Fast-forward a few years to today and history has proven Robert's prediction to be absolutely correct - Network Marketing has absolutely been on an upward trajectory over the past few years, in terms of numbers of people involved, sales turnover generated, and standards & professionalism in the industry. The companies, products, regulations, people and overall integrity within the Network Marketing industry have all advanced, and much as the franchising industry evolved from early shady practices to where today half of every high street or shopping mall comprises franchised businesses that are accepted and trusted by all, so it is that more and more people are coming around to seeing Network Marketing as a credible business model that they can utilise to achieve their various goals in life.

Jim’s friend who recruited him into the company starts telling Jim that the way you really start making money with Company A is recruiting other people beneath you to sell shakes. “When you sign someone up,” explains Jim’s friend, “you will start getting a 10% commission on the product your recruit is required to buy from Company A in order to qualify as a distributor. If you can get 3 people to sign up, it means you would be earning 10% commission on all the product those 3 recruits are required to buy, plus whatever they purchase beyond that minimum.” 

Pyramid structure is said to exist when you get paid to get a new recruit and there is no involvement of any product. It’s an ill-practice which makes a person earn money by taking advantage of his friends and family. Companies having a pyramid structure model tend to deceive people while making them believe that they’ll earn in future (which they do by deceiving more people). For e.g. a person will be asked to pay $100 to be a part of the company with a promise that he’ll get 25% of every new recruit’s admission fees who he refers. This is a money-making strategy of the company where the participants are at a loss.
Meet Matt Morris Over his career in the Network Marketing Profession, Matt Morris has built sales teams of more than 1 million people in more than 100 countries worldwide. A self-admitted adventure junkie, he has traveled to more than 70 countries around the world and believes creating wealth is as simple as providing value in the lives of othe ...…
Well done Melaleuca, they hit over a billion dollars in yearly sales…there’s a reason they are a part of the select few considered to be at the top. Adding to this is their longevity, because they’ve been in the MLM industry for over 20 years, and now they’ve reached the status of the “largest online wellness shopping club” (which can sound fancier than it is, because are they aren’t selling anything more than a fantasy diet pill).
Pyramid schemes come in all forms. A really simple example are those chain letter things where you’d get a letter with seven names and addresses. You were supposed to send $1 to the names on the list. After you did that you were supposed to add your own name to the bottom of the list and send the letter off to at least 7 people. Supposedly you could make tens of thousands of dollars in just a few weeks doing this.

The process sounds simple and fun but it can get complicated quickly. As the training for Initial Outfitters highlights, each method of payment comes with quirks. For example, a credit card payment is processed by the company and you basically get the commission as a refund. With cash, you keep your commission and pay Initial Outfitters the difference.


MLM has stretched its sticky fingers out into just about every product market out there, so it’s kinda hard to do something new nowadays. But Jamberry Nails did it. Their adhesive, custom nail designs BLEW UP when they hit the direct sales floor. They built up an army of over 100,000 consultants in the time it takes most people to get a mediocre pay raise at their 9-5.

Businessman, master networker, and one of the top five speakers in the world, Harvey Mackay is the author of the #1 New York Times bestsellers Swim with the Sharks Without Being Eaten Alive and Beware the Naked Man Who Offers You His Shirt – both of which are among the top 15 inspirational business books of all time according to the New York Times.
These nonsalaried workers may be stay-at-home parents, college students or part-time workers hoping to make money by selling products such as vitamins and makeup to their friends and family. But experts note that just selling products is typically not enough to make a profit, and workers are encouraged to recruit a "downline," a team of underlings from whose sales they also earn a commission, creating a pyramid-shaped compensation structure.
This is awesome! I didn’t know there was an MLM company that sells wine. I may look into this. I’m still on the search for a solid company. I pretty much have PTSD with MLM companies because of past teams I signed up under. They were all about hype and money but never did explain HOW to build the business. It was so bad that I am now more cautious and aware of these type of people.

A quiet giant in our Profession, Donna Johnson has been involved in Network Marketing for nearly 40 years - 30 of those with her current company.  During that time, she's built one of the largest sustainable organizations in the world based on culture and ethics.  She has hundreds of leaders earning six and seven figures each yearend her business is thriving and growing globally.


