During the Obama administration, the Federal Trade Commission made its biggest-ever effort to curb this industry when last summer it slapped nutritional supplement–seller Herbalife with a $200 million fine and, as part of a settlement with Herbalife, demanded it restructure its business so that it would “start operating legitimately,” as FTC Chairwoman Edith Ramirez put it. The FTC alleged Herbalife had engaged in “unfair and deceptive practices,” and put it under a federal monitor for seven years, demanding onerous changes to its compensation plan and requiring extensive documentation of customer sales. Ramirez then set down an ambitious posture for the FTC: In the future, she said at an MLM industry conference in October, these companies should adopt the new Herbalife rules when structuring their businesses, as the FTC would be watching.
MLMs make it easy to feel like you’re making friends because you’ve got the MLM in common with fellow participants. Every MLM has their own lingo and Instagram hashtags. Members of the same MLM comment positively on each other’s social media posts and provide encouragement during livestream “parties.” They can then go meet these people in person at giant “extravaganzas” — conferences where they dress to the nines, dance to “Despacito,” and hear motivational speakers. For a stay-at-home mom who spends her days discussing which is the best pup on Paw Patrol, that sounds pretty freaking awesome.
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

A degree in business administration with a concentration in marketing may also prove helpful. Students learn the fundamental principles of marketing and selling, as well as how to run a business. Some general course topics include advertising, sales, e-commerce, marketing management, marketing research, finance, accounting, human resource management, and business ethics.
Meet Jack Canfield Global thought leader, motivational speaker, corporate trainer, and entrepreneur, Jack Canfield is the originator of the Chicken Soup for the Soulseries and is the co-author of The Success Principles: How to Get From Where You Are to Where You Want to Be. Affectionately known as “America’s #1 Success Coach,” Jack has studied ...…
The same process that happened in Franchising is happening with Network Marketing. The crazy Wild West days are going away. The 2016 FTC settlements with Herbalife, Vemma & FHTM introduced new federal guidelines and regulations that will become the standard that all Network Marketing companies will be expected to comply with in the future. Companies with ethical management that are willing to comply with these guidelines will become the Subway’s and McDonald’s of the industry. Change is happening, and it is happening right now in the Network Marketing industry. 
Saturation is impossible because there isn't a finite number of people. Every day new people are born or turn 18, thereby adding new potential network marketers to the pool of prospects. Tim Sales, in Zig Ziglar’s book, Network Marketing for Dummies, offers the best argument against the saturation myth. He asks, “Do you know anyone who doesn’t have a refrigerator? No? That doesn’t stop GE from selling more of them.”
But, some of the companies here are much better than others in my opinion. There are two different ones that are worth considering. The first is Thirty-One Gifts. This storage company has appealing products that do sell to the right audience. In fact, many customers go back for extra products time and time again. The commission plan isn’t amazing but it’s decent enough and has no serious issues.
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.
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…for our rankings of the best women diet pills are here).

I have a friend who is proposing I join Arbonne? She would be good to work with although I am not educated on all the MLM companies and don’t want to make the wrong choice. I also have a blog which I want to leverage and it seems like most of the health and wellness MLMs utilize hosted parties. Are there any that are more internet based that have had a long time track record! Thanks and sorry for all the questions!
In this industry, it takes more than an idea to be successful. It takes execution, and execution requires deep vertical knowledge. Vertical knowledge refers to a broad understanding of the nuances in this industry, only obtained through years of experience. Experienced leaders know how to avoid distraction, conserve resources, be encouraging yet firm with the field and, if necessary, know when and how to fight.

