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.

Most people who try network marketing fail – not because the products they are marketing are poor, but because they do not realise how much effort network marketing is, and how much time they need to put into it. All too often, would-be marketers give up when they get to the six month point, but they are not quite turning a good profit. What they don’t realise is that if they had waited it out just a few months more, and kept on marketing and expanding their business, then they could have been profitable.
Multi-level marketing (simplified Chinese: 传销; traditional Chinese: 傳銷; pinyin: chuán xiāo) was first introduced to China by American, Taiwanese, and Japanese companies following the Chinese economic reform of 1978. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Multi-level marketing was banned on the mainland by the government in 1998, citing social, economic, and taxation issues.[62] Further regulation "Prohibition of Chuanxiao" (where MLM is a type of Chuanxiao was enacted in 2005, clause 3 of Chapter 2 of the regulation states having downlines is illegal.[11] O'Regan wrote 'With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not'.[10]
Many MLM companies do generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, the profits of the MLM company are accrued at the detriment to the majority of the company's constituent workforce (the MLM participants). Only some of said profit is then significantly shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants is emphasized and championed at company seminars and conferences, thus creating an illusion of how one can potentially become financially successful if they become a participants in the MLM. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable.[14]
It’s also important to note that while I expect there to be significant growth in the ranks of many MLM companies, there will also be substantial growth in businesses that adopt this model and its many benefits.  In fact, it’s one reason I developed the Certified Professional Retirement Coach certification in conjunction with the Retirement Coaches Association.

Develop a referral program. Just like in other businesses, people who are referred by others are easier to convert to a sale than people who weren't, because they're usually coming to you with some interest in buying. Many people you talk to won't be interested in buying right away, but they might know people who are. Happy customers may want to share your product or business. You can develop a referral program to give people incentive to refer others to you. For example, you can give them a 10 percent discount on their next purchase for every new customer they refer. 
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Hey Erica, I’m a doterra gal also. Just over 3 years ago I just wanted to see if these hippie oils really worked from there I couldn’t keep my mouth shut and I share with whomever will listen. I recently read this in the leadership magazine and I love it. “An oil for every household, a drop to change a life”. That is my goal. I never plan to get rich off my sharing but if I can change a life, help someone along the way it will be worth my time.

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.
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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. 

Working with your various leads should get you somewhere, or else you need to rethink your plans. If you find that engagement is still low after you try yourself to get leads that turn into paying ones, you should just buckle down and study on what you’re doing more. Anyone that wants to be successful has to alter what they are doing so that they can get more from the people they are working with. You really need to get this underway or else it’s going to end in you wasting time with leads that won’t pay off.

comes down to leadership and the individual. I even changed teams to find the right mentor and coaching when I knew I was struggling. I found a team that trains people to be some network marketing professionals, and really the math is simple and anyone can make residual income if they do it correctly. The problem is people sign everyone up they can and then most drop out. You only want to work with those that are committed to do the work and be able to work closely with them until they are a developed leader. In all actuality ssigning everyone up as an associate is against the rules and a big no no. Having customers benefits everyone and in most business models like the one I’m with I make more commission off customers than associates that aren’t working.


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I would like to try the instagram. I have been in this business since January 5 and not doing very well. Took me a month just to get my children to join & this company is actually giving out shares as you join. Like I said, it took me a month just to get my children to understand the concept of the shares, after sharing the video of Magic Johnson being interviewed by Ellen Degenerate about his reqret for turning down Nike tennis shoes, with one of the owners of Nike being one of the owners of this company & how this is time sensitive, but no one else is interested. Please help.
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.
Before you start trying to generate more leads, make sure you know who you're trying to reach and where you might be able to find them—physically or virtually. First, identify the need or want that your product or service can address. For instance, joining your direct sales business can help a person fulfill a need for more income. Perhaps the wellness products you sell can help people meet their desire to stay healthy.
Perfect reply That’s exactly what gives network marketing a bad name. Sheesh. If you find something you’re passionate about then go for it. But first ask, how many people can you personally find who have replaced their income at such n such a company? I’m grateful to say I have hundreds of dōTERRA advocates who have, and who go about it with integrity. Thanks for all the research, it was fun to read. I’d recommend looking at retention as well sometime.
Don is a great person to work with. He has a lot of knowledge. The Apache Leads support team will answer any questions that you have.After searching long and hard for a legitimate MLM phone lead company on Google, I discovered Apache Leads. I gave them a go and I'm glad that I did.You won't be disappointed, the leads were real people who are genuine, who are actually looking for a home-based business. I will continue to use Apache Leads to help expand my business.
I have a friend who is proposing I join Arbonne? She would be good to work with although I am not educated on all the MLM companies and don’t want to make the wrong choice. I also have a blog which I want to leverage and it seems like most of the health and wellness MLMs utilize hosted parties. Are there any that are more internet based that have had a long time track record! Thanks and sorry for all the questions!

