MLM salespeople are not employees of the MLM company. Participants do not derive a salary/wage, nor do participants receive remuneration from the MLM company for their invested labor and expenses in their MLM "independent business". The income of participants, if any income is made at all, is derived only from commissions on their personal sales or their share of the commissions on the personal sales of their downlines (the MLM compensation structure).
You already know that MLM has the potential to be one of the most valuable business opportunities that you can possibly get involved with. However, if you are getting started with a new MLM venture, you are engaged in an uphill battle. There are plenty of other MLM pros and entrepreneurs out there who would like to use your prospects to build their list!
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.
“Joining an MLM is appealing to women who find hope in their promises of a better life: freedom, economic independence, and an endless supply of cheery trinkets. Despite professing quick-income prospects though, it’s difficult for MLM consultants to earn more than pocket change. When glitzy recruitment videos yield to the reality of suburban cul-de-sacs, people selling for MLMs can be plunged into debt and psychological crisis.” (Quartz)
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.
I want to start off with saying great video above and the information is very thorough. I will be following your advice and guidance to get my new business going. I am very new to the Network Marketing industry but have been introduced to a new Tech Company (called VIV) that has a phenomenal, once in a lifetime opportunity to get into their Founders Circle. I would really like your input on what you think, the link to the video that explains the founders circle is shareviv.com.
I spent about 3 years selling Amway back in the 70’s. There was a lot of hype but I made enough money to achieve several of my more modest financial goals. I went on to use some of what I learned to make extra money in various ventures and eventually started a small business out of my home. The business grew until mainstream retailers began offering the same product I was selling at comparable prices. The MLM as a learning tool has some value as long as the product is decent. This MLM ranking is a good way to attract attention and I am curious about Your service. I am selective about what I spend my time and effort on.

Because of the nature of recruitment and the dream of living the life of riches, it is no stretch to the imagination that sometimes, the real picture gets blurred between the lines. Also, MLM is notoriously known for getting you on the bad books of friends and family. This is of course a general stereotype against the industry and not a concrete consequence.
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).
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!

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.
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.

Thinking about quitting your job and starting your very own home-based business? Great! Thinking about how you’re going to go about taking on this big venture? Hmmm… That’s a really great question, right? You can either take control of your life today and start doing what it takes to make this dream come true, or you can keep dreaming, it’s up to you. If you choose to take control, take the first step by choosing one of our many Lists so you can start to reach out to those who can help you reach your goals.


I am a Network Marketer myself and I think I have seen more than enough in this industry. I have struggled and experienced all the pain in getting the right people to join my business or buy my products. I've spent a lot of money on getting leads, buying solo ads, buying this and buying that just to grow my business. But I came to realize it, all doesn't work... the tendency is, you can buy leads but how many people have the same list of leads as yours? Now, have you experienced calling bought leads? - I DID! Nobody ever answered me. It was very difficult I must say.
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!!!
Go online to learn different mlm techniques for selling. Many people have generated a substantial amount of wealth in mlm and there is no reason why you can’t be successful at it. There are plenty of manuals and guides to being successful at mlm, and it is suggested that you take the time to really educate yourself before you get started in this business. You also want to better your sales skills, so it pays to take a public speaking course.
Only people who have signed up through an actual lead capture page are going to appear on our Lists as a prospect. These prospective customers are people who already have an interest in finding out more about home businesses so they are ready for you to contact them. They have provided all of their essential contact information, which we have taken and compiled into a number of valuable Biz Opp Leads. Call us today if you have any questions.
Pay Per Click or PPC can be very effective in the right hands. If you do it the wrong way it can be a fast track to financial ruin. Unlike Facebook Ads where you can see how effective your ads are within minutes, Google AdWords are much less responsive and you can use up a lot of cash before you hit the winning combination. Concentrate on being very focused and specific. If you are not, you will get lots of clicks on an ad which sounds right, but results in low conversion rates when people find that it’s not exactly what they are looking for.
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.
Once you are ready to buy leads, understanding which lead product is best for you is the next step. Are you interested in calling leads when their interest is at their highest? Then you will want to purchase Real time leads. Are you just getting started and want to get a lot of practice and build your list with a lesser investment? Then, the discounted, aged leads may be better. Test them out and see what works best for you.
Knowing your system isn’t just a type of technology, rather a sales system that you put your prospect through to get to a sale. You should have clear goals for each prospecting call, from the time you say “hello” to the “next step”. The next step could range from setting an appointment, a three way call, sending an email, or conducting a presentation. When you get a voicemail message, are you leaving a voicemail that gives detailed information about how to

I agree with you that much of the industry is flawed, but what about an MLM that has a service rather than a product such as electricity. It’s not like that could go out of style or that once you buy it you don’t need it again or that your monthly supply is too much and you’re going to stop the monthly subscriptions. I can honestly say that I cannot stand most MLM companies because regardless what you believe or how much you like the product, if you have to try to convince someone else to use it then inevitably the system is flawed and eventually your residuals will dry up. Electricity though, that’s different in my opinion, no one has to convince me to use it, it just comes by default. Find me an MLM that is not selling so much as showing someone an alternative to what they already have to pay and I’d be interested.