Okay, we have a return to network marketing roots (can you remember the days of Tupperware parties…no? Well I’m not sorry to tell you there’s a reason for that).  Products for your kitchen, cooking demos, and an abundance of mommy bloggers.  Well homemakers are still the key demographic for this MLM, because they are looking for flexibility.  It’s not surprising to anyone that this company has done so well, but what is notable is that even Warren Buffet saw this company and decided he wanted a piece of the pie.
Saturation is impossible because there isn't a finite number of people. Every day new people are born or turn 18, thereby adding new potential network marketers to the pool of prospects. Tim Sales, in Zig Ziglar’s book, Network Marketing for Dummies, offers the best argument against the saturation myth. He asks, “Do you know anyone who doesn’t have a refrigerator? No? That doesn’t stop GE from selling more of them.”
Although there are no specific educational requirements for direct sellers, individuals interested in network marketing may find it beneficial to take advantage of one of the selling and sales management degree programs available in the United States. Some general course topics include professional selling, marketing, prospecting, sales motivation, consumer behavior, customer relations, and sales management.
The U.S. Federal Trade Commission (FTC) states: "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people—except perhaps those at the very top of the pyramid—end up empty-handed."[45]
According to the Direct Selling Association, in 2015 the direct sales industry, of which network marketing is a part of, grossed $36.12 billion in retail sales in the United States. Further, over 20 million people in the U.S. are involved in direct sales. These numbers indicate that network marketing can work. Success or failure has less to do with network marketing itself, and instead, is determined by the amount effort one puts into their business. Many bloggers, eBayers, and other home business owners don't do well or quit too, but you don't hear people saying blogging and eBay don't work.
Even while the popular culture’s view of MLMs is shifting, FitzPatrick doesn’t think we’re yet at a tipping point where consumers reject them en masse. Trump’s election may help explain why. After the election, FitzPatrick says he sent out a newsletter to the many victims of pyramid schemes who’ve come to him for help, explaining the connections with Trump.
If Owner Two decided to expand his business and sponsors Owner Three, Owner Two would be credited for any sales volume that Owner Three produces. Lastly, because Owner One sponsored Owner Two, Owner One would also be credited for the sales volume of both Owner Two and Owner Three. It is this ability to generate revenue streams from multiple sources that has made network marketing a popular and profitable business for many.

By the 1980s, the landscape of U.S. economics was transformed. A financial boom coincided with women entering commercial life. These women were a huge target for network marketing companies, as they sought jobs that allowed them to earn money without neglecting their children and families. Women were able to acquire high positions within these companies, creating opportunities for women to achieve financial independence without giving up their families.
But, some of the companies here are much better than others in my opinion. There are two different ones that are worth considering. The first is Thirty-One Gifts. This storage company has appealing products that do sell to the right audience. In fact, many customers go back for extra products time and time again. The commission plan isn’t amazing but it’s decent enough and has no serious issues.

Growing up, multimillion-dollar earner, internationally renowned motivational speaker, success strategist, author, and sales trainer, Gloria Mayfield Banks managed a learning disability to achieve not one, not two, but three college degrees - including a MBA from Harvard University. Gloria’s high-energy persona and inspirational teaching style ...…
The content here is for information purposes only. By delivering the information contained herein is does not mean preventing, diagnosing, mitigating, treating or curing any type of medical condition or disease. When beginning any natural supplementation regiment or integrative treatment, the advice of professionally licensed healthcare providers is advisable to seek.
I just started selling for one of the top 15 and I went in knowing that this was just supplemental cash and nothing that would support my family. I spend 15 minutes (mostly from my phone) a day on my business and am happy with what I’ve done thus far. If it covers groceries and some extras like clothes or shoes, I’m good. If I start to become even more successful, great. It’s my competitive nature to want to out rank others, so I find it to be more of a personal challenge than thinking I’m going to get rich and stay rich. I appreciate the article and the no BS attitude.
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).
I found your article interesting. My wife and I have been involved with AdvoCare since November 2011. Even if I never make another dime in AdvoCare, I will continue to use the products because they have worked and continue to work for us. What I find interesting is the statistic that the majority – 99.7% in MLM actually “lose” money. What is the context of that statistic? That would mean A: the majority of MLM companies don’t have a buyback or return policy B: people that get started with MLM’s have to take on much more inventory that they are able to sell or C: this statistic is not accurate. I believe that C is the right answer. I do agree there are flaws in the MLM industry just as there are flaws in every industry. However, I believe that the MLM industry has made huge improvements in recent years and we do have a better way. People are the variable. When you have a great product, a passion and purpose that drives you everyday, are teachable and coachable, and love others as much as you love yourself, you can be successful in this business. Through the process of investing in your own personal development and learning to serve others, you are able to lead others to do the same. Thanks again. I look forward to reading more from you in the near future.
MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but most importantly they are incentivized to recruit others to join the company as fellow salespeople so that these can become their down line distributors.[3][6][7] According to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money.[8][9] Nonetheless, MLMs function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the statistical improbability of this is de-emphasised. MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in mainland China.[10][11]

