Multi-level marketing (simplified Chinese: 传销; traditional Chinese: 傳銷; pinyin: chuán xiāo) was first introduced to China by American, Taiwanese, and Japanese companies following the Chinese economic reform of 1978. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Multi-level marketing was banned on the mainland by the government in 1998, citing social, economic, and taxation issues.[62] Further regulation "Prohibition of Chuanxiao" (where MLM is a type of Chuanxiao was enacted in 2005, clause 3 of Chapter 2 of the regulation states having downlines is illegal.[11] O'Regan wrote 'With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not'.[10]
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I’m surprised Rodan and Fields didn’t make the list, considering they are the fourth largest premium skin care company with the top three being 50+year old companies, Estée Lauder, Lancôme & Clinique. We are North America’s 4th largest and fastest growing premium skincare company, but we’re not in stores, the top 3 — Clinique, Lancôme and Estée Lauder.
Many people may have done quite well for themselves in their network marketing / mlm’s / direct sales companies. But just think, how much better financially they could / would have done if they had started with their company in its infant stage, the beginning!! Well, if that’s something you have dreamed of, wished for, or ever thought about, then the time is NOW!!.
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.[3][6][7] 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.[8][9] 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.[10][11]
Melaleuca, Inc. is listed as a Direct Marketing Company. The company contracts with independent marketing executives who refer customers to Melaleuca that purchase its various lines of nutritional, pharmaceutical, personal care, household cleaning, and pet care products. They also offer travel, phone and credit card services. Customers receive discounts if they order a minimum monthly product supply, but are not required to maintain an inventory of products. The company states that it offers a “Satisfaction or Money Back Guarantee”.
When you’re asking people to volunteer their time to sell a product or service, the experience needs to be fun. As adults, we all feel tremendous pressure in multiple areas of our lives. If a network marketing company starts to feel stale, unappreciative and a little corporate-y, consumers will invest their energies somewhere else. As Millennials hit the scene, it’s important to understand that they’re placing less emphasis on financial metrics. Companies need to always maintain a sense of humor and constantly show appreciation for their sales force. When a company starts leading with an iron fist and sends out warnings to fence in a sales force, it almost always backfires. People need to have fun with the brand and fun sharing the brand with others. If it’s painful, forget about it.

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.
They have the stay-at-home-mother meets women entrepreneur mixture working for them. What does that even mean? Means they have the practicality side of the company that is off the product and they have the sales, entrepreneur people them promoting it, too. Anyone who follows MLM knows its usually too “product practical” (see: Tupperware, Cutco) or too “opportunity-centric” (see: Herbalife).

The MLM industry varies so much and is so vast, it’s kind of hard to break into any niche with a new product (because chances are it’s already been done), however this company managed to do it! With their custom nail designs and adhesive technique, the company made a big bang with their introduction to the direct sales platform.  They got over 100,000 associates in no time, and ended up conquering their market.
Think back to when you were recruited and consider if it was primarily as a customer, with just a mention of "income opportunity," or if the primary pitch was for the business opportunity. The ethical way to build a downline is to sign up people as customers first, and then if they like the product, they'll be drawn to becoming a rep. A hard sell on signing up as a rep right at the outset should send up a red flag for you.
Affiliate Transparency: With full FTC compliance disclosure, please know our goal is to highlight human health and develop strategic partnerships with a variety of seasoned supplement suppliers and new wellness product creators from around the world. Our intention is to organize optimal outlets for you, we may receive small commissions from providing links and sharing ads. The team has your best interest at hand, we care as much about your health as you do and that’s why you’re reading this. Want to learn more?

If you get an MLMer to admit that they’re having to pay a lot of money to be a part of an MLM company, they’ll all often say something like, “Well, this is just like buying a McDonalds’s franchise. When you buy a McDonald’s franchise you have to pay the company a large franchise fee to start and then buy the product (fries, burger patties, Flurry mix) from McDonald’s.”
Using this expertise gained developing the intersection between business and media, he went on to not only invest in new businesses, but also help successfully amplify their brand. With his extensive knowledge, experience and insight gained over two decades of building his own intellectual properties and working with top brands around the world, he started developing the groundwork for his full-service venture studio, Dyrdek Machine.
Carl Rehnborg is credited as having started the multi-level marketing industry back in the 1930s. After learning about the benefits of dietary supplements in China, Rehnborg came back to the United States and started a company called The California Vitamin Company, which was later rebranded to Nutrilite. Six years after that rebranding, Rehnborg reorganized the company’s structure and the way it sold products into what we know as MLM today.
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.
The products produced by the California Vitamin Company were in such high demand that founder Carl Rehnborg began recruiting independent distributors to increase the number of salespeople. These independent distributors were instructed to find new distributors in their circles of friends, acquaintances, and customers. The representatives were paid on the sales of the distributors they personally recruited.

