To stay safe from pyramid schemes and MLM scams, arm yourself with knowledge. Learn about the direct sales industry as a whole, research MLM companies carefully, and determine if you're a good match with your sponsor. The truth is, while you can get rich in MLM, statistics show that less than one out of 100 MLM representatives actually achieve MLM success or make any money. However, that's not necessarily the MLM business' fault. Most athletes never make it to the Olympics, but that's not sport's or the Olympics' fault.

The real selling point for MLMs is that distributors can make money in two different ways. The first is money made from commissions from direct selling to consumers. And the second way to make money with an MLM is from the commissions made from sales of distributors below you in the pyramid (these are sometimes referred to as recruits or downline distributors).

You are right in that most MLM have monthly dues and have high entry fees to be distributors or consultants. You are also right in that most MLM companies focus on recruitment and not product sales. I’ve been working with Arbonne now for quite a while and none of those comments apply to this company, which is why I believe they have survived and are only growing at this point, despite some people’s opinion that they will soon be relics like Mary Kay. To become a consultant is a mere $75 dollars, the kit is involved with all free samples and material. Product loading is prohibited. Each event we host regularly ends with most if not all attendees becoming a preferred client for $20 joining fee for the first year and a $15 renewal every year with no monthly expectation and a guaranteed minimum of 20% off of all stock at all times and 40% off of all packages at all times. Not only that consultants can will their business down 6 generations, and the Mercedes incentive is for a purchase, not a lease. We do look to grow our network, but we emphasize this takes hard work and is not a get rich quick scheme. While you hit the nail on the head with most MLM businesses, there are MLM businesses like Arbonne who are a cut above the rest and who are in the habit of not putting pressure on anyone attending to either purchase or join as a consultant. We only want the best in our network and we have thousands of examples of very successful men and woman to show for it. Great article!!!
One of the reasons why direct selling tends to have a bad reputation is how much hype and deception is used by many representatives to lure recruits. This discourages many, and they end up believing that the MLM companies behind the products themselves encourage this type of behavior. If an MLM company is legitimate, it will always encourage you to be genuine with your customers and potential recruits. If you are absolutely in love with the product, then you will be better able to promote it to potential recruits. As long as you practice good business conduct, then your customers and recruits won’t feel duped. They will be more likely to stick with you that way.
To be successful, you absolutely must branch out beyond friends and family. It’s easy to start out there, but it will soon become a tapped market and you’ll need to move on. Not to mention, you can easily put people off by trying to sell them the same products over and over. Learn how social media marketing works, study the best practices, and show up consistently.
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]
This book was co-authored by my good friend and Lady Boss, Jessica Higdon. I not only love cause I’m in it (wink wink) but because it showcases many success stories from everyday people that have created amazing results in Network Marketing. I have multiple copies of this book on hand to share with my prospects as an amazing recruiting tool. I suggest you order a few copies too!

Many MLM companies do generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, the profits of the MLM company are accrued at the detriment to the majority of the company's constituent workforce (the MLM participants). Only some of said profit is then significantly shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants is emphasized and championed at company seminars and conferences, thus creating an illusion of how one can potentially become financially successful if they become a participants in the MLM. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable.[14]


The overwhelming majority of MLM participants (most sources estimated to be over 99.25% of all MLM distributors) participate at either an insignificant or nil net profit.[12] 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. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss.[13]

Multi-level marketing is amazing. During my more than 30 years of working, it's the only form of business I've found that offers a level playing field. In other words, anyone can become successful in this industry. And the best part is that others have already blazed the trail to success, so you just have to look at what they've done and follow suit. There are things you'll hear over and over again as the principles to success in MLM. Here are the top five:
The overwhelming majority of MLM participants (most sources estimated to be over 99.25% of all MLM distributors) participate at either an insignificant or nil net profit.[12] 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. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss.[13]
As non-employees, participants are not protected by legal rights of employment law provisions. Instead, salespeople are typically presented by the MLM company as "independent contractors" or "independent business owners". However, participants do not possess a business in the traditional legal sense, as the participants do not hold any tangible business assets or intangible business goodwill able to be sold or purchased in a sale or acquisition of a business. These are the property of the MLM company.
EatWith is a platform for home-restaurants and unique food experiences. EatWith chefs prepare innovative meals and host local foodies in their homes. Whether you are a Michelin-starred chef or a self-taught home cook, EatWith allows you to showcase your cooking chops to an ever-rotating roster of guests from in and out of town. Host a pop-up or cater a private event. Have fun making creative, delicious meals.
We are one of the top companies on the internet for helping you find the MLM leads that you need. Whether you want fresh or aged leads, national or local leads, we have exactly what you will need to build your distributor network exactly the way you want to. Whenever you order MLM leads from us, you can rest assured that none of your exclusive leads will be shared with anyone from the same company or business opportunity that you are promoting. Along with our real-time delivery of your lists, freshness options and total control over your account settings, you can get terrific MLM leads fast!

