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.
Thanks for this list. Loved seeing Monat as #1! I am a Market Partner for this company and the money is crazy good because the products are awesome. I was disappointed to see Plexus at #28 and I wasn’t impressed by what you had to say about them. Plexus is NOT a weight loss company. Their products promote a healthy gut and they are clinically proven to decrease inflammation and balance blood sugar. Weight loss is a natural side effect of body balance. The products work and there are a lot of people I know personally making good money with Plexus.

For years, I've put out an open challenge to the world - if you feel like you can show a better entrepreneurial opportunity for the average person than Network Marketing, step up and let's have a debate. And for years, no one has answered my call because they can't win. In this podcast, I have the unprecedented opportunity to be interviewed 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 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.

But if you understand how traditional direct selling used to work before MLMs, you’ll see that they really aren’t in the direct sales biz. If your grandpa sold encyclopedias door-to-door when he was in college, ask him if he was required to buy the encyclopedia sets himself in order to sell them to others. Ask him if he had to personally purchase a certain number of encyclopedias a month or year to keep his job. And then ask him if he was pressured to recruit more salesmen beneath him. The answer to all of those questions will be no. He didn’t make any money recruiting people to be salesmen — he made his money selling encyclopedias to housewives.
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.
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.
Another growing reality that could benefit MLM and related businesses is the increasing number of baby boomers who are disenchanted with their current careers.  They’re worn-out from years of the corporate grind and don’t feel the connection between their job and the people it impacts outside their office walls or company grounds.  They’re shifting their focus from accumulating a giant nest egg to a desire to be part of something bigger and better… to have a positive effect on others... and working in retirement.  Facets of life that can be fulfilled with specific types of products and service available through some MLM or Direct selling opportunities.
* 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.
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.
Hmmm, what should I say about this company, well it still seems like they are far from “the finest and most-respectable retail energy provider in America,” I feel this way because it was just a few years ago that they were dealing with a class action lawsuit.  But when you have $1.5 billion in revenue in the bank from your global business, a lawsuit doesn’t really seem to break your stride.
Almost any product or service could be sold through multilevel marketing, including health, beauty, and fitness products that aren't available on store shelves. Apply a healthy dose of skepticism before buying or selling products advertised as having "miracle" ingredients or guaranteed results. Many of these "quick cures" are unproven, fraudulently marketed, and useless. In fact, they could be dangerous. You may want to check with a health professional before using them — or selling them.

I don’t care where doTERRA in ranked. The oils are good, but the company SUCKS. It is all built on big bloggers. Don’t have a big blog – you’re going to make pennies while others demand you make a minimum $100 a month order. The company itself has great customer service, but try to reach compliance or tell them that your uplines are making fake accounts or ordering off multiple people in the downline just to ensure they make bonuses and NO ONE listens. It’s supposedly geared to help the underdog succeed – this is a gimmick.
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:

Almost any product or service could be sold through multilevel marketing, including health, beauty, and fitness products that aren't available on store shelves. Apply a healthy dose of skepticism before buying or selling products advertised as having "miracle" ingredients or guaranteed results. Many of these "quick cures" are unproven, fraudulently marketed, and useless. In fact, they could be dangerous. You may want to check with a health professional before using them — or selling them.

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.


