Is there a good Multi -Level Marketing Company? – Why not?

Short answer – No, there are no good Multi-Level Marketing companies in the United States! It’s the numbers– they don’t work!

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Your parents may mention Avon,  and while it is true that they are a MLM company, their focus has never been to “Get Distributors” but to provide an income opportunity to individuals with a decent and accepted line of products. They actually want sales people, not distributors. The same goes for Tupperware and Mary Kay. All three have been around for more than 40 years.

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The Top 5 American Direct Sales companies all use a multi-level compensation structure. Some have been court ordered to change their business structure (Herbalife is a recent example) . It should be noted that with a few exceptions, sellers make less than a $1000 per year and a lot of them lose money. For more detailed statistics please Click Here .

I have noticed that the MLM model is being tried in the Cannabis sector. While you can always smoke your inventory, you should keep in mind that your chances of making a realistic return on your investment are 0.0975% (based on an analysis of India’s largest MLN – Naswiz by Akhilesh Sirohi  on Quora).

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If you are thinking of joining a MLM company today, the numbers simply do not work. There just is not enough people that you can convince to join your down-line. Based on the business model, they will even have less of a chance than you do and the result might be a mess in your personal relationships.

Consider this: you are expected to get 10 people in your down-line and they in turn are expected to get 10 people each, who are also expected to get 10 people each. You are now at 1,000 people. By the time you get to 6 levels, you are talking 1 Million people.

If you are thinking about becoming part of an MLM , I strongly suggest that you and your family read  “What’s Wrong With Multi-Level Marketing?”  by Dean Van Druff , who covers this subject in much better detail than I did.

This is the only Multi-Level worth taking a closer look at:

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7 thoughts on “Is there a good Multi -Level Marketing Company? – Why not?

  1. All of this information is based on a world where everyone would do and want the same thing. MLM works because very few will do what it takes to win.

    1. I accept your statement, but the next question is: “What percentage of people will do what it takes to win in the MLM game?”

  2. To make $1000 profit directly through sales and wholesale discount on things you’d buy anyway, with a 30% markup means $3333 a year in turnover. That’s $278 pm, and with a requirement of 10 customer sales a month, that’s an order for $25 each (including one order for yourself).
    That’s one item in many catalogues.

    If you regularly service 20 people a month (see 4 people a weekend) 10 sales is routine. Building your group to add to this result is simple over time.

    The point is that these are part-time businesses, not share-time businesses. My time in an MLM demonstrated that it was possible and fun to do but needed consistent efforts.

    1. No Argument with that. However most people never get 20 accounts and also a lot of work for less than $ 100 profit.
      Thanks for taking the time to comment.

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