It’s important to get a complete picture of how the plan works: not just how much money distributors make, but also how much time and money they spend on the plan, how long it takes before they're earning money, and how big a downline is needed to make money. One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling.
That not only fosters a positive attitude and atmosphere, but also a lot of structure and activity.  Many network marketing companies offer weekly calls, local meetings, and an annual conference.  All of which get members out of the house, building knowledge and developing new skills, while offering them the opportunity to meet new people and deepen existing connections.
BRAND NEW COMPANY – Soft launch not even 30 days in – already breaking records for number of brand partners joining this business. First in the industry with its cutting edge technology for their all natural health and wellness products with a delivery system into the body for quick response and maximum absorption – so nothing is wasted or flushed away! Suggested for ages 4 years on up!!! And the founder has a proven track record of historical success in the industry! I would love to have you join me in this amazing adventure to freedom in so many definitions of the word – nothing to lose and everything to gain! What are you waiting for?
I agree with you that much of the industry is flawed, but what about an MLM that has a service rather than a product such as electricity. It’s not like that could go out of style or that once you buy it you don’t need it again or that your monthly supply is too much and you’re going to stop the monthly subscriptions. I can honestly say that I cannot stand most MLM companies because regardless what you believe or how much you like the product, if you have to try to convince someone else to use it then inevitably the system is flawed and eventually your residuals will dry up. Electricity though, that’s different in my opinion, no one has to convince me to use it, it just comes by default. Find me an MLM that is not selling so much as showing someone an alternative to what they already have to pay and I’d be interested.
Within that, some companies thought that their products would be better off when people with own experience did the referral and possibly trough existing personal relationships by using their social network. That would be Network Marketing. Whether they sell and make money is irrelevant. You do network marketing when you talk about a good movie to friends, only you do not get rewarded, except the random girl who goes to watch the movie with you again based on your enthusiasm :D.
They have a slew of stay-at-home associates mixed in with some ready to excel entrepreneurs on their team.  Meaning?  They have the products that everyone needs and wants, as well as those entrepreneurs to sell it!  Anyone who is a follower of the MLM world knows you have to have a practical product, so people buying it know what they are going to use it for and how to use it. doTERRA has found the fine balance needed to succeed.
doTERRA was named among America’s best employers by Forbes in 2016 and was named 2016 International Company of the Year by World Trade Association of Utah. But aside the accolades, doTERRA products which include an impressive collection of essential oils are selling like wildfire in America. It is predicted that doTERRA marketers will reach greater heights in 2017.

Fast-forward a few years to today and history has proven Robert's prediction to be absolutely correct - Network Marketing has absolutely been on an upward trajectory over the past few years, in terms of numbers of people involved, sales turnover generated, and standards & professionalism in the industry. The companies, products, regulations, people and overall integrity within the Network Marketing industry have all advanced, and much as the franchising industry evolved from early shady practices to where today half of every high street or shopping mall comprises franchised businesses that are accepted and trusted by all, so it is that more and more people are coming around to seeing Network Marketing as a credible business model that they can utilise to achieve their various goals in life.
But here’s the thing. By recruiting close family members or friends into your downline, you contaminate those relationships with commercialization. You take all that good will you’ve developed with someone over months and years and cash it all in on getting them to be a commission for you. From that moment on, the person won’t be able to tell if your gestures towards intimacy are genuine, or an attempt to get you to buy or distribute product. Perhaps even more sadly, you may lose the ability to tell the difference yourself.
Network marketing isn't a get-rich-quick scheme. Of course some people do make large amounts of money very quickly. Many would say those people are lucky. But success in networking isn't based on luck. (Unfortunately, money won't sprout wings and fly into your bank account no matter what someone has promised you.) Success in network marketing is based on following some very basic yet dynamic principles.

Before you get started with any of these these companies, try to be realistic about how you are going to build your business. Many will make bold claims about their income potential. But, reality is rarely ever that simple. Companies will often have ongoing costs, which can add up fast, which is why most direct sellers lose money rather than make it. Selling $200 worth of products isn't a profit if you are on $300 autoship.
I just started selling for one of the top 15 and I went in knowing that this was just supplemental cash and nothing that would support my family. I spend 15 minutes (mostly from my phone) a day on my business and am happy with what I’ve done thus far. If it covers groceries and some extras like clothes or shoes, I’m good. If I start to become even more successful, great. It’s my competitive nature to want to out rank others, so I find it to be more of a personal challenge than thinking I’m going to get rich and stay rich. I appreciate the article and the no BS attitude.
To understand how network marketing works, it may be helpful to think of a business model that most consumers are familiar with, franchising. In a franchise, an owner pays a company for the right to do business using that company’s products, services, and name. The parent company agrees to provide the owner with training, development, advertising and marketing support. While the name on the outside of the building is that of the parent company, the actual location is privately owned by an independent business owner.

