Switch MLM Companies: When Should You Do It?

Today, I want to talk about whether it is a smart move or big mistake to switch MLM Companies. I feel qualified to answer this question because I have made COUNTLESS mistakes in this arena and I hope you can learn what not to do, based on what I did in the past.

First and foremost, the entire purpose of network marketing is to create a long-term residual income. That is almost impossible to do if you switch companies. Ideally, you want to partner up with ONE good network marketing company for the long-haul and stick with it through the good and the bad. No company is perfect. There will always be things you like and dislike about any company you partner with. Riding the storm is a critical part of your success journey.Should You Switch MLM Companies

Why Do People Switch MLM Companies?

To the best of my knowledge, there are only a few reasons people switch MLM Companies. Here are the most common reasons I can think of.

MLM Junkie

We have many people in our industry who switch companies every 30 to 90-days because they love hype. These are the MLM Junkies. They love ground floor opportunities. They love the excitement of joining a new deal. Once the excitement dwindles, they are off to the next deal. If you are one of these people, there is nothing I can do to help you.

Not Making Money

Many people switch MLM Companies because they aren’t making money. I used to be one of these folks. What these people fail to understand is that the company itself is not the issue. You are the issue. If you repeat your same behaviors in a new company, you will get the same result you did in your previous company. Also, most new businesses (in every industry) don’t make money for the first 1-2 years. It takes a while to launch your business and make it profitable. Patience is a virtue.

Sponsor Quits

Some people switch MLM Companies if their sponsor quits. This is a big mistake. You don’t need a sponsor to make money. You need a team to make money. If you let your sponsor’s actions control what you do, you won’t succeed in anything. You must take ownership of your own business.

Company Shuts Down

This is a legitimate reason to switch MLM Companies. If your company goes out of business, you will need to find a new network marketing company to partner with.The grass is not greener on the other side The grass is greenest where you water it ~ Chuck Holmes

Company Mergers

If the company mergers with another company, and the deal changes, and it no longer aligns with your values, you could consider switching MLM Companies. Even then, I probably wouldn’t do it, because you could find a new company and they could do the same thing there. The best leaders stick it out and ride out changes, mergers, new company leadership, compensation plan changes, etc.

Compensation Plan Changes

From time to time, companies do change their compensation plan. It happens for a variety of reasons. Before you throw in the towel when this happens to you, step back and don’t let your emotions take over. Figure out why things are changing and how they are changing. Will it really affect you? Ask yourself if you want to give up everything you have worked for because of a compensation plan change.

Company Lawsuits

MLM Companies get sued, just like traditional businesses do. It happens. If your company is facing litigation, and is going to shut down, change the deal or merge with another company, you might consider switching MLM Companies. Even then, I would be patient, due my due diligence and not jump to any irrational decisions. Lawsuits are not the end of the world if your company legal team handles them properly.

What to Do Before You Switch MLM Companies

Before you throw in the towel and switch MLM Companies, here are some important key considerations.

Pray About It

If you are religious, seek spiritual guidance from your “maker.” Pray about it.

Sleep On It

One of your worst mistakes is to make a rash, emotional decision. Put a lot of thought into this decision, especially if you have a large team and/or big residual income. Take your time. Make a list of pros and cons and sleep on it for a few days.

Talk with a Trusted Mentor

Consider talking with a mentor outside of your company. Share your concerns with them and see what they have to say. Just make sure your mentor doesn’t have a conflict of interest (such as recruiting you into their deal).

Sell Your Position

If your company allows it, you could sell your distributorship to someone else. This might be a great option for some people. Get a large cash payout and move on to another network marketing company, or something entirely different.

Consider Going Silent

You could slowly slip into the abyss and become a “silent” distributor. Many successful distributors do this after they build a big team. They continue to cash their checks, but they are no longer at events or on the speaking/webinar circuit.The entire purpose of network marketing is to create a long term residual income You can't do that if you keep switching MLM Companies." ~ Chuck Holmes

When to Switch Companies (My Thoughts)

There are really only two legitimate reasons to switch MLM Companies, as I see it.

First off, if the company goes out business or changes its business model. Obviously, there is nothing you can do if your company shuts down or eliminates the network marketing business model. In that case, find a new home.

The second reason to switch MLM Companies is over INTEGRITY concerns with the company leadership team or company itself. If you no longer believe in the company or company leadership team (because of ethical/legal/moral issues) then it would be a good time to switch MLM Companies.

Other than those two reasons, I would ride out the storm. I would not let something petty cause me to leave. You shouldn’t either. Remember, no company is perfect. There are things about EVERY company in our industry that will drive you crazy, and things you like. Pick your battles wisely.

Final Thoughts

In conclusion, these are my thoughts on when to switch MLM Companies. None of this is rocket science. I hope you have found your forever home, and never have to transition from one network marketing company to another, but that is very rare in today’s world. It’s not the end of the world when it happens, but it can be stressful. Remember, when one door closes another door opens.

On the flip side of the coin, if you are pondering this decision, focus on the logic rather than your emotions. Put some SERIOUS thought into this major decision, especially if you have a big team and big check. Protect your interests and do what is best for you and your family.

What are your thoughts about when should someone switch MLM Companies? Leave a comment below and let me know what you think. I look forward to hearing from you.

chuck holmes


Chuck Holmes
Network Marketing Professional (since 2002)
Author, Blogger, & Entrepreneur

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2 thoughts on “Switch MLM Companies: When Should You Do It?”

  1. Apart from the reasons mentioned here, there may be many other factors that compel MLM marketer to leave the company.

    I was working in a reputed MLM network marketing firm. The products were amazing and were in high demand too. My upline was really supportive. Everything was going well but suddenly we witnessed some changes in our top management, things started to move in wrong direction. Moreover the integrity of business operations was badly affected. This was the point where I and some of my colleagues realized that it was high time for us to look for another opportunity and switch.

  2. I would assume that you would know a company had a horrible reputation before joining them, unless an incident occurred while you were a part of the team. But I think that is where research comes in. If you really take your time to see how the public responds to the company and their product and what the demand is for the product, you may be able to avoid having to jump around because you are not seeing a high level of success.

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