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The reality is there’s nothing special about the stuff MLM companies sell. You can find whey protein and meal replacement shakes at your local CVS or online. You can buy essential oils at Whole Foods and Amazon. Your wife can buy quality make-up and skincare products at Ulta, Walgreens, or online. You can get pretty much anything an MLM sells and often for much cheaper, even when your MLM distributor discount is factored in (see the next section). There’s nothing significantly different about MLM products besides the marketing and branding.
Even if you, or your wife, aren’t bothered by the pyramidal structure of multi-level marketing companies, even if you could make a ton of money by working for one, you still shouldn’t do it for this one reason alone: you shouldn’t ever want to commodify the sacrality of your relationships; you shouldn’t trade the genuine bonds of love for the cold economics of exchange.
Plexus Worlwide is ranked by Inc. magazine as #8 (in 2014) and #132 (in 2015) fastest growing privately held company with a three year growth of 2833%; all while offering a 60-day money back guarantee on all its products – which means the products work. And at a consumer friendly price point. 40% of all sales are from customers and not ambassadors.
Within that, some companies thought that their products would be better off when people with own experience did the referral and possibly trough existing personal relationships by using their social network. That would be Network Marketing. Whether they sell and make money is irrelevant. You do network marketing when you talk about a good movie to friends, only you do not get rewarded, except the random girl who goes to watch the movie with you again based on your enthusiasm :D.
The overwhelming majority of MLM participants (most sources estimated to be over 99.25% of all MLM participants) participate at either an insignificant or nil net profit. Indeed, the largest proportion of participants must operate at a net loss (after expenses are deducted) so that the few individuals in the uppermost level of the MLM pyramid can derive their significant earnings—earnings which are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss.
This “outlier” experience helped him to develop and grow both his own brands and increase the value of his brand partners as he was quickly becoming an influential professional skateboarder. By leveraging his influence and designing new concepts and ideas, he helped turn a rising footwear and apparel brand into a $500 million international company. He used that same expertise to build skate brands later in his career launching the world's first true professional skateboarding league Street League Skateboarding and a first of its kind skateboarding channel, ETN.
Independent non-salaried participants, referred to as distributors (variously called "associates", "independent business owners", "independent agents", etc.), are authorized to distribute the company's products or services. They are awarded their own immediate retail profit from customers plus commission from the company, not downlines, through a multi-level marketing compensation plan, which is based upon the volume of products sold through their own sales efforts as well as that of their downline organization.
During the Industrial Revolution of the 1800s, a large number of new products were being invented that needed to be sold to consumers. These products were often complex and required explanation to potential buyers. Network marketing began to hit its stride following World War II in the 1940s with the California Vitamin Company (renamed Nutrilite in 1939) and the California Perfume Company (now Avon).
Network marketing, also known as Multi-Level Marketing, is a legitimate business model whose method of selling is by distributing a company’s products and services through a network of independent distributors. These independent distributors use direct selling and network building to market the products and services to potential customers. They act as a franchise to the company and earn commissions based on the volume of merchandise sold, or equivalent to its point value, as a result of their group dynamics.
Network marketing is considered by many to be a form of direct selling (the person-to-person sale of goods or services). It utilizes a few different strategies to generate commission payments, such as recruiting, lead generation and management. Network marketing may be referred to by a variety of names, including "multilevel marketing," "cellular marketing," "affiliate marketing," "consumer direct marketing (CDM)," "referral marketing," "pyramid selling," or "home-based business franchising."
But, there are also companies that are somewhat unusual, which is what this list focuses on. These are companies that sell a different type of product and ones that have their own unique style or angle. Their unusual nature can a major advantage. It means that the products can stand out and you’re not just promoting the same old thing as everyone else. You won't just be “the tupperware lady”. You could be offering real value.