How to Choose a Network Marketing Company

Network marketing, or multi-level marketing, is a field for people who no longer want to work in the corporate world or who want to earn extra income. Working with a reputable networking marketing company provides you with the opportunity to be your own boss, set your own hours and work at your own pace. Successful network marketers research the possibilities when they start their businesses and they choose a company carefully.

Things You'll Need

• Internet and books for research
• Contacts in the network marketing field

Instructions

1. Research Network Marketing companies on the Internet. The Direct Selling Association (see Resources) has a large list of valid companies. The DSA's Direct Selling 411 website (see Resources) is designed to help you evaluate a company and learn more about the industry.

2. Look for the following qualities: at least five years in operation; a forthcoming website with average distributor compensation information, training support for distributors (on both products and how to run a business), positive team leader support and high-quality products.

3. Find people who are building a network marketing business. Most people know at least one person involved in an MLM company. Even if the person you talk with is not part of a company you are interested in, they can give you an idea of what the business is like for them. If you do not know someone, the company you are researching will likely be able to find someone with whom you can meet.

4. Attend information sessions. Many network marketing companies have informational meetings that welcome guests. This is the best way to meet a local group who will become a support network for you as you begin a business. Look for information sessions near you on a company's website.

5. Find a product you truly love and will use in your own home. When you believe in the product, you will be able to sell it.

6. Check for interest in the product with people you know. Network marketers sell to two markets: the "warm market" and the "cold market." The "warm market" is made up of people you know whom you think will be interested in the products and possibly the business. Not every network marketer sells to her warm market. You may also choose to sell to cold market prospects through "open house" sales, advertising and other sales strategies.

7. Sign up to be a distributor either through the company's website or through a local distributor (who will become your "sponsor" and a great source of support). There will be a small start-up fee.

8. Begin marketing your new network marketing business. You should expect training help from your sponsor and "upline," but you should also begin learning sales strategies on your own.

Tips & Warnings

• There are several books that are helpful for a first-time Network Marketer. "Network Marketing for Dummies," by Zig Ziglar and John P. Hayes, and "Your First Year in Network Marketing: Overcome Your Fears, Experience Success, and Achieve Your Dreams!" by Mark and Rene Reid Yarnell are both good books with which to begin.

• Be wary of companies that offer "Get Rich Quick" schemes or have high start-up costs. A truly reputable network marketing company sells a valid product, has a low start-up cost and offers distributor compensation information upfront.

• Know the difference between a network marketing/MLM and a "pyramid scheme." A valid network marketing company is honest about how much work running a business will be and offers a legitimate product.

• Because of the confusion some people have between "Network Marketing" and "pyramid schemes," you may meet with resistance when you first begin a network marketing business.

Resources

• Direct Sellers Association
• Direct Selling 411
• Better Business Bureau