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How To Pick The Right Network Marketing Company
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                 how to pick the right network marketing company 
It is not easy to pick the right network marketing company. Even experienced networkers make the wrong choices. Here are some of the most important questions for you to ask to draw the best conclusion.

So how do you pick the right network marketing company? Is there one that "fits all"?

You not only have to know what to look for, but what to look out for, so here is my list:

To choose the right network marketing company, find out: 

1. How Old Is The Network Marketing Company?

There's two sides to the story about how new or how old a network marketing company should be before you join it. Some of the most successful network marketers have gotten in at the very beginning when a network marketing company just gets started. But this is usually because they are well connected, have a history of successful marketing or are just plain contacted by the company before anyone else to help them out.

On the other hand, statistics show that over 80% of new network marketing companies don't survive pass their first years and 95% of them don't make it pass their third year. In other words, there's about a 5% chance the new network marketing company you join will be around three years from now.

This is why many experienced network marketers will wait until a mlm company has been around a minimum of two or three years before they join it. Even if you could build up enough residual income to live off of and the company fails after 2-3 years, where would that leave you financially?

2. How Do You Feel About the Product(s)?

The network marketing company you're looking at may have the latest "patented" marketing plan, the seemingly hottest trademarked one of a kind product, the best software website and back office and one of the top MLM distributors as their CEO and you feel the product will sell itself. Is this enough? No, it's not.

If one important factor is missing, like financial backing, experienced honest leadership or a workable compensation plan, it doesn't matter how anybody feels about the product. Everything must be in place or it won't work out. I've seen many companies fail because just one thing wasn't right.

What else should you think about when it comes to the product(s)? Being "first to market" is big. Are products considered a necessity, luxury or daily used product? Luxury and "I can live without it" products aren't as good as the recent Great Recession showed.

What does the product cost? This is important. Is it less or more than similar products people can buy locally (without the shipping cost). If it's unusually high, people won't buy it or join the company and they certainly won't stay on an autoship contributing to poor retention in the company.

If the product cost less than what you normally pay (in another mlm) this is good. Occasionally a company comes along and offers their products for less than anybody else. This is obviously a great idea because nowadays who isn't looking for the best price?

3. What Are The Policies and Procedures?

Most Policies and Procedures are written by lawyers and serve as a protection of the Company. They also give the company rights not found in the normal work place. Don't ever join a company until you read all of the P. & P.'s as their called.

In some extreme cases, they state that a distributor can be terminated for any reason by the Company. Can you imagine, working your tail off and bringing a ton of volume to the company to have them say you're terminated? It happens more than you know.

One major clause is that you can be terminated for being in some other network marketing company. Well, if you don't like that idea, don't join. Some state you can't market on the Internet and most state they can change anything at anytime. Whoa!

4. What Kind Of Commission Structure Works? 

First of all, you want to avoid any mlm pay plan that claims it's possible for someone to make money without working. It may be possible but these tend to attract people who won’t do the work.

Also, avoid anything in mlm that asks for some kind of  investment, says it will invest your money or offers a HYIP (high yield interest program) or looks like your return will be unbelievably high. Chances are it's a Ponzi Scheme. Most of these are "new".

Many people don't like binary or matrix comp plans but that doesn't make all of them bad. Those that do like them are the one's who join early because they usually make most of the money. It helps if the comp plan encourages synergy, teamwork and help from an upline sponsor. It also helps if it's easy to explain.

Also, avoid network marketing companies that have a habit of changing their comp plan, especially in favor of the company. If you find out it has flushing, flush it (the company).

5. How Deep Does The Comp Plan Pay?
 

You should join a business where you get paid for all your efforts. If you only get paid for a specific number of levels, e.g. 5 or 6 levels, then you may leave a lot of money on the table.

You also shouldn't have to have your personals enroll too many members to qualify for new ranks. Qualifying for commissions should be as simple as enrolling two new members once since this is the most many people can do. None would be better.

6. Does The MLM Or Your Sponsor Have a Visible Team Building System?

If your sponsor or the network marketing company does not have any proven easy to follow team building system for you and those you sponsor, then this leaves you to create a promotional system for you and your team. Do you know how?

If the company or your upline simply tells you to talk to your warm market (the people you already know), then that is not duplicable – most people will not want to do that. If your upline simply says, “advertise” then that is not duplicable either. What if everyone on the team advertised at the same place?

Your upline should provide you with a well thought out simple way to build your business. It doesn’t matter if it is provided by your upline, or the company, but it must already exist. There are some leaders who sponsor co-op's.  I recommend you get some names of those who have used it and recommend it before you pay anyone to be in one.

7. Are you being asked to buy the largest
package? 

Most network marketing companies offer various starter packages when you enroll. Don't let your sponsor make you feel you should have to buy the largest "Professional" Package to show your commitment. Start small and add as you go when you see progress and things working out as you hoped.