Multilevel marketing (MLM) is an attractive business proposition to many people. It offers the opportunity to become involved in a system for distributing products to consumers. Unlike the person starting a business from scratch, the MLM participant has the support of a direct selling company that supplies the products and sometimes offers training as well.

Technically speaking, pyramiding is an illegal practice of a company that solicits their members to recruit more members, more than selling the product. In turn, the primary source of income for its members is the number of members they have recruited instead of the products they have sold over time. Clearly, not all MLMs are pyramid schemes, but it all seems like a matter of degree.
Trump’s Cabinet picks also have MLM links. First there’s his education secretary, Betsy DeVos, whose husband’s family fortune derives from its ownership of Amway, the world’s biggest MLM, with $9.5 billion in annual 2015 revenue on everything from soap to cat food. While the company’s sales have been in decline, falling from a peak of $11.8 billion in 2013, Amway remains the 29th largest privately held company in the U.S., according to Forbes.
Daria M. Brezinski Ph.D, a practicing psychologist and former marketing director for a multi-level marketing magazine, echoes these sentiments.  “Many people don’t realize that multi-level marketing companies are successful because they help people satisfy a number of important human needs, including feeling significant, having connections, learning something new, and making a difference.  I have heard people in network marketing say again and again, ‘I’m doing this because I’m meeting amazing people … making so many connections … and I feel so good about myself.’”

Usually MLMs in the financial services niche don’t make it in business for very long (most people are not in the habit of spending money to try and save money).  But these guys figured it out.  They have been in business for over 30 years and in 2013 they had profits of $1.27 billion, so they I think they know a thing or two about what they’re doing to rake in the profits for their company.

Le-Vel THRIVE is #1 in Health and Wellness with innovative products that work. Le-Vel is a completely Cloud Based, work from anywhere company. Besides the Core 3-Steps of THRIVE (which help with energy, sleep, digestion, joint support, aches and pains, weight management), Le-Vel has a plus-line product called MOVE that is wonderful for joints. Thrive is not a weight loss system, but a lifestyle change of vitamins, minerals, antioxidants, amino acids, enzymes, probiotics and is designed to fill nutritional gaps, making you feel amazing. Thrive is easy to promote by just sharing your experience and it’s completely Free to join as a promoter, no startup costs, no monthly fees, absolutely no strings attached! I’ve been a Promoter for over 2 years now and Le-Vel and Thrive has completely changed my family’s life!
Great job on the top 25 MLMs. Really like what you’re doing for the industry as a whole. Your analysis is spot on. However, a closer look at retention rates for each company might give you another perspective on the value proposition of any given company. As a Doterra Wellness Advocate we are told by our corporate execs that we have a 65% retention rate with customers repurchasing the product within 3 months. And that if we based it on the industry standard of 12 months our retention would go up to 85%. I’m told that this is unprecedented in network marketing. So I’m believing that Doterra is succeeding because its selling a product that works and that users and word-of-mouth drive the business in the long run.
They were hot. These guys caught some shade for over-inflating their health products, but what health MLM doesn’t inflate their prices “a tiny bit” so they can dish out those juicy commissions? Well, their fiber product was 900% more than “leading alternatives” and their Trioten protein blend was 600% more expensive than Herbalife and Shaklee proteins. Ouch.
They were hot. These guys caught some shade for over-inflating their health products, but what health MLM doesn’t inflate their prices “a tiny bit” so they can dish out those juicy commissions? Well, their fiber product was 900% more than “leading alternatives” and their Trioten protein blend was 600% more expensive than Herbalife and Shaklee proteins. Ouch.
It’s important to get a complete picture of how the plan works: not just how much money distributors make, but also how much time and money they spend on the plan, how long it takes before they're earning money, and how big a downline is needed to make money. One sign of a pyramid scheme is if distributors sell more product to other distributors than to the public — or if they make more money from recruiting than they do from selling.

