The gist of the matter is that the courts have found that as long as an MLM can show that its primary purpose is to sell product (even to people within the MLM) and not recruitment of distributors, the company is considered a legitimate business and not a pyramid scheme. But this line is really fuzzy, and little to no effort is made by law enforcement agencies to make companies prove that they emphasize retail over recruitment.

I found your article interesting. My wife and I have been involved with AdvoCare since November 2011. Even if I never make another dime in AdvoCare, I will continue to use the products because they have worked and continue to work for us. What I find interesting is the statistic that the majority – 99.7% in MLM actually “lose” money. What is the context of that statistic? That would mean A: the majority of MLM companies don’t have a buyback or return policy B: people that get started with MLM’s have to take on much more inventory that they are able to sell or C: this statistic is not accurate. I believe that C is the right answer. I do agree there are flaws in the MLM industry just as there are flaws in every industry. However, I believe that the MLM industry has made huge improvements in recent years and we do have a better way. People are the variable. When you have a great product, a passion and purpose that drives you everyday, are teachable and coachable, and love others as much as you love yourself, you can be successful in this business. Through the process of investing in your own personal development and learning to serve others, you are able to lead others to do the same. Thanks again. I look forward to reading more from you in the near future.
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.

I spent about 3 years selling Amway back in the 70’s. There was a lot of hype but I made enough money to achieve several of my more modest financial goals. I went on to use some of what I learned to make extra money in various ventures and eventually started a small business out of my home. The business grew until mainstream retailers began offering the same product I was selling at comparable prices. The MLM as a learning tool has some value as long as the product is decent. This MLM ranking is a good way to attract attention and I am curious about Your service. I am selective about what I spend my time and effort on.


Still, there is a bad side. There are many Avon distributors out there now and the products can even be purchased online. This creates considerable competition, making it much more difficult to get ahead. You’re likely to get some sales no matter what. But, many distributors find that they can’t sell enough to justify their costs and the effort involved.

Lauded as the #1 leadership expert in the world by Inc. Magazine, John C. Maxwell is a speaker, coach, and New York Times Bestselling Author. He has written more than 80 books - including the 21 Irrefutable Laws of Leadership and the 21 Indispensable Qualities of a Leader - that have sold more than 26 million copies and have been translated int ...…
Multi-level marketing (MLM) is a distribution-based marketing network that includes direct sales and a downline of distributors. These home businesses tend to get a lot of bad press for their similarity to pyramid schemes. In reality, they have one key difference. Where pyramid schemes require people to invest in a false promise of wealth, MLM organizations sell real products or services that their distributors believe in.
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.

I joined in the mid-90’s under a Dr that paid my way. We were somewhere in Paul Orberson’s dowline, below an AR kid making $80K+/month. I didn’t actually sign anyone as a rep, and just enjoyed doing the pitch to the crowd in the hotels, restaurants, and eventually auditoriums. I got paid by the Dr to tell the “long distance” story, and he went all the way to there top tier in under a year.
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]
Company payout (in commissions & bonuses) per sale for the total of all upline participants equals or exceeds that for the person selling the product – resulting in inadequate incentive to retail and excessive incentive to recruit. Jim can make more money getting commissions off the product that distributors beneath him are required to buy from the company than he could from selling the shakes at retail to customers outside of the business.
Network marketing can be lucrative, but only a small percentage of people make serious money. Often referred to as multilevel marketing (MLM) or direct marketing, the idea of making money without any special skills or major investment with immediacy is appealing. And the promise of residual income fuels the desire to never wind up in your current financial position again if you've found yourself in a somewhat tough spot.
We've partnered with The Foundation for Learning and Youth Travel Education (FLYTE), a nonprofit organization that empowers youth living in underserved communities through transformative travel experiences. FLYTE teaches that we are more alike than we realize. By bridging the gap between fear and understanding, FLYTE empowers future generations by connecting them to the world.
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.
Some companies even let their products speak for themselves by developing excellent quality and highly effective product performance. They allow prospects to taste their products, asking for feedback, ideas, and suggestions on how to improve the products. Satisfied customers will then provide testimonials to convey the benefits and advantages of using the merchandise. These testimonials will now be used by the companies as their promotional tools.

