5 Signs Your MLM Might Be in Trouble

This is no April Fool’s… here are some potential warning signs that your MLM company could be in trouble.

Here’s how I know… because every single one of these happened to come degree to the company (companies) I promoted from 2007-2011. I say companies because the owner of the MLM repeatedly changed the name and products and I got grandfathered in (and opted in) to the new opportunities after each change.

I saw 5 companies be born..and struggle. Most failed. 2 are still officially operating but, like most things in business that could always change at any moment.

1. Your company introduces additional products or services that seemingly have nothing to do with the name or culture of your company.

It could just be diversification, which is always a potential way to generate more income..but watch out. If new things keep getting added it could also mean that your company is unable to produce enough income from its main product or service alone..which means it is struggling

2. Your company NEVER meets deadlines (i.e. they fail to follow through) This includes payment deadlines, website launch deadlines, and the like.

If your company keeps saying “XZY will be launched on such and such date” or “Direct deposits will appear at so and so time” etc and they never do, or are VERY VERY late…that’s a huge red flag that there’s trouble. Missing a deadline once is bad, but still forgivable. Missing every single deadline? Get out while you still can!

3. Your company keeps extending exclusive advance-in-rank promotions. Over and over and over. 

This means that nobody is producing the way the company expected. Or nobody is producing AT ALL. If your company extends a promotion once.. awesome. Take advantage of it. If they keep extending it..and extending it…and extending it.. that’s a big clue that the company is struggling because people are failing to advance, which means customers and reps have stopped being gathered…which means money troubles for the company itself.

4. Nobody answers the Corporate phone number and/or returns your calls/emails.

DUH! There is something amiss here! If you’re paying them a monthly fee to be a distributor and they’ve stopped responding STOP PAYING THEM because it is very likely they’re about to disappear from the face of the earth.

5.  The name of your company keeps changing with very little (or no) warning.

This is also a big BIG red flag. Rebranding is difficult but sometimes necessary in today’s market,  but if you find your company is constantly trying to reinvent itself with little or no heads up to the field of representatives promoting that company then perhaps the company itself is trying to run from something. Could be reputation problems, money troubles, bad partnerships, etc. but seriously. Trust your gut here. If it keeps happening… run.

Did I miss any red flags of company failure? Let me know!