I think you showed how poor your research is when you tried to claim that MLM’s proper name is referral marketing. I guess Money Magazine got it wrong in 1987? http://money.cnn.com/magazines/moneymag/moneymag_archive/1987/06/01/83883/index.htm or maybe USA Today did last year: http://www.usatoday.com/money/industries/retail/2011-02-07-multilevelmarketing03_CV_N.htm ?
Your comment and it’s militant nature are the EXACT OPPOSITE of what I believe the doTERRA culture is founded upon. I hope anyone reading this thread choose to look past your article and it’s attack on YoungLiving when basing their decision as to which company they choose to go with. I want them to know that the manner in which you needlessly attacked them is in no way a representation of all the other reps nor the company itself.
The cons of mlm are that most people getting into mlm don’t understand mlm. They apply the incorrect philosophy and it becomes a recipe for disaster. I see dozens of people monthly that join a mlm, don’t work and don’t yield any results and as a result, leave with a bad taste. But with correct leadership that problem could be averted. That is precisely why I love my company. It has the best leadership (in my opinion) and they properly train their agents.

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Great article and thanks for taking the time to write this.. however I can see why your business didn’t fly as you had hoped. Mlm is a people’s business and that means that it IS the interaction with each other that strengthens working together. Yes you need to be self motivated but you also need to be a supporter too. Networking also eliminates the need to do constant appraisals. You don’t work you don’t get paid. That’s music to a corporate managers ears. Networking is not for everyone… but where else can you invest for such a small amount and have all the other aspects of business done for you and all you have to do is go get customers and recruit more customer finders and have no ceiling on being paid for that. As for the product you promote.. you choose something you like. My original passion as a woman was make up so I joined that type of business. Got so passionate I qualified as a beautician and onto other certificates then I discovered essential oils.. I needed supplies but minimum trade orders were over £3000 each time. Mlm on the other hand was order as my demands and finances could afford. So my interest in mlm grew. Now I would not go back to traditional office work. When I know when I apply myself I can exceed what ANY employer thinks I’m worth
People who wonder why network marketing doesn’t work have likely also never joined the best MLM for them at the time or had great upline support and a team around them to get through the often frustrating first few months. Opportunities abound – even publicly traded multi-level marketing companies, who you would think are these huge businesses that give you no attention, have small teams and wonderful leaders to join. It’s just a matter of finding the top teams in the company you’re looking at.
It seems to me that in your assessment of the top 25 MLM that you had a preference for one essential oil company (Young Living) over the other (doTERRA) which outranked YL. You give a glowing review of YL and state that they “set the standard” & are a “solid pick”. While you seem to question why people could possibly like doTERRA with comments like “Users swear by the oils, and for whatever reason, people (and not just people in Utah) are strangely passionate about telling their friends about them.” For “whatever reason”??? “Strangely passionate”??? You come across as bias. You also incorrectly state that YL set the standard for quality, while they may have been the first legit EO Co. they didn’t set the standard. Infact their lack of wanting to find the purest most potent EO available (which comes from the country the plants are indigenous to) and having strict testing to ensure the purity and potency is why doTERRA was founded, doTERRA set the standard because YL didn’t want to. And that is why doTERRA is the #1 EO company and why Young Living is not. Not to mention how well doTERRA takes care of the suppliers through Co-Impacting and how they’re improving their lives through The Healing Hands Foundation. The foundation builds wells, schools, provides personal care products as well as many other things. doTERRA is changing lives for the better all around the world so that is one of the “reasons” we’re “strangely passionate” about spreading the good news of doTERRA essential oils. Not only are doTERRA EO more potent and purer making the the “solid pick” they are literally saving peoples lives.

