How to evaluate an MLM or Network Marketing Opportunity

How to evaluate an MLM or Network Marketing Opportunity

To evaluate an MLM or Network Marketing Opportunity, you need to check several important factors. The process is fairly simple but just like making a cake, it is important to get it right.

You need to check each of the following ingredients and ensure they are correct. Failure to do so will mean failure and pain.

  1. Company
  2. Products
  3. Market
  4. Compensation
  5. Support

The  Company should already have established a good track record of sales and growth. The leadership of the company should have integrity and a mindset of innovation.

The Products should be clean and simple and effective and they should get people raving and giving spontaneous testimonials.

The Market should be a large audience with a major problem that the products can solve. It should also be just broad enough that the range of products can solve several related problems.

The Compensation Plan should reward the distributors generously for selling and promoting the business.  It must pay often and on-time.

Support should be fast and accessible. e.g. product refunds should just happen- no questions.  Support and encouragement of all distributors and team builders should also be a key feature. If Reps can’t get their questions answered quickly they can lose momentum and become discouraged.

Which Company?

How to evaluate an MLM or Network Marketing Opportunity

To evaluate an MLM or Network Marketing Opportunity, I have explored two companies that I have been a part of and I use them here as illustrations of the process.  Here are the two examples evaluated by using the criteria above, and rating them Excellent, Good, Bad or Ugly.

Disclosure: Please don’t be naive enough to think that I am impartial here!  I am a current distributor for Company no2 and therefore declare my bias, based on experience.

However I am giving you the real deal about these two companies as I see it.  Hopefully this will save you pain and more importantly time which is the opportunity cost of being in the wrong business for you.

This is my story and it is true and my desire is to help people avoid companies like Company 1. and find ones like Company 2.

Company One -My experience.

This is  a company I joined some time ago and struggled to make any money from.  It wasn’t everyone’s experience as I know one person who is still earning some actual income from it but for the average Joe it was not a go-er! I worked very hard promoting it and so did the others I introduced. They are all gone too.

Company 1 Evaluation

    1. Company    – Good   Good track history. Had to rebrand themselves a few times to refresh as name saturation occurred.
    2. Products – Excellent  High quality products that did what they promised.
    3. Market –Excellent Large market –skin care, hair care, Nutritionals.
    4. Compensation  –Ugly     Had a system that rewarded you initially, then a large part of your team broke away and you lost their group sales volume. This created massive drop off so very hard to grow beyond a certain point unless you were a heavy-hitter or had dragged a whole team from another network.
    5.  Support       – Ugly        Only had a small window to return products if not satisfied.  If you did a return you could not continue to be a distributor.

This company is still going.

Company 2 Evaluation

  1. Company-Excellent         CEO and Owner is highly passionate about the products and the success of his distributors, and the long term growth of the company. Innovative products that create real buzz when people discover them. The company has grown remarkably for 5-6 years mainly based on the sale of the products, not by recruiting which is as it should be. One of the top distributors has over 90% of her volume from Retail Customers, and this is common.
  1. Products -Excellent              Only 6 products currently but each one very focussed on solving its target problem. The advantage of fewer products means distributors can more easily become product experts for each product and serve their customers better. Customers rave about the products and usually go straight onto auto-ship.   See bottom of this article for video testimonial.
  1. Market -Excellent        Huge target market. Weight-loss. Stress relief. Anti-aging.
  2. Compensation -Excellent         Very Generous plan. Uses a unique system so that prospective distributers can test it and see it working before committing themselves. The ad I responded to was correct and I did earn a commission in my first week. I would caution against such advertisements in general but in this case it worked for me.
  3. Support -Excellent      The company has a support team. Also the leaders all have their own groups on Social Media to encourage and train team members. These groups are great for team building and helping people new to the industry with their marketing and promotion.

to evaluate an MLM or Network Marketing Opportunity

My Story.

After my experience with Company 1,  I avoided Network Marketing for twenty years.  I am sure I am not alone.  I had a deep distrust of MLM and networking which is sad as the Industry does not deserve the bad press it gets, just because of some people’s bad experience. Some of my failure in the business was due to my own understanding, mindset, work-ethic etc. and ultimately it was my responsibility for choosing that Company to work with.

In online business, always, the buck stops here, with me with you.

Recently I was browsing on Social Media and came across a post that made the outrageous claim that I could earn a commission this week. I thought, “Yeah Really? This will be a scam! What if I do a case study and just show if it’s crap or not. Other online marketers will find that interesting as there is a lot of hype and rubbish on the net.”

“I was wrong…!”

Well I was wrong about the scam. I clicked on the link and went to the website. There was a very short video explaining the products and something called the “power-line system”.  One of the major problems online entrepreneurs face is how to put a great team together so you can grow your sales.  Recruiting and building a team is difficult, but for me, here was a system that made that much easier,  and it said I could try this system free and see if it worked.

I tried it and was blown away by the effectiveness of it. I was able to watch as it built my team.  As a result,  as soon as I understood how it worked and the ramifications of it for others I introduced, I was in.

A tool like this that helps with duplication is a pure gem as duplication is a key to your long-term success in this industry.

Well, that is enough from me, so now the ball is in your court!

Use these 5 criteria to assess any mlm or business opportunity you are investigating and then take action,  or you can just short-cut the process and try company 2 , for free, and see if what I am saying is true. (You will see it building your team for you!)

If you do decide to join me in it, I will do everything in my power to make you successful too.


Andy Bu

References:   Video Testimonial.  Courageous woman loses 125 Lbs.


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