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.
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.)
One of the earliest critics of Amway, former insider Stephen Butterfield, wrote about how its conservative economic policies actually helped bolster Amway’s ranks in his 1985 book, Amway: The Cult of Free Enterprise. “In alliance with the religious right, Amway (which stands for American Way) has spent more than three decades building an authoritarian, pro-business movement in the American middle class,” according to a promotion blurb for the book. “Amway preaches devotion and obedience to its leaders, hard work and sacrifice for the Company, contempt for the poor and worship of the rich.”
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.
If 18,000,000 Americans consider MLM their careers, yet only 0.3% actually succeed beyond average corporate America wages, do people realize that means there are barely more than 50,000 Americans “living the MLM dream” and almost 17,950,000 who just help the 50,000? Sad. I was part of team Tupperware decades ago because I wanted to buy Tupperware for my home for less. It took me about 14 months as a stay at home mother (never recruited, never pressured, my distributor didn’t like my attitude) to accomplish that task and then walked away. I live in rural America where so many fall to MLMs attempting to climb out of paycheck to paycheck living (very few good jobs) like the saved into a baptismal pool. “Disciples” is the perfect word. MLMs are just not thriving here. How many Americans can one recruit/sell to for building a business in a rural county with less than 20,000 other Americans of which 75% live below the poverty line? I see MLM victims everywhere.
Hi JP, Your assessment of Melaleuca stating… “When you hit over a billy in annual sales, that’s reason enough to be on the shortlist. On top of that, they’ve been in the MLM game for over two decades, and they’re now the “largest online wellness shopping club” (basically just sounds like a fancy way of saying they sell a lot of miracle diet pills).” is VERY misleading and inaccurate. They offer “far more” products and services than weight control supplements. I have been a “customer” only of Melaleuca for over 20 years and can attest to the superb quality of their products. Please get your facts correct before posting inaccurate information. 🙂
The gist of the matter is that the courts have found that as long as an MLM can show that its primary purpose is to sell product (even to people within the MLM) and not recruitment of distributors, the company is considered a legitimate business and not a pyramid scheme. But this line is really fuzzy, and little to no effort is made by law enforcement agencies to make companies prove that they emphasize retail over recruitment.
Eric hit it it square on the head with Go Pro. Honestly…the title says it all. If you want to become a professional in network marketing, then his book is a must read. That means non-negotiable. If I want to become a pro, it is a requirement to read;Go Pro;. Get his book now! This book is already destined to become an all-time classic for our profession. --Todd Falcone, Network Marketing Speaker, Coach and Trainer
Consultants involved in multi-level marketing usually sell products directly to consumers through relationships and word of mouth. Nearly 9 out of every 10 consultants are part-time, and work out of the home as distributors of a given line of products. Many multi-level companies also employ a “party plan” strategy, where consultants (and possibly also the consultant’s “upline”) invite friends and other interested customers in the area to a party at the consultant’s home (or other available location). Many products are demonstrated, everyone has a good time, and by the end of the party the consultant has hopefully made several sales—and possibly even recruited a new consultant (who in turn become that salesperson’s downline).
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.
We are not looking for everyone to join us. We are however looking for people with INTEGRITY. We are looking for Exceptional Leaders who will strive for Excellence. Leaders who will be Influential, making an Indelible impact on their team members. Leaders who will be Motivational, Inspiring others to POSITIVE action. Leaders who will be Instructional, Coaching and Teaching constantly and systematically. Leaders who are Liberal, Sharing of their time and talents with others. Leaders who are Punctual, always Remaining time conscious. Lastly, we are seeking Leaders who will be Relational, Developing healthy relationships with not only with team members, but especially with our customers.
These are only a couple of examples of people who went from struggling with their finances to being financially secure, and continuing to make a fortune. There are hundreds of more examples of people who have literally gone from rags to riches through Network Marketing. However, it should be emphasized that these people did not just sit back and collect money, they had to put in the hard work and dedication necessary to grow their network of sales, as well as doing the work required to get the word out and represent their companies.
Meet Kim Kiyosaki Entrepreneur, investor, and speaker Kim Kiyosaki is the author of Rich Woman: A Book on Investing for Women – Because I Hate Being Told What to Do. She is a champion of women and female-preneurs and, along with her husband Robert Kiyosaki, helps people take control of their finances, escape from the rate race, and move towards ...…
comes down to leadership and the individual. I even changed teams to find the right mentor and coaching when I knew I was struggling. I found a team that trains people to be some network marketing professionals, and really the math is simple and anyone can make residual income if they do it correctly. The problem is people sign everyone up they can and then most drop out. You only want to work with those that are committed to do the work and be able to work closely with them until they are a developed leader. In all actuality ssigning everyone up as an associate is against the rules and a big no no. Having customers benefits everyone and in most business models like the one I’m with I make more commission off customers than associates that aren’t working.