What is the best MLM business opportunity?

If there’s one question that gets asked more than any other in this industry, it has to be the question in the headline of this article: “What’s the best MLM business opportunity for me to join?”

It’s a completely valid question. If you’re seriously considering paying your hard-earned money to join a new network marketing business, you want to choose well. You need to make an effort to investigate the variety of options available to figure out, for yourself, what’s the best MLM business opportunity for you and your future team?

After all, you’re going to spend a huge amount of time building up your business and you don’t want to decide on the wrong opportunity. Performing your due diligence beforehand will save you a good deal of grief later.

I’d love to be able to say “join company ‘x’”, but I can’t do that in all fairness. Every company has strengths and weaknesses, and even though I might think ‘company x’ is ‘the best MLM business opportunity ever!’ that doesn’t make it the best for you.

So, let me outline a list of criteria you can use to evaluate what the best MLM business opportunity might be for you.

7 Questions for Choosing the Best MLM Business Opportunity

Question #1: How long has the company been in business?

When it comes to MLM, there are four categories of companies to consider.

There are the companies just starting out (often in “prelaunch”). These are usually only a year or so old, if that.

There are companies that have worked out the kinks of the business, and are poised for massive growth. They are typically 3-7 years old.

There are the companies riding the wave of high momentum. Their age will vary, because momentum happens at different times for companies, but generally you’re looking a companies 5-10 years old.

Finally, there are the established companies who have been around 15 years or more.

Though it may appear like getting in on the ground floor of a company in prelaunch is an advantage, in most cases you should consider it a warning sign. Most new, ground-floor start up corporations fail inside five years. Not some. Most.

A company in prelaunch is still working out their system, their compensation plan, and their products. I’ve seen more than a few networkers be totally disillusioned when their prelaunch opportunity went out of business after just a few months.

From my viewpoint in the industry, the likelihood of some new start up company surviving is terribly slim and your best chance of success is to join a definite MLM business opportunity with a definite record which has been in business, on a steady expansion curve, for a minimum of five years.

Some of the established companies can still be profitable, and people still join them every day. My experience has shown that you’re more apt to be fighting public perceptions of an established company because of it’s past history in the marketplace.

So, find out how long the company has been in business.

Question #2: Is the firm is privately owned or publicly traded?

That’s just a question to see what the foundation of the cash flow in the business actually is. Privately held companies can keep their profits and losses a secret. Public companies have to tell the world how everything is running.

Question #3: What is the background of the management team?

Do the key leaders of the company have any business experience? Do they have any prior experience running an MLM / network marketing / direct sales business?

The management team that runs any network marketing business should have substantial experience working in this sort of business. The more experience the leadership team has, the greater the chance you’ll be closer to finding the best MLM business opportunity.

Question #4: Has the company entered International markets?

This is just to get a sense of how committed the company leadership is to global expansion. There is a lot of opportunity overseas in the areas of network marketing and direct sales. A good company is either already in some international markets, or it has concrete expansion plans to get there.

Question #5: How is the Pricing of the Company’s Products or Services?

This question is especially important in the current economy. The best MLM business opportunity is one that has a good product that people already use at a price comparable to what they are already purchasing.

The question could be rephrased as follows: would the typical person on the street buy this product if there was no business opportunity attached to it? If the answer is “no”, then consider a different company.

After all, if a person is used to paying $35 for a vitamin supplement they already use, and are now asked to pay $75 just because they’re going to get a commission off it through network marketing, that’s not going to be good.

Question #6: If this is the “best MLM business opportunity”, what’s the attrition rate?

The attrition rate is the rate at which people stop their monthly auto-order, or quit the business. Publicly traded companies can tell you this number. Privately held companies are less willing to share it.

In most companies, the attrition rate can be as high as 90 percent! That means if 100 people join your business, 90 of them will drop out. Now, the attrition rate is usually not tied to leadership, products, or any other similar reason. It has to do with the expectations planted into the mind of new prospects.

If someone joins the business having been told “it’s a magic ticket to freedom and you don’t have to do anything except push a button or two”, that person will quit when faced when they find out they actually have to put in work. The largest reason for failure in network marketing is fundamentally that people are lazy.

In fact, many people who start off out in network marketing will never recruit or sponsor more than three people for the duration of their whole time within the business.

With such an huge failure rate, naturally it’s going to be extremely hard for you to develop a productive and profitable business if you select the wrong opportunity.

Question #7: What is the company marketing plan for a new rep?

A good company will have systems and tools in place to help you get your business up and running quickly. They might have scripts you can use, as well as DVD’s, magazines, printed literature, and other items which tell the company story. They might even have pre-built websites you can start promoting after you start.

Since the company usually isn’t paying for traditional media advertising, they are depending on you to be a part of the “sales force”. Therefore, verify they have materials that can help you promote yourself and the business!

And … The Best MLM Business Opportunity is … !

Again, I’d like to be able to say “company x is the place to be! Join up!”, but I can’t do that in good conscience. There isn’t a “one company fits all” solution. I hope the seven questions above help you in your next phone calls about the company to join.

You have to determine what you want from a company, what criteria is important to you, and then go shopping around for the best MLM business opportunity that meets your needs and goals in life!

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Filed under: Company Reviews • Network Marketing

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