When you look at our hypothetical MLM, it’s hard not to notice that it pretty much works like a pyramid scheme: you make money by recruiting people below you. Instead of the people below you giving you and the people above you money in order to be part of the MLM — as in a traditional pyramid scheme — you (and the people above you) get a commission off the product purchases the recruits below you are required to make from the MLM. Distributors make little to no money selling product to people outside the company.
At the time of release for this article, not all companies in this list have released their 2017 earnings, therefore we’ve used the 2016 earnings that are available. For a few of the companies who have gone public with their 2017 stats, we’ve included that in their descriptions. When all companies have released their earnings we will uppdate this list.
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Well I have just come across this and am blown away with the amount of health and wellness companies there are. I am a user and 1000% BELIEVER in THRIVE by Le-Vel. Been promoting now for 18 months and will never go a day without it! I did my due diligence and searched on a majority of the companies and I looked for social media presence of the company along with the CEO’S of the companies. I restore older vehicles for a living and I thank Thrive for coming into my life when it did cause it is hard to explain and can only be experienced. Have a wonderful President’s Day everyone! #BoostMyThrive
BRAND NEW COMPANY – Soft launch not even 30 days in – already breaking records for number of brand partners joining this business. First in the industry with its cutting edge technology for their all natural health and wellness products with a delivery system into the body for quick response and maximum absorption – so nothing is wasted or flushed away! Suggested for ages 4 years on up!!! And the founder has a proven track record of historical success in the industry! I would love to have you join me in this amazing adventure to freedom in so many definitions of the word – nothing to lose and everything to gain! What are you waiting for?
I thought That your article was very good. My wife recently joined this company called World Ventures and me being me I figured it would be like some of the other companies that she has joined. You know a bunch of women companies scentsy, 31, etc but the reason I took notice is when she made 500. I know it’s not much but i know if she can make that faster than she has with some of the others she has joined without my help then maybe this thing is the real deal. What do you know about it? I have met some of the people and they seem genuine unlike some of these others like Amway and I don’t feel like it’s all about freaking selling like most of the others. Just shoot it to me straight.
MaryAnne, I would recommend finding a product that you LOVE, a product that you feel can benefit the people around you and who you feel integrity with. You want to find their products useful so that you will feel good about buying them every month and want to share them with other. It is a business, but you also want to be able to have fun with it too
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.
If you are open to hearing about a proven opportunity with one of the fastest growing companies situated in 26 countries, voted in top 20 for business opportunies ,voted #1 patent pending compensation plan in the industry 2016 , strategic Branding Strategy offering flexibility and growth for your business long-term as well as no comprise policy on quality for all of its products
An example of a high-profile multi-level marketing company defending its practices is Herbalife Ltd., a manufacturer and distributor of weight-loss and nutritional products with more than 500,000 distributors. Although the FTC had been investigating Herbalife, it was activist investor William Ackman who shed a national spotlight on the company by shorting $1 billion of the company’s stock in 2013. Ackman accused the company of operating a pyramid scheme and backed his allegations with a bet the company’s stock price would fall under the weight of the scam.
Thanks for the kind kudos, Shay. I’ve found a lot of network marketing “tool” programs offer a blog so I think a lot of people simple don’t know what to blog about… how to promote their content… or even how to target a specific audience. Tragic, but true. Fortunately, programs like MLSP teach all of that. It takes time, but it works if you work it.
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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While networking marketing is not actually a franchising model of business, it does work in a similar fashion. In fact some large MLM companies refer to its business plan informally as “private franchising”. In network marketing, a company distributes its products and services through independent business owners (IBO) who in turn market these products and services to customers of their own.
In an MLM, sometimes more euphemistically called a “direct-selling” company because the products aren’t sold in stores, salespeople frequently woo participants by dangling riches before their eyes as they are led to make big, upfront purchases of pricey products, then asked to recruit others under them to sell the product and recruit still more participants in the hopes of earning big commissions in what becomes a pyramidal structure. As Ramirez noted, most participants don’t make significant income. Following the Herbalife settlement terms would force these companies to ditch any deceptive income pitches and also keep track of sales to customers outside the member networks to prove that most of their products are not just being bought by the company’s own salespeople.
