Copywriteroffice

Serp data

Request Result

The request result help you to show your API requests results.

stdClass Object
(
    [data] => stdClass Object
        (
            [query] => network marketing
            [search_url] => https://www.google.com/search?q=network+marketing&oq=network+marketing&num=30&hl=en&gl=US&sourceid=chrome&ie=UTF-8
            [device] => desktop
            [hl] => en
            [gl] => US
            [search_engine] => google.com
            [number_of_results] => 3380000000
            [related_searches] => Array
                (
                    [0] => stdClass Object
                        (
                            [title] => network marketing companies
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=Network+marketing+companies&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAg_EAE
                        )

                    [1] => stdClass Object
                        (
                            [title] => what is network marketing and how does it work
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=What+is+network+marketing+and+how+does+it+work&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAhUEAE
                        )

                    [2] => stdClass Object
                        (
                            [title] => what is network marketing business
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=What+is+network+marketing+business&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAhFEAE
                        )

                    [3] => stdClass Object
                        (
                            [title] => is network marketing a pyramid scheme
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=Is+network+marketing+a+pyramid+scheme&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAhKEAE
                        )

                    [4] => stdClass Object
                        (
                            [title] => network marketing jobs
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=Network+Marketing+jobs&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAhJEAE
                        )

                    [5] => stdClass Object
                        (
                            [title] => types of network marketing
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=Types+of+network+marketing&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAhIEAE
                        )

                    [6] => stdClass Object
                        (
                            [title] => network marketing business ideas
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=Network+marketing+business+ideas&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAhTEAE
                        )

                    [7] => stdClass Object
                        (
                            [title] => network marketing books
                            [url] => https://www.google.com/search?num=30&newwindow=1&hl=en&gl=us&q=Network+Marketing+books&sa=X&ved=2ahUKEwi_mv327671AhU5CRAIHYJeBWkQ1QJ6BAhEEAE
                        )

                )

            [result] => Array
                (
                    [0] => stdClass Object
                        (
                            [paidPosition] => top
                            [title] => The Ultimate Guide to Virtual Networking | DARREN HARDY
                            [trackingUrl] => https://www.google.ru/aclk?sa=l&ai=DChcSEwi3o4X37671AhVC6bIKHXCfDP4YABABGgJscg&sig=AOD64_3Ye_oi1BBjTonMoFiZnkEy_y4ofA&q&adurl
                            [destinationUrl] => https://go.darrenhardy.com/go-networking/
                            [breadcrumbs] => Array
                                (
                                )

                            [position] => 1
                            [serp_type] => paid
                            [isOrganicPage] => 
                            [isOrganic] => 
                            [serp_title] => Virtual Network Marketing - Get Free Access
                            [url] => https://go.darrenhardy.com/go-networking/
                            [serp_description] => The Ultimate Guide to Virtual Networking | Darren Hardy. Free Instant Access - Limited Time Only. #Hero'sJourney. Proprietary Tools. #BeTheException. #JumpstartYourSuccess. Drive Creativity. #TheCompoundEffect. Improve Collaboration. #HardyHeroes. #InsaneProductivity.
                            [hostname] => go.darrenhardy.com
                            [h1] => 
                            [h2] => Array
                                (
                                )

                            [h3] => Array
                                (
                                )

                            [h2WithAnchors] => Array
                                (
                                )

                            [wordCount] => 12
                            [imgCount] => 2
                            [lang] => 
                            [faq_on_page] => Array
                                (
                                )

                            [anchors] => stdClass Object
                                (
                                    [size] => 0
                                    [outboundSize] => 0
                                    [list] => Array
                                        (
                                        )

                                )

                            [toc] => Array
                                (
                                )

                            [og] => stdClass Object
                                (
                                    [ogImage] => https://go.darrenhardy.com/img/networking/share.jpg
                                )

                            [schema_type] => Array
                                (
                                )

                            [comment_questions] => Array
                                (
                                )

                            [body] => 1" src="/_next/static/images/dh-be-the-exception-542-c011edbdd6f145b1871a2e9cd5747ea8.png" class="css-1xls3z4" />5-PART VIDEO MINI-COURSEWITH DOWNLOADABLE WORKBOOKFREE INSTANT ACCESS - LIMITED TIME ONLY
                            [kwBody] => Array
                                (
                                )

                        )

                    [1] => stdClass Object
                        (
                            [paidPosition] => top
                            [title] => GetResponse | Trusted Inbound Marketing Software - Email Marketing and Beyond
                            [trackingUrl] => https://www.google.ru/aclk?sa=l&ai=DChcSEwi3o4X37671AhVC6bIKHXCfDP4YABAAGgJscg&sig=AOD64_3hlmJRfB96Uzvr6XG5N4811E-FsA&q&adurl
                            [destinationUrl] => https://www.getresponse.com/
                            [breadcrumbs] => Array
                                (
                                )

                            [description] => GetResponse offers an online platform for email marketing software, landing page creator, webinars hosting and much more. Start with a free account without credit card!
                            [position] => 2
                            [serp_type] => paid
                            [isOrganicPage] => 
                            [isOrganic] => 
                            [serp_title] => Boost Online Sales - All in One Marketing Platform
                            [url] => https://www.getresponse.com/
                            [serp_description] => Empowering you to run your business with the online marketing tools tailored to your needs. Personalized marketing tools for who you are. Helping you to achieve your business goals. Autoresponders. Perfect timing. Try for free. 5000 free stock...
                            [hostname] => getresponse.com
                            [canonical] => https://www.getresponse.com
                            [h1] => Get leads
                            [h2] => Array
                                (
                                    [0] => Trusted by big and small brands
                                    [1] => Inbound marketing solutions for what you need to do
                                    [2] => Personalized tools for who you are
                                    [3] => Unbeatable price for all-in-one marketing software
                                    [4] => Are you ready to get your business growing?
                                    [5] => Join the 100,000+ businesses already growing with us
                                    [6] => Helpful resources to get you started
                                    [7] => When you need us, we're here. Our Customer Success Team is always there for you
                                    [8] => GDPR compliant
                                    [9] => Are you ready to get your business growing?
                                )

                            [h3] => Array
                                (
                                    [0] => Get your business online
                                    [1] => Grow your audience
                                    [2] => Engage with customers
                                    [3] => Boost online sales
                                    [4] => Entrepreneur
                                    [5] => Online marketer
                                    [6] => Marketing manager
                                    [7] => Large companies
                                    [8] => FREE
                                    [9] => PAID PLANS
                                    [10] => MAX
                                    [11] => Excellent customer service!
                                    [12] => Autoresponder emails are much simpler to use
                                    [13] => Better and cheaper than the competitors
                                    [14] => GetResponse helps me run my business
                                    [15] => The best user-friendly email automation
                                    [16] => I can reach my goals faster
                                    [17] => Keep my business connected with clients
                                    [18] => I love GetResponse interface
                                    [19] => Get more out of your email marketing
                                    [20] => How to get your first 50 subscribers?
                                    [21] => Must-Have Reads to Help You Get Started with Marketing Automation
                                    [22] => Email marketing best practices
                                    [23] => How to Create a Landing Page Optimized for High Conversions?
                                    [24] => 24 HOURS A DAY, 7 DAYS A WEEK
                                )

                            [h2WithAnchors] => Array
                                (
                                    [0] => stdClass Object
                                        (
                                            [text] => Trusted by big and small brands
                                        )

                                    [1] => stdClass Object
                                        (
                                            [text] => Inbound marketing solutions for what you need to do
                                        )

                                    [2] => stdClass Object
                                        (
                                            [text] => Personalized tools for who you are
                                        )

                                    [3] => stdClass Object
                                        (
                                            [text] => Unbeatable price for all-in-one marketing software
                                        )

