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).
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.
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.
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I appreciate this comment. I’m a doTERRA gal. When I signed up I said I’d never sell. I just wanted to buy and use the oils. Then because of my love for them, people started coming to me for education and asking where they could get oils. So now I sell them. I’m not a sales person. I can’t bug my friends about stuff. But I’m growing this business because I truly believe in the products and use them every single day. I may not ever become rich from this and that’s OK with me. I won’t consider it a failure. Every person I help is a success in my book!
I’ve been invited by two people to join MLM businesses. I tried to explain to the first one that she was involved in a legal pyramid scheme, but once you’re sucked in, it’s like you’re brainwashed. When the second person came along, I didn’t even bother trying to talk him out of it. I wrote a post about MLMs back in June and came to the same conclusions that you did.
Writing MLM-specific articles is another great way of establishing authority inside of MLM. When people type in a search term or phrase on a specific MLM topic, and an article appears with the networkers name as the author, if the article answers a specific question, and is not just a spam piece, then the reader will visit the site to learn more about the author.
I don’t care where doTERRA in ranked. The oils are good, but the company SUCKS. It is all built on big bloggers. Don’t have a big blog – you’re going to make pennies while others demand you make a minimum $100 a month order. The company itself has great customer service, but try to reach compliance or tell them that your uplines are making fake accounts or ordering off multiple people in the downline just to ensure they make bonuses and NO ONE listens. It’s supposedly geared to help the underdog succeed – this is a gimmick.
I am not at all saying that someone can't find leads and get sign-ups from some of these systems. However in the end, network marketing is about creating relationships. If you are looking for fast, SHORT-TERM money... Google MLM leads and go to town. If you are looking for a long-term, consistent income... get to know your upline and learn how they became successful. I, personally, have yet to talk to a truly successful network marketing professional that has told me about any 'shortcut' to success.
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!
It seems to me that in your assessment of the top 25 MLM that you had a preference for one essential oil company (Young Living) over the other (doTERRA) which outranked YL. You give a glowing review of YL and state that they “set the standard” & are a “solid pick”. While you seem to question why people could possibly like doTERRA with comments like “Users swear by the oils, and for whatever reason, people (and not just people in Utah) are strangely passionate about telling their friends about them.” For “whatever reason”??? “Strangely passionate”??? You come across as bias. You also incorrectly state that YL set the standard for quality, while they may have been the first legit EO Co. they didn’t set the standard. Infact their lack of wanting to find the purest most potent EO available (which comes from the country the plants are indigenous to) and having strict testing to ensure the purity and potency is why doTERRA was founded, doTERRA set the standard because YL didn’t want to. And that is why doTERRA is the #1 EO company and why Young Living is not. Not to mention how well doTERRA takes care of the suppliers through Co-Impacting and how they’re improving their lives through The Healing Hands Foundation. The foundation builds wells, schools, provides personal care products as well as many other things. doTERRA is changing lives for the better all around the world so that is one of the “reasons” we’re “strangely passionate” about spreading the good news of doTERRA essential oils. Not only are doTERRA EO more potent and purer making the the “solid pick” they are literally saving peoples lives.
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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.
Pyramid schemes are not a simply exchange of money… MLMs with products can be illegal pyramid schemes. One example of an MLM – pyramid scheme with products that got shut down by FTC is JewelWay: http://www.ftc.gov/opa/1997/11/jewel-2.shtm. The FTC says nothing about product being reasonably priced. That’s a slippery slope when people will pay thousands for a fashionable handbag.
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.
Great article and thanks for taking the time to write this.. however I can see why your business didn’t fly as you had hoped. Mlm is a people’s business and that means that it IS the interaction with each other that strengthens working together. Yes you need to be self motivated but you also need to be a supporter too. Networking also eliminates the need to do constant appraisals. You don’t work you don’t get paid. That’s music to a corporate managers ears. Networking is not for everyone… but where else can you invest for such a small amount and have all the other aspects of business done for you and all you have to do is go get customers and recruit more customer finders and have no ceiling on being paid for that. As for the product you promote.. you choose something you like. My original passion as a woman was make up so I joined that type of business. Got so passionate I qualified as a beautician and onto other certificates then I discovered essential oils.. I needed supplies but minimum trade orders were over £3000 each time. Mlm on the other hand was order as my demands and finances could afford. So my interest in mlm grew. Now I would not go back to traditional office work. When I know when I apply myself I can exceed what ANY employer thinks I’m worth
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.