Think about this, at the time I wrote this article, there were over 900 active companies worldwide that claim to be legitimate Network Marketing companies. Imagine how long it would take you to evaluate every single company. You’d go insane.

To save your sanity, your valuable time, and many sleepless nights, I took the time to review the top 100 companies. And while each one is unique, I was able to identify the 4 primary components that will help you determine if a company is structured to increase your chances of success. Then, instead of analyzing every little detail, you can focus on only those 4 main components. By following the process I’ve outlined below, you’ll be able to choose a company that is right for YOU so you can get started NOW!

You also need to be aware of one more thing before you get started. “Determining whether or not a company is good or bad is subjective to your specific interests and needs”. Here’s what I mean by that. What’s important to me may not be important to you. For instance, the compensation plan may be the most important to you, while the marketability of the product may be the most important for me.

Every company has good points, and every company has bad points. It’s just a reality that there is no perfect company. If you’re searching for a perfect company, your search will never be over. However, you can find a company that is PERFECT FOR YOU! So, I’m not going to give you a list of good companies and bad companies. Instead I’ll show you how to easily evaluate a company in a few simple steps, and you get to decide which company will make YOU the most successful.

Here are the 4 components you should use to evaluate a company: 1) Marketability of Product (Marketing Plan). 2) The Length of Time in Business. 3) The Product or Service You Promote. 4) The Compensation Plan (how you get paid).


Let’s begin with the marketability of a product or service. I put that one first because if you do not have a strong marketing strategy, the product and the compensation plan are mute points. Don’t believe me, ask anyone who’s had a great product, yet couldn’t get anybody to buy it. No matter how great your product is, if nobody buys what you have, what are your earnings? That’s right, 100% of nothing is ZERO. Some people in Network Marketing can sell anything, but they are the minority.

There are a lot of great products and services offered in Network Marketing, but a great marketing strategy is what will drive sales throughout your entire down-line. Let me repeat that, a great marketing strategy is what will drive sales throughout your entire down-line. The marketing plan should be unique and get customers to take action to buy your product or service.

Therefore, the first question you should ask about any company is:

“If not for the opportunity, would people still buy the product or service?”

Here’s what that means. In some Network Marketing companies, the only people who buy the product or service are the representatives, and that’s because there is no perceived value for the general public to buy the product or service. The only perceived value is to the representatives, and that perceived value is making money in the opportunity. That’s a sure-fire recipe for failure. If the only people buying the product are the representatives, most will continue to lose money for a long, long time, and they will quit before they even come close to seeing a profit.

A great marketing plan, along with an in demand product, is what will create sales to people other than the representatives. Here is one example of a great marketing approach used by traditional companies all the time: “Buy 2, get one free”, or better yet, “When you refer 3 people, yours is free.”

To make my point, let me ask you this. Would a marketing plan that allows a customer to get a substantial discount or better yet, get the product or service for free WITHOUT becoming a representative for that company, would that be a powerful marketing approach? Sure it would, and most people agree with that.

In many Network Marketing companies, the only way a person can get a discounted or free product is to become a representative. That would be like your cell phone provider saying “The only way you can ever get a discount or get a free phone is to open a franchise with our company.” That’s just crazy!

The Length of Time in Business
How important is this category? Let me ask you this: Can you be successful in a company that is not going to be here next year? NO! So it’s very important, isn’t it! So the question you need to answer is: Do you join a newer Network Marketing company, or a more seasoned one?

This is where you’re going to see arguments on both sides of the fence from people who are trying to recruit you. 1) If it’s too young it could fail, and 2) If it’s too old, it could be stagnant. So your focus here is to weigh your risks. If you join a new company and it goes under in a few years, you will have to start over with another company. Are you willing to risk that? If you join a company that’s been around a long time, it may be saturated and not have any momentum, so it may take you a very long time to build it if you can build it at all. Are you willing to risk that?

The fact is, TIMING is everything in a Network Marketing business. You need to make sure that the timing is good for the company you are looking at, and the timing is good for YOU. Most companies that have been around for 5 to 10 years have a lower failure rate. If they are at the 5 to 10 year mark, and you answer these 3 questions, the reasoning behind your choice of companies will have merit.

A. Is it succeeding in the marketplace, or struggling?
B. Is the company experiencing growth and momentum?
C. Where is it along the growth curve?

So when looking at the growth curve of a Network Marketing company, you want to know if there’s been steady growth in product sales (not just new representatives) for at least the last several years in a row.

Product or Service You Promote
Here are the key questions you need to answer regarding a Network Marketing product or service: 1) Is the industry of the product growing or declining? 2) Does the product create repeat sales? 3) Is it priced competitively? And 4) Does the company own the rights to the product?

Compensation Plan or Pay Plan
Here are the key questions you need to answer regarding a Network Marketing Compensation Plan: 1) Is the pay plan easy to understand (easy to explain to new representatives)? 2) Are the commissions to high or too low? And 3) Are bonuses and commission paid only when a product or service is sold?

Ok, let’s wrap this thing up. Now you understand why using these 4 main components to evaluate a company can be the difference between your failure and your success. If you cannot intelligently debate why a company you joined is structured for success, it will be much more difficult to recruit people. You’ll end up resorting to “Hype” tactics and promises of big money without anything to back it up.

As most of my readers already know, I constantly teach this concept: The best thing you can do is look for simple ways to explain all areas of your business, no matter what you do. Use these four key components to easily explain why your Network Marketing Business is designed for success. Makes sense doesn’t it? Keep things simple in order to grow your business at its maximum potential.

To learn more about Network Marketing on topics such as “How to Choose a Company”, “How to Choose a Product”, and “Pay Plans”, find a Master Networker who can help you. Check the links in the “Author” or “Bio” section below for more information.