                                    [4] => stdClass Object
                                        (
                                            [text] => Are you ready to get your business growing?
                                        )

                                    [5] => stdClass Object
                                        (
                                            [text] => Join the 100,000+ businesses already growing with us
                                        )

                                    [6] => stdClass Object
                                        (
                                            [text] => Helpful resources to get you started
                                        )

                                    [7] => stdClass Object
                                        (
                                            [text] => When you need us, we're here. Our Customer Success Team is always there for you
                                        )

                                    [8] => stdClass Object
                                        (
                                            [text] => GDPR compliant
                                        )

                                    [9] => stdClass Object
                                        (
                                            [text] => Are you ready to get your business growing?
                                        )

                                )

                            [wordCount] => 940
                            [imgCount] => 26
                            [lang] => stdClass Object
                                (
                                    [langLinks] => Array
                                        (
                                            [0] => stdClass Object
                                                (
                                                    [lang] => x-default
                                                    [url] => https://www.getresponse.com
                                                )

                                            [1] => stdClass Object
                                                (
                                                    [lang] => en-us
                                                    [url] => https://www.getresponse.com
                                                )

                                            [2] => stdClass Object
                                                (
                                                    [lang] => pl
                                                    [url] => https://www.getresponse.pl
                                                )

                                            [3] => stdClass Object
                                                (
                                                    [lang] => de
                                                    [url] => https://www.getresponse.com/de
                                                )

                                            [4] => stdClass Object
                                                (
                                                    [lang] => es
                                                    [url] => https://www.getresponse.com/es
                                                )

                                            [5] => stdClass Object
                                                (
                                                    [lang] => fr
                                                    [url] => https://www.getresponse.com/fr
                                                )

                                            [6] => stdClass Object
                                                (
                                                    [lang] => pt-pt
                                                    [url] => https://www.getresponse.com/pt
                                                )

                                            [7] => stdClass Object
                                                (
                                                    [lang] => pt-br
                                                    [url] => https://br.getresponse.com
                                                )

                                            [8] => stdClass Object
                                                (
                                                    [lang] => ru
                                                    [url] => https://www.getresponse.ru
                                                )

                                            [9] => stdClass Object
                                                (
                                                    [lang] => it
                                                    [url] => https://www.getresponse.com/it
                                                )

                                            [10] => stdClass Object
                                                (
                                                    [lang] => ja
                                                    [url] => https://www.getresponse.jp
                                                )

                                            [11] => stdClass Object
                                                (
                                                    [lang] => zh
                                                    [url] => https://cn.getresponse.com
                                                )

                                            [12] => stdClass Object
                                                (
                                                    [lang] => sv
                                                    [url] => https://www.getresponse.se
                                                )

                                            [13] => stdClass Object
                                                (
                                                    [lang] => no
                                                    [url] => https://www.getresponse.no
                                                )

                                            [14] => stdClass Object
                                                (
                                                    [lang] => ms
                                                    [url] => https://www.getresponse.my
                                                )

                                            [15] => stdClass Object
                                                (
                                                    [lang] => th
                                                    [url] => https://www.getresponse.co.th
                                                )

                                            [16] => stdClass Object
                                                (
                                                    [lang] => ko
                                                    [url] => https://www.getresponse.kr
                                                )

                                            [17] => stdClass Object
                                                (
                                                    [lang] => tr
                                                    [url] => https://www.getresponse.com.tr
                                                )

                                            [18] => stdClass Object
                                                (
                                                    [lang] => ro
                                                    [url] => https://ro.getresponse.com
                                                )

                                            [19] => stdClass Object
                                                (
                                                    [lang] => hu
                                                    [url] => https://www.getresponse.com/hu
                                                )

                                            [20] => stdClass Object
                                                (
                                                    [lang] => vi
                                                    [url] => https://www.getresponse.com/vn
                                                )

                                            [21] => stdClass Object
                                                (
                                                    [lang] => id
                                                    [url] => https://www.getresponse.co.id
                                                )

                                            [22] => stdClass Object
                                                (
                                                    [lang] => nl
                                                    [url] => https://www.getresponse.nl
                                                )

                                            [23] => stdClass Object
                                                (
                                                    [lang] => da
                                                    [url] => https://www.getresponse.com/dk
                                                )

                                        )

                                    [size] => 23
                                    [string] => en-us / pl / de / es / fr / pt-pt / pt-br / ru / it / ja / zh / sv / no / ms / th / ko / tr / ro / hu / vi / id / nl / da
                                )

                            [faq_on_page] => Array
                                (
                                )

                            [anchors] => stdClass Object
                                (
                                    [size] => 52
                                    [outboundSize] => 0
                                    [list] => Array
                                        (
                                        )

                                )

                            [toc] => Array
                                (
                                    [0] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Trusted by big and small brands. 
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                )

                                        )

                                    [1] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Inbound marketing solutions for what you need to do. 
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                    [0] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Get your business online. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [1] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Grow your audience. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [2] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Engage with customers. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [3] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Boost online sales. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                )

                                        )

                                    [2] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Personalized tools for who you are. 
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                    [0] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Entrepreneur. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [1] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Online marketer. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [2] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Marketing manager. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [3] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Large companies. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                )

                                        )

                                    [3] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Unbeatable price for all-in-one marketing software. 
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                    [0] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => FREE. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                    [0] => stdClass Object
                                                                        (
                                                                            [level] => 4
                                                                            [name] => Including:. 
                                                                            [tag] => h4
                                                                            [children] => Array
                                                                                (
                                                                                )

                                                                        )

                                                                )

                                                        )

                                                    [1] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => PAID PLANS. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                    [0] => stdClass Object
                                                                        (
                                                                            [level] => 4
                                                                            [name] => Everything from Free and more:. 
                                                                            [tag] => h4
                                                                            [children] => Array
                                                                                (
                                                                                )

                                                                        )

                                                                )

                                                        )

                                                    [2] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => MAX. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                    [0] => stdClass Object
                                                                        (
                                                                            [level] => 4
                                                                            [name] => Everything from paid and more:. 
                                                                            [tag] => h4
                                                                            [children] => Array
                                                                                (
                                                                                )

                                                                        )

                                                                )

                                                        )

                                                )

                                        )

                                    [4] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Are you ready to get your business growing?
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                )

                                        )

                                    [5] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Join the 100,000+ businesses already growing with us. 
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                    [0] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Excellent customer service! . 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [1] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Autoresponder emails are much simpler to use. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [2] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Better and cheaper than the competitors. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [3] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => GetResponse helps me run my business. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [4] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => The best user-friendly email automation. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [5] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => I can reach my goals faster. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [6] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Keep my business connected with clients. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [7] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => I love GetResponse interface . 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                )

                                        )

                                    [6] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Helpful resources to get you started. 
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                    [0] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Get more out of your email marketing. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [1] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => How to get your first 50 subscribers?
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [2] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Must-Have Reads to Help You Get Started with Marketing Automation. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [3] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => Email marketing best practices. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                    [4] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => How to Create a Landing Page Optimized for High Conversions?
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                )

                                        )

                                    [7] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => When you need us, we're here. Our Customer Success Team  is always there for you.
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                    [0] => stdClass Object
                                                        (
                                                            [level] => 3
                                                            [name] => 24 HOURS A DAY, 7 DAYS A WEEK. 
                                                            [tag] => h3
                                                            [children] => Array
                                                                (
                                                                )

                                                        )

                                                )

                                        )

                                    [8] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => GDPR compliant. 
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                )

                                        )

                                    [9] => stdClass Object
                                        (
                                            [level] => 2
                                            [name] => Are you ready to get your business growing?
                                            [tag] => h2
                                            [children] => Array
                                                (
                                                )

