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.

While each company is unique, there are 4 primary components that will help you determine if a company is structured to increase your chances of success. By following the process I've outlined below, you'll be able to choose a company that is designed to help you succeed.

Also, 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 designed for success.

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.

Marketability:
I put marketability 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.

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. 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 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!

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.

The Length of Time in Business:
The question you need to answer is: Do you join a newer Network Marketing company, or a more seasoned one? You have two scenarios:
A) If it’s too young it could fail
B) 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 reviewing. Most companies that have been around for 5 to 10 years have a lower failure rate. 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?
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?
3) Are bonuses and commission paid only when a product or service is sold?

Use these four key components to easily explain why your Network Marketing Business is designed for success. To learn more about Networking topics such as "How to Choose a Company", "How to Choose a Product", and "Pay Plans", find a Master Networker who can help you.

Scott M. Carter, a Master Networker, has written hundreds of articles about the Network Marketing Industry will help you get the knowledge you need to succeed in Network Marketing. Go to => Network Marketing MLM By Scott or visit his blog at => Scott’s MLM Blog.