Meet Kim Kiyosaki Entrepreneur, investor, and speaker Kim Kiyosaki is the author of Rich Woman: A Book on Investing for Women – Because I Hate Being Told What to Do. She is a champion of women and female-preneurs and, along with her husband Robert Kiyosaki, helps people take control of their finances, escape from the rate race, and move towards ...…

If you insist on trying one of these MLM offers, the least you can do is look for proper business registration with BBB, toll free number, and proper address (no Post Office box). Also, you will need lots of family and friends to make it work. As a final step, check the MLM materials for one or more of these "red flags" that are associated with the worst of the offerings:


If you remember those ads for P90X and Insanity, you are not alone because they were something to rave about at one point in time.  They have dropped off a tad, but nonetheless Beachbody is still a well-known name.  The company is so focused on their products, very few people know that they are a network marketing company.  Which can be seen as an advantage for the company’s survival, but they are questionable as a “hot offer” to advertise.
By using the network marketing model, they stay ahead of the competition against their traditional counterparts. Not only do they level the playing field by allowing small businesses the same opportunities which their competing large corporations enjoy, they also build valuable relationships directly with their customers which generates customer satisfaction and a loyal following.

You've probably heard horror stories about people ending up with a garage full of expensive water filters or other items. This happens because only other distributors will purchase the product at that price. Your product or service must fill a real need at a fair price, and there should be a large untapped market for it. In other words, it must provide tremendous value so that the customer is the biggest winner. 

It’s important to get a complete picture of how the plan works: not just how much money distributors make, but also how much time and money they spend on the plan, how long it takes before they're earning money, and how big a downline is needed to make money. One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling.
This Podcast is is brought to you by Go Pro Recruiting Mastery - the world's #1 generic training event for the Network Marketing Profession. Join us December 4-6 at the MGM Grand Garden Arena in Las Vegas, Nevada. You will hear from top thought leaders including Magic Johnson and dozens of Million-Dollar Earners. It's an extraordinary event that you and your team can't afford to miss.
Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s probably not. It could be a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money.

Breaking into the world of travel bloggers, hotel hoppers, and digital nomads with #wanderlust was one of the best ideas MLM ever had. Everyone out there wants to work remotely nowadays, and a huge portion of those people want to do it so that they can travel. So, a remote income opportunity with a travel MLM just makes sense. WorldVentures is hitting this niche hard, having been named one of the Inc. 5000’s fastest growing companies twice in a row.
Looking compliant is easy. Building a CULTURE around compliance is hard. Building a culture requires doing more than paying lip service to compliance. It requires full buy-in at the corporate level to teach and enforce the important policies. It requires field leaders committed to responsible growth, and corporate leaders that avoid saying things like “the lawyers make us do this.” And finally, it requires constant investment.

Nevertheless, misconceptions and myths persist. Don’t let these false beliefs stop you from considering a network marketing business. You can achieve success in a network marketing venture if avoid common MLM mistakes, gain a solid understanding of the industry, choose a company carefully, find a quality sponsor, and commit time and effort to your business. 
Do you know why there is such a big drop off rate in Network Marketing? It is because they were told that the profession was a piece of cake. They were told that they would hardly have to work, don’t have to sell anything, or the product sells itself. Then when they get started, they realize that there is a lot of work that goes into building a ...…

A degree in business administration with a concentration in marketing may also prove helpful. Students learn the fundamental principles of marketing and selling, as well as how to run a business. Some general course topics include advertising, sales, e-commerce, marketing management, marketing research, finance, accounting, human resource management, and business ethics.
An example of a high-profile multi-level marketing company defending its practices is Herbalife Ltd., a manufacturer and distributor of weight-loss and nutritional products with more than 500,000 distributors. Although the FTC had been investigating Herbalife, it was activist investor William Ackman who shed a national spotlight on the company by shorting $1 billion of the company’s stock in 2013. Ackman accused the company of operating a pyramid scheme and backed his allegations with a bet the company’s stock price would fall under the weight of the scam.  

Who wants to get fit, look younger, and lose weight? Jeunesse, meet your global target market: everyone. With their crazy sales numbers, I wouldn’t be surprised if they are selling to just about everyone in the world. Jeunesse routinely make the list for the top 20 MLMs in the world, and they’re doing about $1.4 billion in annual revenue. Not only are you selling a very well-trusted product, but the sign up cost is also one of the lowest out there ($30).