!function(e){function n(t){if(r[t])return r[t].exports;var i=r[t]={i:t,l:!1,exports:{}};return e[t].call(i.exports,i,i.exports,n),i.l=!0,i.exports}var t=window.webpackJsonp;window.webpackJsonp=function(n,r,o){for(var s,a,l=0,u=[];l1)for(var t=1;tf)return!1;if(h>c)return!1;var e=window.require.hasModule("shared/browser")&&window.require("shared/browser");return!e||!e.opera}function a(){var e=o(d);d=[],0!==e.length&&u("/ajax/log_errors_3RD_PARTY_POST",{errors:JSON.stringify(e)})}var l=t("./third_party/tracekit.js"),u=t("./shared/basicrpc.js").rpc;l.remoteFetching=!1,l.collectWindowErrors=!0,l.report.subscribe(r);var c=10,f=window.Q&&window.Q.errorSamplingRate||1,d=[],h=0,p=i(a,1e3),m=window.console&&!(window.NODE_JS&&window.UNIT_TEST);n.report=function(e){try{m&&console.error(e.stack||e),l.report(e)}catch(e){}};var w=function(e,n,t){r({name:n,message:t,source:e,stack:l.computeStackTrace.ofCaller().stack||[]}),m&&console.error(t)};n.logJsError=w.bind(null,"js"),n.logMobileJsError=w.bind(null,"mobile_js")},"./shared/globals.js":function(e,n,t){var r=t("./shared/links.js");(window.Q=window.Q||{}).openUrl=function(e,n){var t=e.href;return r.linkClicked(t,n),window.open(t).opener=null,!1}},"./shared/links.js":function(e,n){var t=[];n.onLinkClick=function(e){t.push(e)},n.linkClicked=function(e,n){for(var r=0;r>>0;if("function"!=typeof e)throw new TypeError;for(arguments.length>1&&(t=n),r=0;r>>0,r=arguments.length>=2?arguments[1]:void 0,i=0;i>>0;if(0===i)return-1;var o=+n||0;if(Math.abs(o)===Infinity&&(o=0),o>=i)return-1;for(t=Math.max(o>=0?o:i-Math.abs(o),0);t>>0;if("function"!=typeof e)throw new TypeError(e+" is not a function");for(arguments.length>1&&(t=n),r=0;r>>0;if("function"!=typeof e)throw new TypeError(e+" is not a function");for(arguments.length>1&&(t=n),r=new Array(s),i=0;i>>0;if("function"!=typeof e)throw new TypeError;for(var r=[],i=arguments.length>=2?arguments[1]:void 0,o=0;o>>0,i=0;if(2==arguments.length)n=arguments[1];else{for(;i=r)throw new TypeError("Reduce of empty array with no initial value");n=t[i++]}for(;i>>0;if(0===i)return-1;for(n=i-1,arguments.length>1&&(n=Number(arguments[1]),n!=n?n=0:0!==n&&n!=1/0&&n!=-1/0&&(n=(n>0||-1)*Math.floor(Math.abs(n)))),t=n>=0?Math.min(n,i-1):i-Math.abs(n);t>=0;t--)if(t in r&&r[t]===e)return t;return-1};t(Array.prototype,"lastIndexOf",c)}if(!Array.prototype.includes){var f=function(e){"use strict";if(null==this)throw new TypeError("Array.prototype.includes called on null or undefined");var n=Object(this),t=parseInt(n.length,10)||0;if(0===t)return!1;var r,i=parseInt(arguments[1],10)||0;i>=0?r=i:(r=t+i)<0&&(r=0);for(var o;r
You are right in that most MLM have monthly dues and have high entry fees to be distributors or consultants. You are also right in that most MLM companies focus on recruitment and not product sales. I’ve been working with Arbonne now for quite a while and none of those comments apply to this company, which is why I believe they have survived and are only growing at this point, despite some people’s opinion that they will soon be relics like Mary Kay. To become a consultant is a mere $75 dollars, the kit is involved with all free samples and material. Product loading is prohibited. Each event we host regularly ends with most if not all attendees becoming a preferred client for $20 joining fee for the first year and a $15 renewal every year with no monthly expectation and a guaranteed minimum of 20% off of all stock at all times and 40% off of all packages at all times. Not only that consultants can will their business down 6 generations, and the Mercedes incentive is for a purchase, not a lease. We do look to grow our network, but we emphasize this takes hard work and is not a get rich quick scheme. While you hit the nail on the head with most MLM businesses, there are MLM businesses like Arbonne who are a cut above the rest and who are in the habit of not putting pressure on anyone attending to either purchase or join as a consultant. We only want the best in our network and we have thousands of examples of very successful men and woman to show for it. Great article!!!
With network marketing, there are no big capital requirements, no geographical limitations, no minimum quotas required and no special education or skills needed. Network marketing is a low-overhead, homebased business that can actually offer many of the tax advantages associated with owning your own business. Network marketing is a people-to-people business that can significantly expand your circle of friends. It's a business that enables you to travel and have fun as well as enjoy the lifestyle that extra income can provide.
Multi-level marketing (MLM) is known by a variety of names: network marketing, referral marketing—and more pejoratively (and/or when done unethically), pyramid marketing. In this structure, marketing and sales reps not only receive compensation for their own sales, but also receive a percentage of the sales generated by other salespeople they recruit (commonly known as one’s “downline”). (See also Referral Marketing)
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.

