Orders obtained through settlements of FTC law enforcement actions are not binding on the entire industry. Such orders, however, can be useful to MLMs that are not bound by them. Industry members may choose voluntarily to follow the provisions in these orders or to consider the provisions in developing their own practices and procedures. All industry members have an obligation to follow the law, and the provisions in FTC orders may provide guidance and insights to help them do so.
Thank you for sharing your perspective on the Direct Sales/MLM companies. As a business owner and entrepreneur, there is often a lot of noise from many sources about what is the best way to grow and be of importance. One of the things I have learned and continue to learn is that we must really love what we do, believe in our offering, whether is it a product or service, and listen closely to our gut instincts. A business coach of mine once said being a prism is beautiful, but it is scattered light, focus on what you love. Another important thing to know for yourself , is that there are different learning styles. If you choose to join any company, MLM or otherwise, be clear with yourself how you best learn and thrive. Getting swept up in the cheering may feel good, and it may keep you motivated on some level, however, be clear on how do you retain knowledge and use it. If a company has a one size fits all approach, be very careful that you do not get swept away. Thank you again for sharing this information. It has helped me have another look at my goals and how to continue focusing on what I love to do.
Any readers on this page who haven’t gotten started, I encourage you to find a company and get going. I’m partial to mine, but Charles is in a great company as well. If you’re not familiar with him, I can tell you that even though we are in different companies he is truly a leader with an abundance mindset. He’s always been supportive of me from the beginning and willing to add value to my life.
Vayable is the way for local “insiders” to provide travelers with unique, enriching experiences in exchange for cash. Whether you are offering an off-the-beaten path bike tour or an Indian cooking class, Vayable allows you to show others what you love about where you’re from while making money. Vayable Insiders include writers, historians, musicians, tour guides, designers, bankers, architects, foodies, travel agents, students, administrative assistants, philanthropists, taxi drivers and engineers.
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.
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.
This eco-friendly MLM is seriously committed: their headquarters are operated with wind power. They’re pretty future-facing in general, having implemented an innovative social marketing strategy amongst their reps. No one likes to be harassed on Facebook, but Modere’s social media plan is still 10 times more effective than holding home parties (kill me).
An issue in determining the legitimacy of a multi-level marketing company is whether it sells its products primarily to consumers or to its members who must recruit new members to buy their products. If it is the former, the company is a legitimate multi-level marketer. If it is the latter, it could be an illegal pyramid scheme. The Federal Trade Commission has been investigating multi-level marketing companies for several decades and has found many that blur the lines between the two. According to industry data, there are 90 million members worldwide, but relatively few earn meaningful income from their efforts. To some observers, that reflects the characteristics of a pyramid scheme.
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.
Everyday, people get sucked into the lure of MLMs (“multi-level marketing” or “network marketing”) and I can’t stress enough the need to stay far, far away from them. These include Herbalife, Arbonne, LuLaRoe, Younique, Rodan + Fields, and Amway among many others. I understand the need for flexibility, especially if you are a full-time student or are raising young children. Believe me, I also understand getting a job that allows you to create your own schedule and work remotely takes Hunger Games level competition. I am always surprised when I see college educated women sucked into these things. But it’s telling about other issues, like childcare, maternity leave and corporate culture in the US. MLMs are pyramid schemes, and are extremely predatory because the only way to make any money is to sign up more and more people under you which will just ruin your social relationships and make you a pariah where it matters most: your friends and family members.
A very key point in this business is to invest as much of your time on those you sponsor as you do on your own business. If you fully understand that unless everyone you sponsor is successful you won’t be. This is why you must become a teacher in the most basic way. Be honest and be very logical. Take whatever you learn from your leadership and pass it down. Do not become a free spirit and begin doing your own thing.

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.

