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.

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