                                        )

                                )

                            [og] => stdClass Object
                                (
                                    [ogImage] => https://us-ws.gr-cdn.com/images/global/social-share-gr.png
                                    [twitterImage] => https://us-ws.gr-cdn.com/images/global/social-share-gr.png
                                )

                            [schema_type] => Array
                                (
                                    [0] => WebSite
                                    [1] => Organization
                                )

                            [comment_questions] => Array
                                (
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                            [body] => Get leads Powerful, simplified tool to send emails, create pages, and automate your marketing. Email Marketing Website Builder Marketing Automation Conversion Funnels Trusted by big and small brands. Inbound marketing solutions for what you need to do. Get your business online. A suite of free marketing tools designed to get your business online and fuel it with a stream of new leads. LEARN MORE Free-forever plan for new businesses Grow your audience. Find new customers and build your email list with lead generation tools that turn anonymous connections into loyal fans. LEARN MORE Over 1,000,000 leads generated monthly Engage with customers. Stay in touch with your customers and potential clients with targeted online communication that converts. LEARN MORE Over 764,556,063 emails delivered weekly Boost online sales. Market your ecommerce business and deliver experiences that convert store visitors into returning customers. 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SMS marketing Transactional emails Account migration support Up to 500 team members Dedicated support Single sign-on (SSO) Dedicated IP address View full pricing Are you ready to get your business growing? Join the 100,000+ businesses already growing with us. We are a global marketing software company, empowering you to run your business with the online marketing tools that you need. Take the next step forward and join the thousands of businesses growing by engaging audiences online everywhere. Excellent customer service! . GetResponse gives me the ability to follow up with fresh leads and keep them engaged with my brand. Robert Waver Infusion Marketing Autoresponder emails are much simpler to use. GetResponse's Autoresponders are so much simpler to use than the other tools with faster and truly available 24/7 customer support team. Seth Mosley Full Circle Music Better and cheaper than the competitors. 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                            [body] => Network Marketing By Adam Hayes Full Bio Adam Hayes is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7 & 63 licenses. He currently researches and teaches at the Hebrew University in Jerusalem. Learn about our editorial policies Updated November 28, 2021 Reviewed by Margaret James Reviewed by Margaret James Full Bio Peggy James is a CPA with over 9 years of experience in accounting and finance, including corporate, nonprofit, and personal finance environments. She most recently worked at Duke University and is the owner of Peggy James, CPA, PLLC, serving small businesses, nonprofits, solopreneurs, freelancers, and individuals. Learn about our Financial Review Board Business Business Essentials Marketing Essentials Business Leaders Corporate Finance & Accounting Small Business Company Profiles Table of Contents Expand What Is Network Marketing? How It Works Pros and Cons Special Considerations Network Marketing FAQs What Is Network Marketing? . Network marketing is a business model that depends on person-to-person sales by independent representatives, often working from home. A network marketing business may require you to build a network of business partners or salespeople to assist with lead generation and closing sales. There are many reputable network marketing operations, but some have been denounced as pyramid schemes. The latter may focus less on sales to consumers than on recruitment of salespeople who may be required to pay upfront for expensive starter kits. Key Takeaways. Network marketing appeals to people with high energy and strong sales skills, who can build a profitable business with a modest investment.A network marketing business can be a single-tier program, whereby you sell the products, or multi-tier, where you also recruit additional salespeople.Beware of network marketing companies that create many tiers of salespeople or require you to purchase expensive products or training material up-front -- and thoroughly research the company before you join. How Network Marketing Works . Network marketing is known by a variety of names, including multilevel marketing (MLM), cellular marketing, affiliate marketing, consumer-direct marketing, referral marketing, or home-based business franchising. Companies that follow the network marketing model often create tiers of salespeople—that is, salespeople are encouraged to recruit their own networks of salespeople. The creators of a new tier (or "upline") earn commission on their own sales and on sales made by the people in the tier they created (the "downline"). In time, a new tier can sprout yet another tier, which contributes more commission to the person in the top tier as well as the middle tier. Thus, the earnings of salespeople depend on recruitment as well as product sales. Those who got in early and are in a top tier make the most. The FCC advises that that single-tier network marketing operations tend to be more reputable than multi-tier schemes. Advantages and Disadvantages of Network Marketing . There is some stigma attached to the networking marketing business, especially those with multiple tiers, which can be characterized as pyramid schemes—that is, the salespeople in the top tier can make impressive amounts of money on commissions from the tiers below them. The people on the lower tiers will earn much less. The company makes money by selling expensive starter kits to new recruits. The appeal of network marketing is that an individual with a lot of energy and good sales skills can create a profitable business with a modest investment. A good rule of thumb, according to the Federal Trade Commission (FCC), is that an operation that ensures compensation which is based on actual sales to real customers tends to be more reputable than multi-tier schemes, in which people make money based on the number of distributors they recruit. Special Considerations . Anyone considering joining a network marketing operation should do their research before making a decision. Consider these questions: Was it pitched as a chance to make money by selling products or by recruiting others?What is the track record of the company's founders?Are you personally enthusiastic about the products?Are people you know enthusiastic about the products?Is the product being promoted effectively?Do you foresee a relatively fast pathway to profits or a long time treading water? Is Network Marketing a Pyramid Scheme? While network and multi-level marketing programs have been accused of being pyramid schemes, there are some important differences. While those who are able to recruit more members into the program are often able to enjoy greater residual commissions, network marketing is a legitimate and legal business structure that offers real products and services sold to customers. Will I Make Money by Joining a Network Marketing Program? It is certainly possible, although not probable. Some people do enjoy great success at network marketing, largely due to their ability to recruit more members to the network. There are two main revenue sources: selling products, and commissions from sales made by team members downline. The more people there are downline from you, the more money you will accrue - the larger the team you can recruit, the more money you can make.Most people who join legitimate network marketing programs make little or no money. People may actually lose money. Some may become involved in an illegal pyramid scheme and not realize that they have joined a fraudulent venture, and can lose everything they invest. Do your research and ask around before diving in. What Are Some Examples of Network Marketing Programs? Several MLM programs exist such as Tupperware, Avon products, Rodan + Fields, Amway, Herbalife, Mary Kay, among several others. What Is the Top-Grossing Network Marketing Program? Amway consistently tops the list. Top-selling brands for Amway are Nutrilite vitamin, mineral and dietary supplements, Artistry skincare and color cosmetics, eSpring water treatment systems and XS energy drinks – all sold exclusively by independent Amway Business Owners. In 2020 it brought in $8.5 billion in revenue. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Federal Trade Commission. "Business Guidance Concerning Multi-Level Marketing." Accessed Nov, 28, 2021. Amway Global. "Amway Sales Reach $8.5 Billion in 2020." Accessed Nov. 28, 2021. Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Service Name Description Related Terms. Understanding Multilevel Marketing and How to Avoid Pitfalls Multilevel marketing (MLM) is a monetary strategy used by direct sales companies to encourage existing distributors to recruit new distributors. more Pyramid Scheme A pyramid scheme is an illegal investment scam based on a hierarchical setup that pays members higher up in the structure with funds from new members. more Self-Employed Person A self-employed person is an independent contractor or sole proprietor who reports income earned from self-employment. more Affiliate Marketing Definition Affiliate marketing allows you to earn commissions for marketing another company's products or services. more What You Should Know About Entrepreneurs Entrepreneurs and entrepreneurship have key effects on the economy. Learn how to become one and the questions you should ask before starting your entrepreneurial journey. more Infomercial An infomercial is a long video ad that acts as a program to pitch a good or service with a call to action. Learn about infomercial pros and cons. more Partner Links Related Articles. Crime & Fraud Pyramid Scheme Defubutuib. Life Insurance Best Ways to Find Life Insurance Leads. Real Estate Investing Broker vs. Realtor vs. Real Estate Agent. Tools for Fundamental Analysis Which Business Model Is Best? Depends on the Industry. Crime & Fraud Enron Scandal: The Fall of a Wall Street Darling . Career Advice 4 Careers That Are Easy To Get Into. About Us Terms of Use Dictionary Editorial Policy Advertise News Privacy Policy Contact Us Careers California Privacy Notice # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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                            [body] => The Network Marketing Business Model: Is it Right for You? 3 Different Types of Network Marketing Programs. By Lahle Wolfe Full Bio Lahle Wolfe wrote about women in business for The Balance Small Business. She has more than 25 years of experience in small business development and ran her own digital marketing firm. Learn about our editorial policies Updated on January 06, 2021 Fact checked by Vikki Velasquez Fact checked by Vikki Velasquez Full Bio Vikki Velasquez is a copy editor, researcher, and writer. Vikki earned her Bachelor of Arts with honors in Gender, Sexuality, and Women’s Studies, and minored in Religious Studies at Virginia Commonwealth University. Learn about our editorial policies The Balance Network marketing is a business model that relies on a network of distributors to grow a business. It typically involves using three basic types of systematic strategies to make money: lead generation, recruiting, and building and management. There are many types of network marketing, including single-tier, two-tier, and multi-level. Single-Tier Network Marketing . With single-tier network marketing, you sign up for a company's affiliate program to sell their products or services. You do not need to recruit other distributors, and all your pay comes from direct sales. Avon, the popular beauty company, uses single-tier networking marketing. In some online affiliate programs, you get paid for the traffic you drive to the affiliate's website. Pay-per-click (PPC) and pay-per-lead (PPL) affiliate programs are other examples of single-tier networking. Two-Tier Network Marketing . Unlike single-tier network marketing, two-tier network marketing does involve some recruiting, but your pay isn't solely dependent on it. You get paid for direct sales (or traffic you drive to a website) and for direct sales or referred traffic made by affiliates or distributors you recruit to work under you. An example of a two-tier program is Ken Envoy's Site Sell. Multi-Level Marketing . Multi-Level Marketing (MLM) is a distribution-based marketing network that contains two or more tiers. Two other types of network marketing strategies are marketing-driven networks and name-driven network marketing. Some MLM programs allow you to make money five or more tiers deep, so there may be incentives for recruiting. Examples of MLM businesses include LuLaRoe, Magnetic Sponsoring, and Amway. Network Marketing as a Business Model . If you are thinking of starting a business that will rely on multi-level marketing of any kind, be sure you have a solid marketing team at the very core of your organization. The stronger your base of marketers, the better your chances for long-term success. Not everyone who wants to sell something will be good at it, but if you have someone excited about your business who might not be a perfect fit for your sales team, find another spot for them. Marketing is critical to the success of any business, but don't forget that sincerity and genuine enthusiasm about a company or product is a form of marketing in and of itself. If your only incentive to your sales team is money, they may cut corners or mislead others in an attempt to earn more for themselves. You should also take the time to research your own state's laws regarding network marketing to make sure that your business is fully compliant. Deceptive marketing practices and pyramid schemes can land you in legal trouble if you are not careful. Hire People Excited About Your Company . Marketing is part industry-driven and part creative thinking. With network marketing, it is also about finding salespeople with enthusiasm. When you hire people who are excited about your business and product, they will share that enthusiasm with others. An enthusiastic salesforce leads to more sales and recruits into your marketing network. Article Sources. Federal Trade Commission. "Multi-Level Marketing Businesses and Pyramid Schemes." Accessed Jan. 6, 2021. Share Tweet Share Email What Is Direct Selling? 12 Multi-Level Marketing Business Building Success Tips The Problem With Network Marketing and Multi-Level Marketing That You Should Know Company Directory: MLM / Network Marketing How Does Multilevel Marketing Work & Why Is It So Appealing? What is Mutli-Level Marketing (MLM)? Truths and Myths About Network Marketing for Home Business Seeking MLM Success: A Starter Guide to Building Your Direct Sales Biz Can You Make Money With Multi-Level Marketing (MLM)? 9 Affordable Part-Time Home Business Ideas You Can Start Now Tips for becoming a direct sales superstar Internet Business Ideas That You Can Start Today Is a Direct Sales or MLM Business Right for You? Types of Retail Ownership, Independent, Franchise and More 10 Ways to Spot an MLM Multi-Level Marketing Scam Is Affiliate Marketing Really Profitable?
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                            [body] => Multi-level marketing From Wikipedia, the free encyclopedia This is the latest accepted revision, reviewed on 11 January 2022. Jump to navigation Jump to search Controversial marketing strategy Marketing Marketing Marketing management Key concepts Distribution Pricing Retail Service Activation Brand licensing Brand management Co-creation Dominance Effectiveness Ethics Promotion Segmentation Strategy Account-based marketing Digital marketing Product marketing Social marketing Influencer marketing Attribution Annoyance factor Horizontal integration Vertical integration Promotional content Advertising Branding Corporate anniversary Direct marketing Loyalty marketing Mobile marketing On-hold messaging Personal selling Premiums Prizes Product placement Propaganda Publicity Sales promotion Sex in advertising Underwriting spot Promotional media Behavioral targeting Brand ambassador Display advertising Drip marketing In-game advertising Mobile advertising Native advertising New media Online advertising Out-of-home advertising Point of sale Product demonstration Promotional merchandise Promotional representative Visual merchandising Web banner Word-of-mouth Research Market research Marketing research Mystery shopping vte Multi-level marketing (MLM), also called network marketing[1] or pyramid selling,[2][3][4] is a controversial[5] marketing strategy for the sale of products or services where the revenue of the MLM company is derived from a non-salaried workforce selling the company's products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation commission system. An MLM strategy may be an illegal pyramid scheme.