Multi Level Marketing (MLM) is a business model or marketing strategy in which the distributors' income includes their own sales, and a percentage of the sales group they recruit, which is commonly known as their ‘downline’. Customers can also sign up as a distributor to sell the company’s product. Usually, the sign up fee will be the price paid to purchase the product.


Great job on the top 25 MLMs. Really like what you’re doing for the industry as a whole. Your analysis is spot on. However, a closer look at retention rates for each company might give you another perspective on the value proposition of any given company. As a Doterra Wellness Advocate we are told by our corporate execs that we have a 65% retention rate with customers repurchasing the product within 3 months. And that if we based it on the industry standard of 12 months our retention would go up to 85%. I’m told that this is unprecedented in network marketing. So I’m believing that Doterra is succeeding because its selling a product that works and that users and word-of-mouth drive the business in the long run.
Now that companies can easily sell directly to their customers online, people look to social media to get their recommendations for products, and the popularity of subscription beauty boxes, not to mention the fact that there are so many retail stores even in the most far out suburbs, I don’t see how the network marketing model is necessary anymore. The only people who defend them are the people who were trained to. This is because MLMs love to brainwash you into defending them against naysayers and demand you go on the offensive to anyone who might disagree. They may still have wide-eyed hope. It’s sad and terrible. The sooner these pyramid schemes are declared illegal and go out of the business, the better off the world will be.
The binary compensation plan has recently gained popularity because of its simplicity and the growth opportunities involved. Unfortunately, the plan has been so misused that it has been hit with many state and federal regulations. Government actions against such companies have been very public, resulting in bad press for the companies and a bad reputation for MLMs using the binary compensation plan.
That not only fosters a positive attitude and atmosphere, but also a lot of structure and activity.  Many network marketing companies offer weekly calls, local meetings, and an annual conference.  All of which get members out of the house, building knowledge and developing new skills, while offering them the opportunity to meet new people and deepen existing connections.
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.
Rather than focusing solely on the technical aspects of how the best MLM leads are generated , we are able to dramatically improve overall conversion rates and quality of network marketing leads by adjusting the entire opt-in process through the eyes of your prospects. Our job is to understand what your prospects want and to help them get it. We believe technology and design should follow people, not the other way around.
But more than product selling MLM/NM provides a lucrative option to earn great part/full-time money and most importantly passive income. Once you sign up somebody in the business by selling a product and he signs-up someone else and so on, you create a network of people who are recommending a product or offering a business opportunity thus generating sales for the company and also earning 10-125 of the total sale happening through your network. In MLM u get percent of every sale that happens in your group of people directly (when u personally sell to someone) or indirectly (your team member sells to someone). So, if you have a network of 10 people and your team sold product worth $1000 then you would earn $100-150 as commissions. For direct sale u get more money.
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Although you can generate business leads yourself by advertising or organizing promotional events, buying your leads is actually going to be the most cost-effective method. In fact, we put a lot of effort into keeping our costs as low as possible so we can pass these savings on to you. Essentially, we go above and beyond what we need to do so you, our customer, is happy. If you have any questions about our high-quality leads, be sure to contact us now so we can help you. The sooner you get started, the sooner you can start making more money for your business! And isn’t that what it’s all about?
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.
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I agree with Jeannie. You can build a solid foundation from your warm market & then it snowballs. It is hard work & not a get rich industry. I to am with dōTERRA which is such a product driven company that 80% of wholesale customers are just customers because the products work. I love how everyone I have interacted with in my Upline are so driven by a purpose much bigger than amassing wealth! After almost 20 years of business experience (corporate sales & real estate), I can proudly say that I’ve never worked in such an edifying & encouraging environment. I can’t remember even 1 of my former bosses sitting down with me to chart a plan to bring me up to their level or even to take their current spot on the corp ladder – too much insecurity in that world & after all only 1 person makes it to the top of that pyramid. I love that in Network marketing you can easily surpass the rank & income of the person above you if you work with great purpose. The mentoring available & the personal development which happens in this environment is incredible!
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