At the corporate level, multi-level marketing communicates a clear picture of the company and its products to consultants—and by extension, to its customers and potential future consultants. The goal of MLM is not only to excite consumers about a product, but to attract a percentage of people to the possibility of selling that products. Therefore, the art of persuasion is fundamental to MLM—an art honed in marketing programs across the country.

Earning more than $2 million in Network Marketing commissions a year, and more than $15 million in total over the past 13 ye­­­ars, Calvin Becerra started his Network Marketing career at the age of 24. Previously in the mortgage banking industry, Calvin embraced Network Marketing and, in his first 8 months, became the youngest millionaire in his company. Since then, he has built a massive organization of hundreds of thousands of people that is represented in more than 90 countries worldwide and includes 10 people earning more than $1 million in commissions a year.
Wow Collette! I’m a new Advocate with doTERRA, as is my wife. She wanted to start using oils to get our family off of medications as much as possible (and now we mostly are!) We chose doTERRA over all the other oils companies because of the process in which they farm and make their oils as well as the great culture they seem to exude. We just felt called to them.
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.
As you read these disclosure statements, you need to keep in mind that the companies do what they can to paint a bright picture of your income capability. Instead of giving you straight figures, they’ll share percentages and percentages of percentages. There’s a whole lot of intentional obfuscation going on. You’ve got to bust your mathematical chops to really understand what the numbers mean. We spent hours carefully reading through the above disclosure statements and crunching the numbers ourselves in order to verify Taylor’s conclusion that 90-99% of distributors in each respective MLM were only receiving at most a few hundred dollars a year in commissions. And it’s absolutely true.
Thank you for sharing your perspective on the Direct Sales/MLM companies. As a business owner and entrepreneur, there is often a lot of noise from many sources about what is the best way to grow and be of importance. One of the things I have learned and continue to learn is that we must really love what we do, believe in our offering, whether is it a product or service, and listen closely to our gut instincts. A business coach of mine once said being a prism is beautiful, but it is scattered light, focus on what you love. Another important thing to know for yourself , is that there are different learning styles. If you choose to join any company, MLM or otherwise, be clear with yourself how you best learn and thrive. Getting swept up in the cheering may feel good, and it may keep you motivated on some level, however, be clear on how do you retain knowledge and use it. If a company has a one size fits all approach, be very careful that you do not get swept away. Thank you again for sharing this information. It has helped me have another look at my goals and how to continue focusing on what I love to do.
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.
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.
If you remember those ads for P90X and Insanity, you are not alone because they were something to rave about at one point in time.  They have dropped off a tad, but nonetheless Beachbody is still a well-known name.  The company is so focused on their products, very few people know that they are a network marketing company.  Which can be seen as an advantage for the company’s survival, but they are questionable as a “hot offer” to advertise.
I see Melaleuca on here. I see that as both good and bad. They are an awesome company with a great compensation plan. However, they are not an MLM. They are not even listed with the federal agency that oversees those companies. They are a Consumer Direct Marketing company. How does that differ? While I am required to purchase a certain amount each month, that’s all I need to purchase. It’s all products I use in my own home for myself. I don’t have a monthly quota to meet. I don’t have to buy product and sell it to people. The idea is that the product goes to the consumer only. In fact, it’s against company policy to buy product and sell it to others. The only comparison I see are the “levels” of customerS in my group. Can you shed any light on why you think they are an MLM? Thanks, so much!
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.
Consumer safeguards are policies a company can implement to minimize the possibility of consumer harm. Because a distributor’s success depends on his or her efforts along with market conditions, there’s no way to completely eliminate the chance of distributor losses. But…things can be done to minimize the sting if a distributor gets stuck with product they no longer want. The smart companies spend more money than required to build these safeguards. The easiest protection is offering a generous refund policy on unused or unsellable inventory. It’s considered a best-practice to offer a 12 month buyback period on resellable inventory. The refund needs to be clearly published and easy to understand, and customer support needs to make the experience of requesting a refund as painless as possible.
Not all MLM companies are pyramid schemes — but many are universally reviled by both the people who work for them and the potential customers who are sick of constantly being pestered by friends to buy the products. Ahead, discover the most hated multi-level marking companies today — including the one with a billion dollar lawsuit pending (number 7).
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.
This one is debatable. Based on my observations, companies tend to do better when they have a physical presence for the corporate team to work. The idea of a “cloud based” office sounds nice, but in my opinion, it’s a little cheap and leads to less production. I think it’s important for executives to provide a consistent environment for people to come together during normal office hours and focus intensely on their duties to the company. There’s value in people coming together daily in a physical environment, sparking ideas off of each other at random times. If there’s no physical location, the company, in my opinion, is typically unable to adapt and change quick enough to stay ahead of the competition.
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.

