Choosing A MLM Company
(1) Company Litigation History – When deciding to choose an MLM company, it is very important that you check the companies litigation history. You want to check to see if there is any current or past legal cases against the company. If the MLM company has had a history legal issues and or law suits, then you will want to steer clear of a company like that because it raises a red flag.
(2) Company Management Staff – Does the company have strong management? Does the founder and CEO of the company have a good reputation, experience and history of running successful companies? Did he or she surround them self with other experienced and talented managers?
(3) How Long Company Been In Business – If the company has been in business for five years or less than it is a risky proposition. If your new in the business, with little or no experience, then your better off choosing a company that’s been in business for at least five years or more. MLM companies that have been in business for five years or more have a proven track record that can be looked at to determine if it is a good company to partner with.
(4) Is The Company Well Financed – You want to choose a company with a strong balance sheet. Preferably a company that is debt free and has the ability to attract talented management. This is important on many fronts and especially if you want to get paid your commission check every month. Another important factor is to choose a publicly traded company because they are required by law to report their financial disclosure statement to the SEC and other government agencies every 90 days. If you choose a private company you may not be able to obtain this information, which will be make it a riskier as to whether or not the company is financially solvent.
(5) Is The Company Product Focused – Does the multi level marketing company focus on its products, or does it focus on its distributor base? If the company focuses on its products, then that means it is a long-term sustainable business model and legitimate business that will be around for years to come. If the company only focuses on its distributor base (only interested in recruiting other distributors), then that put’s up a red flag and the company may be a pyramid scheme.