Research Your MLM: 10 Considerations You Must Make Before You Join
You’ve found an MLM to join, but don’t really understand the compensation plan very well? Not sure if the company is reputable?
No problem, you’re not alone.
There are many out there, and before you join any MLM, as a wise and savvy business person, I hope that you did your homework and found out more about the company – it’s corporate structure, the type of comp plan, how long it’s been in business, where the home office is located and so on.
Unfortunately, most people that join an MLM opportunity never do their due diligence to fully understand the implications and finer points prior to putting their money on the table.
Besides the products your company offers and their marketability, you must ensure the company platform is stable and that the commission system they employ works for you -BEFORE you sign up.
Remember, you are starting a business. You’re not buying a lottery ticket!
10 of the considerations to make are as follows:
1. You should avoid any plan that promotes commissions for recruiting additional distributors. It may be an illegal pyramid. Commissions should be primarily from sales, not sign-ups. If it is front end heavy on rep sign up commissions, look carefully and proceed with great caution.
2. Be wary of a compensation plan that asks new reps to purchase expensive inventory: they can collapse quickly and may also be thinly disguised pyramids.
3. Look at the type of comp plan: Matrix, Binary, Australian, Unilevel, Compresses? There are benefits to each and some work better than others. Research the kind offered in your company and figure out if it works for you.