[6] In multi-level marketing, the compensation plan usually pays out to participants from two potential revenue streams. The first is based on a sales commission from directly selling the product or service; the second is paid out from commissions based upon the wholesale purchases made by other sellers whom the participant has recruited to also sell product. In the organizational hierarchy of MLM companies, recruited participants (as well as those whom the recruit recruits) are referred to as one's downline distributors.[7] MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but more importantly they are incentivized to recruit others to join the company's distribution chain as fellow salespeople so that these can become downline distributors.[1][8] According to a report that studied the business models of 350 MLM companies in the United States, published on the Federal Trade Commission's website, at least 99% of people who join MLM companies lose money.[9][10] Nonetheless, MLM companies function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the statistical improbability of this is de-emphasized. MLM companies have been made illegal or otherwise strictly regulated in some jurisdictions as merely variations of the traditional pyramid scheme.[11][12] Contents. 1 Terminology 2 Business model 2.1 Participants 2.2 Companies 2.3 Financial independence 2.4 Comparisons to pyramid schemes 2.5 Lawsuits 3 Direct selling versus network marketing 4 History 5 Setup 6 Income levels 7 Legality and legitimacy 7.1 Bangladesh 7.2 China 7.3 Saudi Arabia 7.4 United States 8 Religious views 8.1 Islam 9 See also 10 References 11 External links Terminology[edit]. Multi-level marketing is also known as pyramid selling,[2][3] network marketing,[3][1] and referral marketing.[13] Business model[edit]. Participants[edit]. The overwhelming majority of MLM participants participate at either an insignificant or nil net profit. (A study of 27 MLM schemes found that on average, 99.6% of participants lost money.)[14] Indeed, the largest proportion of participants must operate at a net loss (after expenses are deducted) so that the few individuals in the uppermost level of the MLM pyramid can derive their significant earnings. Said earnings are then emphasized by the MLM company to all other participants to encourage their continued participation at a continuing financial loss.[14] Companies[edit]. Many MLM companies generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, profits accrue to the detriment of the majority of the company's constituent workforce (the MLM participants). Only some of the profits are then shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants are emphasized and championed at company seminars and conferences, thus creating the illusion that one can become financially successful if one participates in the MLM. This is then advertised by the MLM company to recruit more distributors in the MLM with an unrealistic anticipation of earning margins which are in reality merely theoretical and statistically improbable.[15] Although an MLM company holds out those few top individual participants as evidence of how participation in the MLM could lead to success, the MLM business model depends on the failure of the overwhelming majority of all other participants, through the injecting of money from their own pockets, so that it can become the revenue and profit of the MLM company, of which the MLM company shares only a small proportion with a few individuals at the top of the MLM participant pyramid. Other than the few at the top, participants provide nothing more than their own financial loss for the company's own profit and the profit of the top few individual participants.[16] Financial independence[edit]. The main sales pitch of MLM companies to their participants and prospective participants is not the MLM company's products or services. The products or services are largely peripheral to the MLM model. Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like "the lifestyle you deserve" or "independent distributor."[17] Erik German's memoir My Father's Dream documents the author's father's failures through "get-rich-quick schemes" such as Amway.[18] The memoir illustrates the multi-level marketing sales principle known as "selling the dream".[19] Although the emphasis is always made on the potential of success and the positive life change that "might" or "could" (not "will" or "can") result, disclosure statements include disclaimers that they, as participants, should not rely on the earning results of other participants in the highest levels of the MLM participant pyramid as an indication of what they should expect to earn. MLM companies rarely emphasize the extreme likelihood of failure, or the extreme likelihood of financial loss, from participation in MLM. Comparisons to pyramid schemes[edit]. MLM companies have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in China.[11][12] In jurisdictions where MLM companies have not been made illegal, many illegal pyramid schemes attempt to present themselves as MLM businesses.[20] Given that the overwhelming majority of MLM participants cannot realistically make a net profit, let alone a significant net profit, but instead overwhelmingly operate at net losses, some sources have defined all MLM companies as a type of pyramid scheme, even if they have not been made illegal like traditional pyramid schemes through legislative statutes.[13][21][22] MLM companies are designed to make profit for the owners/shareholders of the company and a few individual participants at the top levels of the MLM pyramid of participants. According to the U.S. Federal Trade Commission (FTC), some MLM companies already constitute illegal pyramid schemes even by the narrower existing legislation, exploiting members of the organization.[23] Lawsuits[edit]. This section is in list format but may read better as prose. You can help by converting this section, if appropriate. Editing help is available. (December 2021) Companies that use the MLM business model have been a frequent subject of criticism and lawsuits. Legal claims against MLM companies have included, among other things: Their similarity to traditional illegal pyramid schemes Price fixing of products or services, Collusion and racketeering in backroom deals where secret compensation packages are created between the MLM company and a few individual participants, to the detriment of others High initial entry costs (for marketing kit and first products), Emphasis on recruitment of others over actual sales (especially sales to non-participants) Encouraging if not requiring members to purchase and use the company's products, Exploitation of personal relationships as both sales and recruiting targets, Complex and exaggerated compensation schemes, False product claims The company or leading distributors making major money off participant-attended conventions, training events and materials, advertising materials, and Cult-like techniques which some groups use to enhance their members' enthusiasm and devotion.[13][24] Direct selling versus network marketing[edit]. "Network marketing" and "multi-level marketing" (MLM) have been described by author Dominique Xardel as being synonymous, with it being a type of direct selling.[8] Some sources emphasize that multi-level marketing is merely one form of direct selling, rather than being direct selling.[25][26] Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and "relationship marketing". Critics have argued that the use of these and other different terms and "buzzwords" is an effort to draw distinctions between multi-level marketing and illegal Ponzi schemes, chain letters, and consumer fraud scams — where none meaningfully exist.[27] The Direct Selling Association (DSA), a lobbying group for the MLM industry, reported that in 1990 only 25% of DSA members used the MLM business model. By 1999, this had grown to 77.3%.[28] By 2009, 94.2% of DSA members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales.[29] Companies such as Avon, Electrolux, Tupperware, and Kirby were all originally single-level marketing companies, using that traditional and uncontroversial direct selling business model (distinct from MLM) to sell their goods. However, they later introduced multi-level compensation plans, becoming MLM companies.[25] The DSA has approximately 200 members[30] while it is estimated there are over 1,000 firms using multi-level marketing in the United States alone.[31] History[edit]. This section needs expansion. You can help by adding to it. (June 2020) The origin of multi-level marketing is often disputed, but multi-level marketing style businesses existed in the 1920s[32] and the 1930s, such as the California Vitamin Company[33] (later named Nutrilite) and the California Perfume Company (renamed "Avon Products").