There are a lot of network marketing companies out there, and chances are, at some point someone has approached you about joining one (or more) of them. I see so many people agree to join a company because they need the income or because they don’t know how to politely say they’re not interested. These businesses ultimately fail because there’s no passion and no real emotional connection to the products.
As in many other areas, the FTC periodically meets with consumer groups, industry representatives, and other stakeholders to learn more about evolving practices and concerns. Also, the FTC has issued and updates consumer and business educational materials. In addition, the FTC’s Bureau of Economics has devoted and continues to devote its research expertise to issues relating to direct sales and multi-level marketing. These various efforts can provide valuable insight to inform the FTC’s investigations of MLMs, which involve fact-specific and comprehensive analysis of multiple factors.
In April 2006, the FTC proposed a Business Opportunity Rule intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable prospective buyers/participants to make an informed decision about acquiring/joining a business venture with information disclosed about the average likelihood of monetary profitability (and the extent of monetary profitability, if any) of acquiring/joining the business venture. In March 2008, however, the FTC removed "Network Marketing" (i.e. MLM) companies from the proposed Business Opportunity Rule, thus leaving MLM participants without the ability to make an informed choice of entering or not entering MLMs based on the disclosed likelihood of success and profitability:
If you need something just see if this company has it, because chances are they do. They are recognized for their greatly discounted product one-stop-shop, as they are wealthy CEOs. The CEOs have made it to the Forbes list, drive nice cars, live in mansions in Biscayne Bay, penthouses in Manhattan, and are well-known with celebrities…I could go on, but you get the picture, right? And this is all in credit to their MLM. They’ve hit snags in their past with the SEC, but at the end of the day they just kept going, and they’re going strong. Market America still managed to make it onto the DSN Global 100 at the 29th position.
Now this company is a true innovator in the MLM industry. Their product: Herbal supplement capsules. Where can you find them? Everywhere! The pair that were the first to do it was a husband and wife that are behind Natures Sunshine. If you visit a local health food store (or your yoga fanatic friend’s medicine cabinet) you are bound to find their product and proof of how well-known they truly are.
An MLM’s compliance program should ensure that the MLM accurately represents the business opportunity it offers, both through its own marketing materials and messaging and through the representations its participants make to current or prospective participants. In addition, an MLM’s compliance program should ensure that compensation paid by the MLM is based on actual sales to real customers, rather than based on wholesale purchases or other payments by its participants.
With the advent of internet marketing has come a whole new science of selling online making the acquisition of those elusive network marketing leads just a little bit easier. Easy access to the internet for both the marketer and, much more importantly, their potential customers, has forced a whole new set of ideas to the forefront. Here are just a few of the options that are now available.
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.
Hi Jeremy great article. Here’s my take for what it is worth,after working 50 years for the bank making not so much money,having to accommodate there time schedule ,negotiated vacations and seeing very few people advance to 6 figure incomes,I’m somewhat intrigued by the idea of using my retirement years looking at mlm as a part time endeavour . Obviously I put a lot of blood sweat and tears into my previous job,so I’m not expecting to make my millions in a couple years in mlm, but I like the (do it in your own time) idea. If I find a product I like and would use anyway why not? I also like the idea that the potential is there biased on your own efforts. Am I wrong What do you think?
Have an empty guest room? Leaving town for a month on a sabbatical in Spain? Why not rent out your vacant space and make some money? Airbnb is disrupting the hotel scene by allowing anybody with an internet connection to offer their room, cabin, cottage, treehouse, RV or some other interesting abode to travelers. Listing your space is free, and Airbnb even has a photographer who will come and take killer wide-angle lens photos of your space, totally free.
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!
Hi thanks for all these great tips. I just joined a network marketing company about a month ago and I must say that it hasnt been easy. I find point #3 to be amazing because i realize i was loosing all my friends because i always made them feel bad for not wanting to join. After reading this article i have immediately changed from that behavious of chasing and forcing friends and family. this article has shown me i can still make it in this business. plus there is so much bad air about MLMs all over.
The most widely-cited description of an unlawful MLM structure appears in the FTC’s Koscot decision, which observed that such enterprises are “characterized by the payment by participants of money to the company in return for which they receive (1) the right to sell a product and (2) the right to receive in return for recruiting other participants into the program rewards which are unrelated to the sale of the product to ultimate users.” In re Koscot Interplanetary, Inc., 86 F.T.C. 1106, 1181 (1975).1
One of the great attributes of successful entrepreneurs is having a big dream and nurturing them every day. Staying steadfast in spite of the adversities around. Think outrageous and dream of massive success and goals. Have a bigger vision and a bigger game plan. Decide to be faster and stronger and make up your mind to recruit more and grow exponentially.
Dolly is a moving service that utilizes two types of workers: “Helpers,” who own a pickup truck, box truck, or cargo van and can lift up to 75 pounds, and “Hands,” who can lift up to 75 pounds but don’t own a moving-friendly vehicle. Average earnings are $30/hour, but plenty of Helpers and Hands earn more than that. Choose to perform only the work you want to do, and get paid weekly.
Roadie is the neighbor-to-neighbor shipping network that connects “Roadie” drivers to people who need items shipped from one location to another. Roadies can browse “Gigs” by price, location, distance and size and decide which gigs they want to take. The majority of local Gigs pay between $8-20, and long distance Gigs with oversized items can pay up to $200. When on the road, Roadies get special discounts on food, gas, and more.
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.
If you don’t have a Facebook Fan Page yet and you’re looking at all these rock stars with Fan Page’s and you want one for yourself… Unlimited Fan Page Profits is a training that I put together that will walk you through the steps of building a Profitable Facebook Page and marketing plan to generate leads, build a big audience so you can make daily sales.