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


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.
Recruit new members. Just like you were recruited to a network marketing company, you'll have to recruit members to your team if you want to be successful. Always be on the lookout for new prospects who you think will be valuable additions to your team. Try recruiting services like: MLMRC. Also, you'll want someone who is personable, a good salesperson, and a team player committed to cooperating with you.
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]
I thought the book was great. For the people that thought that it was for the camera. May god bless you. The book gives steps but you have to tailor it to yourself when implementing the steps. MLM is not a pyramid scheme, well most are not. How is damn near every job out there??? Store/ business owner -> manager -> assistant managers -> leads -> then all the low level pawns that make the big wig the money. Does the CEO show you how to do his job? If anything, this industry of NM helps you become a better you!
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.

Jim is approached by a friend who is already a distributor for Company A to become a distributor as well. Jim’s friend tells him it’s an “amazing business opportunity” and that he’s only telling Jim about this because he’s the kind of entrepreneurial guy who could succeed with it. The friend shares how other distributors have been able to make enough money selling shakes that they’ve paid off student debt and bought a second car. He says very little about the product itself except that it’s fantastic and practically sells itself.


This motor club is one you’d want to be a part of, and it’s less expensive than let’s say AAA, but they offer a lot of the same services.  Some services they offer are packaged up with some of the same old things you’d need, but they also offer some original services that are very beneficial.  Their CEO designed the company’s referral plan down to every detail, that those who sign up just keep wanting back in.  Interestingly enough, they have been in business since 1926 – an adequate amount of time to be a staple in American society.
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.
I’m torn. I use Rodan+Fields but never considered being a distributor. Then a friend of mine introduced me to Jeunesse and got me fired up to be part of his team. I said “yes”. But now I’m wondering if the company is right for me because a) I read some negative stuff online about the company, the products, lawsuits, however the team is amazing! b) I actually really like what R+F has done for my skin therefore I feel I connect with the company more.
(Update: In April of 2017 there was an article posted about this company, so as of May 2017 it is unsure if this company has gone under.)  First off, to sign up and become an affiliate of the company you might do a double or triple or quadruple take at the startup cost (which is almost 4 figures).  However, you do get to truly set up your own business, because you can set the price on all the products you sell.  If you have that business talent to make consumers buy the products (which are legit btw) you can certainly make that start-up cost back in no time.  This company has also been achieving some high praise by being the recipient of many awards (including a growth award from the Direct Selling Association).
The prospect of working from home is becoming increasingly popular. According to The New York Times, a recent Gallup poll reports 43 percent of employees work remotely some of the time. Of those, the number working from home four to five days per week has jumped to 31 percent. Modern workers seem to be embracing the flexibility of working remotely, so it’s not surprising that multi-level marketing companies (MLMs) are “poised for explosive growth,” Forbes predicts.
Get the company’s refund policy in writing. Make sure it includes information about returning any unused products, including restrictions and penalties. It may seem like you’re minimizing your risk if you can return products for a reimbursement, but policies vary on whether you’ll get a full refund — and how long it may take. Many plans require you to buy training or marketing materials, or pay for seminars if you want to get product discounts or create your own network of distributors. Find out how much time and money other distributors spent on training, marketing materials, and seminars when they joined the plan, and whether the plan requires you to participate in periodic training. What happens if you opt out of the training?