[34] Setup[edit]. A typical multi-level marketing MLM binary tree structure. The blue individual will receive compensation from the sales of the downline red members. Independent non-salaried participants, referred to as distributors (variously called "associates", "independent business owners", "independent agents", etc.), are authorized to distribute the company's products or services. They are awarded their own immediate retail profit from customers plus commission from the company, not downlines, through a multi-level marketing compensation plan, which is based upon the volume of products sold through their own sales efforts as well as that of their downline organization. Independent distributors develop their organizations by either building an active consumer network, who buy direct from the company, or by recruiting a downline of independent distributors who also build a consumer network base, thereby expanding the overall organization.[citation needed] The combined number of recruits from these cycles are the sales force which is referred to as the salesperson's "downline". This "downline" is the pyramid in MLM's multiple level structure of compensation.[8] Income levels[edit]. This section is in list format but may read better as prose. You can help by converting this section, if appropriate. Editing help is available. (April 2021) Several sources have commented on the income level of specific MLM companies or MLM companies in general: The Times: "The Government investigation claims to have revealed that just 10% of Amway's agents in Britain make any profit, with less than one in ten selling a single item of the group's products."[35] Eric Scheibeler, a high level "Emerald" Amway member: "UK Justice Norris found in 2008 that out of an IBO [Independent Business Owners] population of 33,000, 'only about 90 made sufficient incomes to cover the costs of actively building their business.' That's a 99.7 percent loss rate for investors."[36] Newsweek: based on Mona Vie's own 2007 income disclosure statement "fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week."[37] Business Students Focus on Ethics: "In the USA, the average annual income from MLM for 90% MLM members is no more than US $5,000, which is far from being a sufficient means of making a living (San Lian Life Weekly 1998)"[38] USA Today has had several articles: "While earning potential varies by company and sales ability, DSA says the median annual income for those in direct sales is $2,400."[39] In an October 15, 2010, article, it was stated that documents of a MLM called Fortune Hi-Tech Marketing reveal that 30 percent of its representatives make no money and that 54 percent of the remaining 70 percent only make $93 a month, before costs. Fortune was under investigation by the Attorneys General of Texas, Kentucky, North Dakota, and North Carolina with Missouri, South Carolina, Illinois, and Florida following up complaints against the company.[40] The FTC eventually stated that Fortune Hi-Tech Marketing was a pyramid scheme and that checks totaling more than $3.7 million were being mailed to the victims.[41] A February 10, 2011, article stated "It can be very difficult, if not impossible, for most individuals to make a lot of money through the direct sale of products to consumers. And big money is what recruiters often allude to in their pitches."[42] "Roland Whitsell, a former business professor who spent 40 years researching and teaching the pitfalls of multilevel marketing": "You'd be hard-pressed to find anyone making over $1.50 an hour, (t)he primary product is opportunity. The strongest, most powerful motivational force today is false hope."[42] Based on the results of a 2018 poll conducted with 1,049 MLM sellers, the majority (60%) earned an average of less than $100 in sales over a five-year period, and 20% never made a single sale. The majority of sellers made less than 70 cents per hour.[43][44] Nearly 32 percent of those polled acquired credit card debt to finance their MLM involvement.[45] Legality and legitimacy[edit]. Bangladesh[edit]. In 2015, the Government of Bangladesh banned all types of domestic and foreign MLM trade in Bangladesh.[46] China[edit]. Multi-level marketing (simplified Chinese: 传销; traditional Chinese: 傳銷; pinyin: chuán xiāo; lit. 'spread selling') was first introduced to mainland China by American, Taiwanese, and Japanese companies following the Chinese economic reform of 1978. This rise in multi-level marketing's popularity coincided with economic uncertainty and a new shift towards individual consumerism. Multi-level marketing was banned on the mainland by the government in 1998, citing social, economic, and taxation issues.[47] Further regulation "Prohibition of Chuanxiao" (where MLM is a type of Chuanxiao was enacted in 2005, clause 3 of Chapter 2 of the regulation states having downlines is illegal).[12] O'Regan wrote 'With this regulation China makes clear that while Direct Sales is permitted in the mainland, Multi-Level Marketing is not'.[11] MLM companies have been made illegal in China as a mere variation of the traditional pyramid scheme.[11][12] MLM companies have been trying to find ways around China's prohibitions, or have been developing other methods, such as direct sales, to take their products to China through retail operations. The Direct Sales Regulations limit direct selling to cosmetics, health food, sanitary products, bodybuilding equipment and kitchen utensils, and they require Chinese or foreign companies ("FIEs") who intend to engage into direct sale business in mainland China to apply for and obtain direct selling license from the Ministry of Commerce ("MOFCOM").[48] In 2016, there are 73 companies, including domestic and foreign companies, that have obtained the direct selling license.[49] Some multi-level marketing sellers have circumvented this ban by establishing addresses and bank accounts in Hong Kong, where the practice is legal, while selling and recruiting on the mainland.[11][50] It was not until August 23, 2005, that the State Council promulgated rules that dealt specifically with direct sale operation- Administration of Direct Sales (entered into effect on December 1, 2005) and the Regulations for the Prohibition of Chuanxiao (entered into effect on November 1, 2005). When direct selling is allowed, it will only be permitted under the most stringent requirements, in order to ensure the operations are not pyramid schemes, MLM, or fly-by-night operations. Saudi Arabia[edit]. MLM marketing is banned in Saudi Arabia by imposing religious fatwa nationally, for this reason MLM companies like Amway, Mary Kay, Oriflame and Herbalife sell their products by online selling method instead of MLM.[51] United States[edit]. MLM businesses operate in all 50 U.S. states. Businesses may use terms such as "affiliate marketing" or "home-based business franchising". Some sources say that all MLM companies are essentially pyramid schemes, even if they are legal.[13][21][22] The U.S. Federal Trade Commission (FTC) states: "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people—except perhaps those at the very top of the pyramid—end up empty-handed."[52] In a 2004 Staff Advisory letter to the Direct Selling Association, the FTC states:Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.[53] The Federal Trade Commission warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."[23] In re Amway Corp. (1979), the Federal Trade Commission indicated that multi-level marketing was not illegal per se in the United States. However, Amway was found guilty of price fixing (by effectively requiring "independent" distributors to sell at the same fixed price) and making exaggerated income claims.[54][55] The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".[56] Walter J. Carl stated in a 2004 Western Journal of Communication article that "MLM organizations have been described by some as cults (Butterfield, 1985),[57] pyramid schemes (Fitzpatrick & Reynolds, 1997),[58] or organizations rife with misleading, deceptive, and unethical behavior (Carter, 1999),[59] such as the questionable use of evangelical discourse to promote the business (Höpfl & Maddrell, 1996),[60] and the exploitation of personal relationships for financial gain (Fitzpatrick & Reynolds, 1997)".[58][61] In China, volunteers working to rescue people from the schemes have been physically attacked.[62] MLM companies are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms.[63] There are even claims that the success rate for breaking even or even making money are far worse than other types of businesses:[64] "The vast majority of MLM companies are recruiting MLM companies, in which participants must recruit aggressively to profit. Based on available data from the companies themselves, the loss rate for recruiting MLM companies is approximately 99.9%; i.e., 99.9% of participants lose money after subtracting all expenses, including purchases from the company."[64] (By comparison, skeptic Brian Dunning points out that "only 97.14% of Las Vegas gamblers lose money .... ."