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How to Choose a Network Marketing Business - 8 Factors

Amy N. Howard

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Who wouldn't want to work from home? There's no commute, no boss, you make your own schedule, you can work in your pajamas if you want, and you get to keep all of the rewards from your efforts. Plus there are great tax advantages for owning a home-based business. There are a ton of other reasons why someone would want to own their own business that they can work out of their home. It's important that you know how to choose a network marketing business that fits you.

Because, there's the other side of coin too. It's not all roses you know. You have to use your own money to buy your own home based business and you have to fund your marketing efforts. If you make a mistake, there isn't anyone to fall back on; you suffer the losses all by yourself. You have to be absolutely committed to your home based business because it won't happen by itself. It can be hard work.

Although there are many great reasons to work from home, there are many reasons why working from home may not be the right choice for you. You have to take a good hard look at your own situation and ask yourself if you have what it takes to make it happen. Can you be your own boss?
Once you have made a choice to work from home, you need to choose a network marketing business that's right for you. When it comes to network marketing, there are a few things you should factor before you join a MLM company.

How To Choose A Network Marketing Business!

There are literally thousands of home-based businesses to choose from. How do you pick a network marketing business that is right for you?

What to look for when choosing a network marketing company?

There will always be a risk when you join a network marketing company because you are simply a distributor of a product or service but if you use the following, you will at least have your eyes open. You can reduce your risk and increase your opportunity and your potential for earning an income from home.

Factor 1-How old is the MLM company?

The age of the company should be looked at, when it comes to residual income; you want one that has been around for a while. A good MLM company will be one that has been around for at least seven years. Most people are attracted to the new start ups because they want to get in on the ground floor of something or they have a revolutionary new product. If you have money to burn and you enjoy taking a risk, then getting in on a pre-launch might be for you. Keep in mind that being on the top of the matrix doesn't mean anything if you don't have anyone in your downline.

Factor 2-Does the product have exclusivity?

That doesn't mean that it's a product that is brand new to the market. You don't have to be first or even one of the first. If you present a product or service that has never been done before, you actually have a lot more risk than when you have a product that has been proven. An older proven produce with a new twist however, can be a great thing. If your product is patented or has a patent pending, that is a great way to go. The same goes with technology.

Factor 3-Is the basis of the network marketing product have something to do with love, health, or wealth?

Is it something that a prospect would seek you out for or do you have to do a lot of explaining to get the prospect to understand? There are primarily 3 product categories that you can base your business on; Health, Wealth, and Love. Products that fit into the health or love categories are easier to sell because they are emotionally based. People will buy them because they want better health or more love. The wealth category is going to be your toughest sell.

Factor 4-Can you be passionate about the product?

Is it a great product or is your passion coming from the idea of making money with your product. If your passion is more from the opportunity than the product-you may want to take notice. You should be passionate about your product because it works not because it makes you a ton of money. If you have the passion for the product, your prospects will also have a passion for the product and it will show up in the form of good commission checks.

Factor 5-Is the compensation plan sufficient enough to provide you with actual money?

You should absolutely consider the compensation plan. It shouldn't make or break your decision but it should be factored in. A good rule of thumb is to find a compensation plan that pays out at least 20% on the dollar. At the top level your compensation plan should be paying out around 40%. Better than that is great, but don't get blinded by the money. If a MLM company is paying something like 70% in compensation, then you may want to ask yourself why.

Factor 6-What is the credibility of the network marketing company?

This is a critical point. It should be about the product, the management, and the reputation. Is the product legitimate? Does it have science or physical proof behind it? Does the management behind the company know what they are doing? Who are the CEOs, the managers? What are their backgrounds? What is the reputation of the network marketing company as a whole? Check the background of any MLM company your are thinking for joining.

Factor 7-Does the network marketing company have integrity?

This is different than the credibility of the company in that you need to be concerned with your MLM company's compliance in the network marketing industry. This is really important when it comes to the health and wellness industry. When the company makes claims about the product. Make sure the company is doing it the right way. In other words - you have to have disclaimers. And they should be extremely cautious about testimonials and how they use testimonials. Make sure no one is promising more than the product can actually deliver.

Factor 8-What are the terms, conditions, policies, and procedures of the MLM company?

How restrictive is your network marketing company. As a network marketer you want the most leeway. However, not everyone has the integrity that they should have. So you do need to have terms that are restrictive enough to protect you from idiots in the MLM industry. Please read the contract and make sure it is something you can live with.

You are now armed with some information that could assist you in choosing a network marketing business.

Try not to get overwhelmed with all the choices that are available. Take a look at yourself and find out what kind of things you like. For example: if you are the type of person that gets excited about new technology, then you may want to focus on those types of businesses that offer new technology products or an older product with a new spin. If you are health conscious, then start looking into the health and wellness products and companies.

Go through the 8 factors for how to choose a network marketing business and note which ones are most important to you. Once you have this done, then check out what's out there. Take your time and go through the network marketing company and make sure that you get your questions answered.

Don't do what I did and just get involved with a company because the compensation plan looks great.

If you are already in a home-based business and it doesn't seem to be going as well as you had planned and you truly believe in the business and the product, then maybe you just need to develop some network marketing skills. I'm not talking about how to approach your warm market or buying some fancy expensive MLM leads. I mean - maybe you need to learn the art and science of network marketing. Bugging your uncle to buy your skin cream and join your business may not be the best way to grow your home based business.

About the Author

Amy Howard is a Home-Based Business Growth Specialist helping those that truly want to own a home-based business and actually make money. She is willing to share the little known secrets that will grow any business. She can be reached at 919-277-1684 or visit her website at


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