The sponsor who tells you to buy the "Pro Pack" so you automatically qualify at the "gold" level is probably benefiting himself the most. Do what's best and wisest for YOU based on your commitment.

8. Does The Company Have a High Joining Fee?

Very few network marketing companies have learned that people don't want "starter" or business kits. They prefer kits which may include product samples, business cards and brochures. Certainly this is much more practical.

However, high joining fees, expensive "marketing" websites and hosting fees are not practical for today's times. People still have to shell out money for their product. It doesn't hurt to ask if you can join for free.

9. Are the Products Consumable?

A network marketing company should have consumable products that people will want to buy every month even if they choose not to do the business opportunity anymore. All mlm companies are required to have customers and not just sales reps.

If the products are digital or a service or even some kind of technology, these kinds of companies have some advantages. First, there's no sales taxes. Second, there's no shipping costs. Third, they are often easily available to an International market. The concern here is whether it is easy to use and do people really want or need it? Also, will the network marketing company be around years from now?




There are ways you can find out if an mlm is growing, slowing down or is getting a lot of views on its website. How?

How popular a website is is determined by its amount of traffic. One website that ranks traffic to a site is
Alexa.com. If the rank is high (say within the top 5K websites), the mlm is getting a lot of interest. Try Avon.com

You can also go to
MLM Rankings to see how the mlm is doing compared to other mlms in growth and popularity. Start up companies most likely will not be on the site, but could be.

If you ever get a little skeptical of mlms and whether they are legitimate froms of business or not, then read this whole page and watch these two videos:

DSEF We Can Make a Better World

Direct Selling Association Video.
10. How Many Products Does The Company Have?

If a company has only one product then YOU have a very limited market, unless it's a service or technology. If someone doesn’t like the one product you have then there's nothing else to entice people's interest.

Keep in mind, just because YOU think the product (s) is fantastic doesn't mean other people will or pay its high price. Don't let just a product make you decide if the company is the right one to pick.

11. Does The Company Take Credit Cards?

If a company doesn’t take credit cards and they require you to send a money order, check or cash in the mail, then you should not even be considering this company.

The same can be said of those that only take certain kinds of Payment Systems like AlertPay. Why don't they take credit cards? Because merchant accounts are difficult to set up and usually require funds as a deposit. Fly by nights won't do that.

12 What Kind Of Support Does The Company Have?

Test out the support dept. before you join. Call and email to see if you reach anyone or get an answer. If they don't respond to someone who wants to join, what will they do once you join? Ask what their return policy is, their warranty and how do you terminate your involvement with the Company.

13 Is The Network Marketing Company Legal?

Any program that has no product or service or that is paying you to recruit and the product is a secondary add-on to make it look legal, is almost certainly a pyramid scheme. Sure, some "leaders" make some big money fast, but some will lose big money fast and if you do make big money then you could get in trouble with law enforcement. Even though there are loads of them, gifting companies are illegal as well. Doesn't matter if some people say they are making money from them.

14 What are the Company's Terms and Conditions?

You should always read the Terms and Conditions before you join. Some mlms are very strict about your involvement in other mlms at the same time. If they will terminate you for even looking at another company in a non-related field, don't join. They could strip your income away from you without notice. This has happened to large income earners.

Most reputable network marketing companies will not allow you to use the company name in your own domain or email address. This is actually good, but do they enforce it? It will tell you whether they have a compliance department which is a good sign.

15. Have You Done The Research?

If a network marketing company doesn’t have any of the above concerns, then your final check should be with the scam websites. See if there is any mention of the company or the owner you are looking into and if so then did the company or owner take care of any of the negative situations. Consult my MLM Watch link at the top of this website for assistance.

16. Check Out The Team and Sponsor

Don't forget to check out your potential sponsor and team when picking the right network marketing company.You can read about my team HERE and about me HERE.

I can't tell you how many people who have called me after they joined the "master" distributor, the mlm "leader" or the team leader who over promised and under delivered and wished they hadn't.

I believe which team and sponsor you choose can be more important than the company you join. So don't join a great company then blow it all without doing the research on your potential sponsor and team.

In conclusion, to know how to pick the right network marketing company you need to ask all the above questions, know the answers and do the research and not rely solely on emotion.

You can also rely on someone you highly esteem and trust, who has proven himself previously to do the "leg work" for you. In that case, it could be as easy as saying, "Sure, I'll join. Where do I enroll?"

Granted, this is "information". However, applied information is power. How will you use what you know. I hope this has helped you to know how to choose the right network marketing company.

People often call or ask me, which company do you recommend. I know there is no perfect company and no one company is for right for everyone.

However, if you would like to know which company I recommend the most, please call me at 951-805-8585. My name is Andrew Sinay and I am the Founder of the A. Andrews & Sons Marketing Team.