[65]) In part, this is because encouraging recruits to further "recruit people to compete with [them]"[13] leads to "market saturation."[24] It has also been claimed "(b)y its very nature, MLM is completely devoid of any scientific foundations."[66] Because of the encouraging of recruits to further recruit their competitors, some people have even gone so far as to say at best modern MLM companies are nothing more than legalized pyramid schemes[13][21][22] with one stating "Multi-level marketing companies have become an accepted and legally sanctioned form of pyramid scheme in the United States"[21] while another states "Multi-Level Marketing, a form of Pyramid Scheme, is not necessarily fraudulent."[22] In October 2010 it was reported that multi-level marketing companies were being investigated by a number of state attorneys general amid allegations that salespeople were primarily paid for recruiting and that more recent recruits cannot earn anything near what early entrants do.[67] Industry critic Robert L. FitzPatrick has called multi-level marketing "the Main Street bubble" that will eventually burst.[68] Religious views[edit]. Islam[edit]. Many Islamic jurists and religious bodies, including Permanent Committee for Scholarly Research and Ifta[69] of Saudi Arabia, have considered MLM trade to be prohibited (haram). They argue that MLM trade involves deceiving others into participating, and the transaction bears resemblance to both riba and gharar.[70][71] See also[edit]. Binary option Destiny Group List of multi-level marketing companies Saradha Group financial scandal Tiens References[edit]. ^ a b c Vander Nat, Peter J.; Keep, William W. (2002). "Marketing Fraud: An Approach for Differentiating Multilevel Marketing from Pyramid Schemes". Journal of Public Policy & Marketing. 21 (1): 139–151. doi:10.1509/jppm.21.1.139.17603. S2CID 154490614.Mendelsohn, Martin (2004). The guide to franchising. Cengage Learning Business Press. p. 36. ISBN 1-84480-162-4. ^ a b Clegg, Brian (2000). The invisible customer: strategies for successive customer service down the wire. Kogan Page. p. 112. ISBN 0-7494-3144-X. ^ a b c Kitching, Trevor (2001). Purchasing scams and how to avoid them. Gower Publishing Company. p. 4. ISBN 0-566-08281-0.Mendelsohn, Martin (2004). The guide to franchising. Cengage Learning Business Press. p. 36. ISBN 1-84480-162-4. ^ Karp, Gregory (February 10, 2013). "The fine line between legitimate businesses and pyramid schemes". The Chicago Tribune. Archived from the original on August 9, 2020. ^ Karp, Gregory (February 10, 2013). "The fine line between legitimate businesses and pyramid schemes". The Chicago Tribune. Archived from the original on August 9, 2020. ^ "Multilevel Marketing". FTC. May 18, 2021."Multi-Level Marketing Businesses and Pyramid Schemes". FTC, Bureau of Consumer Protection. January 4, 2018. Retrieved October 16, 2020. ^ DuBoff, Leonard D. (2004). The Law (in Plain English) for Small Business. Sphinx Pub. pp. 285–286. ISBN 978-1-57248-377-4. ^ a b c Xardel, Dominique (1993). The Direct Selling Revolution. Understanding the Growth of the Amway Corporation. Blackwell Publishing. pp. 1–4. ISBN 978-0-631-19229-9. ^ "The Perils Of Multi-Level Marketing Programs". Texas Public Radio. October 4, 2017. Retrieved February 16, 2018. ^ "Legging company, LuLaRoe accused of misleading consultants". Valley News. Retrieved February 16, 2018. ^ a b c d e O'Regan, Stephen (July 16, 2015). "Multi-Level Marketing: China Isn't Buying It". China Briefing. Dezan Shira & Associates. Retrieved September 19, 2018. ^ a b c d "MLM law of China 'Prohibition of Chuanxiao'". gov.cn. September 3, 2005. Retrieved September 19, 2018. ^ a b c d e f Carroll, Robert Todd (2003). The Skeptic's Dictionary: A Collection of Strange Beliefs, Amusing Deceptions, and Dangerous Delusions. John Wiley & Sons. pp. 235–236. ISBN 0-471-27242-6. ^ a b Taylor, Jon M. "Reports from Federal Trade Commission website" (PDF). FTC. ^ Chung, Frank (March 1, 2017). "WorldVentures multi-level marketing business claims to have 10,000 Australian members". News.com.au. Retrieved September 19, 2018. ^ Herb, Greenberg (January 17, 2013). "From High Energy Clubs to Dashed Dreams: Herbalife Tales". CNBC. Retrieved September 19, 2018. ^ "Amway: Selling the Dream of Financial Freedom". [email protected] May 5, 2011. Retrieved September 19, 2018. ^ "Lewis: Herbalife selling 'dreams' and 'stories'". The Denver Post. January 8, 2013. Retrieved September 19, 2018. ^ "Selling the American Dream". CNBC. Retrieved September 19, 2018. ^ Valentine, Debra A. (May 13, 1998). "Pyramid Schemes". FTC. Retrieved September 19, 2018. ^ a b c d Coenen, Tracy (2009). Expert Fraud Investigation: A Step-by-Step Guide. Wiley. p. 168. ISBN 978-0-470-38796-2. ^ a b c d Salinger, Lawrence M., ed. (2005). Encyclopedia of White-Collar & Corporate Crime. 2. Sage Publishing. p. 880. ISBN 0-7619-3004-3. ^ a b "The Bottom Line About Multilevel Marketing Plans and Pyramid Schemes" (PDF). FTC. December 2012. Archived from the original (PDF) on September 20, 2018. Retrieved September 19, 2018. Not all multilevel marketing plans are legitimate. Some are pyramid schemes."Multilevel Marketing". FTC. May 18, 2021."Multilevel Marketing". FTC, Bureau of Consumer Protection. January 4, 2018. Retrieved September 19, 2018. ^ a b "What's Wrong With Multi-Level Marketing?". Vandruff.com. Retrieved September 19, 2018. ^ a b Edwards, Paul; Edwards, Sarah; Economy, Peter (2009). Home-Based Business for Dummies (3rd ed.). Wiley. pp. 38–39. ISBN 978-0-470-53805-0. ^ "'Person to person' sales plans... "dream" opportunity or business nightmare? [Amway Ad]". Life. Vol. 68 no. 7. February 27, 1970. p. 51.Brown, Caryne (December 1992). "Door-to-door Selling Grows Up". Black Enterprise. 23 (5): 76. ^ Charles W. King; James W. Robinson (2000). The New Professionals. Prima Publishing. p. 80. ISBN 0-7615-1966-1. ^ Sheffield, Michael L. (February–March 1999). "Comp Plan Conversion:Direct Sales to MLM Compensation Plans". Direct Sales Journal. Retrieved September 19, 2018. (citing Neil Offen, president of the Direct Selling Association) ^ "US Direct Selling in 2009" (PDF). Direct Selling Association. 2010. Retrieved September 19, 2018. ^ "Direct Selling Organization Membership". Direct Selling Association. Retrieved September 19, 2018. ^ Ziglar, Zig; Hayes, John P. PhD (2001). Network Marketing for Dummies. Hungry Minds. ISBN 0-7645-5292-9. ^ Pareja, Sergio (2008). "Sales Gone Wild: Will the FTC's Business Opportunity Rule Put an End to Pyramid Marketing Schemes?". McGeorge Law Review. 39 (83). ^ Attri, Rekha (2011). "A Study of Consumer Perceptions of the Products Sold Through Multilevel Marketing". Management Research Journal. Prabandhan & Taqniki. 39 (83): 97–103. ^ "MLM History". network-experience.net. January 24, 2014. Retrieved September 19, 2018. ^ Brown, David (November 27, 2007). "Marketing group merely 'selling a dream'". The Times. Retrieved September 19, 2018. ^ Berkowitz, Bill (January 28, 2009). "Republican Benefactor Launches Comeback". Inter press service. Retrieved September 19, 2018. (in reference to BERR vs Amway (Case No:2651, 2652 and 2653 of 2007) in point of objectionability"c") ^ Dokoupil, Tony (August 2, 2008). "A Drink's Purple Reign". Newsweek. Retrieved September 19, 2018. ^ Ryan, Leo; Wojciech, Gasparski; Georges, Enderle, eds. (2000). Business Students Focus on Ethics (Praxiology): The international Annual of Practical Philosophy and Methodology. 8. New Jersey: Transaction Publishers. p. 75. ISBN 0-7658-0037-3. ^ Peterecca, Laura (September 14, 2009). "What kind of business do you want to start?". USA Today. pp. 4B. Retrieved September 19, 2018. ^ O'Donnell, Jayne (October 15, 2010). "Fortune Hi-Tech: American dream or pyramid scheme?". USA Today. pp. 6B. Retrieved September 19, 2018. ^ FTC (November 8, 2016) "FTC Returns More Than $3.7 Million to People Harmed by Pyramid Scheme" ^ a b O'Donnell, Jayne (February 10, 2011). "Multilevel marketing or 'pyramid?' Sales people find it hard to earn much". USA Today. Retrieved September 19, 2018. ^ Del Valle, Gaby (October 15, 2018). "Multilevel marketing companies say they can make you rich. Here's how much 7 sellers actually earned". Vox. Retrieved October 15, 2018. ^ Clements, Nick. "3 Reasons To Avoid Multilevel-Marketing Gigs". Forbes. Retrieved October 22, 2018. ^ Singletary, Michelle. "Why multilevel marketing won't make you rich". The Washington Post. Retrieved October 22, 2018. ^ ফখরুল ইসলাম (Fakhrul Islam) (April 11, 2015). "সব এমএলএম অবৈধ (All MLMs are illegal.)". Prothom Alo. Retrieved May 29, 2020. ^ Jeffery, Lyn (March 21, 2001). "Placing Practices: Transnational Network Marketing in Mainland China". In Chen, Nancy N. (ed.). China Urban: Ethnographies of Contemporary Culture. Duke University Press. pp. 23–42. ISBN 978-0822326403. ^ Xu, Lehman Lee. "Chinese Law | China: Direct Sale". www.lehmanlaw.com. Archived