10 Tips on MLM Companies

When reviewing a company, the following areas should be considered: company, products, compensation plan (how you are paid), available training and the MLM industry. Follows are 10 Tips on MLM Companies for a more granular list of what to look for.1. Consumable products. If the company offers consumable products, then you have a better chance of having repeat sales. When your consumers are happy with their products, they are more likely to go online and place a re-order; often without even a phone call from you! If the company offers an autoship program, that is even better. Suggest that your consumers get on autoship after their first manual order.2. Products that most people use every day. In today's tough economy, it is often difficult to ask people to buy a product that they are not already using. For example, if your company offers supplements, your initial market should be people who already use supplements. In that scenario, you are asking the consumer to simply transfer where they are purchasing their products and not asking them to spend more than they are already spending.3. Cutting edge products. If your product is not a stand-out product, then you will be competing with the convenience of shopping at a retail store. You will also be competing on price. MLM companies often have cutting edge products since much of their dollars are spent in research and development.4. Products in more than one market sector. It is important that your company has many product lines. In the above example with supplements, if you have a consumer who uses your supplements, then introducing him to your environmentally friendly home care products is the next logical step. And, if he know and trusts the company, he will usually be very willing to try some other products.5. Team that has some kind of leads generating system. With the internet, on-line lead generation should be an integral part of your overall plan for expanding your business. If the MLM company has a leads generation system that you can "plug into", that should be a major consideration for you.6. Company that provides training. Most MLM companies provide some kind of training. You should look for a company that has multiple ways for you to get training. There should be live calls, recorded webinars, CDs/DVDs. And, be sure to ask the person who personally sponsors you what kind of training he/she will provide. Remember, it is in his/her best interest for you to be successful in reaching your goals.7. Company that has strong leadership. The company you choose should have strong leadership; leadership that you can trust. They should show integrity and listen to the distributors and make adjustments as appropriate.8. Company that is a member of DSA. From the Direct Selling Association (DSA) website: "The Direct Selling Association (DSA) is the national trade association of the leading firms that manufacture and distribute goods and services sold directly to consumers." and The Association's mission is "To protect, serve and promote the effectiveness of member companies and the independent business people they represent. To ensure that the marketing by member companies of products and/or the direct sales opportunity is conducted with the highest level of business ethics and service to consumers.". More can be found at their website: dsa.org9. Company that has ambitious plans for future. What are the future plans for products? What are the expansion plans? Are they currently international, if not, what are their international growth plans? What are their growth goals in terms of assets?10. Compensation plan that pays in multiple ways. Traditionally in MLM companies, the "up front" money is very low with the expectation that it will increase over time. Some MLM companies have made adjustments for this and now have part of the compensation plan that pays out more when just starting out.