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]
A salesperson can build his commission rate by advancing in rank/steps and by recruiting new distributors. Consider the commission rate of 10 percent if you were on the third step. If you recruit three distributors who meet their goals and earn the commission of 6 percent, then you earn something called differential commission, which is the difference between your commission and the commission of your recruits (an extra 4 percent). This way, your commission is tied to the group’s commission as well, ensuring a group effort when recruiting and selling.
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.

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.


But the truth is, an MLM lead purchase is NOT a purchase, but an investment in your business. One good MLM lead can produce tens of thousands of dollars in volume and revenues. If you understand that, then the pricing should not be as important as the quality and training of the Network marketing lead company. And of course, REPUTATION had a lot to do with the selection as well. Some companies that came across really well, when checked on, did not have a very good reputation for MLM Leads and service. 

Thanks for the list. As with anything it’s a matter of opinion and you have to put in the work to see results. If you’re just doing parties in your hometown, that’s probably not going to work. With all the tools you have in the Internet you can really promote whatever it is you’re selling. If you want to be successful with a good company, you have to look at it as a business and roll up your sleeves.
This is awesome! I didn’t know there was an MLM company that sells wine. I may look into this. I’m still on the search for a solid company. I pretty much have PTSD with MLM companies because of past teams I signed up under. They were all about hype and money but never did explain HOW to build the business. It was so bad that I am now more cautious and aware of these type of people.
Elite MLM Leads powered by Media professionals is one of the premier mlm leads companies in the industry and it's easy to see why... Elite operates with a single passion: generating the world's most responsive and best converting business opportunity leads. Its reputation for high quality service and network marketing leads is recognized throughout the industry.
Let’s face it, whether you call it multi-level marketing, direct sales, or network marketing, the entire industry gets a bad rap.  It’s often labeled as a pyramid scheme or get rich quick scam, and frankly, there is ample evidence to approach it with caution.  However, as I have studied trends in this business model, I have come to a very different conclusion. One that actually suggests that network marketing can play a crucial role in how well baby boomers and others transition into retirement.

I thought That your article was very good. My wife recently joined this company called World Ventures and me being me I figured it would be like some of the other companies that she has joined. You know a bunch of women companies scentsy, 31, etc but the reason I took notice is when she made 500. I know it’s not much but i know if she can make that faster than she has with some of the others she has joined without my help then maybe this thing is the real deal. What do you know about it? I have met some of the people and they seem genuine unlike some of these others like Amway and I don’t feel like it’s all about freaking selling like most of the others. Just shoot it to me straight.

Just because you paid for the lead, it doesn’t mean that you should get emotionally attached to each one. Buying leads is, and always will be, a sorting process to find your next business partners. If you are terrible at the phone, either, buy MLM leads or get a job at a telemarketing company. Gaining experience on the phone is worth its weight in gold. Every big recruiter or enroller is good on the phone. Most of them used to be terrible but experience made them better.
The main website a lot of people use when they are online is social media. These websites are where you can sit there and talk to anyone around the world that you know, and chances are that most people you know have an account on these kinds of things. You’ll want to make sure you do some looking into making a business account, because marketing through your personal profile may not do so well for you. Social media sites are free to use, but they also have ways you can pay for ads that go out to people.
Serving our clients since 2005, CustomLeads.net is your "one-stop shop" when it comes to Network Marketing Leads, Home Based Business Leads, and Business Opportunity Leads. We provide not only up-to-date lists and contacts to bring sales and affiliate building to your business, but we also provide you with highly qualified individuals who are truly interested in pursuing a work from home business. If you're looking for people who are interested in home based business opportunities, we have that information available for you.
Some MLM reps will promote their business as a "job" or use other description​s to lure prospects. MLM isn't a job, it's a business. Any MLM rep promoting "employment" is using deception and isn't someone you want to work with. Other deceptive (and often illegal) practices include making income guarantees or suggesting you'll make money doing very little. 
Facebook used to be an easy source to tap into, but since they have formed a public company with shareholders who need to be kept happy, Facebook have changed their Terms of Service several times recently and have clamped down on a number of things that used to make lead generation relatively easy. They have discouraged siphoning off clients to external web sites and CPA offers, and have raised the cost of advertisements that do this. It remains a viable lead source however.
The U.S. Federal Trade Commission (FTC) states: "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people—except perhaps those at the very top of the pyramid—end up empty-handed."[45]
What you want to watch out for are "fast track" programs or pressure to have inventory that requires additional investment. Due to this practice, the law now requires MLM companies to buy back inventory, but that doesn't mean you want to be saddled with debt before you start and truly understand the business. Having a few popular products on hand can be nice, but don't fill your garage with products unless you know for sure, based on your experience in the business, that you can sell them.
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.
Lead generation is important for your business to grow; as a business owner, you however need to know how effective these leads will be for your business. This can be measured in terms of returns on investment and how fast it will be.  The MLM Company should be able to give you an estimate on when they can generate these leads and instigate them for action, and when you should be able to see results.

