Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature that is found across all MLMs is that the compensation plans theoretically pay out to participants only from two potential revenue streams. The first is paid out from commissions of sales made by the participants directly to their own retail customers. The second is paid out from commissions based upon the sales made by other distributors below the participant who have 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]
MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in mainland China.[10][11] In jurisdictions where MLMs have not been made illegal, many illegal pyramid schemes attempt to present themselves as MLM businesses.[7] Given that the overwhelming majority of MLM participants cannot realistically make a net profit, let alone a significant net profit, but instead overwhelmingly operate at net losses, some sources have defined all MLMs as a type of pyramid scheme, even if they have not been made illegal like traditional pyramid schemes through legislative statutes.[4][19][20]
The question of how to be successful in network marketing haunts every beginner and even the moderately experienced ones. People have turned it into some kind of a myth and are going crazy figuring out just how to be successful in multilevel marketing or network marketing business. I have taken it upon myself to help everyone who is perplexed by this and debunk this myth.
For more information, John Oliver did a fantastic segment about the horrors of MLMs. The 2016 documentary, Betting on Zero, investigates the allegations that MLMs are nothing but legal pyramid schemes. This article also does a wonderful job of breaking down the reasons why MLMs are doomed to failure. I encourage anyone who is thinking about signing up for an MLM to watch these.
I was at “Sweetness Bakery and Cafe” the other day to order a hot chocolate with a friend. The barista asked me if I wanted half & half, whole milk, soy, rice, or hemp milk. I had never tasted hemp milk before. And I remembered the transition soy went through when manufacturers started sweetening soy up. So, I decided to try hemp since I figured it was sweet enough or the cafe wouldn’t suggest it. And Oh My God! It was the best cup of hot chocolate EVER! And I was amazed at what can be done with hemp.
Unlocking the true potential for our clients to enable their business to excel swiftly is our sole mission. We are striving to become one-stop shop destination for IT solutions and consultancy.We are a squad of thoughtful, pragmatic and innovative professionals to deliver customized and holistic IT services and solutions. Crafting simple, smart and agile websites is our hallmark thereby giving synergy to corporate houses since 1998.With our myriad of IT business solutions, we don’t make clients! We build enduring relationships.
Ray, This is awesome, so awesome, I decided to schedule a webinar on it tomorrow night for my affiliates in my system. I know I say this to you all the time but you are what I call a TRUE 21st century MLM Team Builder. One that truly help people become successful, not just sell product or just recruit for the sake of recruiting but for the sake of truly helping people which in turn creates longer lasting income. Like you said on a blog a while back. Do you want to be a top recruiter or a top money earner? Your blog is my resource of powerful nuggets.
On the other hand, if you are the owner of the company where those 100 persons have offered their skills, time and talents, and if you can gain $1.00 from each person on the field, you will earn $3000 after 30 days doing nothing. Obviously, the time spent for both the worker and the owner are the same (30 days), but the gain on the side of the owner is tremendously huge.
To get started, create a profile with a photo, your professional skills, experience, education and portfolio. Then, search Upwork’s database of jobs and submit a compelling application to the ones of interest. Projects are hourly or fixed price. Once you win and complete an assignment, get paid via direct deposit, PayPal, wire transfer, Local Funds Transfer (LFT), Payoneer or Skrill.
Yep, it will NOT be easy. However, and I truly mean this, IF you embrace these 3 Network Marketing Tips for Guaranteed Success and truly honor them, you WILL get there. I don’t know if it will take you one year, three years, five years but heck, what if it takes you 20 years, what is the alternative? Are you creating freedom with your other sources of income or are you trading dollars for hours? And remember, quitting never speeds the accomplishment of ANY goal.
How do you choose mlm leads that are genuinely interested in starting a home business, just like you? Where can you find an mlm lead generation company that takes you and your business seriously—one that actually cares about your success whether you are a leader with 50,000 people in your team or just starting out? You've come to the right place—a place where we make it easy.
OneFineStay is the high end vacation rental platform that takes care of all preparation work for hosts: insurance, key handling, checking guests’ identities, greeting guests upon their arrival, cleaning, preparing your home with toiletries and making the bed with linens. OneFineStay only lists the finest accommodations and requires hosts to offer a minimum of six weeks availability, spread across the year. To host, you must complete a brief questionnaire to see if your home qualifies.

This one is a little sensitive so you should take it very seriously. Ask the family and friends of most budding network marketers, and they will tell you that it is annoying how they’re always trying If you keep doing this long enough, it will eventually cost you your friends and get you no more invitations to family gatherings. Of course, there’s no problem with telling your family and friends about what you’re doing and gauging their interest. However, if they’re not interested, don’t push it.
To get started, create a profile with a photo, your professional skills, experience, education and portfolio. Then, search Upwork’s database of jobs and submit a compelling application to the ones of interest. Projects are hourly or fixed price. Once you win and complete an assignment, get paid via direct deposit, PayPal, wire transfer, Local Funds Transfer (LFT), Payoneer or Skrill.

They’re sliding, though. Revenue is falling in North America and their sales force is shrinking. Revenue slid 19% in 2013 and 7% in Mexico. Skip ahead to July 2015 and revenue is still spiraling downward, with a 17% drop (5). Analysts blame Avon’s failure to maintain a strong identity for its products as well as the strong dollar. Lesson: Always re-create yourself.
3. Instead of being pushy, be pull-y. This is a suggestion in sales too. Pull-y means you ask them the right questions to pull them vs try to cram what you want to talk about down their throat. Why did you join? What did you hope to gain? Are those things serious to you? Do you truly want those things? How will you attain freedom if you don’t build this? All of those questions illicit pull type responses from your people.
40. People in MLM that come across like they have a dollar/euro bill stuck on their forehead face massive resistance. Your prospect feels your hand already reaching for their money. Yes, you must get paid for what you do, but if you have a much better chance of doing business with them, if you ask for their help initially, vs. coming across like you want to sell them something. Seek their input FIRST, then seek the sale. You will be glad you did.
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).
The Isreali immigrant brothers turned entrepreneurs behind Seacret Direct managed to take a cliche mall kiosk (you know, the ones that bother the crap out of you while you’re trying to shop) and turn it into a multi-million dollar global direct selling ccompany. Skincare products are pretty yawn-worthy nowadays, but Seacret’s dead sea products come with a 5,000 year history and a lot of fanfare.

