For more information, John Oliver did a fantastic segment about the horrors of MLMs. The 2016 documentary, Betting on Zero, investigates the allegations that MLMs are nothing but legal pyramid schemes. This article also does a wonderful job of breaking down the reasons why MLMs are doomed to failure. I encourage anyone who is thinking about signing up for an MLM to watch these.


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

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.
For the distribution of goods after manufacturing, the product has to go through the distributor, wholesaler and finally the retailer before reaching the hands of the consumer. A MLM company shorten the supply chain shorter by directly selling to consumers. A claim they say helps to save cost for consumers. Speaking about cost savings, find out the best rate using our  home loan comparison and  personal loan comparison  tool
The formula of future business growth is based on the idea that people don't just want to retire in a traditional format. They crave knowledge and want to feel relevant.  They want to improve their own transition and feel compelled to help others avoid the pain and pitfalls they have experienced.  They desire a supportive community where their opinion counts and they can openly ask personal, business or other questions.  They’re interested in hearing and exploring new ideas and need ways to make new connections through face-to-face interactions.
MLM has stretched its sticky fingers out into just about every product market out there, so it’s kinda hard to do something new nowadays. But Jamberry Nails did it. Their adhesive, custom nail designs BLEW UP when they hit the direct sales floor. They built up an army of over 100,000 consultants in the time it takes most people to get a mediocre pay raise at their 9-5.

Multi-level marketing businesses sell a variety of products from vitamins to vacuum cleaners. Starting a MLM business makes you responsible for not only selling but also recruiting a sales team. Keeping your employees motivated is a challenge. You also have to create a payment structure that rewards salespeople sufficiently to keep them happy and at the same time grow earnings for the company.


Wellness based MLM’s in particular are well positioned to help people retire with greater ease and success for two reasons. First, they create positive momentum.  When people start to lose weight, have more energy, or receive compliments on the way the look, it builds momentum.  They see, feel, and hear the benefits of their work paying off which encourages them to stick with the changes they are making. Second, there is a group effect. Many people struggle to develop and stick with a new health, diet, and exercise program on their own.  But when they do it in a supportive community with others, it’s much easier to get through the tough days and stay on track.  Furthermore, by taking better care of yourself, you are in a position to leave a better legacy than money could ever provide.
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.
I know there are a few companies, like Mary Kay and Lia Sophia, who have a generally positive image, but there are many more, often built around some investment scheme, which continue to give this sector a bad image. If you scan the Internet, you will find dozens of negative articles, like "What's Wrong With Multi-Level Marketing?", but very few singing their praises.
I would like to try the instagram. I have been in this business since January 5 and not doing very well. Took me a month just to get my children to join & this company is actually giving out shares as you join. Like I said, it took me a month just to get my children to understand the concept of the shares, after sharing the video of Magic Johnson being interviewed by Ellen Degenerate about his reqret for turning down Nike tennis shoes, with one of the owners of Nike being one of the owners of this company & how this is time sensitive, but no one else is interested. Please help.
First of all, Avon “has” been. Second, Avon really needs to work on their appeal to a younger generation. Third, Avon makes it difficult for representatives to make any money unless you are purchasing a ton of catalogs and knocking on doors. The company really needs to allow representatives to advertise online, and I don’t mean spamming friends on a Facebook or Twitter feed.
How MLM companies are NOT considered Pyramid organizations is beyond me! They are all scams by the very nature of their organization structure. Those who start or get in early benefit directly from the efforts of those beneath them, forever. Not to mention the fact that most product sold through any of these MLM organization’s is to the dealer network itself. The top dogs are making money regardless as long as there is new blood coming in. And the best way to keep new blood coming in is to incentivize those at the lower middle and below to continue recruiting to build “a network of their own”. And those on the verge of “breaking through” who have already invested a small fortune in products along the way that are sitting on their pantry shelves NEED to keep recruiting. The very thing that differentiates a Pyramid scheme from an MLM is that an MLM sells an actual product. That is it. It doesn’t determine who that product is sold to as it should since we know that most product is sold to the worker bees and not to the general public for long.
There is nothing new about people failing; yes, they fail – at lots of things. We could spend months trying to discover why people fail in their marriages, school, jobs, etc. Do I have compassion and feel for them when they can’t make it work. Yes, of course! But I can’t jump into their bodies and make choices and live their life for them. It’s their choice – quit or find a way to keep going. MLM is a business and not everyone will succeed. Will I make money from my HARD EARNED customer base? Yes! Do I feel bad because I make a commission. No! EVERY business owner makes money off their employees – other wise they would not be in business. Do Brick and Morter Business Owners feel bad that they are making millions and they are paying their employees minimum wage??? Of Course Not. That is just the nature of business. So why are you feeling “bad” that you made money? Did you tell your recruits that they could do what you did to make money ? You see, there is a difference in selling a product to a customer and telling a person they can “get rich quick” and do nothing to get there. Those people will fail every time when they listen to such lies. hoilictictouch.com Get Oiled!
I was at “Sweetness Bakery and Cafe” the other day to order a hot chocolate with a friend. The barista asked me if I wanted half & half, whole milk, soy, rice, or hemp milk. I had never tasted hemp milk before. And I remembered the transition soy went through when manufacturers started sweetening soy up. So, I decided to try hemp since I figured it was sweet enough or the cafe wouldn’t suggest it. And Oh My God! It was the best cup of hot chocolate EVER! And I was amazed at what can be done with hemp.
Business Opportunity Leads typically come from people who are either seeking to find a new business opportunity or those who are interested in creating a business opportunity. It is not uncommon for business opportunity leads to involve investors or those who have access to stock or funds that they would like to direct towards a more purposeful cause. Leads may also come from new businesses that are seeking to offer opportunities to prospective clients.
Your comment and it’s militant nature are the EXACT OPPOSITE of what I believe the doTERRA culture is founded upon. I hope anyone reading this thread choose to look past your article and it’s attack on YoungLiving when basing their decision as to which company they choose to go with. I want them to know that the manner in which you needlessly attacked them is in no way a representation of all the other reps nor the company itself.
To find quality high converting mlm leads you need to compare different mlm companies and find one that has proven results from those in the field. You are looking for a company where no matter what mlm or network marketing business you are involved in will be able t give you quality leads. For finding leads on your own you need to advertise, create websites, write articles and some how get more and more people to come to you for information. Creating your own leads is a far more wise decision then spending your hard earned money on people who haven't even asked for what you are offering. You can't even compare that to a person who specifically fills out a form and requests more information about your business. Stop wasting your time targeting the wrong MLM leads for your business (opportunity seekers – people who have only proven that they know how to fill out a form) and target the right leads to your business "proven business opportunity buyers" (other networkers - people who have already proven that they can and will spend money on a business opportunity.
3. Business cards, buttons and brochures. Most companies offer sales aids that help the cold sponsoring process. If you owned a store, you would put out your "open for business" sign at the start of each day. Wear an "open for business" button promoting your product. Something catchy will inevitably create interest. If people are bold enough to quiz you about the button, they're probably outgoing and a great prospect. Pass out literature with your phone and e-mail, and use your business cards. Do this consistently. The law of averages says something has got to happen.
A long time friend that you lost touch with for the last 10 years gives you a call and asks to meet up. After meeting up and breaking the ice, he/she then introduces a new revolutionary product and how you stand to get rich by selling it. Throw in jargons like passive income and downlines, you suddenly realise you’re beginning to be sucked into the dream they are selling.
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).
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.
But please do a little research before you blanket insult an entire industry or business model. I am a single mother with a 6 figure income because of MLM, nearly twice that when I’m actively working my business with both of the companies I represent, and while not everyone has the skill set to succeed in this business, the potential is certainly there, for those that do.
PM Dollars, is our way of rewarding you for using our products and services, and sharing them with your friends and new signups. You'll earn 10% of anything you order in PM Dollars. Whether you order a Leads Package One Time, once in a while, or every week, 10% of your order will be added to your PM Dollars account after it is filled. You can then use those PM Dollars for products and services we offer in your PM Dollars account.