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“MLMs very rarely emphasize the extreme likelihood of failure, or the extreme likelihood of financial loss, from participation in MLM. MLMs are also seldom forthcoming about the fact that any significant success of the few individuals at the top of the MLM participant pyramid is in fact dependent on the continued financial loss and failure of all other participants below them in the MLM pyramid.” (Wikipedia)
I absolutely agree you have to be careful when evaluating an MLM. Unfortunately, there are probably more bad apples than good ones. It’s tricky to know whether or not it’s a legal MLM or a pyramid scheme because they can be very similar. I understand pyramid schemes to simply be an exchange of money. There is no real product that’s being sold, or at least not one that’s reasonably priced. I’ve also learned it’s proven that pyramid’s schemes can’t survive long-term because the model doesn’t sustain itself. I’ve had a few experiences with MLM’s and will wrap up by saying it’s not a model for everyone.
Well MLM companies have been a frequent subject of criticism as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes (hence the “scheme” reference), price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion. Eesh!
I found your article interesting. My wife and I have been involved with AdvoCare since November 2011. Even if I never make another dime in AdvoCare, I will continue to use the products because they have worked and continue to work for us. What I find interesting is the statistic that the majority – 99.7% in MLM actually “lose” money. What is the context of that statistic? That would mean A: the majority of MLM companies don’t have a buyback or return policy B: people that get started with MLM’s have to take on much more inventory that they are able to sell or C: this statistic is not accurate. I believe that C is the right answer. I do agree there are flaws in the MLM industry just as there are flaws in every industry. However, I believe that the MLM industry has made huge improvements in recent years and we do have a better way. People are the variable. When you have a great product, a passion and purpose that drives you everyday, are teachable and coachable, and love others as much as you love yourself, you can be successful in this business. Through the process of investing in your own personal development and learning to serve others, you are able to lead others to do the same. Thanks again. I look forward to reading more from you in the near future.
The truth is, an MLM business is like any other business. You can succeed with an MLM business if you do what it takes to make money. While most MLM businesses have their own marketing strategies, to be successful, you need to employ the time tested business building activities; find your target market, attract your market, and sell to your market.
Writing and commenting in MLM niche forums is yet again another great way to generate free MLM leads. Network marketers hang out on forums reading, writing and asking questions. When a new expert shows up on the forum answering specific questions, the regular readers will go investigating to find out who they are, and a new relationship will start to form.
Ben Thataway, a CEO benefits forever off of his employees and the employees can spend a lifetime and never make the kind of money they can make in network marketing. I know someone personally that beat out 80,000 representatives, did not join the company untli 3 years after it launched and became the top income earner. What you’ve heard, or what you think you know about network marketing is false.
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
Hi JP, Your assessment of Melaleuca stating… “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).” is VERY misleading and inaccurate. They offer “far more” products and services than weight control supplements. I have been a “customer” only of Melaleuca for over 20 years and can attest to the superb quality of their products. Please get your facts correct before posting inaccurate information. 🙂
Multi-level marketing companies are not required to release information about the average income of distributors in the United States. However, some MLMs do release this information in what is called an income disclosure statement. If you would like to see the amount of income gained by distributors on average for a specific MLM, search the company’s name in Google + “income disclosure statement.”
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For the distribution of goods after manufacturing, the product has to go through the distributor, wholesaler and finally the retailer before reaching the hands of the consumer. A MLM company shorten the supply chain shorter by directly selling to consumers. A claim they say helps to save cost for consumers. Speaking about cost savings, find out the best rate using our  home loan comparison and  personal loan comparison  tool
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 –

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Choosing a company that offer quality training and support may help your business a great deal.  You must be taught the rudimentary of marketing, referrals and how to close sales.  The best company should help you to upgrade your skills to help grow your business. It must share with you secretes of driving your website and how to effectively utilize the leads. It must help you brand your business and reach to as many clients as possible.


Great article and you nailed it regarding purchasing leads. I tried a few times talking with various people over the phone but none committed. I often wonder how the greats like Dexter Yager and Bill Britt (both amway reps) built their businesses to such a large magnitude without the use of social media. I certainly believe social media has made building network marketing businesses much easier than back in the day.
It’s estimated that in under 2 years almost 90% of web traffic by volume will be video. If you have the skills, or can hire a good SEO specialist, it is possible to rank a sales video on Page 1 of Google with relative ease depending on how competitive your niche is. Put a visible call to action in the title which appears in the search engine results page, and link the YouTube video through to your web site and with luck you should have a nice flow of leads as long as your video is listed on Page 1.
For full disclosure, I want to point out that I am not affiliated with any multi-level marketing or direct sales companies, and that I don’t receive any compensation from the industry for my opinion on it.  I’m sharing this with you because after I wrote what is considered the most widely read, copied, and quoted MLM article in the history of the industry, I was accused of writing it to promote my own MLM business or the industry in general, which is not the case.

