Are you curious about MLMs and want to know the best ones to join? It’s no secret that MLMs have gotten a bad rep over the years, with some people calling it a scam or a pyramid scheme. But the truth is, not all MLMs are created equal.
That’s why we’re here to help you sort through the confusion and find the top players in the global network marketing industry that have been dominating for the past decade. We’ve even got a list of the top 100 network marketing companies ranked by revenue.
But before you jump in, we want to make sure you fully understand what MLMs are all about. We’ll answer some common questions about the MLM model so you can decide if it’s the right fit for you. And if it’s not, don’t worry, we’ll also share another legitimate business model that’s worked for us. Let’s dive in!
What Is An MLM Company?
Multi-Level Marketing, or MLM, is a business model where companies sell their products or services through person-to-person sales. This means that you’ll be selling directly to other people, whether it’s from your home, a customer’s home, or online.
Once you join an MLM program, the company might call you an “independent distributor,” “participant,” or “contractor.” Most MLMs claim that you can make money in two ways: by selling their products yourself to retail customers or by recruiting new distributors and earning commissions based on their sales. Your recruits and their recruits then become your sales network, or “downline.”
Here’s the thing, though: most people who join legitimate MLMs don’t make much money, and some even end up losing money. And if you’re not careful, you might think you’ve joined a legitimate MLM, but it could turn out to be an illegal pyramid scheme that takes all your investment and leaves you deep in debt.
So, the bottom line is, if you’re considering joining an MLM, do your research, understand the business model, and make an informed decision.
The 2023 List of Top 100 MLM Companies in the World
How To Choose The Best Network Marketing Company?
1. Research the MLM Company Thoroughly
When it comes to choosing the right MLM company, it’s essential to have a deep understanding of the company’s background, history, and experience. An MLM company with more than 15 years of experience is a good indicator of success, but this doesn’t mean that new companies are automatically out of the running.
It’s crucial to do a background check and see if there are any outstanding legal complaints against the company. Make sure to regularly check the details of the MLM company to ensure that you’re fully informed before making a decision.
2. Analyze the Marketing Strategies and Products
Every MLM company will have a unique marketing plan, so it’s important to understand the strategies they use. Pay close attention to the focus of their marketing plan – whether they prioritize product sales or building a team with referral marketing.
If they only focus on product sales, this could be a red flag, indicating pyramid selling or a Ponzi scheme. Research the demand for their products or services, and check the quality and price. If the MLM company self-manufactures or performs the service, this is a positive sign.
3. Evaluate the Services Offered
It’s crucial to analyze the present services of the MLM company, as well as their post-service support. Check to see if customers are satisfied with the company’s services and if the product quality and price are on par with one another. Also, look for affiliate programs that allow you to earn income through referrals.
4. Consider the Potential Income
Before choosing an MLM company, it’s important to evaluate whether they offer a good income that meets your goals and requirements. Analyze the package they offer to start with and the commission structure for referrals. Make sure that the commission offered is substantial enough to compensate for your initial investment and that you’ll be able to make a profit through referrals.
5. Utilize MLM Consulting and Technological Features
The latest technological features are increasingly important for MLM businesses. Making use of these technologies can pay off quickly, so it’s wise to choose a company that utilizes them. MLM consulting can also provide a comprehensive understanding of the company’s architecture and marketing plan.
6. Part-Time Income Opportunity
Many people seek a part-time income, as they already have a full-time job. For these individuals, a part-time multi-level marketing business can help provide financial stability. It’s important to analyze the company’s revenue, as it can fluctuate and a good revenue can mean good income.
7. Training and Assistance
Before joining an MLM company, consider the training and assistance offered. Look for training kits, online training, and conferences available in your area. A good MLM company will also provide assistance with their plans, presentations, and affiliate programs, and have a website for customers to easily place orders for products.
8. Compensation Plan
The compensation plan is an important factor to consider when choosing an MLM company. The plan should be easy to understand and align with the business structure, from binary to custom plans. It’s important to review the commission structure, membership package fees, product sales, and payouts to make sure they are handled properly. Weekly payouts are preferred as they provide consistent income.
9. Genuine Product or Service Need
The product or service offered by the MLM company must meet a genuine need and provide value to the customer at a reasonable price. It should also have an untapped market and not require excessive purchasing to reach an “elite” level of selling.
