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.
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(May 2017 update: did this go under?) The sign up cost will make you do a triple take (almost four figures), but you get to set your own retail price on every product you sell. If you’ve got the skills to make people cough up the cash for their products (which, btw, are pretty legit), you could definitely make that money back. They’ve also been winning plenty of awards (even a growth award from the Direct Selling Association themselves).

How do you choose mlm leads that are genuinely interested in starting a home business, just like you? Where can you find an mlm lead generation company that takes you and your business seriously—one that actually cares about your success whether you are a leader with 50,000 people in your team or just starting out? You've come to the right place—a place where we make it easy.
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.
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.
This is one of the best ways of just getting out there and into the ears of people who will end up being prospective clients. Everyone should be your target and just getting the word out should drag in quite a few leads, if the product/service is good enough. This is why the first goal should always be to find the kind of product/service that is worth it.

OK here is the difference Steve. If you quit any of these MLM companies for a whole year, Continue buying product but help no one set up a shopping account, even 2 years, will you continue to get paid by the company? So Steve, as a Director with Melaleuca you helped 8 people total set up a shopping account. There is no Direct or multilevel sales in that, and if they shop you earn commission on their shopping. You will not know what they shop for and thats ok cause its private. Melaleuca is a Consumer direct Manufacturer that sells to the public the products that THEY THEMSELVES make. So by your standards then …Proctor and Gamble is an MLM also. Oh and yes, I took over a year off of inviting people to see what Melaleuca was, and still received my residual check every single month. It is against company policy to sell Melaleuca products.
Hey Erica, I’m a doterra gal also. Just over 3 years ago I just wanted to see if these hippie oils really worked from there I couldn’t keep my mouth shut and I share with whomever will listen. I recently read this in the leadership magazine and I love it. “An oil for every household, a drop to change a life”. That is my goal. I never plan to get rich off my sharing but if I can change a life, help someone along the way it will be worth my time.
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).
Another issue that Amway and other companies were dinged for was how reps would lure people into coming to a "meeting" to hear how they could "leverage time and money." There are two problems related to this. The first is that many companies, in safeguarding their brand, don't allow reps to advertise their name. This practice means reps have to find a way to entice people to learn about them without saying the company name, which can seems suspicious.
Choosing a company that offer quality training and support may help your business a great deal.  You must be taught the rudimentary of marketing, referrals and how to close sales.  The best company should help you to upgrade your skills to help grow your business. It must share with you secretes of driving your website and how to effectively utilize the leads. It must help you brand your business and reach to as many clients as possible.
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).
Commenting on other blogs and social networking profiles will expand the MLM distributor’s own network of friends, generating a new group of free MLM prospects. This should not be confused with spamming. Commenting should be done on specific posts and not just in a haphazard manner. Remember; each comment will include the name of the MLM distributor and a link to their website, blog or social networking profile.
Build an email list. There is a system for working with leads. The first step is getting them to be aware of and take an interest in what you have—by visiting your website, for example. The next best step is to ask your leads to sign up for your email list. You can get them to sign up by offering something for free, such as a report or something useful, from your website. For instance, if you're selling wellness products, then you might offer a guide to good-for-you ingredients or recipes. This will allow you to communicate with your prospects and provide valuable information related to your business and the general field that it's in, such as special sales, events, news, and research—and stay top-of-mind to your past, current, and possible future customers. Just be sure that you're following the laws and regulations regarding email marketing.
The major defining difference between other companies and MLM, is that they don’t mass market themselves, spending millions of dollars on television, radio and internet ads, but instead allocate that portion of their budget to pay hard working distributors who pound the pavement, form personal al relationships with clients, advocate their product, and hence donthe “marketing” for them.
A program with no or a low-quality product, or with a focus on getting paid per recruit, could be an illegal pyramid scheme. However, don't let the term pyramid throw you off. It's not the shape of the organization that makes it illegal. In fact, most companies have a pyramid structure with a CEO at the top, VPs next, mid-level managers etc. What makes an illegal pyramid scheme is the lack of a quality product, or that income is earned on recruiting, not commissions from sales. 

I disagree with that jeremy i would recommend MLM over working a Corporate 9 t0 5 $300 weekly paycheck job anyday. I quit my job for mlm i mean why not recommend MLM when you can make 10X the more money than you can at any stupid corporate america job..Working for people are for losers and i will defend mlm for the rest of my life bro you need to get your facts straight and look on youtube to see people buying new mercedez benzs and rolls royce working with mlm

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.

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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]
MLMs are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms.[57] There are even claims that the success rate for breaking even or even making money are far worse than other types of businesses:[58] "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."[58] In part, this is because encouraging recruits to further "recruit people to compete with [them]"[4] leads to "market saturation."[22] It has also been claimed "(b)y its very nature, MLM is completely devoid of any scientific foundations."[59]
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Hi Jeremy great article. Here’s my take for what it is worth,after working 50 years for the bank making not so much money,having to accommodate there time schedule ,negotiated vacations and seeing very few people advance to 6 figure incomes,I’m somewhat intrigued by the idea of using my retirement years looking at mlm as a part time endeavour . Obviously I put a lot of blood sweat and tears into my previous job,so I’m not expecting to make my millions in a couple years in mlm, but I like the (do it in your own time) idea. If I find a product I like and would use anyway why not? I also like the idea that the potential is there biased on your own efforts. Am I wrong What do you think?

In just 30 years, Melaleuca has grown from a little startup in rural Idaho to a billion-dollar enterprise doing business in 19 countries around the globe. It has become one of the largest catalog and online wellness retailers in North America. And it is the largest manufacturer of consumer packaged goods in the Northwest. Today, more than a million customers shop with Melaleuca every month.


In other words, they built their nest egg in a dead or dying tree.  They may not get along with their spouse any longer, don’t have a life or friends outside of work, have broken relationships with their children, or have let their health go in hopes of getting it back later.  They essentially sacrificed some of the things that are most important to them for the benefit of trying to buy them back in retirement.  As a result, when they get there, they can feel lost, out-of-sorts, and struggle with their transition.


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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