Fast-forward a few years to today and history has proven Robert's prediction to be absolutely correct - Network Marketing has absolutely been on an upward trajectory over the past few years, in terms of numbers of people involved, sales turnover generated, and standards & professionalism in the industry. The companies, products, regulations, people and overall integrity within the Network Marketing industry have all advanced, and much as the franchising industry evolved from early shady practices to where today half of every high street or shopping mall comprises franchised businesses that are accepted and trusted by all, so it is that more and more people are coming around to seeing Network Marketing as a credible business model that they can utilise to achieve their various goals in life.
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.)
An issue in determining the legitimacy of a multi-level marketing company is whether it sells its products primarily to consumers or to its members who must recruit new members to buy their products. If it is the former, the company is a legitimate multi-level marketer. If it is the latter, it could be an illegal pyramid scheme. The Federal Trade Commission has been investigating multi-level marketing companies for several decades and has found many that blur the lines between the two. According to industry data, there are 90 million members worldwide, but relatively few earn meaningful income from their efforts. To some observers, that reflects the characteristics of a pyramid scheme.
A good MLM will have more than a few products to sell. They will have more than market sector covered (not just nutritional supplements, water filters or essential oils). They will also have other major retailers that they market for. The money those major corporations spend on the annual marketing, will be paid out to the MLM and their distributors for their sales & marketing efforts and results. That is where those companies will get
“Fast forward 10 years or so from the home equity line of credit losing, after we had paid off our home mortgage, we were in the process selling our home and purchasing another home,” he wrote. “We had to close the unused line of credit. We had to get a satisfaction letter to move forward with the new home purchase. We were fortunate that we never had a need to tap into the line of credit for any purpose, including educating our children. While a home equity line of credit may be beneficial and perhaps needed by some we simply decided to live within budget and never had to use [it] for any purpose.”
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.
Because they’re constantly opening up in new international markets like Latin America or India where the concept of MLMs is novel. They can start the whole process of creating a pyramid anew in these countries. Even with this international outreach, however, MLMs will eventually reach a wall where they can no longer recruit new people into the scheme, and even the longstanding billion dollar companies will collapse.
In just 30 years, Melaleuca has grown from a little startup in rural Idaho to a billion-dollar enterprise doing business in 19 countries around the globe. It has become one of the largest catalog and online wellness retailers in North America. And it is the largest manufacturer of consumer packaged goods in the Northwest. Today, more than a million customers shop with Melaleuca every month.
Establishing—and regularly updating—the company brand is critical to the success of the campaign. Multi-level marketers will identify the company’s primary goods and services, and then research the target market whose needs they’re meeting. Marketers and creative alike will make certain that the “personality” of the brand resonates with the general personality of the target customer; likewise, messaging will be regularly adjusted to reflect customers’ changing and growing interests.
I agree with Jeannie. You can build a solid foundation from your warm market & then it snowballs. It is hard work & not a get rich industry. I to am with dōTERRA which is such a product driven company that 80% of wholesale customers are just customers because the products work. I love how everyone I have interacted with in my Upline are so driven by a purpose much bigger than amassing wealth! After almost 20 years of business experience (corporate sales & real estate), I can proudly say that I’ve never worked in such an edifying & encouraging environment. I can’t remember even 1 of my former bosses sitting down with me to chart a plan to bring me up to their level or even to take their current spot on the corp ladder – too much insecurity in that world & after all only 1 person makes it to the top of that pyramid. I love that in Network marketing you can easily surpass the rank & income of the person above you if you work with great purpose. The mentoring available & the personal development which happens in this environment is incredible!
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.
