MLM Marketing Companies You Should Avoid

Thursday, November 4th, 2010 at 11:01 am

MLM Marketing Companies You Should Avoid

MLM marketing companies are cropping up all of the time. Each one promising a better opportunity than all of the rest. They claim that never before has there been an opportunity like this one. We all know that in the midst of this field of companies there are some great opportunities, but unfortunately there are some bad apples as well.

Indicators of Bad MLM Marketing Companies

Fortunately there are some common sense things you can look for when evaluating a network marketing company. Paying attention to the details can save you from the embarrassment of having made a poor choice in an MLM company.

The first thing to look for is contact information. You would be amazed at how many opportunities are out on the market that have no contact information. One of the first things you should look for is a contact phone number. A legitimate business opportunity will welcome your questions and inquiries, because they have nothing to hide. If there is a phone number listed, call it. Do you get a live person or a recording? Getting a recording is not always bad, as long as you can leave a message and your call is returned. Remember you are going to persuading others to pursue this opportunity, you want to ensure that your team members and customers are getting the best level of service possible. You also want to look for the location of the “home office.” Is there a mailing address, street address or some other tangible location listed. This will tell you a considerable amount of information about the company as well. A company that is using a “Mail and More” location as their home office address, would be a cause for much greater investigation.

Another key component in evaluating MLM marketing companies is information on the company leadership. Are the names of the founder and or company leaders made available? Can you readily obtain information on their background and qualifications to lead such a company? Knowing about the leadership of a company can give you great insight into the direction of the company. A company that doesn’t list their leadership information is certainly a red flag. Additionally a company that is led by individuals who have an inconsistent track record is also a reason for caution.

Reputable MLM marketing companies will offer a clearly defined product or service. If you cannot easily or readily identify what that product or service is, then you need to proceed with caution. Many companies put very ambiguous descriptions in their marketing websites, making it very difficult to pinpoint an actual product or service. It is these types of companies that regularly find themselves under the scrutiny of government regulators for running a pyramid scheme.

Once you have identified the product or service you need to consider whether or not it makes sense in the market place. For example a product that is priced well above the market, but does not seem to offer any added value or benefit would once again be a point of caution. If you can’t pinpoint a reason why a person would naturally be seeking those MLM products or services, it may be better for you to keep looking, even if the compensation plan is the best in the world. Building a home business can be challenging enough without adding the extra challenges of a poor product offering.