Every MLM website or forum you visit today you can not notice it. Someone somewhere we'll be mentioning a new company launch. Prelaunch here prelaunch there and pretty soon you start feeling that you are in Cape Canaveral. But besides the fun part and the hype that you notice daily, there are some good exceptions of companies that are destined to a bright future which can turn very profitable for the distributors with the good sense to join at this point.



Of course chances are that the majority of the start-up companies will fail. So the real question comes down to what is that which distinguishes a future success from a certain failure?

To some that is the one million dollar question, while others can cut on the money they spend to the fortunetellers.

Though I don't profess to be a prognosticator, there are a few simple things that you can check out on a new company that if cannot pick a winner, surely can reveal a loser.

First of all, the most important thing you need to check is the owners and its management team. Learn their names and find out if they have any previous experience in the multilevel marketing industry or in any business at all. The more experience they have and the closer to our industry that is, the better. Also don't forget to check out if there is anything negative at their past. If they lack integrity or you can't trust them needless to say that you should stay away. It's Incredible what you can find about almost anyone if you Google his name these days.

Second, check the compensation plan. It's an important factor to the stability of the business and it's future expansion. If it rewards too much the ?big guns? compared to the average distributor, its expansion can pretty soon come to an halt and so it's profitability. Make it the other way and there is no incentive for real progress, so it may never really take off in numbers and in profits, of course.

Third, although the product is not that important, what matters is the segment of the market that is targeting. Is this a market where demand exists? What is the competition? If there is no competition, why? If it's fierce how the company is going to differentiate and brand the product so it would stand out from competition?

Fourth, is there a training program? Without one, new distributors, would really have a problem start making sales and in this case much of the training responsibility, if not all, would fall into your shoulders for those you sponsor. Which of course can cost you in more time that can cut off the expansion speed of your organization.