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This group effect also plays into the vital role that a person’s social network can have on their retirement. Studies show that being around negative, pessimistic or sarcastic people can actually be detrimental to your health.  And many people can get stuck in a rut when it comes to who they hang around and associate with. Which means successful aging includes hanging around upbeat, positive people.
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.
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Thoroughly enjoyed reading your mlm breakdowns and the comments, thank you Jeremy. Had a successful mlm business but had to make a decision to give it up or have a breakdown due to ongoing upline bullying so at a big crossroads at the minute. being an ‘older’ lady here in the north of England doesn’t bode well for conventional job hunting in the current economic climate so some serious thinking needed on my part and QUICKLY lol. Thanks again Jeremy x
Hey Emma and how are you. Now I am a very proud Forever Business Owner with Forever Living Products and I do believe it is the greatest opportunity in the World because they have a footing in over 156 countries meaning a wide business field and you can build a business that provides you the time and money to do the things you’ve always wanted to do. Forever Living Products is the world’s largest grower,processor and distributor of Aloe Vera products and are in complete control of manufacture and distribution. So Emma if you are interested let me know and I could sponsor you into the Business yeah? Let’s do this and thrive together.
The Internet has made it so easy now. In the old days you had to actually visit people, or at least call them, to pitch your fabulous new opportunity. Face-to-face marketing is still practiced, but it is not so common these days. Besides, no one really loves the idea of having someone over, so they go online where everyone can be as safe as they want. They create sites with videos, testimonials, and pictures.
Network marketing programs feature a low upfront investment--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's "downline," and their sales generate income for those above them in the program.
Hi JP, Your assessment of Melaleuca stating… “When you hit over a billy in annual sales, that’s reason enough to be on the shortlist. On top of that, they’ve been in the MLM game for over two decades, and they’re now the “largest online wellness shopping club” (basically just sounds like a fancy way of saying they sell a lot of miracle diet pills).” is VERY misleading and inaccurate. They offer “far more” products and services than weight control supplements. I have been a “customer” only of Melaleuca for over 20 years and can attest to the superb quality of their products. Please get your facts correct before posting inaccurate information. 🙂
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But, there are also companies that are somewhat unusual, which is what this list focuses on. These are companies that sell a different type of product and ones that have their own unique style or angle. Their unusual nature can a major advantage. It means that the products can stand out and you’re not just promoting the same old thing as everyone else. You won't just be “the tupperware lady”. You could be offering real value.
Intelligence managers will need at least a B.S. in marketing, business, economics, or some related field; an M.B.A. or master’s degree in statistics is a plus. Intelligence managers will also need an educational background and several years’ experience in a variety of statistical methodologies and analytics, as well as strong writing and presentation skills.
I know there are a few companies, like Mary Kay and Lia Sophia, who have a generally positive image, but there are many more, often built around some investment scheme, which continue to give this sector a bad image. If you scan the Internet, you will find dozens of negative articles, like "What's Wrong With Multi-Level Marketing?", but very few singing their praises.

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.


