How to choose the right network marketing company in 2022[Updated]

**This image is only for illustration purpose.

If you are viewing this blog that means you are serious about joining network marketing. 

So, thank you for viewing this article. I assure if you read and understand this blog, you will have the understanding of fundamentals of joining network marketing business. And get the idea of choosing the right company. 

Network marketing industry is also known as MLM (Multi-Level Marketing), Direct Selling or HBB (Home Based Business). But so many people confuse it with Pyramid scheme or Ponzi scheme.

Why this confusion?

Because there are some companies which are actually a pyramid scheme. But they claim to be a network marketing company. And many people get attracted by their get rich quick scheme and failed after some times or the company vanishes.  Those people and their ignorance are the reason for this confusion. They have decided not to update their knowledge and intelligence by researching. 

Read: Difference between a Pyramid scheme and Network Marketing Company

So once you decided to give network marketing a try, then the next step is to choose the right company to work with. Most people don't give their time in choosing the best company. They join the company that came to them first. so they suffer later. It's great that you're spending time on research. 

By research, you can save your time, money and energy from going into some wrong place. 

In my opinion, there are 5 factors to check in a network marketing company. 

1. Company Profile: 

It's about knowing the company that you want to join. 

The first thing to check how old the company is?

Most of the MLM companies come and go. You know why ?! Because they are illegal. They may look and sound like the awesome ones. But most of them are not. And most of the companies start with an awesome plan but after years they go down into loss. 

So, check if the company is over 10 years old. Company's age is a silent indicator of legality and trustworthiness.

Has the company present at the global level?

Maybe you're thinking you do not have any plan to go international. But the companies with a global presence has huge growth potential. You never know how diversely your team will grow. Maybe your associate pursues a career in abroad, or they have a strong connection in abroad. So that your business will grow all the way. 

The vision of the owners and the management team?

What's the vision of the company? do they have prior experience?

Look do they actually interested about the distributors? Are they interested in educating you?

 For this one, you have to go to their meetings. You can't know about the leaders or management team by looking into their brochures or sales plan. Look into the heart of the company.

The best way to check a company's profile is to go to their official website. There's a website that has all of the MLM companies profile listed. You can check about the company by the following link: MLMlegal.com - MLM company profiles

2. Compensation Plan:

That varies from company to company. Make sure the compensation plan is understandable. And they are paying enough and caring for their ground-level associates. 

If you notice any quick money be cautious. Learn more about that money.  Understand if they are paying you for recruiting new members without product movement. If they do not join that company, It's not a proper MLM company. 

After understanding the compensation plan, here's a question to ask yourself.

Can I make money if my network consumes products without recruiting new members?

If the answer is "YES" then congrats you are with a good company. If not then run as fast as you can.

 3. Products:

Few facts to check here:-

High-Quality Unique Products:- Make sure products are exclusively available only to this company. If the company have patented products then congrats, you are with a good company. Since the business about the residual income, it must have consumable high-quality products. This leads to repeat purchase by your associates and customers year after year. 

As the products are only available only here, then the customers will come back to you again and again.  Actually, consumers must have a compelling reason to buy products from your company without a money-making plan. 

Rightly Priced: If the products being sold by the company has not any real value or overpriced, then be cautious. It may be a pyramid scheme in the dress of a network marketing company. Here's a note - when judging about the price, judge with cost per value. Don't just see those labels in the products, understand how much they cost per use. 

With money-back guarantee: Money back guarantee is associated with consumer satisfaction. If the company is providing money-back guarantee then they have confidence in their products. 

It goes without saying, you have to consume/use the product. So make sure these are products that you would love to share with your family and friends.

4. Business Education System: Without education system, no business can sustain long. In network marketing business education is completely free. Author Robert T. Kiyosaki refers to network marketing as the best free business school. 

Make sure the company you are joining has an education system and provides training to all members.

Why it is important to have an education system?

Because with an education system, you can learn success attitudes, leadership skills, people skills, time/priority management, goal setting, communication, money handling etc skills. But without a proper education system, you will be the same person even after becoming financially successful. 

5. Team:

Ultimately you are going to join a team/group of a particular company. So knowing more about the group may help to choose the right group. 

Do the group focus on values or they just focus on making money?

-- You can perceive that by attending their meetings and looking at their CSR(Corporate Social Responsibility) activities. 

Always choose a group that is based on values. The group with values earns more sustainable income. 

Are they willing to help you? Are they care about your vision, dream or goal?

If "YES" then proceed. 

Everyone indeed creates their own success. Also, it makes sense to work with a company that will stay after you've built a huge group. Most importantly always go with legitimate Direct Selling companies.

Here are some key points to identify a legitimate network marketing business:-

• No joining Fee. If anyone asks for joining fee cross-check it's illegal.
• Freedom to choose products as per your choice from a range of products, No fixed package.
• Your income should always depend on the business, not on the number of members in your team. That  Business is volume-based income not recruitment based.
• Repurchase concept.
• No fixed target.
• Quality products / Many companies give cheap quality products are difficult to reuse and recommend.
• Price of products should be moderate.

Here are some questions by Motivational Speaker and Author Zig Ziglar from Dummies.com that will help you to make the right decision:-


1. Does the company have a proven training program?


2. Does the company has a reasonable number of consumables in their product line?


3. Would the company’s income and product claims pass muster with regulatory bodies, or do they sound too good to be true?


4. Does the company's philosophy fit your personal philosophy?


5. If you succeed with this company what are the things you will get? are all of the things money can buy or money can't buy?


Here are some articles that will help you:

1. 10 Ways to choose a great network marketing company

2. How to choose a network marketing company - Wikihow

 

3. How to choose the right company - Entrepreneur.com 

Hope you get the idea of choosing the right company in the network marketing industry. If you have any questions and doubts leave it in the comment box.