Network Marketing Books- 5 Proven Tips on How to Evaluate a MLM

There are many network marketing books on the market today. Everyone seems to have their own opinions on how to build a successful mlm business.

There is one book which seems to lay the "real deal" on the table, especially when it comes to how to evaluate an opportunity and how distributors are really paid in this industry. With all the hype that is out there, this was a fresh and unique approach. If you are ready to find out how all of this works, read on!

Everyone has seen things such as this:

-It will all be done for you.
-Our system will recruit for you and your group will be built by "spillover"
-Instant downline system

The truth it, anyone who believes statements like these and joins an opportunity, most likely will not be successful. Why? Because with any business, including mlm, one must WORK at it. There is no such thing as something being handed to you on a silver platter. If one doesn't want to do the work, why even start a business?

So, in order to avoid being taken in by hype, you must learn how to carefully evaluate an opportunity. How? By following this 5 step formula.

Tip #1: Ask yourself, "Does the compensation plan work with the numbers? You see, in mlm, virtually any successful networker will tell you that most of their income comes from 2-3 people in their group. Therefore, the compensation plan needs to be set up so that you are paid well even if you don't recruit a lot of people. There should be an ample retail profit as well. Making 5-7% on a wholesale price will get you nowhere fast. Think about Wal-Mart. How long would they be in business if they only made 5-7% profit on their wholesale prices? Not long! It's the same with mlm. People must be paid well. Making 40% on the retail price would be a lot better right?

Tip #2: Ask yourself, "Can the average part-timer build and prosper"? The reality is that most of your team will be part-time people only. If they cannot get into profit quickly, have to jump through many hoops to get paid, have to worry about losing their downline if they don't recruit a certain number of people in am month, etc., you will be constantly building.

Tip #3: Does the company's pay plan work for the average recruiting numbers? In the network marketing book that I read, it stated that the average mlm industry statistics for sponsoring people is 2.7. In other words, most distributors only sponsor 3 people in their home based business career. Now, if distributors are taught only how to constantly sell and close people with no type of relationship building first, the revolving door will never stop. No one wants to worry about having to constantly re-sell and close their people every month to get them to do any work! So, make sure that pay plan works well even if a person is not a sponsor super star. Make sure your training is always built around relationship building first.

Tip #3: Ask yourself, "Does the company have a product that people will buy even with no compensation plan? Many people seem to feel that they have to fall in love with a product first and then sell it to people. In reality, it's the other way around. There needs to be a hot and hungry mob of people who rave about a product. So, you market the product to them! You don' have to absolutely love it yourself; just offer it to people who want it. Just focus on the people and the market, and choose a company with a product that everyone wants and you will be fine.

Tip #4: Before joining ANY opportunity, ask yourself, "Does the company management have experience in network marketing?" Being a CEO of a big fortune 500 company who decides to start a mlm company because he or she heard there is good money in it doesn't count. Get past the smoke, mirrors, and hype and do your research logically. All you have to do is go to Google and put in the company's owners name around quotes. Then, carefully read about the leadership. If there are many negatives and red flags, their company is one you run from.


Tip #5: Ask yourself, "Does the company have a system in place"? If so, make sure it is proven and duplicatable. A system is not making a list of friends and family and buying leads. A system is not one in which only the top 1% of the distributors can work successfully. It needs to be so simple a child could do it! It should be so simple you can teach it to anyone who joins your team and they in turn can become successful using it. So, make sure there is such a system in place.

This network marketing book presented things very clearly. The information was such that it will help anyone carefully evaluate a mlm opportunity easily. So, make sure you follow these 5 tips before making a decision. You will be glad you did!