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]
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.
By theory, the MLM mode of operation is simply more cost efficient and easier to run. However the recruitment of sales agents revolve largely around the idea of hitting the jackpot of financial freedom. Simple math will tell you that most people will obviously not make it big through MLM. A certain individual even goes as far to say that 99% of people don’t ever make a profit during his interview with CNBC.
Multi-level marketing (simplified Chinese: 传销; traditional Chinese: 傳銷; pinyin: chuán xiāo) was first introduced to China by American, Taiwanese, and Japanese companies following the Chinese economic reform of 1978. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Multi-level marketing was banned on the mainland by the government in 1998, citing social, economic, and taxation issues.[62] Further regulation "Prohibition of Chuanxiao" (where MLM is a type of Chuanxiao was enacted in 2005, clause 3 of Chapter 2 of the regulation states having downlines is illegal.[11] O'Regan wrote 'With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not'.[10]
I love love love this article! I’m a business growth coach who works with small business owners and often leaders from other MLM’s. From time to time I’ll get someone who has been struggling significantly even getting started and I find that it’s sheer absence of knowledge of the numbers. They are still under the impression that if I get three, and they get three then we’re all going to be millionaires. It’s very sad but the truth is not being told. Being in an MLM is hard. But it is very doable. I have had significant success in the past, while I am not in an MLM now. Nor do I want to be, you must be all In to make it work. Thank you for sharing this. I would love to interview you on one of my webinars
It’s estimated that in under 2 years almost 90% of web traffic by volume will be video. If you have the skills, or can hire a good SEO specialist, it is possible to rank a sales video on Page 1 of Google with relative ease depending on how competitive your niche is. Put a visible call to action in the title which appears in the search engine results page, and link the YouTube video through to your web site and with luck you should have a nice flow of leads as long as your video is listed on Page 1. 

With the advent of internet marketing has come a whole new science of selling online making the acquisition of those elusive network marketing leads just a little bit easier. Easy access to the internet for both the marketer and, much more importantly, their potential customers, has forced a whole new set of ideas to the forefront. Here are just a few of the options that are now available.
The database should provide information about businesses and individuals who have willingly offered their personal information through telephone interviews and opt-in Internet forms. Because of this, you know that the opportunity seeker email leads that you will receive are open to the business opportunities that you will be offering them and will not be annoyed when you call them with your proposal.
Working with your various leads should get you somewhere, or else you need to rethink your plans. If you find that engagement is still low after you try yourself to get leads that turn into paying ones, you should just buckle down and study on what you’re doing more. Anyone that wants to be successful has to alter what they are doing so that they can get more from the people they are working with. You really need to get this underway or else it’s going to end in you wasting time with leads that won’t pay off.
Then figure out where your target customers can be found—both physically and virtually. College students who need more income can be found on campus or on online forums or websites about learning to manage your money. Athletes and people who lead healthy lifestyles can be found at gyms and online groups or websites about running, yoga, healthy eating, and more.

Great job on the top 25 MLMs. Really like what you’re doing for the industry as a whole. Your analysis is spot on. However, a closer look at retention rates for each company might give you another perspective on the value proposition of any given company. As a Doterra Wellness Advocate we are told by our corporate execs that we have a 65% retention rate with customers repurchasing the product within 3 months. And that if we based it on the industry standard of 12 months our retention would go up to 85%. I’m told that this is unprecedented in network marketing. So I’m believing that Doterra is succeeding because its selling a product that works and that users and word-of-mouth drive the business in the long run.
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)
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Then figure out where your target customers can be found—both physically and virtually. College students who need more income can be found on campus or on online forums or websites about learning to manage your money. Athletes and people who lead healthy lifestyles can be found at gyms and online groups or websites about running, yoga, healthy eating, and more.

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").[63] In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license.[64] 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.[10][65]


