They were hot. These guys caught some shade for over-inflating their health products, but what health MLM doesn’t inflate their prices “a tiny bit” so they can dish out those juicy commissions? Well, their fiber product was 900% more than “leading alternatives” and their Trioten protein blend was 600% more expensive than Herbalife and Shaklee proteins. Ouch.
Using link referral sites is another great way to generate free MLM leads. Link referral sites are basically a database of websites and blogs grouped in categories. After creating an account the network marketer will be asked to review up to 15 other websites and write a review of each on a daily basis. This is a great way to make new friends and expand the network of referrals.
Are you more comfortable turning customers into distributors or distributors into customers? Before you sink effort and your precious money into lead development systems, make sure you have a comfortable recruiting strategy that matches your style and promotional campaign. Know your products and compensation plan, understand how to access the company support systems, and enlist the back-up support of your sponsor. Then you'll be prepared for sponsoring success. Creating leads without the skills to turn them into members of your organization is a formula for disappointment.
Build an email list. There is a system for working with leads. The first step is getting them to be aware of and take an interest in what you have—by visiting your website, for example. The next best step is to ask your leads to sign up for your email list. You can get them to sign up by offering something for free, such as a report or something useful, from your website. For instance, if you're selling wellness products, then you might offer a guide to good-for-you ingredients or recipes. This will allow you to communicate with your prospects and provide valuable information related to your business and the general field that it's in, such as special sales, events, news, and research—and stay top-of-mind to your past, current, and possible future customers. Just be sure that you're following the laws and regulations regarding email marketing.
Elite MLM Leads views MLM lead generation and conversion from a prospect's point of view. While other home based business leads companies claim they have the ability to generate quality network marketing leads that convert, it is usually because they have highly-specialized expertise that, at best, improves your overall recruiting efforts incrementally.
Walter J. Carl stated in a 2004 Western Journal of Communication article that "MLM organizations have been described by some as cults (Butterfield, 1985), pyramid schemes (Fitzpatrick & Reynolds, 1997), or organizations rife with misleading, deceptive, and unethical behavior (Carter, 1999), such as the questionable use of evangelical discourse to promote the business (Höpfl & Maddrell, 1996), and the exploitation of personal relationships for financial gain (Fitzpatrick & Reynolds, 1997)". In China, volunteers working to rescue people from the schemes have been physically attacked.
Thanks Ray for this info about the lead company. Some time ago I purchased Todd’s script book and purchased a large group of leads from another company. After over 400 calls I realized that the company had sold my ‘exclusive’ leads, muliple times. Did I consider it a waste of time and money? No, it was a very good training opportunity for me. Most people have a job and work and can’t take time off to get a ‘telemarketer’ job. But they can get a script book and get a group of inexpensive leads and use it as a form of training on the phone. After a large no. of calls the phone can become a familiar and usable tool.
Below is a screen shot of a program called Zennoa which l reviewed and was in the pre-launch stage. Google did not even know that program exists and ANY website could have ranked for that search term. There is really no point in wasting valuable time flogging dead horses. There is no need for another review of Empower Network, Vemma or those MLM ancestors … LOL.
You are right in that most MLM have monthly dues and have high entry fees to be distributors or consultants. You are also right in that most MLM companies focus on recruitment and not product sales. I’ve been working with Arbonne now for quite a while and none of those comments apply to this company, which is why I believe they have survived and are only growing at this point, despite some people’s opinion that they will soon be relics like Mary Kay. To become a consultant is a mere $75 dollars, the kit is involved with all free samples and material. Product loading is prohibited. Each event we host regularly ends with most if not all attendees becoming a preferred client for $20 joining fee for the first year and a $15 renewal every year with no monthly expectation and a guaranteed minimum of 20% off of all stock at all times and 40% off of all packages at all times. Not only that consultants can will their business down 6 generations, and the Mercedes incentive is for a purchase, not a lease. We do look to grow our network, but we emphasize this takes hard work and is not a get rich quick scheme. While you hit the nail on the head with most MLM businesses, there are MLM businesses like Arbonne who are a cut above the rest and who are in the habit of not putting pressure on anyone attending to either purchase or join as a consultant. We only want the best in our network and we have thousands of examples of very successful men and woman to show for it. Great article!!!
For me, attraction marketing is one that brings value to the marketplace, leverage the internet and offline by teaching people and providing them solutions to their problem. Solutions to their pain – the pain of struggle growing their business! And as I was saying - this require a skill. You need to learn how to bring value to people and be an attractive marketer. By practicing this, you can create relationship. It’s really all about relationship building.
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
They have the stay-at-home-mother meets women entrepreneur mixture working for them. What does that even mean? Means they have the practicality side of the company that is off the product and they have the sales, entrepreneur people them promoting it, too. Anyone who follows MLM knows its usually too “product practical” (see: Tupperware, Cutco) or too “opportunity-centric” (see: Herbalife).
Agree with most of your comments. Born and raised in the corporate community, we never even considered a MLM until came across one after retirement. Looking back we would have looked seriously at the industry much earlier. In any event, we had one good run until management made a few very bad decisions…killing 40 % of our business. But now we’ve found a new home with WGN. Among the many differences is they’re a technolgy company operating as a MLM…go figure.
