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."
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?
Nutritional supplements are not classified as either “foods” or “drugs”. They’re not foods because you don’t eat them for sustenance (you eat them to “supplement” your existing diet). And they’re not drugs because they’re not intended to treat any condition. The FDA largely ignores the industry, which means MLMs don’t face the same harsh regulations as food or drug providers in other industries.
That brings up another difference between traditional franchises and MLMs: When you own a traditional franchise, you’re not pressured to recruit other people to become fellow franchisees. In fact, if you did that, it could ruin your chances at economic success because you’d be competing with multiple business owners for the same customers. Also, that would be an illegal franchise pyramid scheme.
If Owner Two decided to expand his business and sponsors Owner Three, Owner Two would be credited for any sales volume that Owner Three produces. Lastly, because Owner One sponsored Owner Two, Owner One would also be credited for the sales volume of both Owner Two and Owner Three. It is this ability to generate revenue streams from multiple sources that has made network marketing a popular and profitable business for many.
Good companies find ways to intelligently leverage technology. Thanks to Amazon and Wal-Mart, we’re all spoiled. We want what we want, we want it NOW and we want it delivered for free. Smart network marketing companies are eliminating as many barriers as possible to make it easier for consumers to place and receive orders. They’re finding ways to make it easier for consumers to connect via mobile apps, tell stories via social media tools, provide best-in-class web experiences and leverage as much data as possible to stay ahead of consumer demand. The corporate team also needs to leverage technology to enhance workflows.
Your comment and it’s militant nature are the EXACT OPPOSITE of what I believe the doTERRA culture is founded upon. I hope anyone reading this thread choose to look past your article and it’s attack on YoungLiving when basing their decision as to which company they choose to go with. I want them to know that the manner in which you needlessly attacked them is in no way a representation of all the other reps nor the company itself.
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.
This company unbelievably made it on this list…they should not be here. In reality, they probably should not even be operating a business following the beating they took by the SEC and the FBI in the year 2007. Still the comeback they made was huge! The evidence is in the income disclosure statement, where it can be seen that $76k yearly was made for full-time, proven representatives.
Okay, we have a return to network marketing roots (can you remember the days of Tupperware parties…no? Well I’m not sorry to tell you there’s a reason for that). Products for your kitchen, cooking demos, and an abundance of mommy bloggers. Well homemakers are still the key demographic for this MLM, because they are looking for flexibility. It’s not surprising to anyone that this company has done so well, but what is notable is that even Warren Buffet saw this company and decided he wanted a piece of the pie.
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.
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.
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.”
A new project hitting the list, because it will have a huge following no matter what. We know that crowds of affiliates from other MLMs will tail over to this company. Why? Well this is a BK Boreyko’s business, the same person who had just dealt with the FTC with Vemma. And there’s no doubt in my mind that he’s planning to make another public attempt.
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For example, most successful people building a network marketing business do so in an organized method. They work a few dedicated hours each week, with each hour of effort serving as a building block for their long-term business growth. Then they sponsor other people and teach those people how to sell the company product and sponsor others who duplicate the process.
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.