As far as the retirement saving crisis is concerned, more and more people are coming to terms with the fact that they probably aren’t going to be able to save enough money to just sit around and slowly deplete their nest egg from age 62 to 100.  With the average 50 year-old estimated to have less than $50,000 in retirement savings, there is an obvious need to find alternative ways to either save more or generate supplemental income starting now, and continuing throughout retirement.  Moving beyond just the dollars and cents, boomers are growing tired of feeling guilty or bad about their past savings habits and are interested in moving towards possible solutions.
World Global Network is a publicly traded company that recently released a wearable health monitor similar to a Fitbit but with more features. The HELO currently measures blood pressure, heart rate, breath rate, sleep, EKG, mood and steps. It also has a panic button that if pressed twice it will alert you loved ones of your location using GPS. In the near future it will measure blood glucose and blood alcohol without using a blood sample. It will also have a mosquito shield.
This is one MLM business that is seriously committed to being eco-friendly…the company’s headquarters is powered by the power of the wind!  This company is looking only one way, and that’s to the future my friends. They use the internet to their advantage and use a very interesting innovative strategy by utilizing social marketing with their reps.  No one really likes or hopes to be bothered by non-friends on Facebook, but this company’s social media game plan is very effective and it’s better than throwing home parties (that no one may show up to…don’t judge me, I’m just stating the obvious).
An issue in determining the legitimacy of a multi-level marketing company is whether it sells its products primarily to consumers or to its members who must recruit new members to buy their products. If it is the former, the company is a legitimate multi-level marketer. If it is the latter, it could be an illegal pyramid scheme. The Federal Trade Commission has been investigating multi-level marketing companies for several decades and has found many that blur the lines between the two. According to industry data, there are 90 million members worldwide, but relatively few earn meaningful income from their efforts. To some observers, that reflects the characteristics of a pyramid scheme.
Eric Worre sits down with Gloria Mayfield Banks and talks about the “it” factor. Gloria shares her view on what the defining characteristics are of the high achievers. What does it take for a person to excel in Network Marketing? Gloria shares that it’s not your personality. She’s seen all types of personalities at the top of the game. It’s abo ...…
Technically speaking, pyramiding is an illegal practice of a company that solicits their members to recruit more members, more than selling the product. In turn, the primary source of income for its members is the number of members they have recruited instead of the products they have sold over time. Clearly, not all MLMs are pyramid schemes, but it all seems like a matter of degree.
Amway’s outsize political influence goes back to 1979, when the FTC lost its pyramid case against Amway. After four years of litigation, an administrative law judge found that Amway did not run an “illegal” pyramid scheme because it had safeguards to protect against the reliance on recruitment. These included requiring its distributors to sell 70 percent of their inventory each month and to sell to at least 10 different customers per month.
This company was living life in the lime light, and they were trending for a good while there. They deflated out a bit, however they are still pretty big.  There are over 50 countries currently promoting their immunity-boosting nutritional products, and the rave reviews from the former and current associates makes things seem pretty superb.  Although it’s mentioned that the commissions aren’t great, but maybe that’s okay as long as their reps have continued happiness?
That same approach to brand development led him to co-create and executive produce his first television show, Rob & Big on MTV. After the success of this first show, he created Rob Dyrdek’s Fantasy Factory showcasing his Do-Or-Dier mentality towards entrepreneurship. Constantly evolving and taking calculated risks, Dyrdek beat world records with his physical feats while continuing his endeavors, launching several new brands while structuring multi-platform integrated partnerships.
I enjoyed this post and spent too many hours reading all your other posts and watching your videos. You have some excellent real life experiences to share and glad I found this blog. My wife and I are with It Works Global (She started it and I came on board later). I was curious why they didn’t make your list? Do you think blogging would work with this type MLM? I have only had success using Instagram and Facebook. The MLM model is not something I like but it is what is I guess. My wife joined to get a discount on wraps and now this insane looking chart pays the bills. I want to take it further just keep searching for a good way to do so. Maybe blogging is the answer? Thank you. for your time. Mike

Along with the market itself, the number of potential prospects are also expanding with the movement of people getting out of the rat race and achieving leveraged income. Many of the highest paid professionals from major companies are migrating toward network marketing opportunities for this reason. Professionals in these position typically make a lot of money, but their time is extremely limited. Therefore, the value of leveraged income is paramount to their continued success, and they recognize the benefits of partnering with a network marketing company to bridge the gap.

