Network marketing can be lucrative, but only a small percentage of people make serious money. Often referred to as multilevel marketing (MLM) or direct marketing, the idea of making money without any special skills or major investment with immediacy is appealing. And the promise of residual income fuels the desire to never wind up in your current financial position again if you've found yourself in a somewhat tough spot.
Consider you open a restaurant under the name of My Yummy Foods. It has great taste, ambience and suddenly it is becoming very famous restaurant of the town. In order to get more money you give it a franchisee. Now you choose an investor who will be trained on the food items, apparatus, ambience etc so that your name and taste will be carried forward by him.
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Many people may have done quite well for themselves in their network marketing / mlm’s / direct sales companies. But just think, how much better financially they could / would have done if they had started with their company in its infant stage, the beginning!! Well, if that’s something you have dreamed of, wished for, or ever thought about, then the time is NOW!!.
I’m from the uk. I am a Matron in a GP practice and have been approached by Arbonne. Ur video confirms most of my thoughts although doing aesthetics as a side line I though I might be able to run along side that and so not have to approach family n friends as that is horrendous!!! – i am really interested in ur local league marketing though – how would I find out more about this
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.[46]

Hi Jeimy. Fuxion is an excellent company. Fuxion is a Peruvian company that is spread in 12 countries, including the US. Randy Gage has decided to join Fuxion as a networker 2 weeks ago! Robert Kiyosaki and John Maxwell are current Fuxion’s advisors. Fuxion’s nutraceutical products are made of fruits and vegetables from the Amazon region, Andean region, Central America and Asia. The company is in its best moment. So I recommend you to join us!


I thought this article was fantastic. I currently work with an MLM and love it, but I definitely can see why MLM’s would have flaws. However, I also know for me it wasn’t about selling as much as it was SHARING. I have experienced more than a product, I have been able to share the gift of health and the gift of the business itself. I absolutely love it and people who join me in this mission are as passionate as well! I believe when we look at really loving people where they are and actually caring, success will come and not the other way around. That’s the only way I’ve been able to see it happen! Any who, thanks for the tips!
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.
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.
Legendary Los Angeles Lakers player, coach, and current president of basketball operations, Earvin "Magic" Johnson is the proud owner of 10 NBA championship rings, is a two-time inductee into the Basketball Hall of Fame, a member of the 1992 United States Men's Olympic gold medal basketball "Dream Team," and in 1996 was named one of the 50 Greatest Players in NBA History.
Many people who complain about network marketing say they don't like the idea of "using" their friends and family to make money. However, network marketing doesn't reward people for using others. Success in network marketing comes from helping others reach their goals. A person cannot earn income from the efforts of their recruits without investing time in assisting them to earn income, as well. Admittedly, some network marketers see potential recruits as dollar signs, but those people are not as successful as those who are genuine in their effort to help their recruits do well.
MLMs are designed to make profit for the owners/shareholders of the company, and a few individual participants at the top levels of the MLM pyramid of participants. According to the U.S. Federal Trade Commission (FTC), some MLM companies already constitute illegal pyramid schemes even by the narrower existing legislation, exploiting members of the organization.[21] There have been calls in various countries to broaden existing anti-pyramid scheme legislation to include MLMs, or to enact specific anti-MLM legislation to make all MLMs illegal in parallel to pyramid schemes, as has already been done in some jurisdictions.[citation needed]

A 2018 poll of 1,049 MLM sellers across various companies found that most sellers make less than the equivalent of 70 cents an hour. Nearly 20 percent of those polled never made a sale, and nearly 60 percent earned less than $500 in sales over the past five years.[42][43] Nearly 32 percent of those polled acquired credit card debt to finance their MLM involvement.[44]

As already covered, people are living a lot longer today, and in the future even longer still. Being involved, active, and engaged in something is one of the most important aspects of continuing a life worth living. There is a social connection and sense of belonging when you are a part of a movement that is filled with elements such as positivity, empowerment, personal improvement, and helping other people. 
These nonsalaried workers may be stay-at-home parents, college students or part-time workers hoping to make money by selling products such as vitamins and makeup to their friends and family. But experts note that just selling products is typically not enough to make a profit, and workers are encouraged to recruit a "downline," a team of underlings from whose sales they also earn a commission, creating a pyramid-shaped compensation structure.
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.

Take Rodan+Fields, a skincare line developed by the dermatologists who created Proactive. It’s supposed be top-notch stuff. When they initially launched the product, they went the traditional retail route. Estee Lauder then bought the company for an undisclosed amount and continued to sell it through traditional retail. Sales of Rodan+Fields were surprisingly lackluster, however, so its former owners bought the company back and implemented the MLM model. Sales of the product skyrocketed to over a billion dollars. They’d claim it was thanks to the word-of-mouth marketing MLMs facilitate. I’d venture to guess it had more to do with the fact they have a captive customer base amongst the hundreds of thousands of distributors who are required to make minimum purchase amounts each month and recruit other distributors who will have to make minimum purchase amounts each month too.
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.

I’m truly sympathetic to this desire. A lot of folks are struggling financially out there; Dad’s salary alone isn’t enough to support the family (or he’s out of work altogether), and Mom getting a job may not be a big help once the cost of childcare is factored in. Plus, a lot of moms simply don’t want to send their kids to childcare and want to be able to stay home with their children.


Company payout (in commissions & bonuses) per sale for the total of all upline participants equals or exceeds that for the person selling the product – resulting in inadequate incentive to retail and excessive incentive to recruit. Jim can make more money getting commissions off the product that distributors beneath him are required to buy from the company than he could from selling the shakes at retail to customers outside of the business.
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.”

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.


Not all multilevel marketing plans are legitimate. If the money you make is based on your sales to the public, it may be a legitimate multilevel marketing plan. If the money you make is based on the number of people you recruit and your sales to them, it’s probably not. It could be a pyramid scheme. Pyramid schemes are illegal, and the vast majority of participants lose money.
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.
Something multi-level marketing as well as network marketing companies are poised to capitalize on.  As a result, the industry could soon experience larger than life growth, spurred by baby boomers looking to adjust their retirement feelings and plans.  Whether you're interested in starting your own business for retirement income or helping others explore this entrepreneurial path, download our free guide:  How To Start a Business For Retirement Income here

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Good companies find ways to intelligently leverage technology. Thanks to Amazon and Wal-Mart, we’re all spoiled. We want what we want, we want it NOW and we want it delivered for free. Smart network marketing companies are eliminating as many barriers as possible to make it easier for consumers to place and receive orders. They’re finding ways to make it easier for consumers to connect via mobile apps, tell stories via social media tools, provide best-in-class web experiences and leverage as much data as possible to stay ahead of consumer demand. The corporate team also needs to leverage technology to enhance workflows.
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