“What causes the average, otherwise shy person to suddenly think they can be a wealth-generating salesman? Because someone showed them “the math.” I’m sure you’ve heard it. All you have to do is find 5 people to join, and those 5 will find five, and those five will get five, and 6 months later you will have 20,000 people working for you, and you’ll be earning $10,000 per month. Really?
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An example of a high-profile multi-level marketing company defending its practices is Herbalife Ltd., a manufacturer and distributor of weight-loss and nutritional products with more than 500,000 distributors. Although the FTC had been investigating Herbalife, it was activist investor William Ackman who shed a national spotlight on the company by shorting $1 billion of the company’s stock in 2013. Ackman accused the company of operating a pyramid scheme and backed his allegations with a bet the company’s stock price would fall under the weight of the scam.
This eco-friendly MLM is seriously committed: their headquarters are operated with wind power. They’re pretty future-facing in general, having implemented an innovative social marketing strategy amongst their reps. No one likes to be harassed on Facebook, but Modere’s social media plan is still 10 times more effective than holding home parties (kill me).
What is a network marketing professional? Tell me what that is. A person who can approach well-dressed people in Wal-mart and hand them their MLM business card? Someone who writes a list of their family and friends and then 3-way call them with their “higher-up” sponsor? Really, if someone can tell me what being a network marketing professional entails, I’m listening.
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.
Many MLM companies recommend starting with a list of 100 people you know, called your warm market. Although it's not a bad place to start when looking for customers and business builders, the technique could also backfire and get to the point where you're annoying friends and family. You're better off spending your time finding people who are interested in what you've got rather than trying to convince your commuting buddy to sign up when he doesn't want to.
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.
Multi-level marketing, abbreviated as MLM, also called pyramid selling, network marketing and referral marketing, is a controversial marketing strategy for the sale of products and/or services where the revenue of the MLM company is derived from a non-salaried workforce (also called participants, and variously known as “salespeople”, “distributors”, “consultants”, “promoters”, “independent business owners”, etc) selling the company’s products/services, while the earnings of the participants is derived from a pyramid-shaped commission system.
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.
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.
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No matter what you are selling online, your chances are much higher that these business opportunity buyers will actually take action, than with a list of bizopp seekers. Bizopp buyers are actively looking, researching and buying the things they feel they need to increase their income. And when it comes to increasing their income, people can become locked-into a product that is appealing.
Influence – John C. Maxwell says that a leadership is influence, nothing more and nothing less. Everything rises and falls on leaderships, so it’s an essential attribute for success. Influence is also used to effectively and persuasively communicate the virtues of a good product or service, and to get people to say YES! We also know that at sales.
MLMs are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms. There are even claims that the success rate for breaking even or even making money are far worse than other types of businesses: "The vast majority of MLMs are recruiting MLMs, in which participants must recruit aggressively to profit. Based on available data from the companies themselves, the loss rate for recruiting MLMs is approximately 99.9%; i.e., 99.9% of participants lose money after subtracting all expenses, including purchases from the company." In part, this is because encouraging recruits to further "recruit people to compete with [them]" leads to "market saturation." It has also been claimed "(b)y its very nature, MLM is completely devoid of any scientific foundations."
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.
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.
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.
MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils. And the Regulations require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from the Ministry of Commerce ("MOFCOM"). In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license. Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in Hong Kong, where the practice is legal, while selling and recruiting on the mainland.
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