Le-Vel THRIVE is #1 in Health and Wellness with innovative products that work. Le-Vel is a completely Cloud Based, work from anywhere company. Besides the Core 3-Steps of THRIVE (which help with energy, sleep, digestion, joint support, aches and pains, weight management), Le-Vel has a plus-line product called MOVE that is wonderful for joints. Thrive is not a weight loss system, but a lifestyle change of vitamins, minerals, antioxidants, amino acids, enzymes, probiotics and is designed to fill nutritional gaps, making you feel amazing. Thrive is easy to promote by just sharing your experience and it’s completely Free to join as a promoter, no startup costs, no monthly fees, absolutely no strings attached! I’ve been a Promoter for over 2 years now and Le-Vel and Thrive has completely changed my family’s life!
Now we’re getting into the real heavyweights. Tecademics is one of the most extensive digital marketing training programs out there, within and outside of MLM. Founder Chris Record started Tecademics after completely crushing it at Empower Network. Their training comes at a steep price tag, although it’s nothing compared to the price of a university degree.

This Podcast is brought to you by Go Pro Recruiting Mastery. The #1 generic training event for our profession in the world. Join us in Las Vegas, Nevada December 4th-6th at the MGM Grand Garden Arena. You will hear from superstar thought leaders Magic Johnson, John Maxwell, and dozens of Million-Dollar Earners. It's an extraordinary event.  If you have never been, you owe it to yourself and your team to be there. If you would like to learn more about it go to networkmarketingpro.com/gprm
It all sounds good on paper, yet there is a seemingly endless debate over whether these companies and programs are legitimate business opportunities or not, so I dug in and got the real scoop.  As a result, I believe that the entire industry is poised for explosive growth and can be one of the most significant solutions to America’s current retirement savings crisis.
In most cases, you can sign up to become a Network Marketing Distributor online, by making an initial investment and completing an ‘Independent Distributor Agreement.’ When you do sign up with a Network Marketing company, you are not considered an employee, usually, but seen as a representative, a dealer or a consultant (depending on the type of company you are representing). You may even consider yourself as a business owner.
If you don’t understand something, ask for more information until it is absolutely clear to you. Your sponsor and other distributors should be willing to answer your questions. Remember that your sponsor (and others above your sponsor's level) will make money if you join the program. So take your time, and resist pressure to join. Be aware of shills — fake references paid by the company or distributor to pretend they were successful earning money through the plan.
What this all adds up to, in the eyes of opponents and supporters, is a benign era for MLMs. Regulating these companies, with their legions of independent salespeople, is difficult for the toughest regulatory regimes. And the Trump era will be anything but that. “Anybody who would continue to expect or hope for law enforcement regarding financial schemes of this type would be living in a dream world,” said Robert FitzPatrick, the president of the watchdog Pyramid Scheme Alert. “[MLMs] are going to gain protection.”
Other than that, great info, but I’d have to respectfully disagree with the logic behind not being a part of an MLM. It’s one business model. And whether you want to make it your full time job or just dabble, so long as you find a product and company you love, it can be a great way to diversify your income streams. $5000 a year (or $5) is more than most people make on their 401K, savings or any other conventional ways of investing. It’s an investment, and for those that chose to continue through the plateau, it results in residual income. Don’t like sales? Some of the companies are moving away from the door to door type sales models and putting a lot more emphasis on team building and adding value. And many companies are also discouraging distributors from spamming on social media- again- it comes down to the individual and their own business acumen. We can spend our lives blaming they systems or we can just own ourselves and be grateful for whatever we’ve learned from, and created out of each opportunity presented to us. It’s the choice of the individual at the end of the day but one thing I can say with certainty is that someone who blames MLM for their lack of success is lacking responsibility for themselves in other areas of their life too.
It’s also important to note that while I expect there to be significant growth in the ranks of many MLM companies, there will also be substantial growth in businesses that adopt this model and its many benefits.  In fact, it’s one reason I developed the Certified Professional Retirement Coach certification in conjunction with the Retirement Coaches Association.
That brings up another difference between traditional franchises and MLMs: When you own a traditional franchise, you’re not pressured to recruit other people to become fellow franchisees. In fact, if you did that, it could ruin your chances at economic success because you’d be competing with multiple business owners for the same customers. Also, that would be an illegal franchise pyramid scheme. 
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