Then there’s Congress, where critics also fear the passage of legislative efforts they say would virtually legitimize many pyramid schemes. One such bill, introduced last summer by a bipartisan caucus organized by the industry lobbying group, the Direct Selling Association, was opposed by Ramirez because it contradicts the terms of the Herbalife settlement. Days after she announced her resignation, Ramirez wrote a letter to the DSA chastising it for its opposition to the FTC view, which the DSA had laid out in a press release shortly before Trump’s inauguration. The question is whether there is retail demand for the products of MLMs or whether the purchases are just a camouflage for recruitment. The DSA, and the bill, argues that purchases by participants in the scheme, called “internal consumption,” can represent true demand, which means they would count when determining commissions paid to salespeople. Ramirez and the FTC disagree. Even if MLM participants do want to buy products for their own use, they shouldn’t be compensated for doing so, Ramirez said. To ensure compensation is driven by retail sales, she noted, companies should keep track of all customer sales outside the network (as Herbalife is being forced to do).
Recruit new members. Just like you were recruited to a network marketing company, you'll have to recruit members to your team if you want to be successful. Always be on the lookout for new prospects who you think will be valuable additions to your team. Try recruiting services like: MLMRC. Also, you'll want someone who is personable, a good salesperson, and a team player committed to cooperating with you.
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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.
Amway’s outsize political influence goes back to 1979, when the FTC lost its pyramid case against Amway. After four years of litigation, an administrative law judge found that Amway did not run an “illegal” pyramid scheme because it had safeguards to protect against the reliance on recruitment. These included requiring its distributors to sell 70 percent of their inventory each month and to sell to at least 10 different customers per month.
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Looking compliant is easy. Building a CULTURE around compliance is hard. Building a culture requires doing more than paying lip service to compliance. It requires full buy-in at the corporate level to teach and enforce the important policies. It requires field leaders committed to responsible growth, and corporate leaders that avoid saying things like “the lawyers make us do this.” And finally, it requires constant investment.
When pitching people face-to-face doesn’t work, you go online and start posting about the MLM all the time. You follow the formula recommended by the company: one post about the brand, then one about your family, then one about your lifestyle, then one about the brand again. But you notice that no one comments or likes your posts. Your follower count on Instagram has gone down. Finally, a friend DMs you and lets you know that a lot of people have blocked you on Facebook.
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.
Yes folks, another MLM company in the nutritional niche selling astonishing super-fruit with an overall distinctly higher price tag. What separates them from the rest? Not sure, but interestingly enough their bottom line is impressive. The company has grown to over 44 countries around the world, and is constantly expanding! All this after only about 10 years in business. On top of their successful reputation, they offer a lot of sales training and decent commission rates for their company reps, which is not seen a lot these days.
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.
Not everyone can be a salesperson, but anybody can plug into a system and tools that do the selling and sorting for you. This can be as simple as scripts or email campaigns or as full-blown as an entire marketing funnel. The important thing is that you're given a marketing system that is already proven to work and not required to trial-and-error on your own.
Meet Harvey Mackay Businessman, master networker, and one of the top five speakers in the world, Harvey Mackay is the author of the #1 New York Times bestsellers Swim with the Sharks Without Being Eaten Alive and Beware the Naked Man Who Offers You His Shirt – both of which are among the top 15 inspirational business books of all time according ...…
I agree with you that much of the industry is flawed, but what about an MLM that has a service rather than a product such as electricity. It’s not like that could go out of style or that once you buy it you don’t need it again or that your monthly supply is too much and you’re going to stop the monthly subscriptions. I can honestly say that I cannot stand most MLM companies because regardless what you believe or how much you like the product, if you have to try to convince someone else to use it then inevitably the system is flawed and eventually your residuals will dry up. Electricity though, that’s different in my opinion, no one has to convince me to use it, it just comes by default. Find me an MLM that is not selling so much as showing someone an alternative to what they already have to pay and I’d be interested.
In my opinion it’s not worth the deal. The company does not also provide adequate information on the contents of their proucts. What are the quantities of nutrients and phyto elements and their levels? Do we have any mention of ORAC ratings as to indicate the anti-oxiant power in their products and what about the nutrients absorption levels. There’re alot of blanks.