How to Find the Best Network Marketing Companies
If you came here looking for a list of the best network marketing companies, you may be disappointed.
In writing this post, my intention is to give you the knowledge and tools you’ll need to pick out the best network marketing companies on your own, and avoid the bad ones.
However, if you’re in a hurry and don’t want to be bothered with learning how to think for yourself, you’ll want to check out my post on the top MLM companies, ranked according to their Alexa.com rankings.
But for those of you who are willing to do a little due diligence and don’t require knowledge to be spoon fed to you, you’re going to get a lot out of this post. Many years of wasting time building downlines in network marketing companies that failed has taught me one vital thing I believe every network marketer should know…
That is, knowing how to spot the best network marketing companies and choosing among them is a prerequisite to success in this industry. So, let’s examine several of the factors that will allow you to spot which are the best network marketing companies.
Characteristics of the Best Network Marketing Companies
The essential characteristics of the best network marketing companies are:
- A Good Compensation Plan – There should be money at both the bottom and the top of the pay plan. The company should offer bonus pools, fast start bonuses, and good sales commissions on retail sales to help new distributors make money. And, there should be BIG money at the top of the pay plan. Check the company’s annual distributor earnings report. If the top earners are making less than $250,000 a year, something is missing from that pay plan – find another company.
- Longevity – 9 out of 10 new network marketing companies fail within the first two years. I’ve wasted plenty of time and effort with companies that later went out of business. Avoid new companies like the plague, and avoid people and promotions that use phrases like, “Get in on the ground floor,” “Get in at launch,” “Brand new launch,” “The next big thing,” etc. Instead, look for companies that have been in business longer than five years. See my post on The New MLM Company Lottery for more on this.
- Reputation – If you go with a company that has a lousy reputation, you will be fighting an uphill battle with your recruiting and sponsoring efforts. Some companies have developed a reputation for having a cult-like corporate culture, or for encouraging their distributors to use unethical recruiting methods (see #4), or for treating their top earners poorly (see #5). No matter how good it looks, avoid such companies like the plague.
- Integrity – If the company promotes standard operating procedures that are deceptive, run. If the company has a ton of lawsuits against it from disgruntled former distributors, run. If the company changes their policies and procedures, or has recently changed their pay plan in their own favor, run.
- No Drama – See #4. Every company will have grumblers and complainers. However, if you hear a lot of stories of how top earners got kicked out of a company for trumped up reasons, consider that there may actually be some truth to those accusations. Also, if the company has recently had a major shake-up in their top management, find another company. And, if the company founders have resumés that read like a who’s who of failed network marketing companies, I strongly suggest that you pass on that company.
Consider the above five characteristics of the best network marketing companies and size up any company you are considering by those five factors… BEFORE you join.
The idea is to find the BEST network marketing company – one that you can build a lifelong income with, and then focus just on building your paychecks with that company.
This will also keep you from getting S.O.S. (“Shiny Object Syndrome”) and becoming an opportunity hopper. I played that game too, and it is the absolute worst way to build a residual income. Find a company that you don’t just like, but love, and stick with it for the long haul.
Additional Factors You May Want To Strongly Consider
When searching out the best network marketing companies, there are other factors you may want to consider. While these are not necessarily essential, they can be pivotal to how you build your business. In addition, they can also help you narrow down your list to one or two top choices.
- Does the company sell a consumable product? If the company’s pay plan relies on selling products or services that are not consumable, you are going to be in a cycle of constantly hunting your next paycheck. This is not conducive to building a long-term residual paycheck. Search for companies that sell products that people will have to reorder each and every month.
- Would you buy it if you didn’t sell it? This is important. Ask yourself, “Would I buy this product or service if I wasn’t selling it?” If the answer is “no” then find another company.
- Does the company rely on “gimmicks” to sell their products? Gimmicks never last. Products with “legs” (that walk off the shelves) are those that actually have substance and depth. Avoid gimmicky products and companies.
- How good are the company’s support, training, and marketing materials? I’ve seen some great companies with fantastic products that had lousy marketing and support materials. In my experience, if a company won’t invest in their training, support, packaging, promotional materials, and marketing, they will never grow into a large successful company.
Remember, the best network marketing companies will meet all the five characteristics I mentioned at the beginning of the article, and they will also meet these criteria.
Now that you know how to identify and choose from among the best network marketing companies, if you’re searching for a company you can believe in I encourage you to consider my favorite network marketing company as well.