Facebook Pixel


Have you ever considered signing up to a Multilevel Marketing company? If so, then you may want to know what to look for in an MLM company to get the most out of it.

Before I advise the aspects to look for, you should certainly consider your options in regards to joining an MLM. There’s various methods to make money online, and MLM’s can do this also. Yep, we know the main selling method in MLM’s is by organising parties, but these days it’s common to sell online as part of your marketing plan.

But MLM’s are not a great way to make money, and the compensation plans that get bandied around are confusing at best. Often you’ll have to be making a set figure per month to keep your account active, and you may end up paying this yourself.

Depending on which articles you read, the success rate of multilevel marketing is extremely poor. PR Newswire states that 73% of people who participate in MLM’s either lose money or make no money at all. Yet a report done for the Federal Trade Commission (FTC) says the success rate is closer to 99%.

So in my opinion, you’re better off searching for other ways to earn money. But if you have your heart set on joining an MLM, here’s what to look for in an MLM company.

Update: As a brief update to this article, I just wanted to alert you to the current social impacts that affect MLM opportunities. Multilevel marketing consultants primarily work by hosting house parties to present and demonstrate products to potential customers. As social distancing has become apparent, these hosted house parties or events can no longer go ahead. 

Instead, companies with MLM opportunities are turning to sales online to keep their consultants active. What's ironic about this, is that they are basically turning it into an affiliate marketing venture. However, consultants will only be allowed to sell the products of the MLM company they are involved with.

So, the choice now is owning a website and only selling one companies products, or own a website and sell any products you like (eg: traditional affiliate marketing). I know what I'd be choosing!

In fact, in most cases, the MLM company will still own the website. I've seen instances where they will give it to you free for 3 months, then you have to pay for it. eg: domain & hosting fees. This will be on top of other MLM fees. This is not the case with genuine affiliate marketing, where YOU own your own website.

Get Started With YOUR OWN affiliate marketing business selling any products you like

Make Sure You Approve of The Products

Because you’ll be promoting these products in a favorable light, you must use the products to test them out. I’d suggest if you don’t approve of the products yourself, don’t join the program.

Of course, if you’re selling to friends, family and acquaintances, you won’t want to be selling poor quality products. Make sure they are of a good standard and you’d have no hesitation using them yourself.

You also want to make sure the items are good value for money. Nobody wants to be sold overpriced products, even if they are good quality. The pricing needs to be in line with the quality of the product.

The Company Must Be Reputable

MLM companies come and go, so you want to make sure the company you partner with is going to be around for a decent time. I’d want the company to have been around for at least 5 years to show some sustainability.

Much of this type of business relies heavily on recruitment of your own team members, so you don’t want to be in the position where you finally build a large enough team to get good commissions, only to find the company is going out of business.

It also helps to sell products if potential buyers or recruiters have heard of the company in some way. So do some research on what the company stands for, how long they’ve been around, and how much experience they have in the field, of the MLM part of the company.

Many companies now include an online website as part of their business plan. So if you join as a MLM partner, you may be given a website (although you will be paying for this in your startup or annual costs).

Because of this, I think it’s a good idea to join an international company. This gives you a larger scope to sell more products worldwide, offering more chances for commissions. You will want to check the the company offers this though, as some global companies will only allow you to sell locally.

My Top Online Courses

To Make Money Online

(Click for Course Review)

Affiliate Marketing

Wealthy Affiliate
Affiliate Secrets
Legendary Marketer

eCom Dropshipping

eCom Success Academy
eCom Lifestyle University

Amazon Selling


Of Course, Check The Compensation Plan

So where do you start with MLM compensation plans? They can be extremely confusing and offer various incentives and bonuses.

You want to make sure that the compensation plan offers retail sales commission along with the recruitment earnings. If for some reason you struggle to recruit others into your team (which is not uncommon), you’ll still have the ability to earn sales commissions from the sales you make.

For the compensation levels, check what percentages you’ll earn on each level. Additional to this, there could well be bonuses where you need to get to a certain limit to qualify. Make sure these limits are not way out of your reach. Everyone deserves the right to earn within realistic constraints.

Start Up Costs

Start up costs can get out of hand, so make sure you understand what they are before signing up. Many MLM’s encompass an annual fee, some also including a recurring monthly fee.

Then there’s the initial startup kits, which can start from $100 and possibly cost over $1000 depending on what’s in the kit, and the niche you’re selling for. You’ll probably have several options of kit to begin, so go with what you feel comfortable paying. If you don’t see any product kits then don’t join. This would alert me to a pyramid scheme rather than a genuine MLM.

Also look to see if you will get a refund for any kits that you cannot sell. You may change your mind when you find out how difficult this could be, and not all companies will offer refunds on products bought.

Selling and/or Recruiting

There can be a big focus on recruiting members to your team, rather than making commissions on selling products directly. You should have a healthy balance of both, and should not be forced into recruitment only.

MLM schemes are about selling products to customers, not just recruiting team members so you can earn part of their commissions. There should be way more customers than there are distributors, and you and your team members are distributors.

Customers are the lifeblood of any business, so focusing more on the selling side of things should be the No.1 priority of any company.

MLM’s I’ve Reviewed

If you’re keen on researching multilevel marketing companies, here’s a list of MLM’s where I’ve already done the work for you.


Health & Wellbeing







Tired of seeing Scams or endless fraud sites?

Learn how to build a sustainable profitable online website 

Wrapping Up

I do like that MLM’s can now become partly, an online money making opportunity. As I have stated though, the chances of earning decent money is fairly poor. If you have a passion for a particular brand or product type, then by all means find the right MLM opportunity for you.

However, I believe that many people will have a much more enjoyable and productive time by doing affiliate marketing. This is because you’re not stuck selling the same products from the same company. You can sign up to multiple affiliate programs and advertise any of their products on your own website.

If an MLM company gives you a website, you will not actually own it, you’re renting it. And you will be restricted to selling only the products of that company.

I hope I’ve clarified a few of the questions you may have had in regards to what to look for in an MLM company.

Like many people, I struggled in my early attempts to make money online. It's really frustrating when you try product after product, searching for that elusive opportunity that is really genuine.

Eventually though, I learned how to achieve success in the online world with my own website. This website was created to show others how to do it. I direct people away from the poor opportunities and advise the good ones.

But the simplest and least complicated is [Learn more...]

Disclosure: Links in this post may be to our affiliates; sales through affiliate links will not cost you any more. More info at my disclaimer page

The opinions in this article are solely mine, are are not intended to offend or discriminate. All information in this review has been researched on the public domain of the internet.

Sorry For The Intrusion


Interested In Learning To Make Money Online?


Enter your email and I'll show you....it's 100% free to get started!


Or...Keep Finding Scams!


Pin It on Pinterest

Share This