Evaluating MLM Businesses

As a former golf professional, evaluation and risk management is par for the course (pardon the pun). No matter what the situation, the thought process remained the same. If you are willing to accept the consequences of your actions then go ahead. If you are hesitant because of the potential outcome, do not do it….. It’s called evaluation.

Why is it then that so many people fail to evaluate their MLM business, both new opportunities and existing interests?

All network marketers should have at least a basic understanding as to where you sit in the market place and if you’re looking to start your own business, the criteria listed are a good way to start your research.

What is the product?

oIs it top quality or is it a fad?
oHow many products are available to be marketed?
oIs money invested in the market research?
oIs the product consumable meaning repeat business orders?
oDoes the product offer great value or is it cheaper elsewhere?
oAre you happy to use the product? Even if you were not in the company?
oDoes the product give you confidence in what you are doing?

Clarify Expectations

oWhat are the expectations of you and what do you expect from not only the business but also from the training and mentor programs? If there is a clash here, the results could be terminal.
oDoes your personality match that of your potential upline? Are they a giving type of person or are they in this to service their own needs?

Compensation Plan

oThis varies right across the board. There are companies with plans providing over 60% and there are companies paying a whole lot less with the industry standard being approximately 50%. If you are going to work hard, you may as well get the biggest bang for your buck!

Retention rates

oThis can destroy businesses and often does. It is like filling a bucket full of water only to find out that the bucket is full of holes!
oIndustry average unfortunately is approximately 15% but the good news is there are MLM businesses with substantially higher rates due to mainly to the product they are marketing and the training environments provided by their leadership.

Marketing strategy

oHow do they generate business?
oDoes this style match up to your personal attributes?
oDoes the strategy require many, many hours and in your face strategies?

Automation

oHave processes been put in place to automate your business? The idea being to free up your time so you can work on the real gritty parts of the business.
History of the company
oDo not go into this blind. Make sure you have all the information you need to make an informative decision. The last thing you need is to find out the company is just starting out. (Unless of course you are searching for such a chance).

Teaching

oWhat systems are in place to provide the teaching tools you need and the personal mentoring you will require?
oAre the tools a way for your teachers to make money or are they freely available for your development?

Investment

oWhat is your capital investment? What other capital might be required after starting up?
oWhat time investment will be required?
oGenerally It will either cost money or it will cost you time?

Duplication

oWhilst the duplication of successful processes has merit, it is impossible to duplicate people and the personalities that are attached.
oIs there going to be room for you to be you?

Put the emotion aside for a moment and let your own personality, beliefs and people judgment skills guide you. The choices you make when looking at MLM businesses are far more crucial than some of the everyday evaluations we make. Take a little time and reward yourself for your efforts.