MLM, also referred to as direct selling or network marketing, uses a different approach to sell products and services. MLM is different from single-level marketing, where a salesperson earns a commission for selling directly to the consumer. As a MLM operator, you must create you own sales distribution channel. MLM businesses resemble that of a pyramid structure, where you as the top salesperson earns a profit from all sales generated under the sales distribution line that you create. This income is referred to as "residual" income, and is the greatest source of income to your company.
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.
@jeremiah Hi Jeremiah, I saw your comment on this page. Just as you,, I loved this content. It’s very powerful and valuable for us to understand how things are easy, and to have a roadmap in what to do. I’ve always been an entrepreneur, since I started my labour career back in 1996. I’ve been involved in NM for almost 6 years now, and it’s been a fulfilling adventure to me. I suffered a lot in the beginning, becauseI had no support and didn’t know what to do with my choice, but when I’ve found my vision and purpose, everything became right on track and everything made total sense. .How is it going for you?
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.

This is awesome! I didn’t know there was an MLM company that sells wine. I may look into this. I’m still on the search for a solid company. I pretty much have PTSD with MLM companies because of past teams I signed up under. They were all about hype and money but never did explain HOW to build the business. It was so bad that I am now more cautious and aware of these type of people.
MLM has stretched its sticky fingers out into just about every product market out there, so it’s kinda hard to do something new nowadays. But Jamberry Nails did it. Their adhesive, custom nail designs BLEW UP when they hit the direct sales floor. They built up an army of over 100,000 consultants in the time it takes most people to get a mediocre pay raise at their 9-5.
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.

Melaleuca, Inc. is listed as a Direct Marketing Company. The company contracts with independent marketing executives who refer customers to Melaleuca that purchase its various lines of nutritional, pharmaceutical, personal care, household cleaning, and pet care products. They also offer travel, phone and credit card services. Customers receive discounts if they order a minimum monthly product supply, but are not required to maintain an inventory of products. The company states that it offers a “Satisfaction or Money Back Guarantee”.


Starting your network marketing business off on the right foot is so important if you want to achieve big dreams and make an income that you can use to make your life better. Want to get more network marketing tips for beginners? Stay tuned to our social media channels (we’re on Instagram, Facebook, YouTube, and Pinterest) for advice. We also have a gorgeous 10 page PDF that you can download right here where we share 10 new things you can try when you want to reignite your network marketing business!
Any readers on this page who haven’t gotten started, I encourage you to find a company and get going. I’m partial to mine, but Charles is in a great company as well. If you’re not familiar with him, I can tell you that even though we are in different companies he is truly a leader with an abundance mindset. He’s always been supportive of me from the beginning and willing to add value to my life.
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.
I’m torn. I use Rodan+Fields but never considered being a distributor. Then a friend of mine introduced me to Jeunesse and got me fired up to be part of his team. I said “yes”. But now I’m wondering if the company is right for me because a) I read some negative stuff online about the company, the products, lawsuits, however the team is amazing! b) I actually really like what R+F has done for my skin therefore I feel I connect with the company more.

Eric Worre has been a leader in the Network Marketing profession for 28 years. Although he’s now retired from being a distributor and focused exclusively on Network Marketing Pro, his career has given him a broad range of experience. He’s been a top field producer, building sales organizations totaling over 500,000 distributors in more than 60 countries; the President of a $200 million Network Marketing company; a co-founder and president of his own company, TPN- The Peoples Network; and a high-level marketing consultant to the Network Marketing profession. Eric is the author of the international bestselling book Go Pro – 7 Steps to Becoming a Network Marketing Professional, which has sold over 1,500,000 copies and has become a “must-read” for anyone who is serious about building their network marketing business. Tell me more
(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).
Write about your knowhow on your website, e-newsletters, and your business blog. Also known as “inbound marketing”, this strategy brings the customers to you through offering them valuable content to support their own activities. If you are a doctor specialist, have short articles written about how you normally would deal with certain problems in your specialty. If you are a lawyer, explain the main laws that affect your clients’ types of cases. Whatever you are, remember that you have valuable information to share and that by sharing it on a regular basis, you are attracting more and more prospects to you while becoming a thought leader in the industry!
Have you ever thought about running your very own Classified Ads site? Imagine not having to worry about hosting, maintenance, backups, or any of the other hassles that comes with running a classifieds site. With the Youmongus Ad Network we will setup your own classifieds site, with a domain name of your choice, and you'll be able to charge for ads, run banner ads, and build a large and successful ad site.
Appreciate the hard work studying this… Im apart of the #1 company on there Advocare… have been for 7 years and one of the higher paid single guys in the nation… I just have to disagree with “over priced Products” comment. There is a mark up on every product in the world… Our products actually work which is why those endorsers you mentioned turn down high level incomes with other companies to endorse us for a stipend of products per month. Advocare has numerous people making a great profit and even more just enjoying a product they would pay double what they do for to feel the way they do. Success rate isnt low my friend… Its just the quit rate is through the roof. Highly recommend everyone seeing this and you sir to watch “Rise of the Entrepreneur” by Eric Worre on Itunes to get some serious facts about the MLM industry. Thanks for all the research and blessings!
Multi-level marketing (MLM), also called pyramid selling,[1][2] network marketing,[2][3] and referral marketing,[4] is a marketing strategy for the sale of products or services where the revenue of the MLM company is derived from a non-salaried workforce selling the company's products/services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system. 