10. A Team-Oriented Approach
When joining an MLM company, you are joining a team of individuals working towards a common goal. It’s important to choose a team that values teamwork and not just making money. Look for a group that holds onto its values and cares about your visions, dreams, and goals for a more sustainable income.
Can You Really Make Money With MLM?
Multi-level marketing (MLM) companies promise big profits, but the reality is that only a small fraction of representatives actually see the high earnings advertised. According to a study by the AARP Foundation, only 25% of those surveyed made a profit with MLMs, while 27% broke even and half of them lost money. Out of the 25% that made a profit, only 0.05% made $100,000 or more.
Additionally, only 40% of MLM participants received a company income disclosure statement, and out of those who received it, only 16% felt it was “very accurate.” On the other hand, 50% felt it was “fairly accurate,” 24% felt it was “fairly inaccurate,” and 9% reported that it was “not at all accurate.”
Another study found that on average, one in 545 participants is likely to have profited after subtracting expenses, while 997 out of 1,000 individuals involved in an MLM lose money. This includes the time invested.
In conclusion, while it is possible to make money with MLMs, the chances of actually seeing significant profits are slim. It’s important to thoroughly research and understand the company and its compensation plan before investing time and money into it.
Why Did Most People Fail At MLM Business?
Let’s face it, the odds aren’t in your favor if you’re thinking about joining an MLM. A staggering 98% of people who sign up for these types of businesses end up failing. That’s a lot of disappointment and drained bank accounts. But despite the bleak numbers, people still flock to the latest MLM trend in search of a quick buck.
Here are the reasons behind all these MLM failures:
1. Lack of Marketing and Sales Skills
When people sign up for MLMs, they quickly realize that they lack the skills to sell products and recruit new members once they’ve exhausted their network of friends and family. MLM distributors need to be able to reach out to strangers and convince them to buy products or join the business, which can be challenging for those who lack sales experience.
2. Lack of Passion for Products
If you’re not passionate about the products you’re trying to sell, it will be difficult to convince others to buy them. People can tell when you’re not genuine, and they’re less likely to trust you.
3. Lack of Relationships and Charisma
MLMs require a significant investment of time and energy to build relationships with others. Network marketing success is dependent on forming strong connections with people and having the charisma to lead and motivate them. Without these skills, MLM success will be a challenge.
4. Lack of Online Lead Generation
In today’s digital age, it’s crucial to use the internet for lead generation and marketing. MLM distributors who ignore this channel are missing out on a large pool of potential customers and recruits.
5. Over-Saturation
When too many people sign up for an MLM, the market can become over-saturated, making it harder for new recruits to find customers and build their teams. Timing is everything in MLMs, and it’s best to join when a company is just starting out to avoid this issue.
6. Illegality Issues
Unfortunately, some MLM companies have been shut down by the Federal Trade Commission (FTC) for resembling illegal pyramid schemes. This not only hurts the reputation of MLMs in general, but it also results in immediate financial loss for all the distributors involved.
Is An MLM Right For You?
Multi-Level Marketing (MLM) can be a great way to earn some extra cash if you have a passion for selling a specific product line. However, don’t expect to get rich quick as MLMs are not a guarantee of making a lot of money. In fact, it could even turn out to be more of a burden than a source of income if you’re not careful.
One important thing to keep in mind is that you should only join an MLM if you actually enjoy the process of selling. For example, one of my friends earns about $300 a month from selling products for an MLM and she finds it to be a fun social activity. Plus, she likes the product line, so she’s able to sell with ease. On the other hand, if you’re not comfortable selling or talking to people about investing in a business, then MLMs may not be for you.
Before joining an MLM, it’s essential to ask yourself some key questions to make sure it’s the right fit for you:
- Are you comfortable as a salesperson? MLMs require you to sell the company’s products and, in many cases, to convince others to join, invest, and sell too.
- Do you have a solid sales plan? It’s important to have a clear understanding of how you’ll find and keep customers, and if there’s a demand for the product.
- What are your income expectations? It’s crucial to have realistic expectations of what you can earn through an MLM, as most people who work hard at it only make little to no money, and some even end up losing money.
- Can you afford the risks involved? Starting a business venture always comes with risks, and MLMs are no exception. Make sure you consider the potential expenses involved, such as training and travel costs, promotional materials, and inventory management.
In conclusion, MLMs can be a good side hustle option for some people, but it’s essential to approach them with caution and do your research before making a decision. Make sure you’re comfortable with the sales aspect, have a solid sales plan, have realistic expectations, and can afford the risks involved.