Networking, as it used to be called, is a pretty thankless task. The conventional approach to networking was to start with the network of friends and colleagues that you already have; friends and family, your existing clients, your contacts at the squash club and so on. Most people feel uncomfortable pitching to friends and family, unless you have an unbeatable idea or concept, but if that was the case, then lead generation would not be a problem 

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]
They’re sliding, though. Revenue is falling in North America and their sales force is shrinking. Revenue slid 19% in 2013 and 7% in Mexico. Skip ahead to July 2015 and revenue is still spiraling downward, with a 17% drop (5). Analysts blame Avon’s failure to maintain a strong identity for its products as well as the strong dollar. Lesson: Always re-create yourself.
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.
The question of how to be successful in network marketing haunts every beginner and even the moderately experienced ones. People have turned it into some kind of a myth and are going crazy figuring out just how to be successful in multilevel marketing or network marketing business. I have taken it upon myself to help everyone who is perplexed by this and debunk this myth.
Even, the hard core Amish don’t ‘cut off’ friends and family who choose to not fully live their life in the inner circle of the faithful in their community. If the concept is that basic it stands to reason that as a parody—‘resistance isn’t futile’—and cutting off all the circles of influence who don’t join your inner circle of twenty to ‘reach diamond’ is: And just uncouth at that. So, “no one is a prophet in their own country”: Go out and look for like-minded people to expand that circle without dressing up in business clothes at 5 a.m. on a Saturday morning to head to the cult like MLM “Ra! Ra! Session.” Real friends and family are hard to come by. Grow your marketing network without burning the people who care about you most. And get solid like-minded leads without getting up earlier than any sane Adventist would on a Saturday.
Hey Rob, oh no. Definitely don’t have buyer’s remorse. Look at it as an opportunity for open doors. When I started network marketing I began to understand how to sell a product and then found other opportunities which lead me to where I am now. So I am always grateful for having found network marketing and getting started because I would not have been where I am now. I hope that my blog is helpful and that you can learn something.
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.
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]

The FTC’s case against BurnLounge provides an example. BurnLounge argued that its participants bought product packages consisting of sales websites and music-related merchandise because they wanted to use the merchandise. When BurnLounge’s product packages were untied from the business opportunity, however, monthly sales of these packages plummeted by almost 98 percent. At most, actual demand was responsible for only a small minority of package sales, and BurnLounge was found to have an unfair or deceptive compensation structure. 


You absolutely need to set boundaries or you’re going to get burned out before you ever discover your true potential. What does this look like? Maybe you limit yourself to spending one weeknight and one weekend morning on your business. Sure, there will be exceptions, but you need to schedule in time where you’re not in “business mode” so you can enjoy hobbies, self care, and of course, your loved ones without your mind being elsewhere.
Obviously, you don’t have to steal their resources, you don’t have to deprive them of something that makes them better. In fact, to become successful with MLM system and build a fortune, it is your role to empower everyone in your network to make them become successful. The more succesful people you’ve created, the greater you become and the more you’ll get paid.
Plexus Worlwide is ranked by Inc. magazine as #8 (in 2014) and #132 (in 2015) fastest growing privately held company with a three year growth of 2833%; all while offering a 60-day money back guarantee on all its products – which means the products work. And at a consumer friendly price point. 40% of all sales are from customers and not ambassadors.
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?

They’re sliding, though. Revenue is falling in North America and their sales force is shrinking. Revenue slid 19% in 2013 and 7% in Mexico. Skip ahead to July 2015 and revenue is still spiraling downward, with a 17% drop (5). Analysts blame Avon’s failure to maintain a strong identity for its products as well as the strong dollar. Lesson: Always re-create yourself.


What creates IMPACT? Touching what people Value and hold dear, with the Hope of Increasing it and making it Larger in their life. Find out what people VALUE in their life, then wrap your presentation around it. "This will help you have more time wi ht your children" or "This will allow you to give more money to your church," or "This will guarantee you having more control over your future."

Don’t just focus on the glowing reviews from distributors who are making $50,000 per month. You should also pay close attention to those people who never made any money and gave up after a few short months. Why did they give up? What are the common complaints from unsuccessful distributors? Answer these questions to gain insights into the MLM you’re considering.


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

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.


First, Elliot, thank you for this article. Your sense of truly wanting to help comes through and it’s refreshing. Like MommyFinance, I too have suffered PTSD from previous runs at MLM but I have been looking for legitimate ways of making extra income and seems I’m being directed toward trying MLM again. Your article gave me hope that there are some good ones out there. What you said about finding the one that fits me and leaving a legacy for family really turned on a light for me and I greatly appreciate that. A wine business is not quite up my alley but I will certainly direct those who might be interested your way.
As a last resort, you could try cold calling by phone. This is probably the most depressing and soul destroying activity on the planet. Even if you get past the usual questions such as ‘If you’re selling something – I’m not interested’ and ‘How did you get my number?’ you need a really slick and professional script and the ability to recognize and avoid lonely old ladies who just want to interact with someone, anyone, in fact.
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