Although emphasis is always made on the potential of success and the positive life change that "might" or "could" (not "will" or "can") result, it is only in otherwise difficult to find disclosure statements (or at the very least, difficult to read and interpret disclosure statements), that MLM participants are given fine print disclaimers that they as participants should not rely on the earning results of other participants in the highest levels of the MLM participant pyramid as an indication of what they should expect to earn. 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 dependant on the continued financial loss and failure of all other participants below them in the MLM pyramid.
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.
Thinking about quitting your job and starting your very own home-based business? Great! Thinking about how you’re going to go about taking on this big venture? Hmmm… That’s a really great question, right? You can either take control of your life today and start doing what it takes to make this dream come true, or you can keep dreaming, it’s up to you. If you choose to take control, take the first step by choosing one of our many Lists so you can start to reach out to those who can help you reach your goals.
Thoroughly enjoyed reading your mlm breakdowns and the comments, thank you Jeremy. Had a successful mlm business but had to make a decision to give it up or have a breakdown due to ongoing upline bullying so at a big crossroads at the minute. being an ‘older’ lady here in the north of England doesn’t bode well for conventional job hunting in the current economic climate so some serious thinking needed on my part and QUICKLY lol. Thanks again Jeremy x
Multi-level marketing companies are not required to release information about the average income of distributors in the United States. However, some MLMs do release this information in what is called an income disclosure statement. If you would like to see the amount of income gained by distributors on average for a specific MLM, search the company’s name in Google + “income disclosure statement.”
Twitter offers a more automated means of lead capture. With a target web site, either your own or the ‘offer’ money site, you are in a position to write short articles or blogs and then post Tweets carrying links to these articles. Keep those down to about 10% of the total, linking the other 90% to interesting on-topic snippets elsewhere on the web. Then use a good scheduler to queue a week or two’s Tweets and then let it run on auto pilot.
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. 
I totally agree, Mary. You can lose soooo much more just by opening up a small storefront business. I was in the Spa Industry and then the economy tanked in late 2008. I did not renew my lease in 2009. Lost my several hundred thousand dollar build-out. Lost so much more than taking an MLM business seriously. Even if I would have front loaded on a ton of product, I still would have been better off. People spend $750 and get some business cards then do nothing and blame MLM.
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.
Melaleuca, Inc. is listed as a Direct Marketing Company. The company contracts with independent marketing executives who refer customers to Melaleuca that purchase its various lines of nutritional, pharmaceutical, personal care, household cleaning, and pet care products. They also offer travel, phone and credit card services. Customers receive discounts if they order a minimum monthly product supply, but are not required to maintain an inventory of products. The company states that it offers a “Satisfaction or Money Back Guarantee”.
I’ve heard all the arguments. “How can it be a pyramid scheme if it’s legal?” Through some crafty loopholes. The fact that there is an actual product to sell allows them to operate and give the appearance of legitimacy. “You just haven’t found a good MLM yet.” Wrong. A good MLM is an oxymoron. “But how is this any different from any other major corporation where the CEO makes the most money?” Because the people below the CEO at legit companies get paid salaries and have actual benefits. They don’t depend on endless chains of recruiting new members.

If you have decided that your current methods of lead generation aren’t providing you with the results that you need for optimal success with your business, why not consider trying out FII-Inc and discovering what our services can offer towards the lead generation for your business? Already trusted and acclaimed by many clients, our services have helped to fill in the gaps in service that many small businesses and new business owners simply aren’t able to provide on their own. At Fll-Inc, we understand that lead generation can be a large and demanding responsibility – which is why we take care of it for you. 

Running a MLM business is more than just being able to get the right company in place. It is about being able to maximize all of the of them that are coming through the door. It is about being able to find those leads and making sure they are not gone until you have their money in hand and they are happy with the product. These tips should assist in putting forth a great actionable plan that is going to results in wonderful leads both now and in the future with equal effect.
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.).
Have you ever thought about running your very own Classified Ads site? Imagine not having to worry about hosting, maintenance, backups, or any of the other hassles that comes with running a classifieds site. With the Youmongus Ad Network we will setup your own classifieds site, with a domain name of your choice, and you'll be able to charge for ads, run banner ads, and build a large and successful ad site.
Thoroughly enjoyed reading your mlm breakdowns and the comments, thank you Jeremy. Had a successful mlm business but had to make a decision to give it up or have a breakdown due to ongoing upline bullying so at a big crossroads at the minute. being an ‘older’ lady here in the north of England doesn’t bode well for conventional job hunting in the current economic climate so some serious thinking needed on my part and QUICKLY lol. Thanks again Jeremy x
By theory, the MLM mode of operation is simply more cost efficient and easier to run. However the recruitment of sales agents revolve largely around the idea of hitting the jackpot of financial freedom. Simple math will tell you that most people will obviously not make it big through MLM. A certain individual even goes as far to say that 99% of people don’t ever make a profit during his interview with CNBC.
That not only fosters a positive attitude and atmosphere, but also a lot of structure and activity.  Many network marketing companies offer weekly calls, local meetings, and an annual conference.  All of which get members out of the house, building knowledge and developing new skills, while offering them the opportunity to meet new people and deepen existing connections.
I joined in the mid-90’s under a Dr that paid my way. We were somewhere in Paul Orberson’s dowline, below an AR kid making $80K+/month. I didn’t actually sign anyone as a rep, and just enjoyed doing the pitch to the crowd in the hotels, restaurants, and eventually auditoriums. I got paid by the Dr to tell the “long distance” story, and he went all the way to there top tier in under a year.

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Perhaps the only real way to reach free leads is to network with other, more experienced marketers, and perhaps get them to share their lists as a way to get you off the ground. With this, you aren’t really getting free leads as such – more leads at no up-front cost. The other marketers will usually expect that you will send commission to them for the sales that you make.
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).
There are many benefits that are associated with hiring lead generation for a Business Opportunity Leads business. This is a professional service provided by experienced individuals who have been trained in lead generation for years. Having a strong foundation in lead generation and high quality results ensures that clients will have access to more reliable leads.
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.
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