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 ...…
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.
Perfect reply That’s exactly what gives network marketing a bad name. Sheesh. If you find something you’re passionate about then go for it. But first ask, how many people can you personally find who have replaced their income at such n such a company? I’m grateful to say I have hundreds of dōTERRA advocates who have, and who go about it with integrity. Thanks for all the research, it was fun to read. I’d recommend looking at retention as well sometime.

The real key is this: Network marketing is all about leverage. You can leverage your time and increase the number of hours of work effort on which you can be paid by sponsoring other people and earning a small income on their efforts. J. Paul Getty, who created one of the world's greatest fortunes, said "I would rather make 1 percent on the efforts of 100 people than 100 percent on my own efforts." This very basic concept is the cornerstone of network marketing.
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.)
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. 

I totally agree, Mary. You can lose soooo much more just by opening up a small storefront business. I was in the Spa Industry and then the economy tanked in late 2008. I did not renew my lease in 2009. Lost my several hundred thousand dollar build-out. Lost so much more than taking an MLM business seriously. Even if I would have front loaded on a ton of product, I still would have been better off. People spend $750 and get some business cards then do nothing and blame MLM.
As for Trump, his pleas to “trust me” and “believe me” have continued to pay dividends, only now he’s saying, “I alone can fix” whatever stands in the way of American greatness. But even as Trump pursues his biggest scheme yet, one of his old ones will continue to thrive in 2017: The Trump era could ignite a golden age for politically connected multilevel marketing companies—or what critics (and John Oliver) say are often merely disguised pyramid schemes, illegal enterprises in which people primarily earn money by recruiting others instead of by selling products to the public.
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.
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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.
Scentsy is an MLM company that manufactures wickless, scented and flameless candles with a lot of varying fragrance that leaves customers drooling. People, who haven’t used this brand of candles, instantly fall in love with it once they do. Network marketers are given a good and lovable product to resell and the chances for success are really high.
Take Rodan+Fields, a skincare line developed by the dermatologists who created Proactive. It’s supposed be top-notch stuff. When they initially launched the product, they went the traditional retail route. Estee Lauder then bought the company for an undisclosed amount and continued to sell it through traditional retail. Sales of Rodan+Fields were surprisingly lackluster, however, so its former owners bought the company back and implemented the MLM model. Sales of the product skyrocketed to over a billion dollars. They’d claim it was thanks to the word-of-mouth marketing MLMs facilitate. I’d venture to guess it had more to do with the fact they have a captive customer base amongst the hundreds of thousands of distributors who are required to make minimum purchase amounts each month and recruit other distributors who will have to make minimum purchase amounts each month too.
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.

Now this company is one of the more infamous networking marketing companies out there, but maybe not for the reasons you’d think.  They have been in a never-ending battle with the FTC for a number of years.  So, currently they have made an agreement to pay out $200 million dollars to former associates and have sworn to reorganize their organization.
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