A: To help you understand what network marketing is, I must first explain what it isn't. First, network marketing isn't a pyramid scheme. Pyramids are programs similar to chain letters where people just invest money based on the promise that other people will put in money that will filtrate back to them and somehow, they'll get rich. A pyramid is strictly a money game and has no basis in real commerce. Normally, there's no product involved at all, just money changing hands. Modern-day pyramids may have a product, but it's clearly there just to disguise the money game.
In an October 15, 2010 article, it was stated that documents of a MLM called Fortune Hi-Tech Marketing reveal that 30 percent of its representatives make no money and that 54 percent of the remaining 70 percent only make $93 a month, before costs. Fortune was under investigation by the Attorneys General of Texas, Kentucky, North Dakota, and North Carolina with Missouri, South Carolina, Illinois, and Florida following up complaints against the company.[39] The FTC eventually stated that Fortune Hi-Tech Marketing was a pyramid scheme and that checks totaling more than $3.7 million were being mailed to the victims.[40] 

Some companies even let their products speak for themselves by developing excellent quality and highly effective product performance. They allow prospects to taste their products, asking for feedback, ideas, and suggestions on how to improve the products. Satisfied customers will then provide testimonials to convey the benefits and advantages of using the merchandise. These testimonials will now be used by the companies as their promotional tools.
One key aspect is Powur Points. These are earned for stepping customers through the processes. For example, consultants get one Powur Point when a customer submits their utility bill and five points when an appointment is scheduled. Most of the points come from the later stages, including signing a contract (30 points) and installation (40 points).
What is a network marketing professional? Tell me what that is. A person who can approach well-dressed people in Wal-mart and hand them their MLM business card? Someone who writes a list of their family and friends and then 3-way call them with their “higher-up” sponsor? Really, if someone can tell me what being a network marketing professional entails, I’m listening.
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.
"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]
Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature which is found across all MLMs is that the compensation plans theoretically pay out to participants only from the two potential revenue streams. The first stream of compensation can be paid out from commissions of sales made by the participants directly to their own retail customers. The second stream of compensation can be paid out from commissions based on the sales made by other distributors below the participant who had recruited those other participants into the MLM; in the organizational hierarchy of MLMs, these participants are referred to as one's down line distributors.[5]
The company is currently facing a class action lawsuit regarding the unfair marketing of their Lash Boost eye serum. The $150 product was apparently sold without proper disclaimers for side effects, which could include “change(s) in iris color, eyelid drooping, itchy eyes, eye/lid discoloration, thinning and loss of eyelashes/loss of eyelash hair, eye sensitivity, eye infections, and vision impairment.”

