A major, controversial issue for new network marketing companies is the future of these companies. Many network marketers like to join a company when it is a new, or start-up, company because they believe that they will enjoy bigger paychecks if they join early. However, these companies have three possible futures, and network marketers, with a little investigation, should be able to easily predict which future awaits any given company.



1. Out of business. Statistically speaking, about 90% of network marketing companies end up filing bankruptcy, and the dreams and hard work of early network marketers disappear with them. Companies bound for bankruptcy are easy to spot: usually, company leaders have no experience in the network marketing industry and its requirements for success. It is very simple to investigate nowadays anyone using the internet search engines; network marketers can simply go to www.google.com, and search the names of the founders and leaders of these companies. If they are unable to find any information about them then it is easy to conclude that those leaders are experimenting with their time and money. Seeking independent third party opinions is a must.

2. Transform to direct sales. Many of these companies start with a multilevel marketing plan because they lack the budget for national marketing. Those companies have the intention from the beginning to transform their structure from network marketing to direct sales after building their customer bases. Distributors are left, again, with their dreams in the air. These companies are also easily identified: their leadership has no network marketing experience and therefore no loyalty for the network marketing industry. While they actually state their intentions very obviously in their policies and procedures, naive network marketers usually join without thoroughly investigating the proclaimed opportunity they are joining. Those intentions are easily spotted simply by reading and analyzing cautiously the company policies and procedures. Most of the time, it is easy to spot obvious statements such as, “the company has the right to eliminate the compensation plan anytime."

3. Prosperous, long-lasting companies. New companies can become worldwide companies. You can predict such a future for a company again by checking on the leadership and the founders of the company. Founders of such companies usually have extensive experience in the industry; they have been distributors themselves for most of their lives and are known to have a high level of integrity. Many of them are well known trainers in the industry. Obviously, the policies and procedures are very simple and straight forward without any hidden or suspicious statements.

Joining a new network marketing company may not be the ideal, but with some basic investigation of the leaders and by reading and analyzing the company policies and procedures before joining, network marketers can avoid years of failure and frustration.