Multi Level Marketing
Multi-Level Marketing and how you can recognize an opportunity with any multi-level marketing business. The Good thing about any multi-level marketing business is you can create a side income or even a full-time income if you are willing to do the work. The bad thing about some multi-level marketing programs is the program your joining could be an illegal pyramid scheme so make sure you investigate the program first.
- What Is Multi-Level Marketing
- Multi-Level Marketing Business Model
- Multi-Level Marketing Companies
- Why Multi-Level Marketing Is Unethical
- Pyramid Scheme
- Why MLM Is Bad
- Is MLM Good
What is Multi Level marketing
Multi-Level Marketing is a business model that thrives on the sales of products and services from sponsored affiliates who work as salespeople in the company and their compensation is delivered to a multi-tier pay system when a customer buys the products or services from them.
Is Multi Level Marketing good or bad
Well, the first thing you should remember is multi-level marketing is a hard way to really make a full time living for most people who join multi-level marketing as the stats will show only 1 percent of people who join earn a full-time income.
Is Multi Level Marketing a good way to earn money
This can very well be a good way to earn money if you are one of those lucky one’s who falls into the only 1 percent of people who earn an income with multi-level marketing, most people who join never make their investment back from the lotions and potions they buy to promote.
What Is Multi-Level Marketing
Multi-Level Marketing or even Network Marketing as some people refer to them has a better professional appeal as it sounds a lot better than even pyramid selling.
With multi-level marketing, you are most likely to sponsor others into the business so you can build a peer to peer organization of selling products and services with the multi-level marketing business you join.
Now, don’t get me wrong here as there really is a legitimate multi-level marketing business you can join and turn your business into a full-time income if you so do so with some hard work and dedication.
Why the multi-level marketing business was formed as a way to hire affiliates to join them and go out there and promote their product and services to others without having to start any brick and mortar stores.
It’s a great way for those companies to have a sales force under them to showcase their products and services to others and reward them with a small percentage of the sales for doing so.
They also encourage those affiliates to go after others and sponsor them up as well sponsored affiliates so they can really reach the masses quickly even faster without the high cost of advertising or setting up brick and mortar stores as I said above.
Multi-Level Marketing Business Model
With any multi-level marketing business model, most do one thing that is common when it comes to building their multi-level marketing business.
They sponsor others to join them as newly sponsored affiliates and encourage them to have those newly sponsored affiliates duplicate the process so everyone gets compensated in the pay plan.
These direct sales companies tell their present affiliates to go sponsor others and in turn, are paid a percentage of the sales they and everyone else below them generate for their sales and so on down the cycle of sponsored affiliates they help sponsor.
The sponsored affiliates they help sponsor and so on down the cycle is how they earn a small percentage of the income and also for the sales of their direct customers they already signed up as customers for all sales generated directly from them.
Multi-Level Marketing is a legitimate business strategy but a lot of people will recognize them as being some kind of pyramid scheme.
If you are joining a multi-level marketing business that requires you to earn your commissions from only sponsor others into the business and not by receiving commission from just selling to customers then yes I would say it falls into a pyramid scheme of some kind.
When you join a multi-level marketing business and you are only earning a commission from sponsoring others to join the business and have them buy products and services it very well could be an illegal pyramid scheme.
Now if you are joining the multi-level marketing business and you’re getting commissions from selling products and services from customers who don’t join as sponsored affiliates then I would say it’s a good business to join without that fear of the pyramid scheme.
You should really do your investigating when it comes to joining any multi-level marketing business and know when to recognize a legitimate business and one that is not legitimate.
With any multi-level marketing business, you should really make sure they are following all the rules that are regulated by the Federal Trade Commission (FTC).
Multi-Level Marketing Companies
Here is a list that I have come up with that uses the multi-level marketing business model and have done very well in doing so.
This is an updated list of these companies at the time of me writing this article and this list might have changed at any time when you may come across this list of multi-level marketing companies who use this type of business model.