Remember that networking can happen anywhere. It’s just a matter of determining where the best places are to find your potential customers and sales recruits. If you sell a health product, then any place people go who want to become more healthy – gyms, sports clubs, hiking hotspots, etc. – are options that you can turn into networking opportunities.

MLM leads have a pretty bad image on the internet. The bottom line though is that thousands of consumers are interested in mlm products and there are mlm companies more than willing to buy mlm leads. The interesting thing about mlm leads is that they are fairly easy to get and there is not too much “criteria” about them. Our system normally works with applications like mortgage or insurance which can have several fields on an application tagged as criteria. mlm is basically straight forward with no criteria at all.
There are a few ways to use LinkedIn lead generation as an effective marketing tool. One way that people don’t often think of is participating in LinkedIn answers. There is a section on LinkedIn where people ask industry-specific questions and get advice. As an industry insider, you have the knowledge that can help people with these questions. Through participating in a regular dialogue of advice-giving, you can establish yourself as a thought leader. Moreover, you can optimize use of this tool by pointing people to your online blog that gives more information about the subject. Make sure to send them to a blog with a call to action at the end!
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.
To prove that we give you more in value, than you could ever give us in money, we provide you with MLM Training and Lead Management Systems at no extra cost. In fact, anyone can get a Free Lead Management System, which also includes a Free Phase 2 Customizable Marketing Site, and any package that has email leads gets a Free Autoresponder with Professionally written emails included. (You can even modify the autoresponder emails at any time.)
On Social Media, reach out to 1-5 people each day and send them a message that makes them feel good. You can leave them a nice comment that genuinely makes them feel good. I will add, this is NOT the time to share any Call To Action or business links. This is only a message to compliment or leave them feeling really good. (Commit to doing this for 30 days, heck – let’s do a Year!) What this does over time, is it creates a community of people that think you’re Awesome and if you have a ton of people who are following you and think you Rock, the more people that will interested in what it is you’re doing.

