Multi Level Marketing Business Model

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.

RankCompany2017 RevenueCountryYear Founded
1Amway $8.80 billionUSA1959
2Avon  $5.70 billionUSA1886
3Herbalife $4.50 billionUSA1980
4Vorwerk  $4.20 billionGermany1883
5Mary Kay  $3.50 billionGermany1963
6Infinitus $3.41 billionChina1992
7Perfect $3.06 billionChina1994
8Quanjian $2.89 billionChina
9Natura $2.26 billionBrazil1969
10Tupperware  $2.210 billionUSA1946
11Nu Skin  $2.208 billionUSA1984
12Primerica  $1.52 billionUSA1977
13JoyMain $1.49 billionChina2000
14Jeunesse $1.41 billionUSA2009
15Oriflame  $1.40 billionLuxemborg1967
16Ambit Energy ++ $1.2 billionUSA2006
16New Era $1.16 billionChina1995
17Telecom Plus  $1.12 billionUK1998
18Belcorp  $1.09 billionPeru1968
20USANA  $1.01 billionUSA1992
21Pola  $1.004 billionJapan1929
22Young Living $1.00 billionUSA1993
23SUN HOPE $940 millionMalaysia2003
24DXN  $927.0 millionMalaysia1995
25WorldVentures $926.6 millionUSA2005
26Isagenix $924.3 millionUSA2002
27Yanbal  $924.0 millionPeru1967
28Team Beachbody $863 millionUSA1998
29Market America $798 millionUSA1992
30A C N $750 millionUSA1993
31Stream $735 millionUSA2004
32Tiens/Tianshi $695 millionChina1990
33It Works! $686 millionUSA2001
34Team National $659 millionUSA1997
35Yandi $644 million
36Miki $597 millionJapan1966
37AdvoCare $586 millionUSA1993
38Arbonne  $541 millionUSA1980
39Plexus Worldwide $532 millionUSA1992
40Rolmex $515 millionChina2001
41PM International $460 millionGermany1993
42Scentsy $456 millionUSA2004
43LegalShield $450 millionUSA1972
44Le-Vel $449 millionUSA2012
45Omnilife $375.93 millionMexico1992
46YOFOTO $375.92 millionChina2004
47Fordays $365 millionJapan1997
48Faberlic $356 million
49Kang Ting $348 millionChina1996
50Nature’s Sunshine  $341 millionUSA1972
514Life Research $328 millionUSA1998
52AnRan $321 million
53Naturally Plus $300 millionJapan1999
54NHT Global $288 millionUSA
55LR Health & Beauty Systems GmbH $286 millionGermany1985
56Merro $283 million
57Menard Cosmetics $267 millionJapan1959
58Family Heritage Life $265 millionUSA1989
59Viridian + $263 millionUSA2009
60Pro-Health  $257 millionChina2007
61Noevir  $249 millionJapan1964
62Hy Cite Enterprises $233 millionUSA1959
63Resgreen $232 million
64KK Assuran $229 millionJapan1994
65Take Shape For Life $222.4 millionUSA1980
66CUTCO $222.0 millionUSA1949
67Southwestern Advantage $218 millionUSA1855
68LifeVantage $207 millionUSA2007
69Kangmei $206 millionChina
70Pure Romance $203 millionUSA1993
71Alphay International $200 millionUSA
72Princess House $195 millionUSA1963
73Mannatech $180 millionUSA1994
74Charle $173 million
75BearCere’ Ju $170 millionJapan1987
76Youngevity $163 millionUSA1997
77Seacret $161 millionUSA
78Kasley Ju $154.4 million
78Longrich $154.4 millionChina1991
80Giffarine Skyline Unity $154.0 millionThailand
81Marketing Personal $153 million
82ARIIX $151 millionUSA1979
83World Global Network $146 millionUSA2011
84Naris Cosmetics $144 millionJapan1932
85FuXion Biotech $135 millionSouth America2006
86New Image Group $124 millionAsia1984
87Ideality $115 million
88Golden Sun $103 million
89Zurvita  $100 millionUSA2008
90Diana Co. $98 million
91Vestige Marketing $97 millionIndia2004
92Global Ventures Partners $92.1 million
93Koyo-Sha $91.8 millionJapan1926
94Total Life Changes  $88 millionUSA1999
95Immunotec  $82.2 millionCanada
96Jimon $77 million
97Nefful  $75 millionUSA1973
98Captain Tortue  $71 millionEurope1993
99Shinsei $69.4 million
100Vision International People Group $69.0 millionCyprus1996

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.

Please like and share this post if you have found and got great value from it to your friends and social media.

I hope you enjoyed this post on Multi-Level Marketing and I hope you return again.

Exit mobile version