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How To Properly Choose An MLM Opportunity

Jun 21, 2008
There are some specific characteristics to look for in a new mlm/network marketing business opportunity. Before you invest a good deal of your time, energies and financial resources, take the time to perform your due diligence. Resist the temptation to proceed until you have slept on it and thoroughly reviewed the products, the company's business model and the company's track record with regulators and the local Better Business Bureau.

The first thing of major importance is the compensation plan. The majority of MLM compensation plans are called 'binary' plans. This means that you will be working to place new distributors into two downlines underneath yourself. Occasionally, you will see other plans, such as one-ups and two ups, where your first commissions must be passed up. What exactly must you do in order to be paid? Do you make retail commissions? Commissions for sponsoring new members? Residuals (overrides) on the sales volume in your organization?

Next, consider the product and/or services. Is it unique? Is it in demand? Is there value in the price? Or is it overpriced? Is it consumable? (this, of course, means repeat buyers) Is it maybe just a fad product? Search on the internet to locate competitors. Look at their price points and marketing pieces.

Next, look closely at the network marketing company itself, especially if it is less than a couple of years old. Use the internet to discover whether or not the company is publicly traded. If it is, there will be a great deal of information available, due to federal regulations about disclosure. If it's a privately held company, find the local Better Business Bureau for the coroporate office location and do some digging. No company is ever perfect but you want to see a track record of the company being responsive to complaints and problems.

Finally, don't forget to choose your team and your sponsor with great care. Do not overlook this last detail! No matter how talented, skilled and determined you are to succeed, a sponsor who is arrogant or unhelpful will only delay your progress.

You can get a feel for their personality and demeanor just by observing your initial contact. Did your potential sponsor return your phone call in a timely manner? Did he or she return emails promptly? Did you feel any kind of connection, when speaking on the phone? If something does not feel right, move on.

Look for a sponsor who understands and teaches Internet Marketing techniques. Savvy network marketers are now leveraging the internet to locate and recruit new distributors. You want to be part of a team that is doing this correctly and teaching new members to do the same. Can they teach you how to generate free leads with social marketing? Can they show you how to set up and use an autoresponder?

Continue searching until you find a sponsor that is confident and knowledgeable. It's important that you feel comfortable with this person; after all, you will be calling and emailing frequently when you first get started. Finding a good mentor, after all, is just as important as choosing a good company. Choose well and you are positioned for true success in network marketing.
About the Author
Before you choose your new network marketing opportunity, see MLM reviews and MLM Online Systems at Cathy's network marketing review site.
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