It was not until August 23, 2005 that the State Council promulgated rules that dealt specifically with direct sale operation- Administration of Direct Sales (entered into effect on 1 December 2005) and the Regulations for the Prohibition of chuanxiao (entered into effect on 1 November 2005). When direct selling is allowed, it will only be permitted under the most stringent requirements, in order to ensure the operations are not pyramid schemes, MLM, or fly-by-night operations.
So why use the boberdoo.com lead distribution software for mlm leads? Distribution and lead buyer management make our system shine with a lead like mlm leads. Most likely, you are or will be doing high volume with mlm leads because they are easier to acquire and sell for less money than other types of leads. Our system can handle volume with ease. Forget the hassles of sending out Excel files. Forget the hassles of dealing with people faxing in lead returns. Forget the hassles of using macros for accounting. The boberdoo.com lead generation and management system can handle these hassles for you freeing your time to find more lead buyers and find more leads!
For some reason, many people don't view their MLM business as a business, like they would if they opened a franchise or started a business from scratch. One of the most important things you can do to insure your success is to treat your MLM venture as the business it is. Here are a few other tips to help you improve your multi-level marketing (MLM) and recruiting efforts within the world of direct selling:
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.
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.
I saw that you know of reliable sources of web traffic. I am ready to spend money to get good results. So can you tell me what are the best services for high quality traffic? I would like to build large downline in some MLM programs (Go Fun Rewards, Savings Highway, Penny60pro and some other programs) I went through several techniques but I still can not build large downline . Can help me by giving me some information?
“I wouldn’t be where I am today without the knowledge I gained from [Michael’s] live events and training CDs. Two MUST-HAVE [programs] in your CD library should be ‘The Total Success Pack‘ and ‘Building a Better Life.’ I’ve listened so many times I’ve lost  count. PRICELESS information for your journey to success in business and in life… ‘Easy to do. Easy not to do’ The choice is yours.”
Being a part of the MLM race is not just about being able to secure the right kind of business. It is not only about being able to sell the kind of products/services that are of the highest quality. You have to be able to come up with some of the best MLM leads to be worth it both in the short and long-term for a successful online business. Let’s take a glance at a few factors that should be kept in mind by those who want to find them  in their area and get that home business off the ground. Get some tips on Leads for MLM Business
If you haven’t already done so, take advantage of the free content publishing feature on LinkedIn called Publisher. It can increase your exposure to your target audience and help build your credibility as an expert in your industry. In fact, LinkedIn Publisher can greatly expand the reach of your business on LinkedIn, regardless of your network’s size.
I see Melaleuca on here. I see that as both good and bad. They are an awesome company with a great compensation plan. However, they are not an MLM. They are not even listed with the federal agency that oversees those companies. They are a Consumer Direct Marketing company. How does that differ? While I am required to purchase a certain amount each month, that’s all I need to purchase. It’s all products I use in my own home for myself. I don’t have a monthly quota to meet. I don’t have to buy product and sell it to people. The idea is that the product goes to the consumer only. In fact, it’s against company policy to buy product and sell it to others. The only comparison I see are the “levels” of customerS in my group. Can you shed any light on why you think they are an MLM? Thanks, so much!
Thoroughly enjoyed reading your mlm breakdowns and the comments, thank you Jeremy. Had a successful mlm business but had to make a decision to give it up or have a breakdown due to ongoing upline bullying so at a big crossroads at the minute. being an ‘older’ lady here in the north of England doesn’t bode well for conventional job hunting in the current economic climate so some serious thinking needed on my part and QUICKLY lol. Thanks again Jeremy x
When I decided to give network marketing a go, I already owned several successful businesses and had a lot of experience setting up campaigns, promoting and selling my services, and just doing the day-to-day work it takes to run a business. In my opinion, network marketing has been very similar to my other businesses, and I have been able to use so much of my knowledge and previous experience as I pour myself into this new opportunity!
Every week as SmallBizLady, I conduct interviews with experts on my Twitter talk show #SmallBizChat. The show takes place every Wednesday on Twitter from 8-9 pm ET. This is excerpted from my recent interview with Sulaiman Rahman, @sulrah. Sulaiman is the founder of UrbanPhilly.com, or UPPN – Urban Philly Professional Network. He was also an African-American Chamber of Commerce Chair. Sulaiman is a Philadelphia native and Penn graduate. He is also currently a Creative Ambassador for philly360 and long-time entrepreneur.

Starting your network marketing business off on the right foot is so important if you want to achieve big dreams and make an income that you can use to make your life better. Want to get more network marketing tips for beginners? Stay tuned to our social media channels (we’re on Instagram, Facebook, YouTube, and Pinterest) for advice. We also have a gorgeous 10 page PDF that you can download right here where we share 10 new things you can try when you want to reignite your network marketing business!
"Network marketing" and "multi-level marketing" (MLM) have been described by author Dominique Xardel as being synonymous, with it being a type of direct selling.[6] Some sources emphasize that multi-level marketing is merely one form of direct selling, rather than being direct selling.[23][24] Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and "relationship marketing". Critics have argued that the use of these and other different terms and "buzzwords" is an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams.[25]
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."
You read that right. Millionaires in this industry all have one thing in common: They were willing Failures at first, to build the Success that lasts. (READ THAT AGAIN!) You MUST be willing to fail, as you build your will to win. It is the setbacks and the devastations that build Success in MLM. be willing to fail, but then get up, and keep going. That is the secret.
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.
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