| Rank | Company | 2017 Revenue | Country | Year Founded |
| 1 | Amway | $8.80 billion | USA | 1959 |
| 2 | Avon | $5.70 billion | USA | 1886 |
| 3 | Herbalife | $4.50 billion | USA | 1980 |
| 4 | Vorwerk | $4.20 billion | Germany | 1883 |
| 5 | Mary Kay | $3.50 billion | Germany | 1963 |
| 6 | Infinitus | $3.41 billion | China | 1992 |
| 7 | Perfect | $3.06 billion | China | 1994 |
| 8 | Quanjian | $2.89 billion | China | |
| 9 | Natura | $2.26 billion | Brazil | 1969 |
| 10 | Tupperware | $2.210 billion | USA | 1946 |
| 11 | Nu Skin | $2.208 billion | USA | 1984 |
| 12 | Primerica | $1.52 billion | USA | 1977 |
| 13 | JoyMain | $1.49 billion | China | 2000 |
| 14 | Jeunesse | $1.41 billion | USA | 2009 |
| 15 | Oriflame | $1.40 billion | Luxemborg | 1967 |
| 16 | Ambit Energy ++ | $1.2 billion | USA | 2006 |
| 16 | New Era | $1.16 billion | China | 1995 |
| 17 | Telecom Plus | $1.12 billion | UK | 1998 |
| 18 | Belcorp | $1.09 billion | Peru | 1968 |
| 20 | USANA | $1.01 billion | USA | 1992 |
| 21 | Pola | $1.004 billion | Japan | 1929 |
| 22 | Young Living | $1.00 billion | USA | 1993 |
| 23 | SUN HOPE | $940 million | Malaysia | 2003 |
| 24 | DXN | $927.0 million | Malaysia | 1995 |
| 25 | WorldVentures | $926.6 million | USA | 2005 |
| 26 | Isagenix | $924.3 million | USA | 2002 |
| 27 | Yanbal | $924.0 million | Peru | 1967 |
| 28 | Team Beachbody | $863 million | USA | 1998 |
| 29 | Market America | $798 million | USA | 1992 |
| 30 | A C N | $750 million | USA | 1993 |
| 31 | Stream | $735 million | USA | 2004 |
| 32 | Tiens/Tianshi | $695 million | China | 1990 |
| 33 | It Works! | $686 million | USA | 2001 |
| 34 | Team National | $659 million | USA | 1997 |
| 35 | Yandi | $644 million | ||
| 36 | Miki | $597 million | Japan | 1966 |
| 37 | AdvoCare | $586 million | USA | 1993 |
| 38 | Arbonne | $541 million | USA | 1980 |
| 39 | Plexus Worldwide | $532 million | USA | 1992 |
| 40 | Rolmex | $515 million | China | 2001 |
| 41 | PM International | $460 million | Germany | 1993 |
| 42 | Scentsy | $456 million | USA | 2004 |
| 43 | LegalShield | $450 million | USA | 1972 |
| 44 | Le-Vel | $449 million | USA | 2012 |
| 45 | Omnilife | $375.93 million | Mexico | 1992 |
| 46 | YOFOTO | $375.92 million | China | 2004 |
| 47 | Fordays | $365 million | Japan | 1997 |
| 48 | Faberlic | $356 million | ||
| 49 | Kang Ting | $348 million | China | 1996 |
| 50 | Nature’s Sunshine | $341 million | USA | 1972 |
| 51 | 4Life Research | $328 million | USA | 1998 |
| 52 | AnRan | $321 million | ||
| 53 | Naturally Plus | $300 million | Japan | 1999 |
| 54 | NHT Global | $288 million | USA | |
| 55 | LR Health & Beauty Systems GmbH | $286 million | Germany | 1985 |
| 56 | Merro | $283 million | ||
| 57 | Menard Cosmetics | $267 million | Japan | 1959 |
| 58 | Family Heritage Life | $265 million | USA | 1989 |
| 59 | Viridian + | $263 million | USA | 2009 |
| 60 | Pro-Health | $257 million | China | 2007 |
| 61 | Noevir | $249 million | Japan | 1964 |
| 62 | Hy Cite Enterprises | $233 million | USA | 1959 |
| 63 | Resgreen | $232 million | ||
| 64 | KK Assuran | $229 million | Japan | 1994 |
| 65 | Take Shape For Life | $222.4 million | USA | 1980 |
| 66 | CUTCO | $222.0 million | USA | 1949 |
| 67 | Southwestern Advantage | $218 million | USA | 1855 |
| 68 | LifeVantage | $207 million | USA | 2007 |
| 69 | Kangmei | $206 million | China | |
| 70 | Pure Romance | $203 million | USA | 1993 |
| 71 | Alphay International | $200 million | USA | |
| 72 | Princess House | $195 million | USA | 1963 |
| 73 | Mannatech | $180 million | USA | 1994 |
| 74 | Charle | $173 million | ||
| 75 | BearCere’ Ju | $170 million | Japan | 1987 |
| 76 | Youngevity | $163 million | USA | 1997 |
| 77 | Seacret | $161 million | USA | |
| 78 | Kasley Ju | $154.4 million | ||
| 78 | Longrich | $154.4 million | China | 1991 |
| 80 | Giffarine Skyline Unity | $154.0 million | Thailand | |
| 81 | Marketing Personal | $153 million | ||
| 82 | ARIIX | $151 million | USA | 1979 |
| 83 | World Global Network | $146 million | USA | 2011 |
| 84 | Naris Cosmetics | $144 million | Japan | 1932 |
| 85 | FuXion Biotech | $135 million | South America | 2006 |
| 86 | New Image Group | $124 million | Asia | 1984 |
| 87 | Ideality | $115 million | ||
| 88 | Golden Sun | $103 million | ||
| 89 | Zurvita | $100 million | USA | 2008 |
| 90 | Diana Co. | $98 million | ||
| 91 | Vestige Marketing | $97 million | India | 2004 |
| 92 | Global Ventures Partners | $92.1 million | ||
| 93 | Koyo-Sha | $91.8 million | Japan | 1926 |
| 94 | Total Life Changes | $88 million | USA | 1999 |
| 95 | Immunotec | $82.2 million | Canada | |
| 96 | Jimon | $77 million | ||
| 97 | Nefful | $75 million | USA | 1973 |
| 98 | Captain Tortue | $71 million | Europe | 1993 |
| 99 | Shinsei | $69.4 million | ||
| 100 | Vision International People Group | $69.0 million | Cyprus | 1996 |
Why Multi-Level Marketing Is Unethical
Most multi-level marketing programs or MLM some people like to call them are legal but they can be unethical in some nature with the business model.