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.

Our training: We offer live dials training calls weekly. We actually call our own leads and prospect like were a distributor looking for new reps. We usually have hundreds of people on our conference call,  they are muted and are able to listen as we discuss the various options with the prospect. Every one of these calls are slightly different and after every time there is a call made we do an analysis of the response and break down the elements of the call. This is what training is about!  Imagine listening to this live this is not theory but it’s real training. The best of all, these calls are absolutely free to our customers and our future customers.


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!
This is one of the best ways of just getting out there and into the ears of people who will end up being prospective clients. Everyone should be your target and just getting the word out should drag in quite a few leads, if the product/service is good enough. This is why the first goal should always be to find the kind of product/service that is worth it.
IF you are serious about how to do network marketing and you are interested in learning how to use the Internet to become a top earner and possibly brand yourself, just a heads up that our Early bird ticket pricing for Top Earner Academy ends in less than 48 hours. Click Here to see all the details, dates and speakers. This is our annual event where we teach people how to build their brand, build their business and use the Internet to get serious results.
Great tips Ray, and you came from the Real Estate industry and anybody who is successful in Real Estate is usually much more successful in Network Marketing as a Career, because Real Estate is Networking and Marketing so it's a natural transition and so again, you were already a very accomplished professional in the industry and didn't even know it until you got in it! LOL! So, yes, Ray is right again, (dang, do I really have to admit that! :)) And again, this advice isn't new but process or lack thereof is what most don't master, and I even have some sticky spots, at times, but process and processes must be mastered like you said Ray, and being able to make a sale (no matter how simple it may be to do as a process) is hard for most people because there is always a little tension at that time and just because of that few minutes or so of being kinda uncomfortable while wrapping it up as they say, most people live all or most of their lives afraid of this one unavoidable instance, and throw their future to the wind or out the window. One of the two. 🙂 With that, make it a great weekend and Good Day! HF. PS. Oh, last thought, a women and her husband (the Hodges) were in Real Estate, and still are, and have made millions in this industry from what I found out, since they are working with myself and the VP of the Co I'm with. So people in your industry Ray that see the light in the Network Marketing industry that are savvy usually crush it to use a way worn out pun! Chaio. HF
Make a decision that you will master this and not give up. Make up your mind to learn and develop the skills to be able to recruit. Make up your mind to pass your fear of talking to people and come out of your shell. Your decisions should be bigger than your fears and insecurities. Even if you are an introvert, make up your mind to make it a priority and do it whenever you choose.
Thank you for your article. I am also with doterra and I never in my life thought I would do something like this. The reason I started was because of health issues that led me to the oils. I have been an RN for 23 years and I feel more free and excited to share about health than ever. If you are going into something to get rich quick, I think that is the wrong attitude. I think most of my fellow doterra wellness advocates, have come to the same realization as me. I believe most of us started out trying to help ourselves and our families. I left my nursing job of 17 years in Feb, not because I am making enough money to replace my past income, but because I truly love helping others and I love the company and what it stands for. I can’t argue about MLM’s because I truly don’t care about that side of it. Maybe I am wrong to think that way. I hope that this ride doesn’t end anytime soon because the difference that doterra is making in my life, and the lives of those around me, is amazing. Thank you again for your information and your viewpoint.
So to make it possible, you structured a kind of “payplan” or ways how you are going to pay your neigbors and relatives based on the number of people they’ve brought in or the group sales they’ve made. And by applying some MLM principle, you were able to plot a system that traces all sales from person to person down the line. Therefore, giving credit and commission also to the first person who initiated the effort.
4. Lather on the recognition. One of the topics that is going to be covered at our next Top Earner Academy (August 13-16th in Tampa) is all about culture and recognition. Napoleon said “I have made the most wonderful discovery, I have discovered men will risk their lives, even die, for ribbons and men will also die to avoid having their ribbons taken away.” Yes, Napoleon just gave you powerful Network Marketing tips and would have been a Crowd Presidential Diamond =) Make sure you are recognizing those that are putting in the effort you want them to.
First: Invite people to look at your business proposition with a direct or indirect approach.  A direct approach would be to ask them to look at your business for themselves. An indirect approach is asking someone to look at your business to assist you with recommendations or referrals.  There are many different patterns of language that you can use based on the relationship you have with the prospective recruit.  The invitation process is a very important skill to learn. Your invitation has a lot to do with whether the person will join your team or support your business.
Not only do we pride ourselves in providing Top Quality MLM Lead Generation Services, but also in the best Customer Service.  Also, we provide great training, live training calls every week plus our 20 module training course located at https://leadpower.net/livedials Your satisfaction is most important to us! You are able to reach our Customer Service Representatives either by phone or email, whichever is more favorable to you. We are the best in customer service because we want to help you succeed!  If you serious about your mlm leads, then leadpower is the only choice for mlm leads and training.
With its anti-wrinkle cream and other products, Jeunesse promises to reverse the signs of aging, if temporarily. Jeunesse also sells products to reduce mental distraction, provide nutrition on the go, and help people lose weight. The company’s impressive live demos and message of remaining forever young have placed them on Inc.’s list of fastest-growing American companies.

