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How To Choose a Good MLM or Network Marketing Company?

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You've heard many horror stories about MLM /network marketing programs. But what you are really hearing about are stories relating to illegal programs or pyramid schemes. Basically, pyramid schemes have no real, viable and worthy product. Obviously, you do not want to participate in such schemes. You want to be associated with a high quality product that you will readily endorse.

Why participate in a MLM or network marketing company then? The lure of joining a MLM has great appeal: It allows you to work part-time, gives you an opportunity to build residual income and you become a small business owner. MLMs have created many millionaires. Those who are successful testify that it is a result of hard work, continuous prospecting, motivating and training others.

The concept of MLM is simple. Instead of paying huge advertising sales and marketing costs to promote their products, MLM companies convert their loyal customers into a huge sales force. They rely on word-of-mouth to do the marketing. The commission from the savings on employing sales staff, advertisement and promotions is paid to you instead. It is a win-win situation for both the company and the MLMer.

If you decide to join one, please note that many MLMs require an initial investment. Before making such an investment, here are 10 tips on how to choose a good MLM program to promote:

1. Choose a program that you like or have some interest in. The best way to know if this is a program you wish to promote is whether you are interested in purchasing the product for your own use. If so, chances will be that there will be others who will be interested in the same program.

2. Look for a program that is of high quality. For instance, choose one that is associated with a top expert or many experts in the particular industry.

3. Participate in ones that offer real, viable products.

4. A program that caters to a growing and target market will ensure that there is demand for your referral. Do your research, participate in discussion forums to get feedback.

5. A compensation plan that pays out a residual income and a payout of more than 30-50% will be great. Avoid wasting time with programs that do not reward you substantially for your efforts.

6. Be aware of minimum quotas that you must fulfill or sales target that is hard to achieve. Some MLM companies impose a pre-requisite before you get paid.

7. Choose one that gives you plenty of tools and resources to help you grow the business easily.

8. For online MLMs, check whether the company has a proven system that allows you to check your network and compensation. There must be a reliable referral tracking system.

9. A program that offers strong incentives for members to renew their membership each time. Obviously, one that provides continuous help and upgrades for its product and business will tend to retain its members and will ensure growth of your network.

10. If your upline is someone you know, you can always ask him/her to spell out if there is any downside risk involved.

With millions of people coming on the internet, an online MLM will be a great business to be in. You can recruit affiliates from all over the world, keep in touch with them easily and also, have the option to automate your business. Start your search for a great MLM or network marketing company to work with today!

Evelyn Lim is an Online Business Entrepreneur & Strategist. This article is extracted from her regular newsletter that teaches readers tips and stragies for Mapping To Success. To subscribe to her newsletter or to find out more, please visit or her blog at

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