Network marketing is a business model that depends upon a network of distributors for growth, such as in multilevel marketing. It is a direct selling method that features independent agents that make up a distribution network for goods and services. Some network marketing systems are based on tiers that denote how many levels deep a sales and distribution network goes. In two-tier or multi-tier examples, the people that make up the top tier of a distribution network are also encouraged to build and manage their own networks of salespeople. Each network creator (or "upline") then earns a commission on their sales revenue, as well as on the sales revenue of the network they have created, otherwise known as "downline." There are many examples of reputable network marketing operations, though some have been criticized of being pyramid schemes and have been banned in some countries as a conduit for consumer fraud.
In most cases, you can sign up to become a Network Marketing Distributor online, by making an initial investment and completing an ‘Independent Distributor Agreement.’ When you do sign up with a Network Marketing company, you are not considered an employee, usually, but seen as a representative, a dealer or a consultant (depending on the type of company you are representing). You may even consider yourself as a business owner.

But the FTC’s newfound toughness may come to naught in the Trump era. There’s little hope, according to both critics and cheerleaders of the MLM industry, that the Trump administration will assume such a strict posture toward Herbalife’s peers. “The more likely scenario is that they just won’t bring a pyramid scheme case,” said Bonnie Patten, executive director of Truth in Advertising, a consumer advocacy group that helped the FTC in its prosecution of Vemma, a nutritional-product MLM that the FTC alleged was a pyramid scheme in August 2015. The case was settled in December on terms similar to the Herbalife one. (Neither Vemma nor Herbalife admitted guilt in their settlements.)
“We decided to take a cash-out refi to pay off unsecured debt,” wrote Kimberly Rotter from San Diego, a personal finance writer and frequent commenter. “The debt was incurred for emergency maintenance on our property, including several months of lost income for my husband while he did the work. Our home was 100 percent paid off so this was a very hard decision for us. However, our alternative was to do the zero percent shuffle on multiple credit cards to handle $85,000 in debt, which I know from past experience is difficult (although possible) at that level. We got a loan against the house for 5 percent and have a very strong and committed 36-month payoff plan. The pain of this choice will hopefully keep us on track. I am optimistic that we will meet our payoff goal.”
I see Melaleuca on here. I see that as both good and bad. They are an awesome company with a great compensation plan. However, they are not an MLM. They are not even listed with the federal agency that oversees those companies. They are a Consumer Direct Marketing company. How does that differ? While I am required to purchase a certain amount each month, that’s all I need to purchase. It’s all products I use in my own home for myself. I don’t have a monthly quota to meet. I don’t have to buy product and sell it to people. The idea is that the product goes to the consumer only. In fact, it’s against company policy to buy product and sell it to others. The only comparison I see are the “levels” of customerS in my group. Can you shed any light on why you think they are an MLM? Thanks, so much!
This article was really informative and honest! I’m not presently involved in an MLM and I don’t ever plan to be especially after reading this article and the comments below. Why? Well because of EXACTLY the kind of “networking” and “recruiting” that these companies and many of the people commenting on here are advocating. I have been bombarded on my facebook, and other social media from people I haven’t spoken to or seen in years. Its becoming constant, and I am not on social media to make money. Roden and Fields, shakeology, some girl I went to high school with is now trying to get me to buy leggins from her. I have a cousin that I actively avoid now because he is constantly steering every single conversation to Herbellife and why I NEED it to be healthy. Jesus. Its just enough already. I’m all for empowering people, and I love the idea of earning an additional income to take care of your family or yourself. But I could not imagine alienating or even just annoying friends and family in order to make an extra dollar. What I dislike most is that many of those that are recruiting make it seem as if they recruiting you simply because they want to “help” you or provide you with an opportunity. They make it seem as if they are doing this out of the goodness of their hearts, when really the actual motivation is line their own pockets with more money, because the more people you recruit for your team, the more money you make. That feels dishonest and slimy to me. Unless I’m asking for “help” or an “opportunity” I wish people would assume that I don’t need and am not interested in one!
The Internet has made it so easy now. In the old days you had to actually visit people, or at least call them, to pitch your fabulous new opportunity. Face-to-face marketing is still practiced, but it is not so common these days. Besides, no one really loves the idea of having someone over, so they go online where everyone can be as safe as they want. They create sites with videos, testimonials, and pictures.
I am with Beachbody. There is nothing better than actually being able to watch someone transform their lives. Health and wellness is THE place to be and everyone needs proper nutrition PERIOD. Beachbody has the tools and corporate backing to make it worth a look. Not very often do I find a new customer who has not already heard of at least on Beachbody product from their TV advertising

I’m truly sympathetic to this desire. A lot of folks are struggling financially out there; Dad’s salary alone isn’t enough to support the family (or he’s out of work altogether), and Mom getting a job may not be a big help once the cost of childcare is factored in. Plus, a lot of moms simply don’t want to send their kids to childcare and want to be able to stay home with their children.


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.

Starting out as a casual customer, and then moving into the business side of the company, Kierston set the pace and laid the foundation for her family’s future when the unexpected happened and they were at risk of losing everything.  Two years later, Kyle joined his wife in her business and, together, they have become million-dollar earners while building a wildly successful Network Marketing business.
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