Establishing—and regularly updating—the company brand is critical to the success of the campaign. Multi-level marketers will identify the company’s primary goods and services, and then research the target market whose needs they’re meeting. Marketers and creative alike will make certain that the “personality” of the brand resonates with the general personality of the target customer; likewise, messaging will be regularly adjusted to reflect customers’ changing and growing interests.
Not all MLM companies are pyramid schemes — but many are universally reviled by both the people who work for them and the potential customers who are sick of constantly being pestered by friends to buy the products. Ahead, discover the most hated multi-level marking companies today — including the one with a billion dollar lawsuit pending (number 7).
In the late 1940’s and early 1950’s (after WWII) the concept of a franchise business gained traction. In a franchise, you rent the business model that someone else (Franchisor) has perfected. One of the very first franchises was started by John Pemberton in 1886 when he created a beverage with a secret recipe and licensed bottling territories to others. This became Coca Cola. Rexall Drug Stores and even General Motors started out as Franchises. As in any new industry or business model there are abuses by unethical promoters and business persons (think of the robber barons and anti-trust regulations). By the 1960’s franchising was getting a black eye. Deceptive sales practices, double selling the same franchise territories to different persons and financial insolvency of the Franchisor were rampant. Eventually, in 1979 federal regulation came into play. The unscrupulous and under-funded Franchisors went away and the legitimate players who complied with the FTC regulations changed and became giants. (Think Subway, McDonalds and others.)
Network Marketing is a business model that relies on a distribution network to build the business. Network Marketing business structures are Multilevel Marketing in nature, as the payouts occur on many different levels. You might hear the terms Person-To-Person Marketing or One-on-One marketing, which are just other ways of describing Network Marketing. Basically, network marketing involves the direct selling of merchandise or services. Some popular Network Marketing businesses you most likely have heard of include; Avon, Mary Kay Cosmetics, Amway and Herbalife Ltd.
As people get to retirement age, most realise they are not prepared. Many have little-to-no savings or investments, and routinely assume that they will just live on Social Security or some other government retirement plan. The problem in relying on this is that no one ever contemplated that MOST people would live into their 80’s or even beyond. An amazing statistic to consider is that if you make it to 25 years of age, your average life expectancy is 85. And this life span will only continue to extend further over time, further exacerbating the problem.
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:
Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.
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.
Meet Jack Canfield Global thought leader, motivational speaker, corporate trainer, and entrepreneur, Jack Canfield is the originator of the Chicken Soup for the Soulseries and is the co-author of The Success Principles: How to Get From Where You Are to Where You Want to Be. Affectionately known as “America’s #1 Success Coach,” Jack has studied and reported on what makes successful people different. He knows what motivates them, what drives them, and what inspires them. Go Pro with Eric Worre is proudly 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 international thought leaders including Magic Johnson, John Maxwell, and dozes of Million-Dollar Earners. It’s an extraordinary event that you and your team can’t afford to miss. To learn more, go to GoProRecruiting.com. Show Notes Jack describes the changes that he’s witnessed in the work landscape and how people make a living. [1:45] Jack forecasts what the future has in store for people who are resistant to change and new ways of doing things. [4:10] Eric and Jack discuss the opportunities that are available to today’s entrepreneurs and why Network Marketing is such a desirable option for most. [7:05] Jack and Eric explain why they think Network Marketing is misunderstood and what it takes to be a success in the Profession. [11:20] Jack dispels the myth of saturation in Network Marketing. [17:25] Jack provides advice to those who might be hesitant or jaded about the Network Marketing Profession. [19:22] Jack praises the power of word of mouth promotion. [22:36] Jack offers advice on growth for those involved in Network Marketing. [24:30] Jack explains the importance of building networks in the world today. [27:47] Jack talks about people’s need for recognition and appreciation and how Network Marketing meets those needs. [30:58] Eric and Jack discuss how Network Marketing provides community for those involved in it. [33:47] Jack offers advice to those interested in joining the Network Marketing Profession. [37:32] Questions or Comments? Do you have questions you would like Eric to answer in future podcasts or comments on the show you’d like to share? Just email us at [email protected]
Not listed but if you are looking Vasayo (pre-launch Jan 3rd!) is new started by the founder of MonaVie which did over a billion dollars in only 5 years! I can show you and let you know everything about the company and how I am making money with it if you send me your info. I am on facebook as well. There are 5 products right now that are cutting edge, new and really really exciting. I waited a week to promote after purchasing the products and wow! The absorption is 90-100% as opposed to all other vitamins/supplements out there that are 5%-15%.
Many self-proclaimed entrepreneurs send me invitations and accolades to join their favorite Multi-Level Marketing (MLM) or Network Marketing company, but these all sound like "get rich quick" schemes to me. For me, the essence of an entrepreneur is creating something new and innovative, whereas an MLM is a traditional formula on an existing product with a high premium on pyramiding.
On the other hand, many people have gotten into Network Marketing and have made a fortune from it. People such as John Haremza, who signed up as a sales rep for a small water filter company, and is now worth millions. Alternatively, Sebastian Greenwood, who made an investment in Onecoin, and put in the hard work and time necessary. He is now considered an ambassador of the company, having made his fortune there, and spends much of his time helping others grow successful.
Marketing programs emphasize courses in communication; marketing students will also practice and develop their communications and presentation skills in other classes. Communications courses teach students how to connect to audiences through a wide variety of media channels. You’ll also receive invaluable instructor feedback that will help you to further improve your skills and adapt your message.