Although an MLM company holds out those few top individual participants as evidence of how participation in the MLM could lead to success, the reality is that the MLM business model depends on the failure of the overwhelming majority of all other participants, through the injecting of money from their own pockets, so that it can become the revenue and profit of the MLM company, of which the MLM company shares only a small proportion of it to a few individuals at the very top of the MLM participant pyramid. Participants, other than the few individuals at the top, provide nothing more than their own financial loss for the company's own profit and the profit of the top few individual participants.
I think when you made comments about a company you should have kept them neutral or not only commented part of a story. Ambit did have a lawsuit, but it also has several JD Power awards, A+BBB, and many other accolades. I don’t know details of the suit, it may have been 100% justified, but I do know lawsuits are not always justified. Sometimes people are looking to make a buck
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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Yet there must be something to the business model, since I see some big business icons like Donald Trump are joining in the MLM parade. I've written about these before, and I'm still looking for one that feels entrepreneurial. Who has a convincing story that will make me feel good and pure as I recommend their MLM to my best startup clients? Do you love them or hate them?
If 18,000,000 Americans consider MLM their careers, yet only 0.3% actually succeed beyond average corporate America wages, do people realize that means there are barely more than 50,000 Americans “living the MLM dream” and almost 17,950,000 who just help the 50,000? Sad. I was part of team Tupperware decades ago because I wanted to buy Tupperware for my home for less. It took me about 14 months as a stay at home mother (never recruited, never pressured, my distributor didn’t like my attitude) to accomplish that task and then walked away. I live in rural America where so many fall to MLMs attempting to climb out of paycheck to paycheck living (very few good jobs) like the saved into a baptismal pool. “Disciples” is the perfect word. MLMs are just not thriving here. How many Americans can one recruit/sell to for building a business in a rural county with less than 20,000 other Americans of which 75% live below the poverty line? I see MLM victims everywhere.
Thanks for this list. Loved seeing Monat as #1! I am a Market Partner for this company and the money is crazy good because the products are awesome. I was disappointed to see Plexus at #28 and I wasn’t impressed by what you had to say about them. Plexus is NOT a weight loss company. Their products promote a healthy gut and they are clinically proven to decrease inflammation and balance blood sugar. Weight loss is a natural side effect of body balance. The products work and there are a lot of people I know personally making good money with Plexus.
We can deliver: We are generating three types of leads that are focused towards the network marketing industry. The following is a weekly breakdown: 3,000 telephone interviewed, 1,500 Long Form surveyed leads and 4,500 Real Time Short Forms. With over 40,000 real-time leads generated every month. We are the leader in lead generation for network marketers.
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.
look if you go and search top MLM businesses, no matter what link you click on, the number one company is amway. Why everyone goes with different companies i don’t get it, check it out compare to mary kay. Here’s the thing though, I contract with amway, but my organization is worldwide. Mentorship organization. I feel which ever MLM business you choose, join a mentorship organization that is in that business. The reason why amway is number one is because of worldwide. it’s only 10% of everyone that is in amway, yet 90% of the 6 and 7 figure earners are part of worldwide…why? because they broken down the company and know exactly how to succeed and retire quicker than someone who tries amway on their own or joins another mentorship company. what’s the success rate? to those who do what others have done 100%. So at the end of the day, consider all of this. With amway and worldwide, it doesn’t matter how old you are, where you come from, ANYONE can do it. Mary Kay is a female company, good luck getting a bunch of single dudes to make it with that.
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.
The support factor was key. Once the MLM leads were purchased, was there somehow support in case of need? The support should be somehow resolving issues that arise, including bad mlm leads, wrong numbers or emails, and general problems. The MLM Leads companies we found that were the best, had a support system. And some type of guarantee also should be part of the network marketing lead program.
Bought MLM leads are still not going to be laydown sales, you WILL still need to talk to them, qualify them and move them along in the process. When you receive the email that you have a new lead in, call them and ask them how you can help, if they are nasty or negative, just get off the phone. Never, whether you bought the lead or not, try to convert someone who is nasty or negative, it just is not worth your time.
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!
In an October 15, 2010 article, it was stated that documents of a MLM called Fortune Hi-Tech Marketing reveal that 30 percent of its representatives make no money and that 54 percent of the remaining 70 percent only make $93 a month, before costs. Fortune was under investigation by the Attorneys General of Texas, Kentucky, North Dakota, and North Carolina with Missouri, South Carolina, Illinois, and Florida following up complaints against the company. The FTC eventually stated that Fortune Hi-Tech Marketing was a pyramid scheme and that checks totaling more than $3.7 million were being mailed to the victims.
“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)
A few people do make big money from MLMs. And these people are often trotted out in promotional videos, celebrated at annual events, and very publicly ‘rewarded’ with prizes like prestigious cars (although these ‘prizes’ aren’t as generous as they first appear – you simply get a discount on the lease which you must take out in your own name, and if your sales fall, the discount ends…). You also need to promote the company on the car they ‘give’ you.
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.