Each company will have a different startup cost, which is a fee that new distributors must pay to begin distributing. Companies with high startup costs are more likely to be recruitment-centric MLMs. MLMs that focus on recruitment are generally called pyramid schemes, or schemes designed only to tie down new recruits instead of selling quality products to interested customers.
Independent non-salaried participants, referred to as distributors (variously called "associates", "independent business owners", "independent agents", etc.), are authorized to distribute the company's products or services. They are awarded their own immediate retail profit from customers plus commission from the company, not downlines, through a multi-level marketing compensation plan, which is based upon the volume of products sold through their own sales efforts as well as that of their downline organization.
I just started selling for one of the top 15 and I went in knowing that this was just supplemental cash and nothing that would support my family. I spend 15 minutes (mostly from my phone) a day on my business and am happy with what I’ve done thus far. If it covers groceries and some extras like clothes or shoes, I’m good. If I start to become even more successful, great. It’s my competitive nature to want to out rank others, so I find it to be more of a personal challenge than thinking I’m going to get rich and stay rich. I appreciate the article and the no BS attitude.
I see Melaleuca on here. I see that as both good and bad. They are an awesome company with a great compensation plan. However, they are not an MLM. They are not even listed with the federal agency that oversees those companies. They are a Consumer Direct Marketing company. How does that differ? While I am required to purchase a certain amount each month, that’s all I need to purchase. It’s all products I use in my own home for myself. I don’t have a monthly quota to meet. I don’t have to buy product and sell it to people. The idea is that the product goes to the consumer only. In fact, it’s against company policy to buy product and sell it to others. The only comparison I see are the “levels” of customerS in my group. Can you shed any light on why you think they are an MLM? Thanks, so much!

“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)
"I had pretty tough time getting my downline in order. With no leads coming my way through contacts, I decided to avail the services of a professional MLM leads provider. Business Opportunity Leads was my obvious choice due to the multiple guarantees you get while signing-up. Basically, I had nothing to lose when I signed-up because my business was going nowhere without quality MLM leads and your guarantees assured me that I won't be ripped-off of my hard-earned money. The results were terrific. Many leads turned into sales and my business was back on track. My HEARTFELT GRATITUDE TO YOUR TEAM!"
There are a few ways to use LinkedIn lead generation as an effective marketing tool. One way that people don’t often think of is participating in LinkedIn answers. There is a section on LinkedIn where people ask industry-specific questions and get advice. As an industry insider, you have the knowledge that can help people with these questions. Through participating in a regular dialogue of advice-giving, you can establish yourself as a thought leader. Moreover, you can optimize use of this tool by pointing people to your online blog that gives more information about the subject. Make sure to send them to a blog with a call to action at the end!

The legal distinction between MLMs and traditional pyramid schemes has been characterized by many authorities as a legal fiction. Jurisdictions that retain a legal distinction between MLM pyramid businesses versus illegal pyramid schemes retain said distinction on two key distinguishing features: 1) that MLMs always encompass the sale of actual products/services, while traditional illegal pyramid schemes ordinarily do not (though sometimes they do), and 2) that climbing an MLM pyramid is overwhelmingly statistically improbable (especially to its highest participant levels) but not theoretically impossible, whereas climbing a traditional illegal pyramid scheme is both statistically and theoretically impossible.[citation needed]


The kinds of leads that you are likely to get for free are ones that have been gathered in a scatterspray way – they could be poorly targeted, or in some cases even people who have not opted in at all. If you contact leads like this, then you will be putting your brand at risk, because you could end up in trouble with your web hosting provider, or the law, for unsolicited marketing. Alternatively, you could end up contacting  people who might otherwise have converted, but who come to view your brand as a spammer because of the way the initial contact was made.
Don’t give up, and don’t throw money into areas where you don’t have to. There’s no such thing as completely free marketing leads – you are always risking something, whether it is your brand, or your future earning potential. However, with good networking, passion, and the right people, you can achieve success. Talk to some mentors and more experienced marketers today, and see what they have to say for you. You may be surprised at how much you can bring in, with the right choices when you are getting started.
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.
In order to be successful at any business, you need strong support and solid training. The law requires MLM companies give you a slew of information, including financial details about average income. Study this and ask questions. If the rep is hesitant to answer or glosses over your concerns, he's not someone to work with. A legitimate MLM company wants you to be informed 
Many competitors will seek to confuse you with a range of leads that is just way too wide and complex. It’s like trying to compare apples with oranges and is designed simply to confuse you. There are only two types of business opportunity leads anyone needs to know about. Economy and Premium. Both are good but of course Premium is better. Both types of home business opportunity or bizop leads are fully guaranteed so all the risk is on us.
Great article and you nailed it regarding purchasing leads. I tried a few times talking with various people over the phone but none committed. I often wonder how the greats like Dexter Yager and Bill Britt (both amway reps) built their businesses to such a large magnitude without the use of social media. I certainly believe social media has made building network marketing businesses much easier than back in the day.
The legal distinction between MLMs and traditional pyramid schemes has been characterized by many authorities as a legal fiction. Jurisdictions that retain a legal distinction between MLM pyramid businesses versus illegal pyramid schemes retain said distinction on two key distinguishing features: 1) that MLMs always encompass the sale of actual products/services, while traditional illegal pyramid schemes ordinarily do not (though sometimes they do), and 2) that climbing an MLM pyramid is overwhelmingly statistically improbable (especially to its highest participant levels) but not theoretically impossible, whereas climbing a traditional illegal pyramid scheme is both statistically and theoretically impossible.[citation needed]
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