MLM is no different from other companies; they have their own survival timeframe. New companies in any business, MLM or not, have a tough time getting through the first few years. Many new MLM companies emerge, but only a few makes it past their second year. Fewer still reach five years or more.

MLM companies may fail because of several reasons: they are not properly financed; they have poor management team; they don't have a good product offering or they are unable to innovate, or the federal government found them unscrupulous in their dealings and shuts them down.

The people that promote MLM companies never seem to get around to explaining the real facts to you. But you need to understand the dark side as well as the bright side. Sound scary? Well, if you were to invest $5,000 to $25,000 like some MLM companies would like you to do, yes it would be scary. The correct word is probably "foolish." Now let's take these facts and see if there is really a low risk, high potential waiting for you.

So, back to the question, "How Do You Select the Right MLM Company?" This is like asking. "What stock should I buy?" Brokers, advisement firms, and the like will be quick to give their advice. Wouldn't they? And why not - they all earn a fat commission or other fees. Do you think any of them really care about you? And if they really believed in their own "advice." why don't they mortgage their homes and buy in themselves? The fact is, "No one knows!" And that is true with MLM companies and buying stocks! A standard solution does exist however: Diversify! Spread your investment around! Why put all your eggs into one basket?

Now all of this doesn't mean that you should select your MLM company(s) with your eyes closed. There are some fundamental rules and guidelines for you to consider. 

1. Participate in an MLM company that is at least five years old and is the best one that you can find. Make that your number 1 program. Then branch out and consider the second best, third best, even until the fifth “highly recommended” programs for diversification. Since some of these can be promoted easier and faster, you may want to vigorously promote these programs while you are building your slower, but stronger #1 program. 
   

2. Get into MLM companies that you have total confidence in. There is nothing quite as frustrating as trying to promote a product or a company that you don't really believe in. Stick with the winners that has years of success behind them! Choose a company that has the capacity to innovate products fast! 
   

3. Make sure that the MLM company(s) that you select have inexpensive literature that you can send by mail in a cost effective manner. This just makes good mail-order sense! In the Internet, good MLM companies provide advertising exposure for their downlines.

As soon as you have made your choice, concentrate on your method of lead generating. Have fewer quality downlines instead of trying to sell to everyone your MLM company. Avoid placing all your recruits in your first level. It is better to have only 3-5 quality first level downlines than 500 with no zero people in each leg.

Don't be an "MLM junkie" without a plan. You may be enticed into many different exciting "ground floor" MLM opportunities. These can be fine, but you will lose your shirt if you don't have a coherent plan that makes sense. Work the programs that you have selected and its offering to the fullest before you take off in other directions.  Then enjoy!