MLM Broker: Buy or Sell a MLM Downline

If you’re looking to buy or sell a MLM downline, you might want to hire a MLM Broker to assist you in the process.  This is someone who specializes in our industry.  You could also hire a business broker, but I would really suggest someone who specializes in network marketing.

What Does a MLM Broker Do?

You might be wondering what a MLM Broker does.  Basically, they are your subject matter expert and they act as your agent and advisor during a business transaction, similar to what a lawyer would do.  In many cases, your MLM Broker might be a lawyer.

They understand the rules, issues, concerns and important aspects of buying and selling a downline.  They make sure you are represented fairly and they look out for your best interests, just like a realtor does when you are buying or selling real estate.

Why People Sell Downlines

  • Divorce
  • Death
  • Major life changes
  • Desire to pursue new interests
  • Desire to change companies
  • Loss of interest in MLM or specific company

Why People Buy MLM Downlines

  • Quickest way to build a large team
  • They have the money to do so
  • They want to start a new business without starting at ground zero
  • They want to!

Tips for Buyers

  • Verify, verify, verify
  • Hire a lawyer or broker
  • Get EVERYTHING in writing
  • Interview several people in the person’s team
  • Look at the numbers and stats for the previous 12-36 months
  • Do research on the company and look for trends
  • Verify commissions, team volume, team growth, etc.
  • Realize that all prices are negotiable
  • Keep money in escrow until the deal is done
  • Do not try to screw over the seller

Tips for Sellers

  • Have a realistic price, normally 12 to 24 times monthly earnings
  • Have a lawyer to advise you and put the deal together
  • Check with parent company first to make sure you are allowed to sell your downline
  • Get everything in writing
  • Do not lie about your numbers or earnings
  • Expect to show them your earnings and stats
  • Get the most you can, but be realistic
  • Realize that all prices are negotiable
  • Do not try to screw over the buyer

Final Thoughts

I used to offer a service as a MLM broker, but I no longer do it.  If you are thinking about buying or selling a MLM Downline, I HIGHLY recommend you find a MLM Broker to walk you through the transaction.  It will be money well spent.

What are your thoughts?  Leave a comment below to let me know what you think.

Please Share Our Content If You Enjoyed It:

Authorchuckholmes

Chuck Holmes is a Network Marketing Professional, author, and blogger. He's been in the industry since 2002. He is one of the top producers in his network marketing company. He is happily married and lives in Florida with his beautiful wife, Rachel. He enjoys flea markets, reading, writing, walking, fishing and funny movies. You can call Chuck during business hours at (352) 503-4816 EST or you can email him at chuck@onlinemlmcommunity.com.