If you are thinking about joining a network marketing company, you may be wondering where to start. There are hundreds of options in dozens of industries, making it very confusing to someone who isn’t familiar with the direct sales industry. To ensure your success in this industry, you have know what you’re getting into and whether it’s a good match for you personally.

Before you even think about joining a company, know that there are several things to investigate. Take your time and do you research before joining anything! Don’t be afraid to ask the hard questions.


Pyramid Scheme

To avoid getting caught in a scam, make sure the company is not running a pyramid scheme. That is basically when recruits pay into the company (no product involved), then have to recruit others to pay them for membership.

If you are wondering what the difference is between a pyramid scheme and a legitimate network marketing company, read this article by the NY Attorney General.


Company Reputation & Background

This is really important because many MLM companies have been sued and are giving the good companies a bad reputation for just being in the direct sales industry. Make sure to check if the company has been sued and why, BBB complaints, and customer reviews on Google.

Also, do your research on when the company was established (longevity matters)!



Leadership is extremely important because it can make or break any company. A network marketing company should have solid leadership founded on integrity. Sadly, many companies lack in this area and are all about profits. A company’s leaders should be actively involved with the distributers, offer regular training, and offer easily-accessible support.

*Pro Tip: Find out how the most successful distributers are in the company and then join their team to align yourself with the top earners. 


Product Line

If you want to be successful in any network marketing company, only consider companies that offer a product line that you will use and care about. Make sure the product line is exclusive to the company and you can’t just go to the drugstore and buy the same thing for a fraction of the price.


Comp Plan

You have to do your due diligence when learning about a company’s comp plan. Get details on how distributers are paid and the type of compensation plan. The most common in network marketing are binary, unilevel, matrix, party, and hybrid. While this all sounds confusing (I still get confused sometimes), you can usually learn about a company’s comp plan by searching on YouTube.

*Insider Info: My personal favorite type of comp plan is the unilevel because it’s simple, clear-cut, and allows distributors to recruit as many people as they want, with no limits. 


Volume Requirements

Each company has it’s own volume requirements for distributers. Some of the are higher than others and certain companies even raise the requirements depending on your rank. Make sure you are clear about the volume requirements before joining and, if necessary, make sure you can afford the purchase the required amount of product necessary to keep active.


Fees & Kits

Most network marketing companies have fees distributors must pay to join. However, more companies are offering free-to-join options. Make sure you are clear on any joining fees, monthly fees, and website/marketing tool fees. Of course, check to see if you will have to purchase a kit when joining, as well.


Marketing Tools

The biggest question people have when joining any company is “can I do this?”. Without the proper marketing tools, most people are certain to fail in this business. Unfortunately, many companies do NOT offer cutting-edge marketing tools but only provide a couple replicated website links to promote.


Conclusion & My Recommendation

I hope you’ve found these tips useful! Please comment below if I’ve missed anything you feel I should have added to this list. If you are interested in learning about the network marketing company I have partnered with that met all of my expectations, check it out here.


Like this post? Get my free report…

If you’d like to learn about my top free and dirt-cheap prospecting and recruiting tools I personally use to build my network marketing business, get my free report.


Please follow and like us:

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *


Enjoy this blog? Please spread the word :)