Almost every pension plan is underfunded around the world. Record low interest rates haven’t helped. The hard facts of the times we live in today are that you CANNOT rely on any other organization or government to take care of you in retirement. You will be expected to work longer and delay taking benefits as pension fund managers make desperate attempts to stretch fund assets as far as they can go for as long as they can before finally calling in the administrators when they cannot hide from their insolvent situation any longer. The same for government pension and welfare programs - the sheer number of pensionable age people in the population will be simply too costly to support as they outnumber those working and paying taxes.
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.
A good MLM will have more than a few products to sell. They will have more than market sector covered (not just nutritional supplements, water filters or essential oils). They will also have other major retailers that they market for. The money those major corporations spend on the annual marketing, will be paid out to the MLM and their distributors for their sales & marketing efforts and results. That is where those companies will get
It was not until August 23, 2005 that the State Council promulgated rules that dealt specifically with direct sale operation- Administration of Direct Sales (entered into effect on 1 December 2005) and the Regulations for the Prohibition of chuanxiao (entered into effect on 1 November 2005). When direct selling is allowed, it will only be permitted under the most stringent requirements, in order to ensure the operations are not pyramid schemes, MLM, or fly-by-night operations.
By the 1980s, the landscape of U.S. economics was transformed. A financial boom coincided with women entering commercial life. These women were a huge target for network marketing companies, as they sought jobs that allowed them to earn money without neglecting their children and families. Women were able to acquire high positions within these companies, creating opportunities for women to achieve financial independence without giving up their families.
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Yet there must be something to the business model, since I see some big business icons like Donald Trump are joining in the MLM parade. I've written about these before, and I'm still looking for one that feels entrepreneurial. Who has a convincing story that will make me feel good and pure as I recommend their MLM to my best startup clients? Do you love them or hate them?
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.
FitzPatrick will get no quarrel from the industry’s biggest fans. “We think that with the new administration you can forget any aggressive action vs. MLMs,” industry analyst and Herbalife shareholder Tim Ramey wrote in a note to clients in January. “When Betsy DeVos was named to the Trump Cabinet we took that as a very strong signal that the Trump administration had no real issue with the MLM world. … You don’t put Betsy DeVos in your cabinet and then go out and try to put [Herbalife] out of business. We are in a post-regulatory world.”
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).
Great listing and especially the honest look at what being in an MLM means. Direct sales is a hard business, especially if you’re not passionately using the product daily. You see too many people who join thinking it will be a get rich quick scheme and don’t actually care about the product or their customers. Genuine lasts and is successful, companies like Avon and Mary Kay have been around for generations because people love their products.
But, some of the companies here are much better than others in my opinion. There are two different ones that are worth considering. The first is Thirty-One Gifts. This storage company has appealing products that do sell to the right audience. In fact, many customers go back for extra products time and time again. The commission plan isn’t amazing but it’s decent enough and has no serious issues.
OK here is the difference Steve. If you quit any of these MLM companies for a whole year, Continue buying product but help no one set up a shopping account, even 2 years, will you continue to get paid by the company? So Steve, as a Director with Melaleuca you helped 8 people total set up a shopping account. There is no Direct or multilevel sales in that, and if they shop you earn commission on their shopping. You will not know what they shop for and thats ok cause its private. Melaleuca is a Consumer direct Manufacturer that sells to the public the products that THEY THEMSELVES make. So by your standards then …Proctor and Gamble is an MLM also. Oh and yes, I took over a year off of inviting people to see what Melaleuca was, and still received my residual check every single month. It is against company policy to sell Melaleuca products.
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.
She soon found that there were major downsides. The company billed itself as something that could be done on a part-time schedule with very little money down, but Cramer was working around-the-clock and racking up costs, including fees to travel to company meetings and buy new inventory. Earning money required bringing on new recruits, and Cramer felt guilty when an unemployed woman fighting bankruptcy was willing to invest her meager savings in getting started, even though Cramer knew the woman didn't have the skills or temperament to succeed. Cramer eventually soured on the experience and quit. "It cost me about $10,000 by the time I got out of it," she says.
During the Obama administration, the Federal Trade Commission made its biggest-ever effort to curb this industry when last summer it slapped nutritional supplement–seller Herbalife with a $200 million fine and, as part of a settlement with Herbalife, demanded it restructure its business so that it would “start operating legitimately,” as FTC Chairwoman Edith Ramirez put it. The FTC alleged Herbalife had engaged in “unfair and deceptive practices,” and put it under a federal monitor for seven years, demanding onerous changes to its compensation plan and requiring extensive documentation of customer sales. Ramirez then set down an ambitious posture for the FTC: In the future, she said at an MLM industry conference in October, these companies should adopt the new Herbalife rules when structuring their businesses, as the FTC would be watching.
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. 
Great listing and especially the honest look at what being in an MLM means. Direct sales is a hard business, especially if you’re not passionately using the product daily. You see too many people who join thinking it will be a get rich quick scheme and don’t actually care about the product or their customers. Genuine lasts and is successful, companies like Avon and Mary Kay have been around for generations because people love their products.
Legendary Los Angeles Lakers player, coach, and current president of basketball operations, Earvin "Magic" Johnson is the proud owner of 10 NBA championship rings, is a two-time inductee into the Basketball Hall of Fame, a member of the 1992 United States Men's Olympic gold medal basketball "Dream Team," and in 1996 was named one of the 50 Greatest Players in NBA History.
Hi JP, Your assessment of Melaleuca stating… “When you hit over a billy in annual sales, that’s reason enough to be on the shortlist. On top of that, they’ve been in the MLM game for over two decades, and they’re now the “largest online wellness shopping club” (basically just sounds like a fancy way of saying they sell a lot of miracle diet pills).” is VERY misleading and inaccurate. They offer “far more” products and services than weight control supplements. I have been a “customer” only of Melaleuca for over 20 years and can attest to the superb quality of their products. Please get your facts correct before posting inaccurate information. 🙂
Tracy Willard of California began her MLM career out of necessity.  “Prior to getting involved in my business, I told my friends to never let me join one of those things… but when our family was hit by the mortgage crisis I had to do something different.”  She started her business with the intention some retirees may also find themselves.  “I started with the idea that I just needed to make my month easier.  My company helped me figure out what I needed to do in order to make an extra $500 per month.”
Network marketing programs feature a low upfront investment--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's "downline," and their sales generate income for those above them in the program.
Even while the popular culture’s view of MLMs is shifting, FitzPatrick doesn’t think we’re yet at a tipping point where consumers reject them en masse. Trump’s election may help explain why. After the election, FitzPatrick says he sent out a newsletter to the many victims of pyramid schemes who’ve come to him for help, explaining the connections with Trump.

