The main sales pitch of MLM companies to their participants and prospective participants is not the MLM company's products or services. The products/services are largely peripheral to the MLM model. Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor."[16] Erik German's memoir My Father's Dream documents the real life failures of German's father as he is lured into "get-rich-quick" schemes such as Amway.[17] The memoir illustrates the multi-level marketing sales principle known as "selling the dream".[18]
Technically speaking, pyramiding is an illegal practice of a company that solicits their members to recruit more members, more than selling the product. In turn, the primary source of income for its members is the number of members they have recruited instead of the products they have sold over time. Clearly, not all MLMs are pyramid schemes, but it all seems like a matter of degree.

As the owner, you are the face and voice of the product whether you like it or not. Expect to spend an inordinate of your time managing people, their emotions and expectations. The heavy reliance on residual income means that your income stream may dry up suddenly if a salesperson fails to meet his quota. This could easily happen, because in many cases that salesperson must not only be accountable for his sales, but of the sale people he recruits under him. These are people he may not know. Therefore, your earnings potential is limited by the selling ability of others not directly under your control. A MLM business may strain your personal relationships. Lower-tiered salespeople, particularly those within your circle of family and friends, may harbor ill feelings if they fail to advance within the organization.
On a side note, I started using doTERRA about five years ago and love the oils! I didn’t join them to sell, or make money. I just wanted to raise awareness in what they could do and help with for individuals and families, as they did me and mine. In fact, many of my friends are now distributors (not under me). Lost opportunities? Not at all, in my book. More power to them! Back to R + F, and a little more insight from you would certainly scratch an itch.
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.

The Internet has made it so easy now. In the old days you had to actually visit people, or at least call them, to pitch your fabulous new opportunity. Face-to-face marketing is still practiced, but it is not so common these days. Besides, no one really loves the idea of having someone over, so they go online where everyone can be as safe as they want. They create sites with videos, testimonials, and pictures.


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.
The main sales pitch of MLM companies to their participants and prospective participants is not the MLM company's products or services. The products/services are largely peripheral to the MLM model. Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor."[16] Erik German's memoir My Father's Dream documents the real life failures of German's father as he is lured into "get-rich-quick" schemes such as Amway.[17] The memoir illustrates the multi-level marketing sales principle known as "selling the dream".[18] 

The Filipino community, much like many immigrant communities, is ripe for the recruitment of participants in MLMs. Filipino immigrants can be particularly easy targets to exploit, as this Filipino-American writer can attest. They are easygoing and friendly. The ones with a college education understand and speak English very well. The community is crawling with network marketers hawking everything from cosmetics to travel packages to insurance products, courtesy of companies that promise the dream of passive income as well as incentives such as car bonuses and vacations.
Hi Jeimy. Fuxion is an excellent company. Fuxion is a Peruvian company that is spread in 12 countries, including the US. Randy Gage has decided to join Fuxion as a networker 2 weeks ago! Robert Kiyosaki and John Maxwell are current Fuxion’s advisors. Fuxion’s nutraceutical products are made of fruits and vegetables from the Amazon region, Andean region, Central America and Asia. The company is in its best moment. So I recommend you to join us!
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.
QUALITY LEADS THAT ARE NEVER OVERSOLD: Responsive MLM Leads are essential for the growth of any network marketing/home based business. Many of our competitors resell leads innumerable times and render the leads unresponsive and worthless. Unlike our competitors, we pledge to sell our leads a maximum of 2 times to two different and absolutely unrelated businesses. In fact, our exclusive leads are sold just once!
Pay Per Click or PPC can be very effective in the right hands. If you do it the wrong way it can be a fast track to financial ruin. Unlike Facebook Ads where you can see how effective your ads are within minutes, Google AdWords are much less responsive and you can use up a lot of cash before you hit the winning combination. Concentrate on being very focused and specific. If you are not, you will get lots of clicks on an ad which sounds right, but results in low conversion rates when people find that it’s not exactly what they are looking for.
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.
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”.

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.
A 2018 poll of 1,049 MLM sellers across various companies found that most sellers make less than the equivalent of 70 cents an hour. Nearly 20 percent of those polled never made a sale, and nearly 60 percent earned less than $500 in sales over the past five years.[42][43] Nearly 32 percent of those polled acquired credit card debt to finance their MLM involvement.[44]
On the other hand, if you are the owner of the company where those 100 persons have offered their skills, time and talents, and if you can gain $1.00 from each person on the field, you will earn $3000 after 30 days doing nothing. Obviously, the time spent for both the worker and the owner are the same (30 days), but the gain on the side of the owner is tremendously huge.
Yes, you might want to learn the overview of it so you’re knowledgable and understand how your checks are getting formulated, but I’ve met too many successful networkers who can’t explain comp plans to spend any real time on them. When people ask questions, I refer them to the documentation that’s available and ask them if they’re ready to start a business they can work from home – even online in most cases.
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

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.
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