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.

MLM also referred to as network marketing, utilize a system of marketing that’s based on a basic business model: you become a part of a team of distributors and work to build a team of recruited downline distributors. The top network marketing companies have a strong inventory of products that you will provide to your clients, meeting a specific need in your target market. As your team of downline distributors grows, you receive compensation benefits from their sales as well, because you are the original recruiter. Simply put, the larger your team, the better your return.
His unquenchable desire to live life to the fullest pushed him to develop a strategy for success in life, not unlike the formula he created for his venture studio. Following his life plan for happiness, balance and love while still achieving greatness in his career, Dyrdek now enjoys a fulfilling life with his family in Beverly Hills and continues to build his dream as he had not only envisioned, but designed it.
Icahn is helping vet Trump’s choices to head the regulatory agencies and one of his companies has already benefited on Wall Street from the selection of Trump’s Environmental Protection Agency pick Scott Pruitt, whom Icahn helped vet. If Icahn assists Trump in naming FTC commissioners, he will be helping to staff the body charged with enforcing the Herbalife settlement.

These are only a couple of examples of people who went from struggling with their finances to being financially secure, and continuing to make a fortune. There are hundreds of more examples of people who have literally gone from rags to riches through Network Marketing. However, it should be emphasized that these people did not just sit back and collect money, they had to put in the hard work and dedication necessary to grow their network of sales, as well as doing the work required to get the word out and represent their companies.
Some companies even let their products speak for themselves by developing excellent quality and highly effective product performance. They allow prospects to taste their products, asking for feedback, ideas, and suggestions on how to improve the products. Satisfied customers will then provide testimonials to convey the benefits and advantages of using the merchandise. These testimonials will now be used by the companies as their promotional tools.
FLP may not be the wealthiest MLM on this list, but they deserve a spot because of their long-term dedication to the aloe vera plant and products made from it. Few MLMs display such product dedication and integrity as FLP. And few MLM’s have such a concentrated niche. That screams longevity over the other hundreds of other “full service wellness” companies.
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.
The end result of the MLM business model is, therefore, one of a company (the MLM company) selling its products/services through a non-salaried workforce ("partners") working for the MLM company on a commission-only basis while the partners simultaneously constitute the overwhelming majority of the very consumers of the MLM company's products/service that they, as participants of the MLM, are selling to each other in the hope of one day themselves being at the top of the pyramid. This creates great profit for the MLM company's actual owners and shareholders.
Next comes Trump’s special adviser on federal regulations, investor Carl Icahn, who has an estimated net worth of $17 billion. Icahn is something of an accidental beneficiary of MLM wealth, having invested in Herbalife to get back at his nemesis, fellow shareholder activist Bill Ackman, after Ackman launched a public short on Herbalife in 2012 and called it a pyramid scheme. Icahn has ended up virtually running Herbalife, owning 24 percent of its shares and holding five board seats. But despite Icahn’s clout, Ackman’s lobbying effort to bring down Herbalife led to the FTC crackdown, which could pummel Herbalife’s earnings. (The company has other problems, as it recently disclosed that it is subject to an anti-corruption probe by both the Securities and Exchange Commission and the Department of Justice over its burgeoning China business.)
Legal network marketing programs offer quality products or services that are sold to consumers. Recruiting new members allows for increased income based on the volume of sales, with team sales volume, not the number of recruits, being the important factor in calculating income. Other laws legitimate network marketing companies adhere to include publishing average income statistics, no inventory requirements, and refund options.
MLM restructures the traditional business model — manufacturer to retail shop to customer — such that sales agents working for the manufacturer sell directly to customers, bypassing the retail shop altogether. MLM companies can then convert customers into advocates for their products and possibly even sales agents. Because there is no retail store for the products they sell, MLM agents typically work from their homes, interacting with customers in the community or, more often, over the internet.

But please do a little research before you blanket insult an entire industry or business model. I am a single mother with a 6 figure income because of MLM, nearly twice that when I’m actively working my business with both of the companies I represent, and while not everyone has the skill set to succeed in this business, the potential is certainly there, for those that do.

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.
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