This type of business model is you make a profit from the sales that your sponsored affiliates or downline some call them and they have the risk of a financial loss if they don’t make it a goal to making sure they achieve with it.
With any type of multi-level marketing business, you buy sample products or services and take a risk of trying to sell it and promote in the hopes of turning it over for financial gain.
Some multi-level marketing businesses can come to a dead-end eventually as you are required to sponsor new affiliates to join you and you then train them to duplicate the process and eventually the reality comes too difficult for most and give up and stop then fail.
Multi-level marketing businesses are not all bad and I will list the good about multi-level marketing below as it can be a very rewarding experience if you approach it correctly.
Pyramid Scheme
Multi-level marketing or pyramid schemes as some people call them can be legal and illegal so knowing the difference is something you have got to understand so you don’t get caught up in a pyramid scheme.
Some multi-level marketing programs can be tagged as pyramid schemes if you are required to sponsor new affiliates and that is the only way you are making a commission, and if this is the case this can and probably is illegal.
Many unknowing people end up joining illegal pyramid schemes and think they are joining a legal and legitimate multi-level marketing business and don’t even know they are joining a business that can cause them to lose all their investment and get into some legal trouble.
The other bad thing about a pyramid scheme is if you are required to sponsor new members over and over again to earn commissions and eventually you will run out of people to sponsor as most that you sponsor will give up a lot faster than you.
So if you are only making your money from sponsoring others it is probably illegal, if you’re not going to get paid for natural products and services and you might even get in trouble doing so in the pyramid scheme.
Why MLM Is Bad
Most multi-level marketing programs are designed to really make it hard for most average marketers to make any money with them.
In fact, most who join MLM will lose money and eventually give up doing the business, this is where MLM gets to be called a Bad thing to join, but in turn, those folks gave up to early to give it a chance.
The real problem is most fail at sponsoring new members and usually, the products are overpriced with lower quality than what you can buy somewhere else, and people today can really recognize such business practices today, not like years ago.
Most of the commissions are funneled up to the top of the big promoters in the multi-level marketing business and those newly sponsored affiliates are told they can be on the top if they go out there and build a team and are convinced they can do so.
The real problem with multi-level marketing getting a bad report is most of these multi-level marketing businesses make the requirements so long and hard to rank up in the pay scale most people lose interest and give up.
So now the ones who really stay at it for the long haul are the ones who make all the income from those that are still in the downline below them and they convince those others to go out there and get them to duplicate to keep the chain going.
Multi-level marketing can be a very great thing to join if you work the program and understand how the process works to be successful with it.
Is MLM Good
Well, my answer here is YES, any multi-level marketing business or MLM some people call them can very well be a great experience for you and for some earn you a full-time income.
You have just got to make sure before you join the multi-level marketing business that you are joining one that is legal and has a great track record with no better business bureau ratings so you have confidence in going forward with them.
The only thing that is not so good for any multi-level business that you join they have a small success rate of you giving up your day job and earning a full-time income doing so.
Most people who join them don’t make a lot of money but if you are mentored correctly by a great mentor in your multi-level marketing business you can proceed in doing your business correctly and start making a profit.
If you love getting out of the house and going to meetings to promote your multi-level marketing business then this can be a good business for you.
Maybe you want to meet new people and share ideas and dreams to see them come to reality then MLM is a good thing for you to try.
Some people want to join MLM so they can add another source of income so they can retire early, or save for a vacation, or maybe use the added income to pay monthly bills to help ease the burden for some folks month after month.
So if you are looking for a way to join a business without a huge investment to get started and see if it’s for you then Yes MLM is a good thing for you to try.
The thing about any multi-level marketing business or MLM program if you don’t try it then you will never know if it was a good thing for you to do.
CONCLUSION
Multi-Level Marketing can be a business model that can be legal and you can sometimes end up in a multi-level marketing business that you have found was not legal without you even knowing so.
Some multi-level marketing businesses can be a pyramid scheme and if you don’t recognize that you have joined one it can be a costly venture for you if you don’t take the time to make sure that you got involved within your multi-level marketing business.
You really got to recognize how you are being rewarded in your commissions with your MLM business, if your only being compensated with sponsoring others then you better make sure it’s a legal business to get involved with as some of the time it’s illegal and you can lose your money.
With any multi-level marketing business, they can very well be legal and most can offer great products and services to their affiliates and customers to purchase but make sure you do your research and find out they are legit before you hand over any of your hard-earned money.
If you take the time to learn your multi-level marketing business correctly you can very well do great with your multi-level marketing business, and this can turn out to be a good result for you now and into the future of your business.
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