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How to Choose a Network Marketing Company

Now that you know how a multi-level marketing and a network marketing company works, you are ready to signup.

Stop the Bus!

As with any271840959_22986e586a_bthing, it is important to ask the right questions, especially before signing up to a contracted agreement. Signing up for any Multi-Level Marketing Company is no exception. The terms of the sign-up or contract can vary widely from one company to another.

You can feel quite confident that established companies have properly outlined terms and should be easy to understand and upfront about their terms before signing. Otherwise, these companies would not have lasted for so long.

I would be more cautious about companies that are newer and where the representatives are secretive about the details before you sign.

It is the same with any business deal, if it doesn’t feel right, it may better to just walk away.disgust-15793_960_720

My first general rule is trusting my gut feeling. It’s not always right, but if it doesn’t feel right, I would, at least, be a little more cautious and ask more questions.

My second rule is to sleep on it before signing up for anything. Again I have been guilty of jumping into things before, and luckily I was able to get out of the deal when I needed before the grace period was over. Most times I do sleep on it, and it is amazing how things are much clearer in your mind the next day to make a confident decision.

So without further ado, here is my list of questions, in no particular order of importance, to ask before signing up to any MLM.

  • What are the products? How many products are there? Make sure you understand all the goods and that you feel confident you can stand behind them when having to explain what they are to others. Sure some up line representatives or motivational speakers will say it doesn’t matter what the product is. That people will buy in just for the business side of things. Sure that may be true for some people, but I don’t believe in that type of selling. Sure you can sell and make a living that way, but how long will it take that what you are doing feels just like another job. If the product is not something you believe in or feel passionate about it won’t be long you will become discouraged. Especially when sales don’t go so well. So understand the products – feel good about the products. If it is something that helps people, it will help you push through for the long run.
  • What is their compensation package? How does it work? This is where things can get complicated. The representatives may be pulling out graphs, and draw pictures and showing complex algorithms. They will point out parts that sound tempting, such as residual income within a short period by signing up just “x” amount of people, which you can start earning income just with some close family or friends that sign up. Great bonuses and of course, most have a flashy car bonus with excellent pictures or videos of people getting their new car. We are naturally drawn to car rewards like moths to a light. At this point make sure you stop and ask details about all the levels of compensation. If they seem to be hiding some aspects, again this should raise some red flags, and if you don’t feel comfortable wait, do more research before making any decisions.FL_Technics_Training_-_Inside_the_class
  • What type of support or training do they offer? Most MLM companies will have supporting documentation about their product. When they are pitching the product or business aspect, did they seem to know what they are doing, did they have an upline member with them to help? This could be an excellent indicator of the training and support that is provided. If the person was alone or with other members and didn’t seem to know what they were doing red flag.
  • If after you sign-up, can you opt out easily, any costs associated with getting out, do they have a grace period for a full refund? These are important questions to ask to ensure you always have a way out you are comfortable with at any stage of the business. If you are new, did all your research before signing, but once in, you start to see this isn’t for you, they should have a grace period for a full refund. Most will or should have a 10-day full refund policy. If you decide that, at some point down the line, you can no longer continue, check to see if it will cost you anything to opt out. There is nothing worse than a surprise administration fee to get out of the business.
  • What are your minimum6793826885_6fdd19b3c4_o purchase requirements? Most MLMs work with each new member having to buy a starter package, prices and size range from company to company. Then you will likely require a minimum monthly purchase or minimal personal volume to maintain your independent distributor status. Make sure that the cost is not prohibitive if sales or the business takes more time to make a profit. Worse case scenarios should be part of your business plan before signup.

  • Any additional fees to pay for training, tools, support or renewal?
    Ensure that you understand all the costs that may be involved to maintain your MLM business. As mentioned with the minimum purchase requirements, bad case scenarios should be part of your business plan. If you had no customers or downline members, ask yourself, how much will it cost me per month to maintain my membership and can I afford it?
  • What expectations do the upline members or company have for attendance? Some companies or upline representatives may have a minimal amount of time you must spend attending meetings, presentations, training, webinars or quarterly /annual forums in cities far from home. These expectations can cause strain on your work /family balance let alone financial costs of traveling, eating out and staying in hotels.

