How to Evaluate a Good MLM Company

Many people are now joining a multi-level marketing (MLM) company in the hope of opting out of the recession. It is a good plan and a concept that has already helped many people become financially independent. To increase your chance of building the income that you desire, there are several ways to evaluate a good MLM company.First lets start with a discussion of the MLM industry.MLM is a 50+ year old industry. Multi-level marketing is a term that describes a distribution system where the manufacturer makes a product or a company provides a service and that product or service is marketed or sold through a network of people. Products or services are distributed directly to the consumer, bypassing traditional retailing. Since there is not as much overhead with MLM, the money saved on warehousing, retailing, etc. is paid in the form of commissions to the network of distributors. The terms multi-level marketing and network marketing are used interchangeably.When evaluating a MLM company, you should look for a company that has strong leadership, solid performance and clear plans for the future. The company should have a good support system in place so that customers can order online and contact the company directly if they need to make a product return.The next thing to look for when evaluating an MLM company is the products. Afterall, you will be a representative of this company and you should use and be a strong advocate for them. The company should have products in more than one market segment (for example, weight loss products and skin care). This will likely increase your sales since once you introduce a person to one product line, they are more likely to try some of your other products. You should also choose a company whose products are consumable. That way, there are built-in repeat sales. It is really preferable if the company offers an autoship option. And, finally, the products should be in high demand and target a large market (for example, baby boomers).Another important component of your MLM search should be the training available to you. The person who enrolls you (or someone else in your upline), should be available to personally train you. The company should also have online training and/or webinars. This training should include product information, compensation plan explanation, and personal development.One more element to investigate is the compensation plan--that is, how are you going to be paid. Most MLM compensation plans are quite complex; with different commission rates paid based on product volume that your downline generates. The important thing here is to ask questions if you don't understand something. Also realize that you may not understand all of the details until you qualify for the various levels. Keep in mind also that most MLM companies pay their distributors in multiple ways; cash bonuses, car bonuses, material items, trips. All of this should be evaluated when looking at the compensation plan.Never rush into choosing a particular MLM company. If possible check for reviews and advice from past clients; this will help you to make a better informed choice and ensure that any money spent is a good investment.