What is the Best MLM Business Opportunity?
One of the questions I get asked most frequently is "What is the best MLM business opportunity to join?"
That's a great question. After all, if you're seriously contemplating becoming a part of a network marketing business, you want to pick "the best", right? You're going to be devoting a lot of time and energy to building this business, so you want to make sure you've got a good opportunity. It's important to do your due diligence. Better to discover the "bad" things now, before you commit.
To help you out, I have 7 questions you can ask about the business you are considering. You can either ask them of a person you know in their business, or you can call up a company and ask for the answers.
By the way, I'd love to just say "go over here, and join company 'x' because it's the best." Well, in all honesty, it might be the best for ME, but it may not be the best for you. Every company has pluses and minuses, so ask these questions and see if they help you choose the best mlm business opportunity for you.
How to Pick the Best MLM Business Opportunity
Use the following seven questions as a guideline for the type of information you should gather before picking the Best MLM Business Opportunity.
#1: How many years has the company been in existence?
There are four general timeframes into which MLM companies can be grouped.
First, there are the companies that are one year old or less. These are the companies that often say "we're in pre-launch". That simply means they are testing everything with the business. They are testing the compensation plan, they are testing the products, they are testing the ordering and shipping processes. Testing everything!
Second, there the companies that are still young, but they have worked out all their major problems, and are on track for strong growth. These companies are typically 3-7 years old.
Third, there are the companies that are "in momentum". The age of the company will vary, but overall, the company is stable and is gaining a lot of popularity. Some companies hit momentum early in their life, others take a few years to catch on but once it has caught on, it's unstoppable! Generally, this is companies in the range of 5-10 years old.
Fourth and finally, there are the companies that have been around for "a long time". They are recognizable names, and usually have been around 15 years or more.
Some people believe the lie that "you have to get in early" to make any money, so they jump on board with the companies that are "in prelaunch". That's not always a good sign, because most new businesses fail within five years, and that's true for MLM just as any other industry. I know quite a few networkers who got in on prelaunches, only to find them out of the company within six months because the companies closed up.
Your chances of success are much greater with a company that has a track record of growth, is approaching momentum, or is just starting to take off. In this case, you would want to focus on companies that have been around at least 5 years.
You can still make money with the established companies, but my experience is that, because the companies are often "well known" to the general public, there are already a lot of preconceived notions about the company and the industry you will have to overcome.
#2: Is the company private or public?
Here you're just getting a sense of the overall cashflow to the company. Privately held companies are usually self-funded and don't have to show anyone their balance sheet of profits vs expenses. Publicly traded companies have to report all their financials publicly which can be a blessing and curse.
#3: Who makes up the management team?
The key people who run the best MLM business opportunities should have experience in business, and specifically in MLM, network marketing, and direct sales. You should also find out if any of them have actually build large downline organizations in the industry.
#4: Has the company gone international?
Just about every MLM company wants to build a global brand. Part of the reason for this is people in less developed countries are often very comfortable with the idea of selling and marketing because that's how they make their livelihoods. So a good company is either planning to expand globally, or is already there in some capacity.
#5: Are the products and services competitively priced?
The best MLM business opportunities have products and services that sell for less than can what be gotten elsewhere. Unfortunately, a lot of companies fail this test by charging more. In this day and age of the internet and comparison shopping, most people are very savvy shoppers.
So, if an MLM company is selling an energy drink for $10 a can, but a comparable energy drink can be bought at the grocery store for $4 a can, you're going to have a challenge with having to explain pricing to your prospects. Some people will care about the ingredients in the $10 can, but most people will be shopping on price.
Take a close look at the products and services of the company you are considering. Would the average person buy the product if there was no business opportunity involved? If your answer is "probably not", then start looking for a different company.
#6: If this is the "best MLM business opportunity", how many people really make money?
There are a lot of ways to measure this number. One is from the "attrition rate" of new distributors. The attrition rate is the speed at which people quit the business after starting. Most companies won't tell you this number, but you can ask for an "income disclosure" summary.
In the majority of cases, a company's attrition rate can be up around 90 percent. That means for every 10 people who join the business, 9 quit. They don't usually quit because of the company, or its leadership, or the products. They quit because it's more work than they were led to believe. This is true in every industry, not just MLM.
In fact, I have a business acquaintence who joined a large traditional financial services company (not an MLM). Tim was a hard-working guy and one of a class of 10 people who all started at the same time. Three months later, Tim was the only one still with the company. The others had quit for a variety of reasons such as "it was harder than I thought", "it's not a fit for me", and "I don't have anyone to approach about my services". Almost 2 years later, Tim is still with the company doing great because he had the personal drive, and worked hard to succeed.
So, people will quit an MLM company, too, after joining with all kinds of hopes and dreams for success. The largest reason for failure in network marketing is fundamentally that people are lazy. So, ask about attrition rates, but realize your success is up to you and your attitude.
#7: What is the success and training plan for a new person who joins?
The Best MLM business opportunity will have training systems and tools to help you get up and running quickly in your business. Your personal sponsor might have some "team specific" systems, too, so ask your potential about those things.
A lot of companies only use the "warm market" approach to building a business, but you might want to find out what kind of internet-based marketing tools they have, and if they have any lead generation programs you can plug into.
MLM companies aren't paying for radio, TV, or print advertising, so they are depending on you to market the business for them. So, they better have materials for you to distribute and use!
Conclusion: The Best MLM Business Opportunity is ... !
No matter what questions you ask, the best MLM business opportunity is the one where you personally feel comfortable with the products and services, where you trust the people who lead the company, and where the company has good tools to help you promote it.
There isn't a "one company fits all" solution, in the same way that not everyone shops at the same grocery and department stores. I hope the questions here help you look more objectively at opportunities that come your way.
Online Business & Marketing Coach