These would be my top questions to help you, not only to choose the right Network Marketing Company but whether you should even become one.

I decided that MLM is not a good fit for me and decided to Affiliate Marketing as my prime home base business.

Click here ====> to read more about what I have to say about Affiliate Marketing!

My wife had signed up to an MLM you can check out how we feel about it now by checking out the following blog.

If you have any questions or like to add some information I would love to hear from you, put it down in the box below.



About the Author Paul

My online journey started in 2008 when I was tired of working for somebody else. I searched the internet for years trying to find out how to make a living from home with an online business. In 2015 I finally found the information and support from a website just like this one

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  • NemiraB says:

    Hello, your article offers some good advices how to choose right marketing company. You are right. We do not need to rush. It is better to read a fine print, where can be conditions not so pleasant for us. For example, if we pay some money, there can be no refund.
    A diligence usually pays off.
    Marketing companies are various. Some of them are trustworthy, some of them are questionable.
    I wish that your visitors would find all information what they need in your website.
    All the best, happy writing, Nemira.

    • Paul says:

      Hello Nemira,

      Thank you for visiting my site, and do too hope that the information I provide will help people be aware of what to look for if interested in signing up to an MLM.



  • Tebatso Kekana says:

    The information you just provided here is absolute what anyone must read before signing up to an MLM as in today’s online world there are many traps and scams out there, some companies hide their sign up contracts. Well i’m quite eager to know how many network marketing companies are out there, which network marketing company would you recommend for me and how can i get to sign up as an individual?

    • Paul says:

      It is quite important that you are able to review the contract details before signing. I do suggest, if you are interested in a particular company/ MLM, go to a number of presentations, see if their stories line up, ask questions, see if they are open with their answers and able to direct you to the supporting documents. Most people get brought into a presentation, that is full of fanfare and hoopla to get you caught in the moment, you get super inspired that you question, and think,”Why should I wait? They get you thinking if you don’t sign up now, the guy next to you will and then you will be quickly falling behind. Do not get caught up in all that showmanship. Take the information, research online and most importantly sleep on it.

      At this point, I not wish to suggest which one would be the best for any particular person. I can tell you that my wife, Brenda, is currently with the following MLM ==>Click Here for More Information.

  • Lakisha says:

    It was nice reading your article. I recently started online and had no idea what an MLM was. Until I came across one. I quickly realized that they are very secretive. I like the questions that you have listed here. I wish I would have known some of the “What To Ask?” before I joined these companies.

    AS a complete newbie online it is really hard to know what is right and what is not. Well, I now know they kept secretive because there were other intentions involved. At least the MLM I joined. Although, they said they were not an MLM. Great Article…

    • Paul says:

      It is really unfortunate that companies use the MLM model to sell their products. As you mentioned, most MLM companies are quite secretive about many parts of the business. Sometimes they won’t explain all the fees or all the products you need to pay for to get to the higher levels they always tend to show in their presentations. You go these monthly meetings with fancy leased cars parked along the front of the building with personalized license plates to sway you into thinking if they can do it so can you! The reality of all the hidden fees and the level of products you must buy usually becomes more apparent at the 3-4 month range. Some will stay a little longer after that, probably averaging around 6 months before they realize they have given away enough of their money and time to see that it is not worth. Meanwhile, the upper line continues to travel city to city with their leased cars encouraging more to sign up to help pay for their lifestyle.
      Not all companies are that bad. Some do have a decent product that can not be bought anywhere else. Some also provide the opportunity for people to gather with no expectation for those attending to recruit more distributor, rather they are providing an opportunity to get together with the added benefit of sampling and demonstrations of new products in their catalog.
      It’s just a good idea to be savvy at figuring out the descent from the bad MLMs. If you are asked to buy into a starter package that costs hundreds of dollars for a small box of nutrient samples and you are sold the idea that you only need to keep buying the minimum amount of product every month to stay active…Look out…run the other way. If an MLM says after signing up for the starter package, if you get 10 other people to sign up from your “warm List” then you get to move up 1 level…run the other way. Those are companies that only want to cash in on your 3-6 month sign in before you give up. If you last longer and move up the ranks great, but either way they get to cash in on you signing up. Beware…

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