There are literally hundreds of multi level marketing companies out there all trumpeting that they have the best compensation plans, the best products, the best scientific endorsements, etc, etc. It is bewildering even if you’ve been in the industry before and know a little about pay plans and products, etc.

How do you compare apples with apples, when some of them are bananas or cucumbers?  What should you look for? How do you ensure the greatest chance of success? How do you know which MLMs are stable and won’t go bust or get shut down? What should you look for in a compensation plan?

Well, here are our top 5 must have features of any MLM. Do NOT join any MLM that doesn’t have all of these features:

  1. The Company should be at least 5 years old with a proven financial record.

MLM companies younger than this tend to be inherently unpredictable. Literally hundreds of companies choose to set up using this model of marketing, but very few indeed survive with their reputation intact. There are many reasons for this, but primarily it is because they are established for the sole purpose of making money for the founders instead of doing what business should do: serve customers’ needs and look after its staff.

 

  1. the products or services must be world class and scientifically supported/objectively endorsed.

The real truth about a company’s products or services can be hard to find, but we always advise to look for 3rd party endorsement from either consumers, consumer watchdogs or the scientific community. If the Company is selling services, then find out what the relevant government or external agencies say about it. If it is selling products then do your research and find out if there is general scientific agreement that these particular products or the particular way in which they are created is beneficial for consumers. If there is ANY doubt about that, or there is just overwhelming criticism from the online community about the products, then run a mile.

  1. the products must be genuinely selling to the general public far more than to the distributors;

If there is a mandatory requirement for distributors to buy a certain amount of products or services every month in order to qualify for their commissions then avoid that company. This does not of course mean that that company is a scam, because distributors are perfectly valid customers too, as long as the products/services are genuinely helping them.  However, it could mean that the company has no genuine retail intent and that is a problem.

Use this test: If there are not at least 7 external customers to every distributor in that company’s network then do not get involved.

  1. the compensation plan must actually pay what it says it pays and genuinely seek to put the maximum into your pocket rather than the Company’s pocket.

Almost every company out there says that it has the best comp plan.  There are binary systems, that allow infinite depth.  There are unilevel systems that generally allow infinite width.  There are matrix systems that impose various limitations on width or depth. And there are hybrid systems that combine features of all of these. There are all sorts of bonuses, some one off and some ongoing.  

Many companies say they pay out 70% or 82%, or some other high number of their sales to their networks

However, no company would still be in business if this was true. So be careful. The average ratio of commission to turnover in the industry is actually 38%. So if a company is actually paying out anything approaching 50%, you should seriously consider this company as a business partner.

  1. the company and/or the network must offer you world class training and mentoring on both traditional approaches and also internet marketing so that you have huge numbers of leads continuously.

The biggest problem in the MLM industry, apart from people having no idea how to get enough leads, is the absence of truly world class training, both for traditional and online approaches.

We live in the digital age and if the company and/or the team you’re looking to join, does not offer you actual help to implement proven online strategies and the absolute best offline techniques, then you will struggle to build a large business fast and, far more importantly, your team will not duplicate.  

Be highly selective. You need to ask them the tough questions and ask for evidence of what they’re telling you. If they become less keen to take your calls at that point, then you know there’s a problem. Run a mile.

  1. Whatever company you choose, you must select a sponsor and upline who are world class and will genuinely help you, hold you to account and encourage you.

Every prospecting sponsor will tell you that they offer this, but remember, you are also interviewing them and they need to provide evidence of their track record. Do not just go with the first sponsor who speaks to you. Ask who the other main leaders are and talk to them too.

Be warned though, if you do find a world class sponsor, they will expect you to take action and work hard consistently, or they will not work with you.

To join our team or get our mentoring and support book your strategy session today. 

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