There are three basic concrete points that should be followed when choosing a Network Marketing company to promote. They are:

The company’s products perform to the expectations written about and promoted.

The compensation or payment plan offered by the company is fair to the distributors.

The management of the company have integrity.

Let us examine these three principles more closely.

By using the MLM (Multi Level Marketing) system of marketing the company has seen this method as the most cost effective and efficient form of distribution of it’s products. Generally the products offered by companies using this method of distribution spend little on advertising and therefore can put money into higher quality products.

“Are the products giving better performance than other rival products?”

With higher quality products come the claims of greater performance than other similar products available elsewhere. Therefore the question is raised are these products meeting the claims of the manufacturer that they have better performance than other rival products. These claims should be tested by the consumer through research and practical application. Obtain literature and do Internet research and if satisfied proceed to purchase. The practical application of the product or service to the consumers satisfaction is the ultimate test. Hopefully, the expectations are met.

The compensation or payment method used to recompense the distributors is vital to the success of the company and their products. Distributors are the life blood for the promotion and sale of the goods or services. If distributors feel that they are not being justly rewarded for their efforts then the company will fail. This applies more particularly as the distributors begin to build their organisations and eventually have a large one to manage. Many Multi-level Marketing companies pay well in the early stages of the individuals organisation with high percentages on the first to fourth levels. However, this may reward efforts quickly but has a sting in the tail.

“The compensation method is vital to the success of the company and their products”

Most of the distributors accumulate towards the lower levels of an organisation as it matures. Multi-level marketing rewards by paying a little amount on each commodity sold so the greater numbers are in the lower levels not the top. A company should then reward more at the lower levels. This then has the effect of encouraging people to build large groups and so are better paid as the organisation grows.

Growth is often encouraged when certain volumes or levels are attained by being paid bonuses in addition to the residual or passive income. Be careful that these are not predicated on an increase requirement of your personal sales. Sometimes these are given on the one hand and taken away on the other.

The last but not the least of my criteria for assessing an Network Marketing company is the integrity of the management. Primarily this means a close examination of the past performance of the founder/s and the management staff.

These are some simple steps that I have used in choosing Multi-level Marketing companies to be involved in. Of course, there is a lot of other things you can take into account. However, if these basics are followed you will be a lot safer and have an easier time making money!

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