Don’t get overly caught up in the numbers game online. It’s great to max out your 5,000 connections on Facebook, but only if those connections are the right ones. In addition to people you want to connect with personally, you will want to make sure that you are only connecting with people who have the potential to do the following three things for your network marketing business.
The most important thing that you can do for yourself is get started with a good list of qualified MLM leads. Whether you are in search of fresh or aged leads, we can help you. We are one of the largest supplier of qualified MLMs leads on the internet. When you work with us, you will be certain to receive a list of some of the most serious and enthusiastic prequalified prospects who can be relied upon to have a much higher rate of response than the average list.

I do have to say you are the best at providing great helpful information to others. I feel like you do really care about our success...and I like that!!!I filtered through a lot of lead selling sites. Like I said, Yours sounded the best... being able to actually view what you have and all the helpful tools you have...before actually having to purchase anything. Like I said I really feel safe here...because you seem very sincere to help us succeed... not just provide leads and take our money. So Thank-You again.
Don’t get overly caught up in the numbers game online. It’s great to max out your 5,000 connections on Facebook, but only if those connections are the right ones. In addition to people you want to connect with personally, you will want to make sure that you are only connecting with people who have the potential to do the following three things for your network marketing business.
Tons of great tips, John. What holds most people back is their mindset. I had to go through almost thirteen years of personal development to really get my thinking right. I was my own worst enemy. I also think it’s important to pick one company, find a mentor, develop a game plan, work every day, and stay with one company for 10+ years. Just my two cents. What do you think?
Use a tool. You should not be explaining everything about your opportunity or whatever it is you have to sell over the phone, point them to a video, sizzle call, event in their area, anything but you try to explain it all over the phone. You can say “The first step to see if this is even a fit for you is to watch our short overview video at ________________”
MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. And the Regulations require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from the Ministry of Commerce ("MOFCOM").[63] In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license.[64] Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in Hong Kong, where the practice is legal, while selling and recruiting on the mainland.[10][65]
Use a tool. You should not be explaining everything about your opportunity or whatever it is you have to sell over the phone, point them to a video, sizzle call, event in their area, anything but you try to explain it all over the phone. You can say “The first step to see if this is even a fit for you is to watch our short overview video at ________________”
Fast forward to 2017. LuLaRoe is the biggest MLM for women. “More than 80,000 women have paid around $5,000 for several boxes of low-cost clothing and worked as much as 80-hour weeks to outfit hundreds of thousands of suburban women in multicolored polyester. But according to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, 99% of people who join multilevel-marketing companies lose money. Depending on how you look at it, it’s either a brilliant business model or a predatory practice — or a little bit of both.” (FTC)

Is Home Depot going to run a class on how to make submarine sandwiches? No. Makes no sense, right? Would people be attracted to that? Like that one I might attend. I like submarine sandwiches, they’re pretty good. That I might attend but I’m going to go there and be like why am I in a building supply company? I’m not going to buy anything. It doesn’t make sense.
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!

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.
6. Be a Team Builder BEFORE you have a team. Maybe you are reading this and thinking “I don’t have a team yet”. Well, you need to start acting as if you do have a team. See yourself leading calls, making shout outs to your team and start acting as if you are leading a large team. The simple act of tricking your mind into thinking you have a large team will attract new thoughts into your head that are conducive to having a team.

I’ve been using these leads for over 2 years now and have built large organizations. Not only are the leads of great quality but the support is excellent. I use a simple six-step process to train my team. When you have leads who are all looking to start a home-based business, this is a very simple and duplicatable process. Cal Faber Victoria B.C. Canada –


One of the benefits of MLM is the ability to bring in new business builders and profit from the sales they make in their business. While some see this as “using” others, the reality is that you’re being rewarded for helping others succeed. But for them to succeed, you need to see your role not as racking up as many recruits as possible, but in being a leader and trainer. The focus then is on the success of those you help in the business, not on you.
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