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.

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! 

The formula of future business growth is based on the idea that people don't just want to retire in a traditional format. They crave knowledge and want to feel relevant.  They want to improve their own transition and feel compelled to help others avoid the pain and pitfalls they have experienced.  They desire a supportive community where their opinion counts and they can openly ask personal, business or other questions.  They’re interested in hearing and exploring new ideas and need ways to make new connections through face-to-face interactions.
Consultants make up the vast majority of MLM jobs. However, The Direct Selling Association (DSA) reports that the average annual income for consultants is about $2,400; in addition, roughly 90 percent of all consultants earn less than $5,000 annually. Not exactly the stuff through which marketing careers are made—although it could prove to be valuable entry-level experience.
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.
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.)
Here we’ve got a throwback to network marketing’s roots (Remember Tupperware parties? No? There’s a reason for that). Kitchen products, cooking demos, and mommy bloggers galore. Stay-at-home-moms looking for some flexibility are still a HUGE target demographic for MLM, so it’s no surprise that Pampered Chef has done so well that Warren Buffett decided he needed a piece of the action.
So you meet your buddy at a burger joint. You reminisce about old times and play catch-up. You’re having a real good time. But then he mentions this nutrition company he’s been selling for lately. He says he’s just getting started, but there’s a lot of income potential. In fact, he knows a guy who has paid off his mortgage working for this company. He thinks you’d be a perfect distributor for it because you lift weights and you’re driven.
But if you understand how traditional direct selling used to work before MLMs, you’ll see that they really aren’t in the direct sales biz. If your grandpa sold encyclopedias door-to-door when he was in college, ask him if he was required to buy the encyclopedia sets himself in order to sell them to others. Ask him if he had to personally purchase a certain number of encyclopedias a month or year to keep his job. And then ask him if he was pressured to recruit more salesmen beneath him. The answer to all of those questions will be no. He didn’t make any money recruiting people to be salesmen — he made his money selling encyclopedias to housewives.
Jim is approached by a friend who is already a distributor for Company A to become a distributor as well. Jim’s friend tells him it’s an “amazing business opportunity” and that he’s only telling Jim about this because he’s the kind of entrepreneurial guy who could succeed with it. The friend shares how other distributors have been able to make enough money selling shakes that they’ve paid off student debt and bought a second car. He says very little about the product itself except that it’s fantastic and practically sells itself.
If the company is solvent, meaning it has the capital required to grow, maintain a solid infrastructure, attract talented management, keep pace with technology, and pay your commissions, then you may proceed. Publicly traded companies are required to disclose their financial condition in great detail every 90 days to the U.S. Securities and Exchange Commission (SEC) and other governmental agencies. Unfortunately, private company financials are not available to the public, so you may have to take a risk in working for one.
But this is exactly what MLMs do. In fact, their entire business model encourages oversaturation of a market. Sales reps are incentivized to recruit as many sales reps as they can from their personal networks. That means you can end up with dozens or even hundreds of people in the same city all competing with each other to sell the same product. I’ve seen church congregations with half a dozen women all selling for the same MLM. Do you think all of them were doing well selling essential oils to other members in the congregation? Nope. Because supply and demand.
If you don’t understand something, ask for more information until it is absolutely clear to you. Your sponsor and other distributors should be willing to answer your questions. Remember that your sponsor (and others above your sponsor's level) will make money if you join the program. So take your time, and resist pressure to join. Be aware of shills — fake references paid by the company or distributor to pretend they were successful earning money through the plan. 

Well if you didn’t know before, this company is all about body shapers and nutritional products, with a “greens line” in their product line up as well.  The company got some built up heat in 2015, but have later cooled down a bit.  There was minimum quota of $112 that had to be met every month in order to earn commissions from the company and after a while their distributors had a hard time keeping up with these expectations. Not everyone (including their grandmothers) needs more than one or two body shapers. LOL.
Want to know where the best skincare products in the land of the MLM world are? Right here with Rodan and Fields.  A pair of dermatologists founded this company as an expensive department store product before emerging onto the scene of network marketing.  They are the ones who made and created Proactiv and they hit success and ended up with the best skincare products of all time (every teenager’s savior, as it became the solution that worked for everyone).  Their one product line rakes in almost $1 billion in yearly sales.
"Network marketing" and "multi-level marketing" (MLM) have been described by author Dominique Xardel as being synonymous, with it being a type of direct selling.[6] Some sources emphasize that multi-level marketing is merely one form of direct selling, rather than being direct selling.[23][24] Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and "relationship marketing". Critics have argued that the use of these and other different terms and "buzzwords" is an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams.[25]
This MLM’s motive is a great natural path to healing using Naturopathy as its guide while #cleaneating, drinking medicinal herbs, and those free-loving souls are eating it up.  Apparently, they have the “The FASTEST, healthiest, simplest weight loss program on the planet.”  Now is this just a lot of gossip…no it’s not. The company has a line of products that are certified organic.
In a credible Network Marketing company with a well structured compensation plan, there is no such thing as being overpaid OR underpaid. Participants get paid in direct proportion to what they produce in terms of product sales to customers, creation of a network of people doing the same thing, and leadership development. As a Network Marketing Professional with a credible company you get paid exactly what you’re worth – no more, no less.

Consultants make up the vast majority of MLM jobs. However, The Direct Selling Association (DSA) reports that the average annual income for consultants is about $2,400; in addition, roughly 90 percent of all consultants earn less than $5,000 annually. Not exactly the stuff through which marketing careers are made—although it could prove to be valuable entry-level experience.
"From a consumer standpoint, this is a gigantic siphoning machine just sucking dollars out of people," says Robert FitzPatrick, co-author of the book "False Profits" and president of Pyramid Scheme Alert, a nonprofit consumer education resource. "The bottom line is: It's a scam. It's a pyramid scam, it's a recruiting scam, and you'll lose your money," he adds.

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.
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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