How To Evaluate New MLM Companies
Today there is a lot of pre-launch hype that seems to surround many new MLM companies. With dozens of new companies coming to market each year, it is important to spend the time evaluating those companies, just as you would research a company that has been in operation for several years. With careful due diligence you will be able to separate the future superstars from the cautionary tales of tomorrow.
Start by looking at the founder of the company. Do they have a track record in this particular product niche and in the network marketing industry? Many of those starting new MLM companies have previously been associated with other network marketing opportunities in the past. It would be prudent to study up on their past business dealings. Was their previous company successful? Is the previous company still in existence? If the prior company is no longer in existence, you need to examine the reasons behind their demise. Repackaging poor management will still produce poor management. In addition to the company founder, examine the other key leaders in the business to determine their level of experience with the product niche and the network marketing industry as a whole.
Next take a look at the product offering. Does this product make sense in the market place at this particular time. For example the marketplace is filled with Acai berry health juices, does the market really need another one? If the product makes sense in the marketplace, does it make sense for you? Is it a good value or is it something that could be obtained at a better price somewhere else? Can you envision yourself and others in your sphere of influence utilizing the product or product line on a ongoing basis? Without a unique angle, another look alike product in a marketplace full of similar products will be a difficult proposition. Look for the one thing that sets this company and their products apart from the competition. You will also want to examine the autoship program to determine if it is reasonable for the average consumer.
Take a look at the compensation plan. Does this plan make sense to you, and could easily be explained to someone else? What type of MLM compensation plan does this company use? Are there restrictions on the number of downline levels from which you can draw income? How easy is it for you to move through the compensation levels of the plan? Compare the plan of the new company to the plans of other existing MLM companies who are using a similar compensation plan.
Finally examine your gut feelings. Although a “ground floor” opportunity has the potential to be profitable, there are also many of those opportunities that never quite make it off the ground. If you have any sense of apprehension, it is best to steer clear of the opportunity, until it has had time to prove itself in the marketplace.
When it comes to evaluating new MLM companies, don’t leave your common sense at the door.
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