Yes, you might want to learn the overview of it so you’re knowledgable and understand how your checks are getting formulated, but I’ve met too many successful networkers who can’t explain comp plans to spend any real time on them. When people ask questions, I refer them to the documentation that’s available and ask them if they’re ready to start a business they can work from home – even online in most cases.
Network marketing is a business model that is based on a company distributing products and services through a network of independent contractors. Network marketing is also popularly known as multi-level marketing (MLM), affiliate marketing, and tiered marketing. Some of the most well known network marketing companies worldwide are Amway Corporation, Shaklee, Mary Kay, Tupperware and Avon.
But here’s the thing. By recruiting close family members or friends into your downline, you contaminate those relationships with commercialization. You take all that good will you’ve developed with someone over months and years and cash it all in on getting them to be a commission for you. From that moment on, the person won’t be able to tell if your gestures towards intimacy are genuine, or an attempt to get you to buy or distribute product. Perhaps even more sadly, you may lose the ability to tell the difference yourself.
The key factor that has made network marketing so attractive is that independent business owners not only have the ability to sell products and services to retail customers they are also able to expand their business by setting up others in their own businesses as well. This is commonly known as “sponsoring” in the MLM industry. Sponsoring others allow a business owner to not only profit from what he directly sells, but also allows him to profit from the sales production of those he has sponsored.
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.
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?
Saturation is impossible because there isn't a finite number of people. Every day new people are born or turn 18, thereby adding new potential network marketers to the pool of prospects. Tim Sales, in Zig Ziglar’s book, Network Marketing for Dummies, offers the best argument against the saturation myth. He asks, “Do you know anyone who doesn’t have a refrigerator? No? That doesn’t stop GE from selling more of them.”
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.
We have grown significantly in number during this short pre launch period. But, we still have a ways to go. We are in need of and are seeking more Ambassadors to join us. We do not have Ambassadors in every state nor do we have enough Ambassadors in each state to handle the overwhelming flood of customers and new Ambassadors that will be seeking products or will want to be apart of this new Health and Detox revolution company when it officially launches and goes public.
As one of the top 10 fastest growing MLM’s, ranked on fortune 500, raved about by MLM review sites , all natural weight loss and wellness products, no GMO’s, No gluten etc and 10’s of thousands of glowing testimonials they are hard to overlook. The retention rate is excellent, the company has a 1% return rate on products which is unheard of as well as the best compensation plan available to any MLM rep. I think it’s safe to say if you do another article like this you would do your readers a great service by checking Plexus out. I really did enjoy the article as I am a multi MLM participant.
World Global Network is a publicly traded company that recently released a wearable health monitor similar to a Fitbit but with more features. The HELO currently measures blood pressure, heart rate, breath rate, sleep, EKG, mood and steps. It also has a panic button that if pressed twice it will alert you loved ones of your location using GPS. In the near future it will measure blood glucose and blood alcohol without using a blood sample. It will also have a mosquito shield.
The Federal Trade Commission issued a decision, In re Amway Corp., in 1979 in which it indicated that multi-level marketing was not illegal per se in the United States. However, Amway was found guilty of price fixing (by effectively requiring "independent" distributors to sell at the same fixed price) and making exaggerated income claims. The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".
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.
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.
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.
At the end of the 1990s, network marketers were learning to harness the power of the internet. The implementation of online shops and electronic orders made employing social networks much easier for individual distributors and businesses. Since the rise of social media platforms, it’s become common to see advertisements by people in your network for companies like Rodan + Fields or ItWorks.
Busting out into a world where you are met with travel bloggers, hotel jumpers, and digital wanderers, seems to me that #wanderlust had to be one the best ideas ever…out of the MLM industries. A lot of people are willing to work far away and alone, and a big reason is because people want to travel and see the world. Therefore, a remote income business with a travel MLM company just seems like the right move. World Ventures came out with a solid effort in the travel niche, and was named as one the incorporation 5000’s fastest growing companies 2 times in a row.
In my event, Beyond Leadership: The Art of Becoming an Ultimate Influencer, I will give you the kind of high level coaching that will lead you to become an influencer and take your business to the next level. This event covers all of the skills, strategies, and mindset unique to high income earners. When you leave, you will have a detailed game plan for your company to grow and succeed. This is NOT training on the 7 skills of Network Marketing. At this event, we’ll go beyond those skills and discuss the strategies and mindset needed to become an influencer.
Thanks for this post. Very helpful. I do like direct sales; one reason for this is that it helps keep alive that age-old tradition of people interacting face-to-face (rather than mainly through texting and social media). For that reason, I think MLMs should target the lonely Millennials. Anyway, I was a member/distributor of Advocare for over 10 years and still miss the products and the activities in the company, now that I am temporarily out. I still plan to sign up again when I can afford it (long story–I’ll spare you). I am now involved in Melaleuca, and I must say in their defense that Melaleuca’s products are actually not overpriced. Because Preferred Customers are not only not expected, but also NOT ALLOWED to turn around and sell the products at the retail price, everyone pays the same low prices. (Granted, one can indeed go to the website and buy directly from the company if they do not want to become a Preferred Customer. Why would someone do that when the annual membership is only $19? Only if they do not want to commit to the minimum monthly requirement for Preferred Customers.) Public, keep this in mind! Don’t be fooled by the rebels who are selling old Melaleuca products on Amazon for way above the retail price!! You’re much better off buying fresh products directly from the factory, even if you pay retail price. Just sayin. My big question: What about Tupperware? I have been a Tupperware consultant for about 6 months, and I have found it to be extremely difficult to keep business going. The directors training me have said that Tupperware is the second most widely recognized brand name in the world, second only to Coca-Cola. If that is the case, why is it so hard to find people willing to host Tupperware parties? Why does it seem so hard to sell? Also, is it just me…Or, does Tupperware’s compensation plan stink?