is how quickly you can earn your initial investment back. You should be able to earn your initial investment back within weeks or even days.

Momentum and timing

Success in MLM is very much dependent on being at the right place at the right time. If the company is too young, it will be difficult because of the 5 year rule. If they've been around for a long time, it's possible that the market is too saturated, and those who were going to make it rich already have.

Support and training

Starting your own business can be a daunting task, but it doesn't have to be. The most important thing you could do is educate yourself and absorb as much about your company and this industry as possible. Make sure you can access free or inexpensive training and support whenever you need it, and that it is quality training and support.


The entire idea behind MLM is that it creates residual income from the leverage you create by expanding your business. But most people don't know how to do this. Even if you do, teaching your team to do the same can be impossible if you don't have a duplicable system in place. A duplicable system is one where everyone is provided with the simple tools for prospecting, presenting and training, so your entire team can grow their businesses quickly and efficiently.

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