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]
PM Dollars, is our way of rewarding you for using our products and services, and sharing them with your friends and new signups. You'll earn 10% of anything you order in PM Dollars. Whether you order a Leads Package One Time, once in a while, or every week, 10% of your order will be added to your PM Dollars account after it is filled. You can then use those PM Dollars for products and services we offer in your PM Dollars account.

Also called pyramid selling or network marketing, multi-level marketing companies grow revenue by hiring and recruiting non-salaried employees referred to as distributors, influencers, consultants, salespeople, or promoters (among other names). In other words, employees generally receive compensation from performance through a pyramid-shaped compensation system. 

I hear this all the time Ray people saying that they don’t have leads. I ask when was the last time you attended a meetup, or did anything that pushed you out of your comfort zone. Its the only question I need to ask and the silence is my answer. Leads are all around you until they talk to you. Thanks for the professional training for Network Marketing Leaders.
Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature that is found across all MLMs is that the compensation plans theoretically pay out to participants only from two potential revenue streams. The first is paid out from commissions of sales made by the participants directly to their own retail customers. The second is paid out from commissions based upon the sales made by other distributors below the participant who have recruited those other participants into the MLM; in the organizational hierarchy of MLMs, these participants are referred to as one's down line distributors.[5]

The Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."[21]


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.
Plexus Worlwide is ranked by Inc. magazine as #8 (in 2014) and #132 (in 2015) fastest growing privately held company with a three year growth of 2833%; all while offering a 60-day money back guarantee on all its products – which means the products work. And at a consumer friendly price point. 40% of all sales are from customers and not ambassadors.
The Leadpower Promise: Here at LeadPower we talk through experience, we have been generating leads since 1998 and have helped over 167,779 network marketers. The founder of our company founder has been a network marketer himself for over 20 years. He has built some very large groups consisting of well over hundreds of thousands of distributors. He understands how network marketing works and understands sauce how lead generation works as well.

Whether you’re looking into multi-level marketing or interested in starting a different kind of business venture, the right education can make all the difference. An online bachelor’s in business administration or online MBA from Rivier University can help you acquire the skills you need to make your mark in the business world. Learn in a dynamic, flexible environment on a schedule that fits your lifestyle.
As many have mentioned, MLM is an acronym for the word “Multi-Level Marketing.” It is basically a marketing system where a certain product or an opportunity is passed on from person to person to get it viral resulting to lesser expenses on advertising on the part of the company or the owner. The beauty of MLM is that it creates a tremendous opportunity for everyone to make money.
Once you’ve made your connections, presented your opportunity, validated you and your company, ask for the sale! So many opportunities are missed simply because a person was too busy connecting and chatting, instead of asking for the business. You are looking for serious people to join and become a part of your team, don’t forget to ask. The experience and hands on training you get by just getting on the phone and making calls, is priceless. The more you are calling leads, the better you will become.
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.
Now this is the kind of business opportunity seeker you like to work with – these are the bizopps buyers!!  These folks went all the way through the sales funnel, and many of them paid for a Business Opportunity e-book to learn how to start a home-based or internet business.  They aren’t tire kickers. Bizopp buyers pull out the plastic when it comes to funding their money making goals and dreams.
I used to work for a telemarketing company when I was 18 selling long distance. About 20% of the people cursed me out as they did not want a telemarketer calling their house. That job was not fun but it helped me get over my fear on the phone. I owe a lot to that job and in life we can attribute a lot of our growth to the times where things were NOT that fun.
Our Telephone Interviewed Leads are not just contact lists. Our Verification Department has contacted each individual lead before you receive it to ensure their seriousness in wanting to start a home based business. You will receive all of their contact information and best time to call so that you are able to contact them at a convenient time and speak with an individual that is sincere about making money from home. We also offer our Telephone Interviewed Leads in female only for any business that prefers contacting only women. 
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.
Melinda F. Emerson, known to many as SmallBizLady is one of America's leading small business experts. As a seasoned entrepreneur, professional speaker, and small business coach, she develops audio, video and written content to fulfill her mission to end small business failure. As CEO of Quintessence Multimedia, Melinda educates entrepreneurs and Fortune 500 companies on subjects including small business start-up, business development and social media marketing. Forbes Magazine named her #1 woman for entrepreneurs to follow on Twitter. She hosts #SmallBizChat Wednesdays on Twitter 8-9pm ET for emerging entrepreneurs. She also publishes a resource blog http://www.succeedasyourownboss.com Melinda is also bestseller author of Become Your Own Boss in 12 months; A Month-by-Month Guide to a Business That Works. Her latest ebook, How To Become a Social Media Ninja; 101 Ways to Dominate Your Competition Online was released in 2012.
The real selling point for MLMs is that distributors can make money in two different ways. The first is money made from commissions from direct selling to consumers. And the second way to make money with an MLM is from the commissions made from sales of distributors below you in the pyramid (these are sometimes referred to as recruits or downline distributors).
PM Dollars, is our way of rewarding you for using our products and services, and sharing them with your friends and new signups. You'll earn 10% of anything you order in PM Dollars. Whether you order a Leads Package One Time, once in a while, or every week, 10% of your order will be added to your PM Dollars account after it is filled. You can then use those PM Dollars for products and services we offer in your PM Dollars account.
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.
“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.”
MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in mainland China.[10][11] In jurisdictions where MLMs have not been made illegal, many illegal pyramid schemes attempt to present themselves as MLM businesses.[7] Given that the overwhelming majority of MLM participants cannot realistically make a net profit, let alone a significant net profit, but instead overwhelmingly operate at net losses, some sources have defined all MLMs as a type of pyramid scheme, even if they have not been made illegal like traditional pyramid schemes through legislative statutes.[4][19][20]
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.
The structure of MLMs is very similar to a pyramid scheme. This doesn’t mean that all MLMs are pyramid schemes, but some certainly are. Those interested in pursuing a career in multi-level marketing should do research before joining a particular MLM. Generally speaking, if the bulk of the money you stand to earn comes from recruitment rather than direct sales, it’s wise to be very cautious.

