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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).
Second, many reps and companies know people are leery of and have many misconceived notions about MLM, so they use deception to get prospects to hear their spiel. The important thing for you to remember is to follow your gut feeling. Good reps from legitimate companies that are prevented from using a company name in promotions are usually able to provide some idea about the business (including the name) when talking to you in person (or phone), and are clear that it is a business. Anything else should be suspect.

Multi-level marketing is a strategy some direct-sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales. The recruits are the distributor's "downline." All distributors also make money through direct sales of products to customers. Amway is an example of a well-known direct-sales company that uses multi-level marketing.
They’re sliding, though. Revenue is falling in North America and their sales force is shrinking. Revenue slid 19% in 2013 and 7% in Mexico. Skip ahead to July 2015 and revenue is still spiraling downward, with a 17% drop (5). Analysts blame Avon’s failure to maintain a strong identity for its products as well as the strong dollar. Lesson: Always re-create yourself. 

I believe the ones that don’t make it in the industry (if they chose a good one) don’t give it enough time (like you said they quit before a year is up) and commitment to doing what it takes to grow. I don’t spam FB and only 2 family members order product but I have at least 100+ home school moms making >$2000/mth. Some team members make more, some less. It’s what they put into it (business wise not monetary)
I have been looking over your sites and viewing the many videos. It sounds appealing however there are many many . . . many lead generators out there, some that are well established (and very good at what they do) and so my question is why would I pay you to train me for 5 weeks and think I could compete (let alone generate income) in the short period you mention?
Prequalified prospects, sales referrals, or genealogy lists, whatever name is used, MLM leads are the lifeblood of any MLM (multi-level marketing) business, and without a continuous supply, the network marketing distributor will go broke and have to close down their MLM business. The question most networkers ask is “where do I get the best possible MLM leads for little or no money?” Are they generated on the internet, bought from an MLM lead-generation company, worked in the local market or found among friends and family? The answer is easier than it may seem; all of the above.
People who wonder why network marketing doesn’t work have likely also never joined the best MLM for them at the time or had great upline support and a team around them to get through the often frustrating first few months. Opportunities abound – even publicly traded multi-level marketing companies, who you would think are these huge businesses that give you no attention, have small teams and wonderful leaders to join. It’s just a matter of finding the top teams in the company you’re looking at.
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.
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.
I found your article interesting. My wife and I have been involved with AdvoCare since November 2011. Even if I never make another dime in AdvoCare, I will continue to use the products because they have worked and continue to work for us. What I find interesting is the statistic that the majority – 99.7% in MLM actually “lose” money. What is the context of that statistic? That would mean A: the majority of MLM companies don’t have a buyback or return policy B: people that get started with MLM’s have to take on much more inventory that they are able to sell or C: this statistic is not accurate. I believe that C is the right answer. I do agree there are flaws in the MLM industry just as there are flaws in every industry. However, I believe that the MLM industry has made huge improvements in recent years and we do have a better way. People are the variable. When you have a great product, a passion and purpose that drives you everyday, are teachable and coachable, and love others as much as you love yourself, you can be successful in this business. Through the process of investing in your own personal development and learning to serve others, you are able to lead others to do the same. Thanks again. I look forward to reading more from you in the near future.

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.
I recently spoke with San Diego based, Vicki Martin, about her experience with Rodan + Fields. Here's her take on her home business and why the opportunity was so appealing for her and her family, "The decision to join Rodan + Fields Dermatologists came easily. Since 2008 the construction industry [which I was previously in] has been hit hard by our economic downturn and my income has been greatly affected. We were working harder for less like many of our friends. Being part of Rodan + Fields Dermatologists is allowing me to work with highly educated people who share a passion for business and for teamwork. Building a recurring, residual income that grows month over month is going to give my husband and I the peace of mind and financial freedom that is so vitally important to our future. My skin looks better than ever. And, I get to work my job around the rest of my life instead of the other way around."
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.
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.
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.
Carl Rehnborg is credited as having started the multi-level marketing industry back in the 1930s. After learning about the benefits of dietary supplements in China, Rehnborg came back to the United States and started a company called The California Vitamin Company, which was later rebranded to Nutrilite. Six years after that rebranding, Rehnborg reorganized the company’s structure and the way it sold products into what we know as MLM today.
They’re sliding, though. Revenue is falling in North America and their sales force is shrinking. Revenue slid 19% in 2013 and 7% in Mexico. Skip ahead to July 2015 and revenue is still spiraling downward, with a 17% drop (5). Analysts blame Avon’s failure to maintain a strong identity for its products as well as the strong dollar. Lesson: Always re-create yourself.
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.).
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First, Elliot, thank you for this article. Your sense of truly wanting to help comes through and it’s refreshing. Like MommyFinance, I too have suffered PTSD from previous runs at MLM but I have been looking for legitimate ways of making extra income and seems I’m being directed toward trying MLM again. Your article gave me hope that there are some good ones out there. What you said about finding the one that fits me and leaving a legacy for family really turned on a light for me and I greatly appreciate that. A wine business is not quite up my alley but I will certainly direct those who might be interested your way.
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