Hi JP. Good stuff all the way around, my man. Hey, I’ve been approached by Ariix, & didn’t know if have heard of them, and if so, a simple 👍 or 👎 will suffice, unless you’d like to elaborate, of course. One obvious concern I have is that (& can disclose this, since it’s of public record/knowledge per the list above), the current leadership in place at Ariix all came from USANA, and given the FBI/SEC became involved with USANA in ‘07, & Ariix opened in ‘11, well….I think you know from where I’m coming as it relates to anything you may be able to convey. Thx again, JP, for all of your efforts, & if you’d feel more comfortable in emailing me, obviously that would be perfectly fine! And apologies on this extremely verbose message!😳
Hey Erica, I’m a doterra gal also. Just over 3 years ago I just wanted to see if these hippie oils really worked from there I couldn’t keep my mouth shut and I share with whomever will listen. I recently read this in the leadership magazine and I love it. “An oil for every household, a drop to change a life”. That is my goal. I never plan to get rich off my sharing but if I can change a life, help someone along the way it will be worth my time.
Some people may think this is the definition of a pyramid scheme, or believe that Multilevel Marketing (aka MLM) is synonymous with Pyramid Scheme. However, there is a massive distinction between MLM and Pyramid Schemes. You wouldn’t call Mary Kay Cosmetics, or AVON a pyramid scheme, would you? Both of those companies are prime examples of Network Marketing or MLM companies. The distinction comes in how the company compensates its employees or distributors. When a Network Marketing company’s primary compensation is for recruiting rather than selling, then it could very well be considered a pyramid scheme, which actually, is illegal.
These brothers from Israel changed the minds of the entrepreneurs behind the company, Seacret Direct, when they managed to take the typical start up business from the kiosk (you know those booths in the mall) to the beyond and turned it into a global direct selling company worth millions of dollars. These skincare product companies are pretty boring these days, but the company’s dead sea products originate with a 5,000-year-old history and a huge fan following.
In recent years, the heavily publicized Herbalife battle has shined much-needed light on MLMs. Last year’s scathing John Oliver segment on them has received almost 10 million views, 2 million of them in Spanish. (Immigrant, often undocumented, Latinos trying to make it in the U.S. have become a major target group.) A documentary on Ackman’s Herbalife battle, Betting on Zero, hits theaters March 10 and will be available on demand April 7.
MaryAnne, I would recommend finding a product that you LOVE, a product that you feel can benefit the people around you and who you feel integrity with. You want to find their products useful so that you will feel good about buying them every month and want to share them with other. It is a business, but you also want to be able to have fun with it too
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.
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.
* 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 international thought leaders including Magic Johnson, John Maxwell, and dozes of Million-Dollar Earners. It’s an extraordinary event that you and your team can’t afford to miss. To learn more, go to GoProRecruiting.com.
With so many of the fastest growing MLM companies pushing to have you join, it can get confusing when you’re looking at MLM products, compensation plans, where to get leads, marketing tips, and most of all – can I really make money with this? What you need to remember, is that the best MLM to join in your situation is going to come down to one thing – finding a product and a business you are excited about sharing!
MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but most importantly they are incentivized to recruit others to join the company as fellow salespeople so that these can become their down line distributors. According to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money. Nonetheless, MLMs function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the statistical improbability of this is de-emphasised. MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in mainland China.
* 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 international thought leaders including Magic Johnson, John Maxwell, and dozens of Million-Dollar Earners. It’s an extraordinary event that you and your team can’t afford to miss. To learn more, go to GoProRecruiting.com.
Take Rodan+Fields, a skincare line developed by the dermatologists who created Proactive. It’s supposed be top-notch stuff. When they initially launched the product, they went the traditional retail route. Estee Lauder then bought the company for an undisclosed amount and continued to sell it through traditional retail. Sales of Rodan+Fields were surprisingly lackluster, however, so its former owners bought the company back and implemented the MLM model. Sales of the product skyrocketed to over a billion dollars. They’d claim it was thanks to the word-of-mouth marketing MLMs facilitate. I’d venture to guess it had more to do with the fact they have a captive customer base amongst the hundreds of thousands of distributors who are required to make minimum purchase amounts each month and recruit other distributors who will have to make minimum purchase amounts each month too.
What makes this business model a highly popular choice by many is that it offers a virtually limitless potential that cannot be seen in any other traditional business. Independent distributors enjoy numerous benefits by operating their own “franchise.” Not only do they get to retail the products and services to consumers, they also get to expand their businesses by encouraging others to do the same.
I love love love this article! I’m a business growth coach who works with small business owners and often leaders from other MLM’s. From time to time I’ll get someone who has been struggling significantly even getting started and I find that it’s sheer absence of knowledge of the numbers. They are still under the impression that if I get three, and they get three then we’re all going to be millionaires. It’s very sad but the truth is not being told. Being in an MLM is hard. But it is very doable. I have had significant success in the past, while I am not in an MLM now. Nor do I want to be, you must be all In to make it work. Thank you for sharing this. I would love to interview you on one of my webinars
They’re sliding, though. Revenue is falling in North America and their sales force is shrinking. Revenue slid 19% in 2013 and 7% in Mexico. Skip ahead to July 2015 and revenue is still spiraling downward, with a 17% drop (5). Analysts blame Avon’s failure to maintain a strong identity for its products as well as the strong dollar. Lesson: Always re-create yourself.
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!
People who wonder why network marketing doesn’t work have likely also never joined the best MLM for them at the time or had great upline support and a team around them to get through the often frustrating first few months. Opportunities abound – even publicly traded multi-level marketing companies, who you would think are these huge businesses that give you no attention, have small teams and wonderful leaders to join. It’s just a matter of finding the top teams in the company you’re looking at.