I enjoyed this post and spent too many hours reading all your other posts and watching your videos. You have some excellent real life experiences to share and glad I found this blog. My wife and I are with It Works Global (She started it and I came on board later). I was curious why they didn’t make your list? Do you think blogging would work with this type MLM? I have only had success using Instagram and Facebook. The MLM model is not something I like but it is what is I guess. My wife joined to get a discount on wraps and now this insane looking chart pays the bills. I want to take it further just keep searching for a good way to do so. Maybe blogging is the answer? Thank you. for your time. Mike
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.
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.
Their products may not be as popular as you initially expect either. It's easy to get excited about a company when you have the opportunity to sell their stuff and make money. But if you leverage your friends and family to sell this stuff to them, you'll find yourself muted on Facebook or Snapchat, and getting more calls ignored. It's pretty annoying to have that one friend who always tries to recruit you into an MLM. My suggestion? Start a website and market your products or bizop to the world of the internet instead of just sticking to people you know.
This eco-friendly MLM is seriously committed: their headquarters are operated with wind power. They’re pretty future-facing in general, having implemented an innovative social marketing strategy amongst their reps. No one likes to be harassed on Facebook, but Modere’s social media plan is still 10 times more effective than holding home parties (kill me).
Ben Thataway, a CEO benefits forever off of his employees and the employees can spend a lifetime and never make the kind of money they can make in network marketing. I know someone personally that beat out 80,000 representatives, did not join the company untli 3 years after it launched and became the top income earner. What you’ve heard, or what you think you know about network marketing is false.
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 and reported on what makes successful people different. He knows what motivates them, what drives them, and what inspires them. Go Pro with Eric Worre is proudly brought to you by: * Go Pro Recruiting Mastery – the world’s #1 generic training event for the Network Marketing Profession. Join us December 4-6, at the MGM Grand Garden Arena in Las Vegas, Nevada. You will hear from top international thought leaders including Magic Johnson, John Maxwell, and dozes of Million-Dollar Earners. It’s an extraordinary event that you and your team can’t afford to miss. To learn more, go to GoProRecruiting.com. Show Notes Jack describes the changes that he’s witnessed in the work landscape and how people make a living. [1:45] Jack forecasts what the future has in store for people who are resistant to change and new ways of doing things. [4:10] Eric and Jack discuss the opportunities that are available to today’s entrepreneurs and why Network Marketing is such a desirable option for most. [7:05] Jack and Eric explain why they think Network Marketing is misunderstood and what it takes to be a success in the Profession. [11:20] Jack dispels the myth of saturation in Network Marketing. [17:25] Jack provides advice to those who might be hesitant or jaded about the Network Marketing Profession. [19:22] Jack praises the power of word of mouth promotion. [22:36]  Jack offers advice on growth for those involved in Network Marketing. [24:30]  Jack explains the importance of building networks in the world today. [27:47]  Jack talks about people’s need for recognition and appreciation and how Network Marketing meets those needs. [30:58] Eric and Jack discuss how Network Marketing provides community for those involved in it. [33:47]  Jack offers advice to those interested in joining the Network Marketing Profession. [37:32] Questions or Comments?  Do you have questions you would like Eric to answer in future podcasts or comments on the show you’d like to share? Just email us at [email protected]
Thanks for this list. Loved seeing Monat as #1! I am a Market Partner for this company and the money is crazy good because the products are awesome. I was disappointed to see Plexus at #28 and I wasn’t impressed by what you had to say about them. Plexus is NOT a weight loss company. Their products promote a healthy gut and they are clinically proven to decrease inflammation and balance blood sugar. Weight loss is a natural side effect of body balance. The products work and there are a lot of people I know personally making good money with Plexus.
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!
A marketing program will also teach you how to acquire and interpret meaningful data, including how to obtain and analyze marketing lists. By applying the right analytic and statistical tools, you’ll be able to better target an MLM campaign—as well as better target domestic and overseas vendors who can help to service your company’s needs (and your customers’ demands).
With so many of the fastest growing MLM companies pushing to have you join, it can get confusing when you’re looking at MLM products, compensation plans, where to get leads, marketing tips, and most of all – can I really make money with this? What you need to remember, is that the best MLM to join in your situation is going to come down to one thing – finding a product and a business you are excited about sharing!
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.

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).

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.

Nerium is a network marketing company that deals with skin care products. They invest 30% of all funds realised from sales into research to ensure that their products remain among the best in the market. Nerium skin care products are known to be anti-ageing creams developed by using a substance known as Nerium oleander. The company has placed adverts on top American shows such as Wendy Williams Show and Good morning America.
Eric Worre has been a leader in the Network Marketing profession for 28 years. Although he’s now retired from being a distributor and focused exclusively on Network Marketing Pro, his career has given him a broad range of experience. He’s been a top field producer, building sales organizations totaling over 500,000 distributors in more than 60 countries; the President of a $200 million Network Marketing company; a co-founder and president of his own company, TPN- The Peoples Network; and a high-level marketing consultant to the Network Marketing profession. Eric is the author of the international bestselling book Go Pro – 7 Steps to Becoming a Network Marketing Professional, which has sold over 1,500,000 copies and has become a “must-read” for anyone who is serious about building their network marketing business. Tell me more
You want to go back in a time machine and relive the old days of your younger, fitter and slimmer self?? Well if you just said yes, you are a part of the targeted market: everyone!  With their insane sale profit numbers, this company always makes the list for the top 20 MLM companies in the world, bringing in about $1.4 billion dollars in yearly revenue.  Not only are you selling a product people already have so much trust in, but the new associate cost to sign up is only $30, really one of the lowest.

What makes a pyramid scheme a pyramid scheme isn’t its pyramid shape, however, but how its pyramidal structure works. If you apply for a job at Walmart, Walmart doesn’t require you to buy $50 worth of product from them before they’ll give you a job. And once you start working for them, they don’t require that you make $100 worth of purchases from them each month to keep your job. But an MLM does.
Here we provide an overview of what network marketing is, how it works, and some educational options that may prove beneficial for a career in network marketing. Network marketing, also known as multi-level marketing (MLM), is a direct selling method that uses a network of people to sell a product. According to the IRS, network marketers earn money either by directly selling products themselves or by recruiting others to sell products for them. Those persons in turn recruit others to sell the same product, and so on and so forth, until there is a hierarchy of distributors who are selling and promoting the product, hence the term multi-level marketing.
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 to the New York Times. 

