Ever been confused about how a “home business” works? Of course you have, many of us have. Most people have heard the term MLM (Multi-Level Marketing) and usually at the end of that the word, “scheme” is added – giving the whole business model a bad name. Well…let’s change your negative perception and tell you how your Great Aunt Joan, actually earned that pink Cadillac from Mary Kay ! It’s brilliant really…
How MLM companies are NOT considered Pyramid organizations is beyond me! They are all scams by the very nature of their organization structure. Those who start or get in early benefit directly from the efforts of those beneath them, forever. Not to mention the fact that most product sold through any of these MLM organization’s is to the dealer network itself. The top dogs are making money regardless as long as there is new blood coming in. And the best way to keep new blood coming in is to incentivize those at the lower middle and below to continue recruiting to build “a network of their own”. And those on the verge of “breaking through” who have already invested a small fortune in products along the way that are sitting on their pantry shelves NEED to keep recruiting. The very thing that differentiates a Pyramid scheme from an MLM is that an MLM sells an actual product. That is it. It doesn’t determine who that product is sold to as it should since we know that most product is sold to the worker bees and not to the general public for long.
Are you looking to improve your MLM and Network Marketing sales skills? You're either Making Sales or you're making Excuses, not making any sales. Peter Mingils teaches the Making Sales or Excuses Training Course. To get the right kind of MLM training, you can take the Mini Course or the Full Course and increase your sales and sales management skills!

I’ve heard all the arguments. “How can it be a pyramid scheme if it’s legal?” Through some crafty loopholes. The fact that there is an actual product to sell allows them to operate and give the appearance of legitimacy. “You just haven’t found a good MLM yet.” Wrong. A good MLM is an oxymoron. “But how is this any different from any other major corporation where the CEO makes the most money?” Because the people below the CEO at legit companies get paid salaries and have actual benefits. They don’t depend on endless chains of recruiting new members.

This little tip works like crazy. When you are calling someone back, have the focus that you are simply reconnecting that prospect to the dream they shared with you. "I really enjoyed our last conversation about the new home you were dreaming about. What a beautiful home that would be. I saw one similar yesterday in a homes magazine." This will ge them focused BACK and RECONNECTED to the Emotion that their dream carries. THEN you are back to where you need to be to talk further.
MLM itself is a legitimate business strategy. However the subject of ethics can be rather vulnerable. The pyramid scheme, unlike MLM, is clearly a scam. In a pyramid structure, a member pays a fee to join. A portion of the money will then be remitted back to them when they bring a new member into the scheme. No products are involved in this scheme, simply get more people to dump in money for your chance to make more money.
As in any business opportunity, it can be a beneficial practice if an MLM allows participants to return unsold product to the MLM because the ability to return product can decrease the risk of losing money for participants who take advantage of that policy. Allowing participants to return product, however, does not in and of itself shield an unfair or deceptive compensation structure from law enforcement. As a general matter, money-back guarantees and refunds are not defenses for violations of the FTC Act. Even where such policies are offered, dissatisfied participants may not seek a refund for a number of reasons, including because they are unaware of their right to a refund, the refund process is too complicated or obscure, or they blame themselves for not being able to sell the product.

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]


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]
You should be able to retain and share all the stories involved in your business with your prospects. The more stories you share about your company or business with people, the more you expose your business opportunity to the world and attract more people. MLM Recruiting stars in network marketing are good storytellers, and you should tell good stories to be able to recruit people to your business.

You do not need much to start building your empire gradually hence a great medium to use. Never forget that network marketing is not only selling products and services, it also involves prospecting, recruiting, training, follow-ups, accounting and so much more. You can make it a full-time job if you develop the mindset required and invest your time and energy in it.
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 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! 

MLMs are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms.[57] There are even claims that the success rate for breaking even or even making money are far worse than other types of businesses:[58] "The vast majority of MLMs are recruiting MLMs, in which participants must recruit aggressively to profit. Based on available data from the companies themselves, the loss rate for recruiting MLMs is approximately 99.9%; i.e., 99.9% of participants lose money after subtracting all expenses, including purchases from the company."[58] In part, this is because encouraging recruits to further "recruit people to compete with [them]"[4] leads to "market saturation."[22] It has also been claimed "(b)y its very nature, MLM is completely devoid of any scientific foundations."[59]
4. Cassette tape or video sponsoring. If your company has an exciting cost-effective product cassette tape, it can be used in place of or in addition to a brochure. These are automatic merchandisers that stimulate people to action. While opportunity tapes are important, most successful recruiters lead with a good product tape. Once people appreciate your product offering, they're more open to the business opportunity.

Business opportunities may also claim that participants, while not necessarily becoming wealthy, can achieve career-level income. They may represent through words or images that participants can earn thousands of dollars a month, quit their jobs, “fire their bosses,” or become stay-at-home parents. If participants generally do not achieve such results, these representations likely would be false or misleading to current or prospective participants.
This is my go-to checklist that I’ve been using before, during and after my FB Live broadcasts that have gotten me tens of thousands on eyeballs on my products and services! It’s no secret that doing FB Lives can bring you a lot of exposure and business, but sometimes it can be exhausting and intimidating to know if you’re doing them right to get people to actually take the next step with you…
Sales agents in MLM companies frequently work for commissions on sales. In addition, MLM agents typically get commissions on the sales of their “downstream.” Sales agents are able to recruit new sales agents into their “downstream,” and those sales agents can recruit new agents as well. An MLM sales agent usually makes money from each sale in their “downstream,” creating a form of passive income.
In addition, a hypothetical earnings scenario – such as “if you recruit 30 people who each sell $1,000 of product each month, you will earn $1,500 a month” – may imply that the assumptions made (e.g., the number of people recruited, the amount sold by each recruit) are consistent with the actual experiences of typical participants. If the assumptions are not, the earnings scenario likely would be false or misleading to consumers.
As in any business opportunity, it can be a beneficial practice if an MLM allows participants to return unsold product to the MLM because the ability to return product can decrease the risk of losing money for participants who take advantage of that policy. Allowing participants to return product, however, does not in and of itself shield an unfair or deceptive compensation structure from law enforcement. As a general matter, money-back guarantees and refunds are not defenses for violations of the FTC Act. Even where such policies are offered, dissatisfied participants may not seek a refund for a number of reasons, including because they are unaware of their right to a refund, the refund process is too complicated or obscure, or they blame themselves for not being able to sell the product.
Français: devenir pro du marketing en réseau, Español: tener éxito en las redes de mercadeo, Deutsch: Im Network Marketing erfolgreich werden, Português: Alcançar o Sucesso com Marketing Multinível, Italiano: Avere Successo nel Network Marketing, 中文: 成功进行网络营销, Русский: преуспеть в сетевом маркетинге, Nederlands: Succesvol zijn in netwerkmarketing, Bahasa Indonesia: Sukses Di Pemasaran Jaringan, العربية: النجاح في مجال التسويق الشبكي, Tiếng Việt: Thành công trong việc kinh doanh theo mạng, ไทย: ประสบความสำเร็จในการตลาดแบบเครือข่าย
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.
I LOVE your sincerity and generous offer. I am going to get your traffic blueprint. YOu have covered so much gems in just one post! My best pick is – "There are people worse off than you than have succeeded far more. There are no valid excuses to not becoming wealthy, stop giving excuses any energy, they don’t serve you." Have a Wonderful Giving Life!
×