You are considering investing in an MLM business and you aren’t sure how to evaluate the MLM to determine the best opportunity.  There are many MLM businesses out there and finding the one that is right for you can be the key to your success.  MLM, or multilevel marketing, is a business model in which distributors or independent representatives sell products or goods to consumers and then recruit others to the business to do the same. 

With the multitude of MLM business opportunities out there, you must evaluate the MLM to find the right fit for you. There are several questions that you should ask to determine which MLM opportunity is right for you:

1.       What is the company’s history?

Do some research and learn as much as you can about the company.  Have they been in business for a long time?  Who started the company?  What is the company mission? If your research uncovers anything that you don’t feel fits with your personal goals, then it may not be the best company for you to invest in.

2.      What products or goods does the company offer?

How does the company support claims about its product?  Is the product one that will appeal to a wide range of consumers?  Is the product priced comparably to similar items in the market? Because your first source of income in an MLM opportunity will be from the products that you sell to your customers, make sure that the product is one that you would use or that you feel meets the needs of most consumers.  Your success will be dependent on developing your customer base.

3.      What upfront investment do you need to make to join the business?

Most MLM’s have a low initial start up to become a distributor.  Make sure that the investment you make is one that you can afford and that you are willing to put forth the effort to recover your investment.

4.       Can you generate revenue selling the product only or will you be required to recruit additional distributors to be successful?

Companies that base their income structure only on the premise that you recruit others to the business are not a legitimate MLM.  You should be able to achieve some level of success from selling product only.  Of course, the most successful MLM opportunities will allow you to earn additional compensation for recruiting other distributors.

5.       Are you committed to meeting the minimum sales goals each month?

Make sure that you understand the distributorship requirements on the front end.  Some companies require you to maintain a quota, or minimum sales level, in order to qualify for compensation.  If you can not commit to consistently maintaining that goal, then you might consider another opportunity that better fits with your level of commitment.

If you have thoroughly evaluated the MLM business opportunity and feel that it fits your personal work ethic, commitment level, and is based on selling a product that you feel good about, then you may be well on your way to having your own successful business.

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This entry was posted on Thursday, July 14th, 2011 at 11:00 am and is filed under Home-based Business, MLM, Network Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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