I totally agree, Mary. You can lose soooo much more just by opening up a small storefront business. I was in the Spa Industry and then the economy tanked in late 2008. I did not renew my lease in 2009. Lost my several hundred thousand dollar build-out. Lost so much more than taking an MLM business seriously. Even if I would have front loaded on a ton of product, I still would have been better off. People spend $750 and get some business cards then do nothing and blame MLM.
The end result of the MLM business model is, therefore, one of a company (the MLM company) selling its products and services through a non-salaried workforce ("partners") working for the MLM company on a commission-only basis while the partners simultaneously constitute the overwhelming majority of the very consumers of the MLM company's products and services that they, as participants of the MLM, are selling to each other in the hope of one day themselves being at the top of the pyramid. This creates great profit for the MLM company's actual owners and shareholders.
My network marketing Leads are the best way to follow the golden proverb that somebody must have dropped coming down the mountain, because when it fell, it hit so hard that everyone doesn’t think twice about it just being plan common sense. And I don’t know why it isn’t folded into every California cookie because it is the best way to gain a fortune. This proverb that needs much repeating is “Work smarter, not harder.”
Thinking about quitting your job and starting your very own home-based business? Great! Thinking about how you’re going to go about taking on this big venture? Hmmm… That’s a really great question, right? You can either take control of your life today and start doing what it takes to make this dream come true, or you can keep dreaming, it’s up to you. If you choose to take control, take the first step by choosing one of our many Lists so you can start to reach out to those who can help you reach your goals.
Thank you for this article! I’m with Doterra, like a lot of other people I didn’t start out selling. I just wanted to use the product. But, when you see such great results you can’t help but tell people. I love working for this company!! I have worked for Tupperware, Amway, Jafra, It Works, I never made money like I am with doTerra. Hands down its the best!! I’m working hard to build my business and it is paying off and I’m reaping the benefits for my health. God’s Design for our Natural health care is top notch! I give God all the glory and I couldn’t do this without him.
Our Telephone Interviewed Leads are not just contact lists. Our Verification Department has contacted each individual lead before you receive it to ensure their seriousness in wanting to start a home based business. You will receive all of their contact information and best time to call so that you are able to contact them at a convenient time and speak with an individual that is sincere about making money from home. We also offer our Telephone Interviewed Leads in female only for any business that prefers contacting only women. 

In order to succeed with mlm you need to be a good leader. You can’t just be a good follower because to do well you need to recruit others into the business. If not you will be working too hard trying to generate sales yourself. The real big money happens when you recruit others and they generate sales for you. But if you aren’t good at motivating others they will not succeed and will look to leave the mlm business.
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
If you recruit a distributor who advances to the final step and breaks away from your group, what happens to your commissions? Yes, your total group volume will take a hit, because you’ve lost one of your best recruits. However, most companies will provide you with a bonus commission, referred to as an override commission, for creating breakaway legs (or recruits that end up breaking away, forming their own group).
I love love love this article! I’m a business growth coach who works with small business owners and often leaders from other MLM’s. From time to time I’ll get someone who has been struggling significantly even getting started and I find that it’s sheer absence of knowledge of the numbers. They are still under the impression that if I get three, and they get three then we’re all going to be millionaires. It’s very sad but the truth is not being told. Being in an MLM is hard. But it is very doable. I have had significant success in the past, while I am not in an MLM now. Nor do I want to be, you must be all In to make it work. Thank you for sharing this. I would love to interview you on one of my webinars
RESPONSIVE MLM LEADS/NETWORK MARKETING LEADS: Starting a Home Based Business doesn't mean that you have to pester your family and friends to join your business. You don't need to become a social pariah to make money. MLMLeadSpecialist puts you in touch with people who like you, want to start a home based business. Now you can reach excited and eager MLM/Network Marketing prospects and close sales!
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