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How to Choose a New MLM Home Based Businesss Opportunity

When choosing a new mlm home based business opportunity, there are 5 factors to consider. Knowing these can save you from much pain and frustration.

The first factor to consider is do the company owners have mlm experience + integrity? Many people who start network marketing companies have been successful in corporate America but have never built an mlm downline. It's like having a layman as Chief of Surgery or someone who has never taught school become a high-school principal -- neither has a clue about the position. In corporate America the objective is to increase the bottom line for the owners/managers which is usually the objective of company owners who don't have mlm experience. But, if they've built it in the field they would want the compensation plan designed to reward the distributors in the field and not the managers/owners of the company.

But that's only half of the equation. Do they have integrity? Whether the managers have experience or not, they must have integrity. How can you know if they have integrity, you might ask. By simply reading the company's policies & procedures (p&p's). If the p&p's state that you must have ongoing sales, or they can terminate you at anytime for any reason, or there is an annual renewal which the company can deny at their discretion these are all clues to the company's integrity. These are clauses that the owners use to STEAL YOUR DOWNLINE. If you are looking to build your business once you need to know if you'll ever be able to stop working.

I read a p&p once that stated regardless of level of achievement, the consultant has the onging obligation to get at least one new consultant or customer every four months. If they do not sponsor or make a sale every four months, their distributorship will be cancelled. What if you're in this company and you build a sizeable buisness over a two year period and something happens that you can't work for four months. When you joined that company you agreed to relinquish your business if you don't have activity in a four month period. Is there intergrity in that clause? This clause is an example of a clause designed to steal your downline. The owners of the company know that most people do not read the p&p's. If there is clause after clause on how you can be terminated or cancelled, there is no intergrity. When you check the box that you agree to all conditions, you are in essence signing a contract. Don't feel that they won't do that to you. The clauses wouldn't be there if they wouldn't.

I once was in a company that I didn't read the p&p's. This company required a monthly autoship. What I didn't know is my membership would be cancelled if I got off autoship. This is an example of not being able to quit. Once I got off autoship, and this company was so lacking in integrity that even though they cancelled my membership, they kept my website live with the company owner's information. I found this out because someone went to place an order on my site. If the company had any integrity, they would have shut down my website when they cancelled my membership.

This is the most important factor. If this is bad -- run, run, run and don't even think about joining.

Timing in the company and in the industry 

Factor 2

The second factor to consider is timing in the company and timing in the industry. You never want to be part of a brand new start up company because over 99% of start up companies don't make it past two years. This is as true in network marketing as it is with any traditional company. If it is a great opportunity now, it will still be great after 2 years. Let the company work out all the kinks before you get involved.

A company may get in the industry at the right time, but a distributor can get in too early and not withstand the challenges of the first two years in the industry. A good example of a company getting in an industry at the right time, but the distributors falling by the wayside during the first two years, is Excel Telecommunications. It took them two years to work out its legal issues. Those distributors who joined in the beginning did not make any money during this process and ultimately quit.

Does the company have a remarkable product? 

Factor 3

Let's face it. A company won't stay in business without a good product. Every legal network marketing has good products or they wouldn't stay in business so you really need to have not only a good product but a remarkable product - a life-changing product, one that creates an emotional attachment. And, you want a product that the price is not artificially inflated. If someone can get that or something similiar a lot cheaper at the neighborhood superstore, people won't buy.

But it's still not enough to have a remarkable product at a fair price if the management does not have integrity or if the compensation plan is lousy which brings me to the next factor.

Fair Compensation Plan 

Factor 4

Most compensation plans are designed to reward the heavy-hitter, the super-duper sponsor, the full-time network marketer. But, since most people start out part-time in network marketing, you need a compensation plan that pays the part-timer. You should be able to be in profit on a minimal number of distributors. Thus, you must be able to determine how many distributors you need to 1) break even and 2) earn your income goal? For instance, with the company that cancelled my membership (but not my website), I needed 12 personally sponsored people on monthly autoship to break even. If I followed their business model and only sponsored 5 and helped them sponsor, I needed a total of 20 people in my organization just to break even. (I hope you know that had I read my p&p's and done the math I would have run, run, run!) It is no wonder that most distributors quit since most distributors are incapable of sponsoring more than 3 distributors (unless they receive skills training).

Also, this compensation plan was not fair to the distributors. Their compensation plan is designed to benefit the company, to the detriment of the distributor. Don't get me wrong, I know they are in business to make money. But, so are the distributors. And, they would not make any money if it were not for the distributors. This company pays down 6 levels if you sponsor 5 distributors. They will pay down 2 levels, if you sponsor 2; 3 levels if you sponsor 3; 4 levels if you sponsor 4; and, as mentioned, 6 levels if you sponsor 5. The problem with this is the industry average for sponsoring new distributors is 3 people. So if you only sponsor 3 people and one of them grows a business down to your sixth level, you will never earn a dime outside of pay level 3 although you are the one who initiated the volume for the company. A fairer comp plan would be to pay on group volume down six levels regardless of how many personally sponsored distributors you have.

A System for Success 

Factor 5

The fifth factor in evaluating an opportunity is does your company or upline have a system for success or simple steps anyone can follow? How many business meetings have you attended where the person doing the presentation was a fire ball but you knew that you could not do that? People can not be duplicated - but systems can. Everyone in your organization can follow a system. Buying leads and calling people is not a system. Even if a person has been successful with buying leads and converting them, this cannot be duplicated. The system must teach the skills and provide the training, coaching and education that will develop its distributors. This system must be able to help its distributors grow as individuals. It has been said that "one should work on yourself more than you work on your businesses." So, a system that can help you grow, can also help you grow your business.

If you are considering a new network marketing business opportunity, these are 5 factors to consider. If you desire more info on how to evaluate a network marketing company, and save yourself from years of failure and frustration in this wonderful network marketing industry, request your free ebook below. If your company has met the requirements of factors 1 - 4, but you are winging it, this resource can still benefit you and your organization.



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