Each distributor is essentially an independent business owner, or more accurately put, an independent sales representative. Each representative gets paid for sales he or she makes, as well as sales made by each person he or she has recruited. Network marketers often earn bonuses for acquiring new distributors and customers and residual income on repeat business.
Once you have decided to join a network marketing business, first decide which company is best for you. Do market research and buy the package. Upon buying package you will get in touch with your upline who is already in the business. Follow your upline to move forward. Just remember one thing always, network marketing is an awesome business which works on the compound interest theory. Initially you will have to work hard and results are less, but as soon as you grow you will have to work less and you will earn more.
Representatives for direct selling companies affirm that most participants in their companies aren't making much. "Earnings are typically quite small," says Joe Mariano, president and CEO of the Direct Selling Association. He notes that nearly three-quarters of people involved in direct selling are "discount customers," meaning they're buying the products for themselves – not selling them. For that majority, earnings aren't just small: They're nonexistent. 

* Why 10 years? Because that amount of time really seems to matter. For example, according to research, since 1956 thousands of different MLM, Multi Level, or Network Marketing companies have opened their doors; and to date only +/- 50 MLM companies have found a way to celebrate their 10th anniversary and still remain in business today. Now, to be completely fair, we should also point out that each and every company on our list was at one time a start-up company too.
Thanks for this list. Loved seeing Monat as #1! I am a Market Partner for this company and the money is crazy good because the products are awesome. I was disappointed to see Plexus at #28 and I wasn’t impressed by what you had to say about them. Plexus is NOT a weight loss company. Their products promote a healthy gut and they are clinically proven to decrease inflammation and balance blood sugar. Weight loss is a natural side effect of body balance. The products work and there are a lot of people I know personally making good money with Plexus.
They may have professional athletes like Drew Brees promoting their products, but that doesn’t mean you should believe all of AdvoCare’s claims. This MLM company sells shakes, supplements, and pills. In order to succeed with AdvoCare, as with others, you need to recruit more people to sell the same products. Constantly hitting up your family and friends to buy stuff from you can cause some tense relationships.

Dr. Brezinski’s point is well taken and easy to see practiced by popular network marketing companies.  Many MLM and NM companies tout a three-to-five year plan to attain freedom and wealth, yet many of the people running company meetings have been in the business for five or ten years and still haven’t left their full-time job or landed on easy street.  “As it turns out,” Dr. Brezinski notes, “when other human needs are being met, the members and consultants don’t focus solely on the financial aspects.”
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.
Meet Adam Green Million-dollar earner, author, and speaker, Adam Green reached the top of his company's compensation plan by age 25, becoming the youngest million-dollar earner in his company's history. As a highly sought after international speaker in the Network Marketing Profession, Adam is able to provide inspiration and motivation for all ...…

Whether you’re looking into multi-level marketing or interested in starting a different kind of business venture, the right education can make all the difference. An online bachelor’s in business administration or online MBA from Rivier University can help you acquire the skills you need to make your mark in the business world. Learn in a dynamic, flexible environment on a schedule that fits your lifestyle.
I enjoyed this post and spent too many hours reading all your other posts and watching your videos. You have some excellent real life experiences to share and glad I found this blog. My wife and I are with It Works Global (She started it and I came on board later). I was curious why they didn’t make your list? Do you think blogging would work with this type MLM? I have only had success using Instagram and Facebook. The MLM model is not something I like but it is what is I guess. My wife joined to get a discount on wraps and now this insane looking chart pays the bills. I want to take it further just keep searching for a good way to do so. Maybe blogging is the answer? Thank you. for your time. Mike
While there are plenty of men who join MLMs, 75% of all participants are women. But that doesn’t mean that if you’re a dude you don’t need to understand exactly how MLMs work, as there’s a chance your wife will one day come to you with the idea of joining one. Hopefully you’ll have a conversation together about it, and hopefully, using the points we lay out below, you’ll be able to make the case that it’s a bad idea for her, and for your family.
I initially spoke to a retired friend who said she joined a health and beauty direct selling company as a means of meeting new people. She had recently remarried and moved to a new location, so she combined the practice of meeting new people with making extra money.  After almost a decade in the business, she’s built a small niche business with family and friends despite switching to from one company to another competitor after three years.
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.

I learned seo and blogging, failed at that. I learned Facebook ads and email marketing, learned how to target the right demographics for Doterra, now people contact me wanting to know about the oils, then I got present and sign up, this my friend’s is the best of both worlds and what everyone should learn, find your form of marketing, go teach and sign up and leave for friends and family alone, unless you know they’ll want it.

This podcast is brought to you by Go Pro Recruiting Mastery - the #1 generic training event for the Network Marketing Profession. Join us December 4-6 at the MGM Grand Garden Arena in Las Vegas, Nevada. You will hear from top thought leaders including Magic Johnson, John Maxwell and dozens of Million-Dollar Earners. It's an extraordinary event that you and your team can't afford to miss.
×