The legal distinction between MLMs and traditional pyramid schemes has been characterized by many authorities as a legal fiction. Jurisdictions that retain a legal distinction between MLM pyramid businesses versus illegal pyramid schemes retain said distinction on two key distinguishing features: 1) that MLMs always encompass the sale of actual products/services, while traditional illegal pyramid schemes ordinarily do not (though sometimes they do), and 2) that climbing an MLM pyramid is overwhelmingly statistically improbable (especially to its highest participant levels) but not theoretically impossible, whereas climbing a traditional illegal pyramid scheme is both statistically and theoretically impossible.[citation needed]

Pyramid schemes come in all forms. A really simple example are those chain letter things where you’d get a letter with seven names and addresses. You were supposed to send $1 to the names on the list. After you did that you were supposed to add your own name to the bottom of the list and send the letter off to at least 7 people. Supposedly you could make tens of thousands of dollars in just a few weeks doing this.
It seems to me that in your assessment of the top 25 MLM that you had a preference for one essential oil company (Young Living) over the other (doTERRA) which outranked YL. You give a glowing review of YL and state that they “set the standard” & are a “solid pick”. While you seem to question why people could possibly like doTERRA with comments like “Users swear by the oils, and for whatever reason, people (and not just people in Utah) are strangely passionate about telling their friends about them.” For “whatever reason”??? “Strangely passionate”??? You come across as bias. You also incorrectly state that YL set the standard for quality, while they may have been the first legit EO Co. they didn’t set the standard. Infact their lack of wanting to find the purest most potent EO available (which comes from the country the plants are indigenous to) and having strict testing to ensure the purity and potency is why doTERRA was founded, doTERRA set the standard because YL didn’t want to. And that is why doTERRA is the #1 EO company and why Young Living is not. Not to mention how well doTERRA takes care of the suppliers through Co-Impacting and how they’re improving their lives through The Healing Hands Foundation. The foundation builds wells, schools, provides personal care products as well as many other things. doTERRA is changing lives for the better all around the world so that is one of the “reasons” we’re “strangely passionate” about spreading the good news of doTERRA essential oils. Not only are doTERRA EO more potent and purer making the the “solid pick” they are literally saving peoples lives.
A degree in business administration with a concentration in marketing may also prove helpful. Students learn the fundamental principles of marketing and selling, as well as how to run a business. Some general course topics include advertising, sales, e-commerce, marketing management, marketing research, finance, accounting, human resource management, and business ethics.
By now, we can all agree the majority consensus is that Multi-Level Network Marketing companies, businesses and independent representatives seem to push an attractive/aggressive agenda for nearly every product pitch and presentation out there – which turns off most from the start and gives it the scuzzy ‘scam' feel as most on the outside looking in label it as. It seems most who are invited to a hotel meeting, house party or company event need to have a built-in hype meter as ‘the next big thing' with the ‘perfect timing' to ‘get in at the top' seems to be everywhere and so redundant that it never amounts to much and goes in one ear and out the other.
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