The term “MLM company” isn’t exactly accurate because the company is not necessarily defined by the fact that it uses a multi-level marketing structure. Instead, a good MLM will be a product-centric company, meaning that it will be, for example, a cosmetics company that uses an MLM structure. Test the product of the company you are interested in; the product must be something that you would willingly advertise even if you weren't working for the company.
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.
Other than that, great info, but I’d have to respectfully disagree with the logic behind not being a part of an MLM. It’s one business model. And whether you want to make it your full time job or just dabble, so long as you find a product and company you love, it can be a great way to diversify your income streams. $5000 a year (or $5) is more than most people make on their 401K, savings or any other conventional ways of investing. It’s an investment, and for those that chose to continue through the plateau, it results in residual income. Don’t like sales? Some of the companies are moving away from the door to door type sales models and putting a lot more emphasis on team building and adding value. And many companies are also discouraging distributors from spamming on social media- again- it comes down to the individual and their own business acumen. We can spend our lives blaming they systems or we can just own ourselves and be grateful for whatever we’ve learned from, and created out of each opportunity presented to us. It’s the choice of the individual at the end of the day but one thing I can say with certainty is that someone who blames MLM for their lack of success is lacking responsibility for themselves in other areas of their life too.
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
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 main website a lot of people use when they are online is social media. These websites are where you can sit there and talk to anyone around the world that you know, and chances are that most people you know have an account on these kinds of things. You’ll want to make sure you do some looking into making a business account, because marketing through your personal profile may not do so well for you. Social media sites are free to use, but they also have ways you can pay for ads that go out to people.
In general, mlm leads are generated on the Internet when advertisements direct interested people (prospects) to a lead capture page. The lead capture page gives enough information to let the prospect know whether or not they want more information or not. If interested, the prospect completes the lead capture web form. An mlm lead is then generated.
Unlike other distribution methods MLM/NM companies don't advertise their products on TV or other mass media but rather depend on their customers to share the experience and recommend the products to their friends and relatives through word of mouth. They in return get 10-12 % profit of the sale value. Word of mouth/ recommending someone is a very powerful marketing tool which is cheaper and could reach more people because the selling of product is based on trust. Would you not buy a product your close friend uses and finds beneficial and asks you to try ?
If your prospect tells you that they’re not getting enough time to spend with their family, or they want to lose but can’t find the right product or whatsoever, you listen to them and then try to come up with a solution for them. And when you tell them that you’ve got a solution and whether they’d be willing to look at it, they will want to, every single time.
(May 2017 update: did this go under?) The sign up cost will make you do a triple take (almost four figures), but you get to set your own retail price on every product you sell. If you’ve got the skills to make people cough up the cash for their products (which, btw, are pretty legit), you could definitely make that money back. They’ve also been winning plenty of awards (even a growth award from the Direct Selling Association themselves).
Own a plane? Want to make some money? Then OpenAirplane is the on-demand platform for you! OpenAirplane allows you to rent out your airplane to qualified pilots. Before leasing your plane, you can verify renter pilots’ credentials and read previous owner’s reviews, so you always know your aircraft is in good hands. Pilots keep 90% of the rental income while 10% goes to OpenAirplane.
Multi-level marketing businesses sell a variety of products from vitamins to vacuum cleaners. Starting a MLM business makes you responsible for not only selling but also recruiting a sales team. Keeping your employees motivated is a challenge. You also have to create a payment structure that rewards salespeople sufficiently to keep them happy and at the same time grow earnings for the company.
Draw up a business plan. When you have a few potential companies in mind, write out your plan for building and expanding your business. Even before you've officially aligned with a company, it helps to have this plan figured out early. Thant way you can hit the ground running when you do eventually start at a company. Keep these things in mind when designing a business plan:
Excellent tips John…. Though many are interested to step into network marketing industry, false perception given by those who failed in this industry push them, back. But am sure this post will educate them and get many into this industry.. All points are exceptional and true especially third one “Network Marketers Do NOT Chase Family and Friends”…Keep up the great work
Another nutritional MLM selling another magical superfruit with a marked up price tag. So what? Their story might not be interesting, but their bottom line is: they’ve expanded to 44 countries and counting after just over a decade in operation. On top of that, they provide extensive sales training and good commission rates to their reps, which is pretty rare nowadays.
If you are Brand New to video and you’re not a 100% sure if you’re confident enough to bite the bullet, but you know that you SHOULD be doing videos, this is the best training that I can recommend. I’ve been through it and so have a lot of my clients and the feedback is amazing. This training will walk you through getting over your video fear and getting up and running fast with simple strategies!
Perhaps the only real way to reach free leads is to network with other, more experienced marketers, and perhaps get them to share their lists as a way to get you off the ground. With this, you aren’t really getting free leads as such – more leads at no up-front cost. The other marketers will usually expect that you will send commission to them for the sales that you make.
Market America is just as known for their massive discounted products portal as they are for their crazy rich CEOs. I’m talking Forbes list, mansion in Biscayne Bay and penthouse in Manhattan, celeb bffs, and giant yachts rich…all thanks to MLM. They’ve hit their fair share of SEC-shaped road blocks, but Market America is still going strong at #29 on the DSN Global 100.
Here we’ve got a throwback to network marketing’s roots (Remember Tupperware parties? No? There’s a reason for that). Kitchen products, cooking demos, and mommy bloggers galore. Stay-at-home-moms looking for some flexibility are still a HUGE target demographic for MLM, so it’s no surprise that Pampered Chef has done so well that Warren Buffett decided he needed a piece of the action.
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).