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.
A: To help you understand what network marketing is, I must first explain what it isn't. First, network marketing isn't a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.

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.


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.
* 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.
Lorene Hochstetler, from Ohio, recommends keeping your current job while slowly making the transition into MLM.  She’s been able to replace her full-time income but explains, “It didn’t happen overnight, and I still work every day.  I am very disciplined with my business and wake up every day knowing what I have to do in order to succeed at this.  You have to treat it like a business and be willing to follow advice from others who have made it.”
This argument suggests that only the people who get in early make money, which isn't true. Many ground-floor members make nothing while many who come in years later make a fortune. The truth is, in good network marketing companies, members can make any amount regardless of where they are in the organization. Income is related to effort, not position. 

In this industry, it takes more than an idea to be successful. It takes execution, and execution requires deep vertical knowledge. Vertical knowledge refers to a broad understanding of the nuances in this industry, only obtained through years of experience. Experienced leaders know how to avoid distraction, conserve resources, be encouraging yet firm with the field and, if necessary, know when and how to fight.
Not all MLM companies are created equal. Many see an initial burst of success followed by a gradual tapering off of profits, causing them to collapse and go out of business. MLM companies that succeed have sound business models, both for those who run the company and for those who sell product and recruit new sales agents. There are many sites devoted to MLM rankings, creating lists of companies likely to provide a return on investment to sales agents interested in the industry.
Ben Thataway, a CEO benefits forever off of his employees and the employees can spend a lifetime and never make the kind of money they can make in network marketing. I know someone personally that beat out 80,000 representatives, did not join the company untli 3 years after it launched and became the top income earner. What you’ve heard, or what you think you know about network marketing is false.

For more than 40 years, Jim Rohn helped people around the world sculpt life strategies that expanded their imagination of what is possible.  Those who had the privilege of hearing him speak can attest to the elegance and common sense of his material, which is why he is still widely regarded as one of the most influential thinkers of our time and thought of by many as a national treasure.
In my opinion it’s not worth the deal. The company does not also provide adequate information on the contents of their proucts. What are the quantities of nutrients and phyto elements and their levels? Do we have any mention of ORAC ratings as to indicate the anti-oxiant power in their products and what about the nutrients absorption levels. There’re alot of blanks.
Yeah you can kind of tell what this company is all about just from their name. It is one of those currently trending companies with their anti-aging business opportunity, where the company boasts about “selenium” being the minerals of all minerals to help many immune system and thyroid functions.  The company has steady development (with revenue up to $156 million per year, up at a rate of 16%), though they are unable to take over the market.  They are just in a market with too many big named competitors (i.e. Nerium, Jeunesse).
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.
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.
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.
MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. And the Regulations require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from the Ministry of Commerce ("MOFCOM").[63] In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license.[64] Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in Hong Kong, where the practice is legal, while selling and recruiting on the mainland.[10][65]
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

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.
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.
Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature which is found across all MLMs is that the compensation plans theoretically pay out to participants only from the two potential revenue streams. The first stream of compensation can be paid out from commissions of sales made by the participants directly to their own retail customers. The second stream of compensation can be paid out from commissions based on the sales made by other distributors below the participant who had recruited those other participants into the MLM; in the organizational hierarchy of MLMs, these participants are referred to as one's down line distributors.[5]
Over 30 years ago, Jeff Roberti was a broke waiter looking for a chance to prove himself. Through hard work and determination, Jeff built his business into a success story that is now legendary - not only within his company, but also in the Network Marketing Profession. Though his accomplishments are impressive, his focus is one of gratitude and love for a company that has provided a stable, lasting environment in which to grow and serve.
* 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.

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