Hayley Hobson shares important tips on how to approach the invitation when recruiting. Click below to get 3 hours of Live coaching with me, Eric Worre, as I give you all of my best strategies and scripts to effectively invite prospects to hear about your opportunity without coming across as pushy or salesy. https://networkmarketingpro.com/inviting/…


The company has a long, well-documented history of legal troubles. In recent years, Amway or its executives have tangled with law enforcement around the globe, most notably in India, where its CEO for the country was arrested and accused of running a pyramid scheme in 2013, let go, and then rearrested in 2014. Amway denied any wrongdoing. In the U.S., it paid $56 million in 2010 to settle a class action suit alleging it was running a pyramid scheme but did not admit wrongdoing. Meanwhile, Amway’s donations to Harvard’s John F. Kennedy School of Government program have funded the training of more than 500 Chinese bureaucrats, who led that country to legalize direct selling, opening a new boom market that MLMs are now exploiting.

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An analysis of 32 income disclosure statements from direct selling companies by TruthInAdvertising.org found that 80 percent of distributors, or people selling their products, grossed less than $1,200 per year before expenses. At about half of those companies, the majority of distributors made no money at all. "Given that context, any income claim that expressly states or implies that this is a way for someone to gain financial freedom, to become wealthy, travel the world, become a stay-at-home parent is just false and deceptive," says Bonnie Patten, executive director for TruthInAdvertising.org.
MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in mainland China.[10][11] In jurisdictions where MLMs have not been made illegal, many illegal pyramid schemes attempt to present themselves as MLM businesses.[7] Given that the overwhelming majority of MLM participants cannot realistically make a net profit, let alone a significant net profit, but instead overwhelmingly operate at net losses, some sources have defined all MLMs as a type of pyramid scheme, even if they have not been made illegal like traditional pyramid schemes through legislative statutes.[4][19][20]

Agree with most of your comments. Born and raised in the corporate community, we never even considered a MLM until came across one after retirement. Looking back we would have looked seriously at the industry much earlier. In any event, we had one good run until management made a few very bad decisions…killing 40 % of our business. But now we’ve found a new home with WGN. Among the many differences is they’re a technolgy company operating as a MLM…go figure.

Internet and Social Media changes the landscape a lot, because what originally had to be a door-to-door process is turning into more of a net-based thing. However, Network Marketing is always about direct social interactions, belonging to something, helping others etc. It seems that Network Marketing and Direct Selling was the precursor of internet based customised door-to-door deliver that happens just now everywhere.


Français: devenir pro du marketing en réseau, Español: tener éxito en las redes de mercadeo, Deutsch: Im Network Marketing erfolgreich werden, Português: Alcançar o Sucesso com Marketing Multinível, Italiano: Avere Successo nel Network Marketing, 中文: 成功进行网络营销, Русский: преуспеть в сетевом маркетинге, Nederlands: Succesvol zijn in netwerkmarketing, Bahasa Indonesia: Sukses Di Pemasaran Jaringan, العربية: النجاح في مجال التسويق الشبكي, Tiếng Việt: Thành công trong việc kinh doanh theo mạng, ไทย: ประสบความสำเร็จในการตลาดแบบเครือข่าย
Unlike many MLMs that sell products directly to consumers, Digital Altitude sells a business system to entrepreneurs in the form of courses and methods that teach them to effectively market their own companies. While many of the packages can cost thousands of dollars, Digital Altitude offers a $1 trial, making the risk to try its product very low for the consumer.

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