Other than that, great info, but I’d have to respectfully disagree with the logic behind not being a part of an MLM. It’s one business model. And whether you want to make it your full time job or just dabble, so long as you find a product and company you love, it can be a great way to diversify your income streams. $5000 a year (or $5) is more than most people make on their 401K, savings or any other conventional ways of investing. It’s an investment, and for those that chose to continue through the plateau, it results in residual income. Don’t like sales? Some of the companies are moving away from the door to door type sales models and putting a lot more emphasis on team building and adding value. And many companies are also discouraging distributors from spamming on social media- again- it comes down to the individual and their own business acumen. We can spend our lives blaming they systems or we can just own ourselves and be grateful for whatever we’ve learned from, and created out of each opportunity presented to us. It’s the choice of the individual at the end of the day but one thing I can say with certainty is that someone who blames MLM for their lack of success is lacking responsibility for themselves in other areas of their life too.
Hi Jeremy great article. Here’s my take for what it is worth,after working 50 years for the bank making not so much money,having to accommodate there time schedule ,negotiated vacations and seeing very few people advance to 6 figure incomes,I’m somewhat intrigued by the idea of using my retirement years looking at mlm as a part time endeavour . Obviously I put a lot of blood sweat and tears into my previous job,so I’m not expecting to make my millions in a couple years in mlm, but I like the (do it in your own time) idea. If I find a product I like and would use anyway why not? I also like the idea that the potential is there biased on your own efforts. Am I wrong What do you think?
I’m from the uk. I am a Matron in a GP practice and have been approached by Arbonne. Ur video confirms most of my thoughts although doing aesthetics as a side line I though I might be able to run along side that and so not have to approach family n friends as that is horrendous!!! – i am really interested in ur local league marketing though – how would I find out more about this

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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Kay, you don’t need a lot of money to buy essential oils, NOT AT ALL! Specifically now that distillers will sell directly to small businesses with very minimum amount, your $100 will buy you a lot actually. Averagely, your cost with MLM in a single bottle will be around 25x-30x more. So it is not the cost; but the business set-up (packaging, presentation, etc.).
One of the best skincare products in and outside of MLM, no doubt. They were founded by a couple dermatologists, and they used to be an upscale department store brand before entering the world of network marketing. Rodan and Fields created Proactiv, which ended up being one of the most famous skincare products of all time (and a hero-in-a-bottle for every middle schooler who’s ever been called pizza-face). Just this one product line is nearing $1 billion in annual sales.

Thanks for this post. Very helpful. I do like direct sales; one reason for this is that it helps keep alive that age-old tradition of people interacting face-to-face (rather than mainly through texting and social media). For that reason, I think MLMs should target the lonely Millennials. Anyway, I was a member/distributor of Advocare for over 10 years and still miss the products and the activities in the company, now that I am temporarily out. I still plan to sign up again when I can afford it (long story–I’ll spare you). I am now involved in Melaleuca, and I must say in their defense that Melaleuca’s products are actually not overpriced. Because Preferred Customers are not only not expected, but also NOT ALLOWED to turn around and sell the products at the retail price, everyone pays the same low prices. (Granted, one can indeed go to the website and buy directly from the company if they do not want to become a Preferred Customer. Why would someone do that when the annual membership is only $19? Only if they do not want to commit to the minimum monthly requirement for Preferred Customers.) Public, keep this in mind! Don’t be fooled by the rebels who are selling old Melaleuca products on Amazon for way above the retail price!! You’re much better off buying fresh products directly from the factory, even if you pay retail price. Just sayin. My big question: What about Tupperware? I have been a Tupperware consultant for about 6 months, and I have found it to be extremely difficult to keep business going. The directors training me have said that Tupperware is the second most widely recognized brand name in the world, second only to Coca-Cola. If that is the case, why is it so hard to find people willing to host Tupperware parties? Why does it seem so hard to sell? Also, is it just me…Or, does Tupperware’s compensation plan stink?


Before launching Omnilife and becoming a billionaire, Jorge Vergara sold street tacos in Mexico, smuggled Herbalife supplements into Mexico, and sweet talked the Mexican government into changing their regulations in the nutritional products sector. This guy could make a movie about his life and it would probably win an Academy Award (he’s actually a major film producer on the side, casual).

Specifically, they struggle to jump start their health goals, to connect with new people, to learn new things, and yearn to be a part of a community.  What I am telling you is that the average retiree is at least 25 pounds overweight, feels tired for some part of the day, may be moderately depressed about something, has low self-esteem in one or two areas of life, acknowledges they only kind of have a best friend, and overall lead pretty plain lives.
I’d like to point out a few things: statistically something like 96% of businesses fail within the first 5-10 years, which is a much more impactful loss, both financially and time wise, than the few hundred dollars one puts into whatever product they’re using in MLM. So realistically the success rate as a “self employed business owner” with MLM is probably a bit better than it is with launching a traditional business, or at least consistent with it. It takes discipline and tenacity that many people don’t have- that’s why they chose to remain employees in the first place.

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.


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FLP may not be the wealthiest MLM on this list, but they deserve a spot because of their long-term dedication to the aloe vera plant and products made from it. Few MLMs display such product dedication and integrity as FLP. And few MLM’s have such a concentrated niche. That screams longevity over the other hundreds of other “full service wellness” companies.

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.
Before launching Omnilife and becoming a billionaire, Jorge Vergara sold street tacos in Mexico, smuggled Herbalife supplements into Mexico, and sweet talked the Mexican government into changing their regulations in the nutritional products sector. This guy could make a movie about his life and it would probably win an Academy Award (he’s actually a major film producer on the side, casual).

However, as aforementioned, you may know people that sell products from Mary Kay, Avon, Advocare, Tupperware and the like (see more companies in our Featured Home Businesses section). You know people who sell these types of products because they believe in the products and the companies that stand behind them. These companies empower those who sell their products to actually establish their own businesses, selling the products. This is very attractive to many entrepreneurial-minded people who do not want to have a boss watching over them but also want some pre-established structure and support. Most MLM organizations provide a very robust infrastructure and great training as well as impeccable rewards (hello free cars and trips!).
I joined in the mid-90’s under a Dr that paid my way. We were somewhere in Paul Orberson’s dowline, below an AR kid making $80K+/month. I didn’t actually sign anyone as a rep, and just enjoyed doing the pitch to the crowd in the hotels, restaurants, and eventually auditoriums. I got paid by the Dr to tell the “long distance” story, and he went all the way to there top tier in under a year. 

Getting leads is just one step in the sales cycle. Next, you need to qualify them to determine if they're a good fit, then make your pitch, and finally, follow up. Many network marketers don't like the sales process, but it doesn't have to be hard or scary, especially if you start with leads who've come to you specifically to know about what you offer.
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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