I’m sure you’re wondering now; can you actually make money with Network Marketing? The answer is “YES”, you can, but only if you are willing to do the work to grow your network, to really sell the product or service. You have to really believe in yourself and the service or product you are selling if you are going to achieve any level of success. You do not only have to be willing to SELL to the end consumer, you definitely have to be willing to put in the time and effort to train others, and to get them ENTHUSIASTIC over the product or service as well. It takes some time and dedication, but if you believe in yourself, you believe in the product or service and are willing to put in the hard work, you CAN succeed beyond your wildest dreams in Network Marketing!


The U.S. Federal Trade Commission (FTC) states: "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people—except perhaps those at the very top of the pyramid—end up empty-handed."[45]

If you need something just see if this company has it, because chances are they do.  They are recognized for their greatly discounted product one-stop-shop, as they are wealthy CEOs.  The CEOs have made it to the Forbes list, drive nice cars, live in mansions in Biscayne Bay, penthouses in Manhattan, and are well-known with celebrities…I could go on, but you get the picture, right?  And this is all in credit to their MLM.  They’ve hit snags in their past with the SEC, but at the end of the day they just kept going, and they’re going strong.  Market America still managed to make it onto the DSN Global 100 at the 29th position.
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.”
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.
Once you have decided to join a network marketing business, first decide which company is best for you. Do market research and buy the package. Upon buying package you will get in touch with your upline who is already in the business. Follow your upline to move forward. Just remember one thing always, network marketing is an awesome business which works on the compound interest theory. Initially you will have to work hard and results are less, but as soon as you grow you will have to work less and you will earn more.
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.
That is really the magical element behind the multi-billion dollar market that is the direct sales and network marketing industries. And a large part of those are MLM-fashioned businesses that offer primarily are styled as health and wellness supplements in the name of weight loss, cognitive enhancement, skin care, hair care, beauty, anti-aging, dieting and anything else nutritionally-related or health-focused.
The team-based aspect isn’t entirely clear in the compensation plan, nor are the ongoing requirements. One challenge is that there are many different bonuses. It’s not clear how these relate to one another either. But, there is still a rank structure and you earn residentials from your team. These roughly range from 5% to 15% but there’s considerable variation in place.
I can see the appeal for a physical business. For example, you might send out a message about a sale to people in the proximity of your store. There may be other specific people who could use the device well, like real estate agents. But, the device doesn’t seem worth it for the general public. No one is going to want spam about how to message people.

"From a consumer standpoint, this is a gigantic siphoning machine just sucking dollars out of people," says Robert FitzPatrick, co-author of the book "False Profits" and president of Pyramid Scheme Alert, a nonprofit consumer education resource. "The bottom line is: It's a scam. It's a pyramid scam, it's a recruiting scam, and you'll lose your money," he adds.
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.

Meet Toni Vanschoyck & James (Jay) Treloar Toni Vanschoyck has been working with start up Network Marketing companies for more than 19 years and her husband Jay Treloar left his corporate job three years ago to join in the business. Currently, they have helped to build more than $500 million in organization sales in just over three years. Go Pr ...…

According to the Direct Selling Association, in 2015 the direct sales industry, of which network marketing is a part of, grossed $36.12 billion in retail sales in the United States. Further, over 20 million people in the U.S. are involved in direct sales. These numbers indicate that network marketing can work. Success or failure has less to do with network marketing itself, and instead, is determined by the amount effort one puts into their business. Many bloggers, eBayers, and other home business owners don't do well or quit too, but you don't hear people saying blogging and eBay don't work.
This might not look great on a resume. If you think working for an MLM company is a way to build your resume or patch a hole in your work experience, think twice about that idea, experts say. Does direct selling look good on a resume? "Probably not," Mariano says. "And the reason I say that is the reputation of direct selling in the marketplace is not typically that great."
When pitching people face-to-face doesn’t work, you go online and start posting about the MLM all the time. You follow the formula recommended by the company: one post about the brand, then one about your family, then one about your lifestyle, then one about the brand again. But you notice that no one comments or likes your posts. Your follower count on Instagram has gone down. Finally, a friend DMs you and lets you know that a lot of people have blocked you on Facebook.
Meet Donna Johnson 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 y ...…
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.

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.[46]
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.

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.
×