5 Questions to Ask Before You Join a MLM Company

In this article I want to give you five questions you should ask before you join a MLM Company. I’ve found that most people join a company out of raw emotion, without doing any due diligence first. Personally, I think that’s a big mistake.

At a minimum, here are five questions you should ask before you join a MLM Company.

# 1 Is the Product or Service a Good Value at the Retail Price?

You have to check to see if the products are a good deal, even at the suggested retail price. Since your business needs retail customers, you need to make sure that retail customers will be interested in what you are selling. If they can get the same exact thing for 90% cheaper at Wal-mart®, look for a different company. Ideally, you want a product that is unique or high quality.

# 2 How Will I Market the Products and Find New Distributors?

This is a very important question. You need to ask yourself how you will sell the products and recruit new distributors. Even if you have a good product, it won’t sell itself. Find out what marketing techniques the company recommends and teaches.

# 3 What are the Specific Rules in the Distributor Agreement?

You need to read the distributor agreement with a fine tooth comb. I even suggest hiring a lawyer to interpret it for you. Check the internet marketing policies and non-compete clause at a minimum. You don’t want a company that locks you in and won’t let you do anything else (other income streams). And you don’t want a company that has strict internet marketing policies, if that is how you intend on building your business.

# 4 What is the Company’s Reputation?

Check the company’s reputation online. Do a search for the name of the company plus the word scam. Read every article on the first three pages of Google or Bing. Find out what others are saying about the company. Read the good and the bad so you can make an educated decision. If you find a company with a bad reputation online, you probably don’t want to join that company.

# 5 How Does the Compensation Plan Work?

You need to know the ins and outs of the compensation plan. How does it work? How do you make money? How many levels deep do you get paid on? Is there a monthly purchase requirement? Read the compensation plan at least twice and ask any questions you might have before you get signed up.

Final Thoughts

Of course, there are many other questions to consider before you join a MLM Company, but these are the big five in my opinion. What are your thoughts?  Leave a comment below and let me know what you think. 

About the Author

Chuck Holmes is an author, blogger, network marketer and treasure hunter.  He lives in sunny Florida with his beautiful wife, Rachel.  He is a top recruiter and network marketing professional. Learn more about his opportunity.