If you want to build a solid network marketing business that will pay you a lifetime of income and that you can pass on to the next generation, you must choose a good network marketing company.
In my opinion, the company you choose to build with will account for as much as 40% of your long term success. The other 60% comes from YOU.
There are big, brash leaders in network marketing who will tell you that your success is all up to you. It’s all your fault if you’re not successful. “If it is to be, it is up to me!”
That’s a half-truth.
Sure, you can become the most highly developed individual, have a super positive mental attitude, have a magnetic personality and still end up in an illegal pyramid scheme that gets shut down by the Federal Government, and gets you sent to jail.
The company you choose WILL have a major bearing on your long term success. You must choose wisely.
Let me give you a word picture…
Whenever a new skyscraper is built, the very first thing they do is dig a giant hole in the ground, up to several hundred feet deep. They build the foundations of the building in this huge pit.
What if they just built from the ground level up? Well, the building is not going to have much structural integrity. It will topple down with the slightest of disturbances.
Your network marketing company is the foundation upon which you build your future. It has to be strong, or your business will come tumbling down, and you’ll have to rebuild it again, and again.
Rod Cook, editor of MLM Watchdog has an excellent checklist for evaluating a company from the outside and from the inside.
This is Part 1 of a two part series, and I’ve based much of what I’ve written here from Rod Cook’s website.
Part 1: What to look for from the outside…
1. Company headquarters address. First and foremost, check this out on the company’s website. If they don’t have a street address, run far and run wide.
If they have a picture of their office, verify it on Google Streetview, or drive past it, to make sure the photo matches what you see. If you see a trailer instead of an office building, run.
2. Payment options. If a company does not accept credit cards as a payment option, run, run, run.
Credit cards mean the company has a merchant account, which means they have a good credit rating. With credit cards, you can get your money back.
If you can only send money by electronic transfer, money order, check, or Fedex, you may as well kiss it goodbye. Scam artists will take it and run.
3. Website traffic. Check the company’s traffic stats using alexa.com. This is a tip that very few people know about. Basically, if a company’s traffic is headed downwards, what does that mean? You guessed it, it’s shrinking (…or dying…).
4. Starting/buy in price. A good network marketing company will allow you to start a business for less than $500.
State Attorney Generals DO NOT like heavy front end loading business opportunities that cost $1,500 to $3,000. If someone is pressuring you to join for $1,000 or more, it’s a sign that a company is recruitment driven (a pyramid scheme), not retail driven.
5. Exaggerated product and/or income claims. Avoid companies where distributors make outrageous medical claims like curing cancer (an illegal claim) or unbelievable income claims.
Any income claim without the hard evidence to back it up is illegal. Here’s a good rule of thumb: the bigger the income claim, the more likely you’ll lose money in that deal!
Some food for thought…
Stay tuned for Part 2: What to look for on the inside…
To your MLM success,
Wayne Wu
P.S. I would love your input! If you have an opinion that would contribute to this discussion, please leave me a comment below.
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{ 17 comments… read them below or add one }
These are very important points. The one about inflated income claims seems to suck in a lot of people. This can also be classified as enticement which is illegal as well as unethical. A sound company should have no need to do other than make a straight forward offer without all the hype of large sums of money which seldom have any backing.
Charlie Holles´s last [type] ..MLM Leadership – when integrity fails
Hey Charlie,
Unfortunately, it’s so easy to make big claims and it’s actually a very effect way to get people into the deal. It’s with very good reason that it’s illegal. A good, reputable company will never make any income claims.
I read somewhere that 77% of network marketers have been with the same company for 1+ years. I think this speaks volumes to the importance of working with a great company.
Good tips Wayne, specially how they accept payment, a sure sign for fly by nighters.
Peter Fuller MBA´s last [type] ..Why I started my own Home Business
Hey Peter,
Yup, payment options is a no brainer. My personal rule is never pay with anything but a credit card.
Hey Wayne
Awesome tips. Thanks for sharing these.
It is true that a lot of people do very little if any research into the company they are joining. People need to get more serious and look for those deep foundations.
Dwayne
Dwayne Huggins´s last [type] ..How To Get Backlinks Using Google Alerts Backlink Tip
Hey Dwayne,
It is unfortunate. But the smart ones, who intend to build a prosperous future will.
Hey Wayne,
Those are some great starting points for evaluating a MLM. I am very confident the rest of your series will make crystal clear for anyone looking to find a MLM.
Eric
Hey Eric,
Thanks mate. The MLM Due Diligence number 2 is now up. Go check it out!
Hi Wayne,
These are great tips and I can definitely relate to these points because the first company Monique and I joined was a glorified pyramid scheme!
(The sad part is that it’s still around and scamming people.)
Derek Alvarez´s last [type] ..Take MASSIVE Action and You Will Have Success
Hey Derek,
I’m glad you took the time to understand the industry, got out and found a good home. Ignorance is bliss for many people.
Hey Wayne,
Due diligence is essential. No one wants to get involved with the wrong company. Although, most don’t even think about this and why it’s great of you to put something together anything thinking about this, can now follow.
Jerome Ratliff
Jerome Ratliff´s last [type] ..How to Use the Law of Vision For Your Home Business
Hey Jerome,
Thanks buddy. Thing is I never did my due diligence when I first got in. But I couldn’t either, because I didn’t have a good enough understanding. But studying the industry really gives you X-Ray vision.
Wayne,
You did an excellent job pointing out very important steps when looking into a company for your home business.
Another great place to check out is the company section on BetterNetworker.com.
They been improving the company area and can you can find company info, alexa stats, products and distributor information.
Party on Wayne,
Tommy D.
Tommy DiPietro | MLM Prospecting Hero´s last [type] ..Home Based Internet Business Strategy The Secret of Blog Commenting And Defeating The Headless Horseman
Hi Wayne,
Great tips and very valuable information! It really pays to do your homework before you join any company … not just MLM, affiliate programs also.
Thanks for sharing this!
Ilka
Ilka Flood´s last [type] ..How Do You Get Past That Sting of a NO in your MLM Prospecting
Hi Wayne,
Can you help to comment on Qnet Network Marketing company?? As per your tips, i find this company is positive in few & negative in few. Please advice.
regarding to your statement about medical claims
what if a company has lots of testimonials for their product effectiveness
and supported by studies of expert around the globe?