Lessons from the Big Boys: Why the Best MLM Companies Work and How to Find Them
February 6th, 2009 | by Terry |
asked:
MLM is a type of business distribution that involves a parent company which markets products and/or services directly to its customers using direct selling and referrals. It has been around for decades and has become one of the most trusted and established business models recognized around the world. It is so popular that should you wish to join the industry today, you’d be hard-pressed to identify the MLM company to sign up with, considering that there are several dozens to choose from. And you do have to be careful with your choice, considering that this is a very competitive field and is sometimes peppered by copycat businesses that do not work.
To find out which of the MLM companies are offering genuine business opportunities, there are certain factors you need to consider. These include:
Real products, real services
The best MLM companies have much more to offer other than a fancy website and a catchy name. They actually have real products and services that both recruits and consumers can use. Avon, for example, is a well-established MLM company. It markets its products through franchises and distributors and is known as a competitive name in cosmetics and personal care. It is the fact that this company has genuine products that offer real quality and value that has helped it maintain its standing through the years. To this day, it remains as one of the most trusted and recognizable names in MLM.
Commission schemes that work
Another critical factor that distinguishes the best MLM companies from their competitors is the use of an effective commission scheme. In MLM, the parent company, its distributors and members earn through commission sales of its products. Generally, the scheme will cover the member, his team leader and the parent company, providing fair income for all tiers.
Without a functional commission scheme, no MLM company can survive. It can either end up paying itself too much or giving its distributors more than what is deemed necessary.
Longevity
Another distinguishing characteristic of the best MLM companies is its longevity. Many upstart MLM businesses are actually short-term recruitment machines. They could fold up, collapse or weaken within a year or two. Some don’t even last more than 12 months at all. True MLM businesses are designed to sustain themselves and build their momentum. Furthermore, they are capable of maintaining and managing momentum and thus ensure their progress.
Today, some of the best MLM companies that exist include: Mary Kay, Herbalife, Arbonne, Amway, Pampered Chef and Quixtar.
Choosing the best MLM company
Information about majority of the MLM companies currently active today may be obtained online. To find out which one offers the best opportunity, consider the following qualifications:
A tried-and-tested business model
Check the company for the ‘true-ness’ of its multi-level marketing design. Some companies are cleverly designed pyramiding scams. If there are no real products involved or if income is derived mainly from recruitment fees, there is no real opportunity for you there.
Consider their sales methods. Strict selling methods are a good indication that the company is mindful of its limitations, appeal and relevance. Encouraging you to sell to ‘just about anybody’ might indicate a weak or even non-existent sales system.
Solid background and financial backing
You can learn about this from the company’s published reports or you could check with relevant government agencies. Strong finances are an indication that the company is robust and does not have to rely on income generated by its distributors alone just to get by. Find out about its corporate officers and founders as well. There’s a good chance you’ll learn a lot about a company by getting to know the people behind it.
Products and services with strong selling points
This is an important point to consider since market competition is very stiff. Find out what types of products or services are being offered and what their potential appeal is to the target market.
Popular MLM products such as vitamins, food supplements and beauty products, for example, will have to compete with established brands especially if they are new. Find out about the products’ unique selling points (USP) to help you understand how to sell them more effectively.
Member or distributorship support and training
Another characteristic of the best MLM businesses is their well-established training and support programs. These are not businesses that will hire just about anybody without first considering their fit to the organization. These businesses also offer training for their members, improving their product knowledge, selling and recruiting skills. Support for members and distributors is also evident through customer service, tutorials or mentorships. Just check for cost, though. Some companies charge for training while others offer this continuously at no cost.
Burton
MLM is a type of business distribution that involves a parent company which markets products and/or services directly to its customers using direct selling and referrals. It has been around for decades and has become one of the most trusted and established business models recognized around the world. It is so popular that should you wish to join the industry today, you’d be hard-pressed to identify the MLM company to sign up with, considering that there are several dozens to choose from. And you do have to be careful with your choice, considering that this is a very competitive field and is sometimes peppered by copycat businesses that do not work.
To find out which of the MLM companies are offering genuine business opportunities, there are certain factors you need to consider. These include:
Real products, real services
The best MLM companies have much more to offer other than a fancy website and a catchy name. They actually have real products and services that both recruits and consumers can use. Avon, for example, is a well-established MLM company. It markets its products through franchises and distributors and is known as a competitive name in cosmetics and personal care. It is the fact that this company has genuine products that offer real quality and value that has helped it maintain its standing through the years. To this day, it remains as one of the most trusted and recognizable names in MLM.
Commission schemes that work
Another critical factor that distinguishes the best MLM companies from their competitors is the use of an effective commission scheme. In MLM, the parent company, its distributors and members earn through commission sales of its products. Generally, the scheme will cover the member, his team leader and the parent company, providing fair income for all tiers.
Without a functional commission scheme, no MLM company can survive. It can either end up paying itself too much or giving its distributors more than what is deemed necessary.
Longevity
Another distinguishing characteristic of the best MLM companies is its longevity. Many upstart MLM businesses are actually short-term recruitment machines. They could fold up, collapse or weaken within a year or two. Some don’t even last more than 12 months at all. True MLM businesses are designed to sustain themselves and build their momentum. Furthermore, they are capable of maintaining and managing momentum and thus ensure their progress.
Today, some of the best MLM companies that exist include: Mary Kay, Herbalife, Arbonne, Amway, Pampered Chef and Quixtar.
Choosing the best MLM company
Information about majority of the MLM companies currently active today may be obtained online. To find out which one offers the best opportunity, consider the following qualifications:
A tried-and-tested business model
Check the company for the ‘true-ness’ of its multi-level marketing design. Some companies are cleverly designed pyramiding scams. If there are no real products involved or if income is derived mainly from recruitment fees, there is no real opportunity for you there.
Consider their sales methods. Strict selling methods are a good indication that the company is mindful of its limitations, appeal and relevance. Encouraging you to sell to ‘just about anybody’ might indicate a weak or even non-existent sales system.
Solid background and financial backing
You can learn about this from the company’s published reports or you could check with relevant government agencies. Strong finances are an indication that the company is robust and does not have to rely on income generated by its distributors alone just to get by. Find out about its corporate officers and founders as well. There’s a good chance you’ll learn a lot about a company by getting to know the people behind it.
Products and services with strong selling points
This is an important point to consider since market competition is very stiff. Find out what types of products or services are being offered and what their potential appeal is to the target market.
Popular MLM products such as vitamins, food supplements and beauty products, for example, will have to compete with established brands especially if they are new. Find out about the products’ unique selling points (USP) to help you understand how to sell them more effectively.
Member or distributorship support and training
Another characteristic of the best MLM businesses is their well-established training and support programs. These are not businesses that will hire just about anybody without first considering their fit to the organization. These businesses also offer training for their members, improving their product knowledge, selling and recruiting skills. Support for members and distributors is also evident through customer service, tutorials or mentorships. Just check for cost, though. Some companies charge for training while others offer this continuously at no cost.
Burton