MLM restructures the traditional business model — manufacturer to retail shop to customer — such that sales agents working for the manufacturer sell directly to customers, bypassing the retail shop altogether. MLM companies can then convert customers into advocates for their products and possibly even sales agents. Because there is no retail store for the products they sell, MLM agents typically work from their homes, interacting with customers in the community or, more often, over the internet.

I found your article interesting. My wife and I have been involved with AdvoCare since November 2011. Even if I never make another dime in AdvoCare, I will continue to use the products because they have worked and continue to work for us. What I find interesting is the statistic that the majority – 99.7% in MLM actually “lose” money. What is the context of that statistic? That would mean A: the majority of MLM companies don’t have a buyback or return policy B: people that get started with MLM’s have to take on much more inventory that they are able to sell or C: this statistic is not accurate. I believe that C is the right answer. I do agree there are flaws in the MLM industry just as there are flaws in every industry. However, I believe that the MLM industry has made huge improvements in recent years and we do have a better way. People are the variable. When you have a great product, a passion and purpose that drives you everyday, are teachable and coachable, and love others as much as you love yourself, you can be successful in this business. Through the process of investing in your own personal development and learning to serve others, you are able to lead others to do the same. Thanks again. I look forward to reading more from you in the near future.


MLMs are successful because they provide tempting possibilities — the more you recruit, the more you sell, and the more you make. The possibility for income seems almost endless. However, only a few companies can make this dream a reality. So how do you spot the good ones from the bad ones? Look at the product. If the company has put time and money into creating a valuable product, they will put time and money into selling it.
Prequalified prospects, sales referrals, or genealogy lists, whatever name is used, MLM leads are the lifeblood of any MLM (multi-level marketing) business, and without a continuous supply, the network marketing distributor will go broke and have to close down their MLM business. The question most networkers ask is “where do I get the best possible MLM leads for little or no money?” Are they generated on the internet, bought from an MLM lead-generation company, worked in the local market or found among friends and family? The answer is easier than it may seem; all of the above.

Writing and commenting in MLM niche forums is yet again another great way to generate free MLM leads. Network marketers hang out on forums reading, writing and asking questions. When a new expert shows up on the forum answering specific questions, the regular readers will go investigating to find out who they are, and a new relationship will start to form.
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http://www.idahofallsmagazine.com/2014/12/demystifying-Melaleuca does NOT fit any of the descriptions about multi-level marketing. Best double check. 😀 We had to. We thought it was until we looked closer. Opening Online Shopping Accounts! Not a “home parties” company, no inventory, and no delivering of products. Just a website! Best HOME BASED Business we have ever found. And we have been LOOKING! Thanks.
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”.
Considering their products are botanically based with an ingredient policy that prohibits many of the chemicals and fillers Mary Kay and Avon still use in their own products, I’d say they’ve established a business for men and woman who are truly serious about the health of their skin, not just the evenness of their complexion. A little research goes a long way.
On a side note, I started using doTERRA about five years ago and love the oils! I didn’t join them to sell, or make money. I just wanted to raise awareness in what they could do and help with for individuals and families, as they did me and mine. In fact, many of my friends are now distributors (not under me). Lost opportunities? Not at all, in my book. More power to them! Back to R + F, and a little more insight from you would certainly scratch an itch.
Running a MLM business is more than just being able to get the right company in place. It is about being able to maximize all of the of them that are coming through the door. It is about being able to find those leads and making sure they are not gone until you have their money in hand and they are happy with the product. These tips should assist in putting forth a great actionable plan that is going to results in wonderful leads both now and in the future with equal effect.
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.
The prospect of working from home is becoming increasingly popular. According to The New York Times, a recent Gallup poll reports 43 percent of employees work remotely some of the time. Of those, the number working from home four to five days per week has jumped to 31 percent. Modern workers seem to be embracing the flexibility of working remotely, so it’s not surprising that multi-level marketing companies (MLMs) are “poised for explosive growth,” Forbes predicts.
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