Wellness based MLM’s in particular are well positioned to help people retire with greater ease and success for two reasons. First, they create positive momentum.  When people start to lose weight, have more energy, or receive compliments on the way the look, it builds momentum.  They see, feel, and hear the benefits of their work paying off which encourages them to stick with the changes they are making. Second, there is a group effect. Many people struggle to develop and stick with a new health, diet, and exercise program on their own.  But when they do it in a supportive community with others, it’s much easier to get through the tough days and stay on track.  Furthermore, by taking better care of yourself, you are in a position to leave a better legacy than money could ever provide.
I agree with Jeannie. You can build a solid foundation from your warm market & then it snowballs. It is hard work & not a get rich industry. I to am with dōTERRA which is such a product driven company that 80% of wholesale customers are just customers because the products work. I love how everyone I have interacted with in my Upline are so driven by a purpose much bigger than amassing wealth! After almost 20 years of business experience (corporate sales & real estate), I can proudly say that I’ve never worked in such an edifying & encouraging environment. I can’t remember even 1 of my former bosses sitting down with me to chart a plan to bring me up to their level or even to take their current spot on the corp ladder – too much insecurity in that world & after all only 1 person makes it to the top of that pyramid. I love that in Network marketing you can easily surpass the rank & income of the person above you if you work with great purpose. The mentoring available & the personal development which happens in this environment is incredible!
The structure of MLMs is very similar to a pyramid scheme. This doesn’t mean that all MLMs are pyramid schemes, but some certainly are. Those interested in pursuing a career in multi-level marketing should do research before joining a particular MLM. Generally speaking, if the bulk of the money you stand to earn comes from recruitment rather than direct sales, it’s wise to be very cautious.
This group effect also plays into the vital role that a person’s social network can have on their retirement. Studies show that being around negative, pessimistic or sarcastic people can actually be detrimental to your health.  And many people can get stuck in a rut when it comes to who they hang around and associate with. Which means successful aging includes hanging around upbeat, positive people.

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.
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