from the original on January 21, 2015. Retrieved September 19, 2018. ^ 直销企业信息披露网站. zxjg.saic.gov.cn. State Administration for Industry and Commerce. Archived from the original on April 28, 2016. Retrieved September 19, 2018. ^ "Hong Kong multi-level marketing plan needs closer look (editorial)". South China Morning Post. October 31, 2013. Retrieved September 19, 2018. ^ Nestorović, Čedomir (2016). Islamic Marketing: Understanding the Socio-Economic, Cultural, and Politico-Legal Environment. Springer. p. 242. ISBN 978-3-319-32754-9. Retrieved June 20, 2020. ^ "FTC Consumer Alert; Lotions and Potions: The Bottom Line About Multilevel Marketing Plans". FTC. January 2000. Retrieved September 19, 2018. ^ Kohm, James A. (January 14, 2004). "RE: Staff Advisory Opinion – Pyramid Scheme Analysis" (PDF). Federal Trade Commission. Archived from the original (reprint) on July 3, 2017. ^ Eisenberg, Richard (June 1, 1987). "The Mess Called Multi-Level Marketing With celebrities etting the bait, hundreds of pyramid-style sales companies are raking in millions, often taking in the gullible". CNN. Retrieved September 19, 2018. ^ In re Amway Corp., F.T.C. (1979). ^ "Multilevel Marketing Plans". FTC Consumer Alert. November 1996. Retrieved September 19, 2018. ^ Stephen Butterfield, Amway, the Cult of Free Enterprise (Boston: South End Press, 1985). ^ a b "FalseProfitsHomePage". Falseprofits.com. Retrieved September 19, 2018.; Robert L. FitzPatrick & Joyce K. Reynolds, False Profits: Seeking Financial and Spiritual Deliverance in Multi-Level Marketing and Pyramid Schemes (Herald Pr, 1997). ^ Ruth Carter, Amway Motivational Organizations: Behind the Smoke and Mirrors (Winter Park, Fla.: Backstreet Publishing, 1999). ^ H. Höpfl & J. Maddrell, “Can You Resist a Dream? Evangelical Metaphors and the Appropriation of Emotion”, Metaphor and Organizations, eds. D. Grant & C. Oswick (Thousand Oaks, Cal.: Sage, 1996), 200–212. ^ Carl, Walter J. (2004). "The Interactional Business of Doing Business: Managing Legitimacy and Co-constructing Entrepreneurial Identities in E-Commerce Multilevel Marketing Discourse". Western Journal of Communication. 68 (1): 92–119. doi:10.1080/10570310409374790. S2CID 151564237. ^ Hu Yongqi (July 29, 2010). "Going against the slippery slope of a pyramid scheme". China Daily. Retrieved September 19, 2018. ^ Bloch, Brian (1996). "Multilevel marketing: what's the catch?". Journal of Consumer Marketing. 13 (4): 18–26. doi:10.1108/07363769610124519. ^ a b Taylor, Jon M. (2002). "Comparing Recruiting MLMs with No-product Pyramid Schemes, and with Gambling". Consumers Awareness Institute. Retrieved October 15, 2018.Cruz, Joan Paola; Camilo, Olaya (2008). "A System Dynamics Model for Studying the Structure of Network Marketing Organizations [Peer reviewed paper that refers uses Taylor as references]" (PDF). ^ Dunning, Brian (October 20, 2009). "Skeptoid #176: Network Marketing". Skeptoid. Retrieved October 24, 2020. ^ Sandbek, Terry. "Brain Typing: The Pseudoscience of Cold Reading". American Board of Sport Psychology. Retrieved September 19, 2018. ^ "Multilevel marketing or 'pyramid?' Sales people find it hard to earn much". USA Today. February 10, 2011. Retrieved September 19, 2018. ^ Greenberg, Herb (January 9, 2013). "Multi-Level Marketing Critic: Beware 'Main Street Bubble'". CNBC. Retrieved September 19, 2018. ^ "فتوى اللجنة الدائمة بشأن التسويق الشبكي – إسلام ويب – مركز الفتوى". www.islamweb.net (in Arabic). Retrieved July 14, 2020. ^ Abdul-Rahman, Muhammad Saed (2004). Islam: Questions and Answers – Jurisprudence and Islamic Rulings: Transactions – Part 7. MSA Publication Limited. ISBN 978-1-86179-461-1. Retrieved June 8, 2020. ^ Manjur Elahi, Muhammad; Tajul Islam, Muhammad; Muhammad Zakaria, Abu Bakr (May 18, 2011). "The provisions of network marketing in Islamic jurisprudence – Bengali – Muhammad Manjur Elahi". IslamHouse.com (in Bengali). Retrieved June 8, 2020. External links[edit]. Federal Trade Commission article vteMulti-level marketing companies List of multi-level marketing companies Direct selling 5Linx ACN Inc. Alticor Ambit Energy Amsoil Amway Arbonne International Avon Products BioPerformance Blyth, Inc. 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                            [body] => Network Marketing Definition: A business model in which a distributor network is needed to build the business. Usually such businesses are also multilevel marketing in nature in that payouts occur at more than one level. Network marketing is a type of business opportunity that is very popular with people looking for part-time, flexible businesses. Some of the best-known companies in America, including Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.Network marketing programs feature a low upfront investment--usually only a few hundred dollars for the purchase of a product sample kit--and the opportunity to sell a product line directly to friend, family and other personal contacts. Most network marketing programs also ask participants to recruit other sales representatives. The recruits constitute a rep's "downline," and their sales generate income for those above them in the program.Things can get sticky when a network marketing network compensates participants primarily for recruiting others rather than for selling the company's products or services. A network marketing system in which most of the revenue comes from recruitment may be considered an illegal pyramid scheme.Since network marketing programs are usually exempt from business opportunity regulation and aren't defined as franchises under state and federal franchise laws, you'll need to do your own investigation before investing any money. Browse By. Categories Accounting Advertising Biz Opportunities Business Expansion Business Plans Business Structure Credit and Collections E-Business Employee Benefits Employee Management Employees Expansion Financing Financial Management Financing Franchising Government Help Home Based Business Insurance Inventing Investing Legal Issues Location Management Market Research Marketing Marketing Tactics Operations PR Sales Starting A Business Startup Financing Taxes Technology Show More A to Z A B C D E F G H I J K L M N O P Q R S T U V W X Y Z # Popular Articles. News and Trends HBO Max Makes Major Editing Error in 'Harry Potter' Reunion Special. Emily Rella | 2 min read Finance 6 Rich People Habits That Will Change Your Life. Jeff Rose | 9 min read Finance IRS Sending 2 Crucial Coronavirus Stimulus Check Letters. Aman Jain | 3 min read
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                            [body] => 4 steps to network marketing success Do you want to become your own boss, work flexible hours and make money? Of course you do. One way to get to this stage in your professional life is via network marketing. If you’ve heard of Mary Kay, Avon or Tupperware, you’ve heard of network marketing. These household names are all examples of this type of business, which can be a great fit for those with an entrepreneurial mindset. But what is network marketing exactly, and how does it work? It’s time to learn how you can get all the benefits of being a business owner without all the headaches and level of risk. Ready to make the next big move for your business? Download the 7 forces of Business Mastery What is network marketing? Network marketing in business is a model that’s dependent on person-to-person sales of a product or service. It involves developing a team of people who work together to deliver the product’s message to a wide range of potential customers. The leaders of these teams are compensated for the products they sell as well as the products their team members sell. It’s also known as multilevel marketing, referral marketing and consumer direct marketing. No matter what you call it, these are businesses where the best entrepreneurs can succeed – and even find their true gift. How does network marketing work? You’ll start your network marketing business by signing up with a reputable company – some of today’s most popular are Scentsy, Younique Cosmetics and Young Living Essential Oils. You’ll typically receive a “starter kit” with promotional materials, supplies and other items you’ll need to get started. At first you’ll work underneath a sponsor who can show you the ropes, provide education and give you tips about the industry. Once you know everything there is to know about your product, you’re ready to start selling. Most network marketing in business takes place face-to-face. All you need to do is talk to people! Let your passion shine through and use your communication skills to build rapport and get people interested in your product. Here’s where the “network” part comes in: When you sign someone up, they become part of your team. You earn commission on their sales and on sales of any people that they sign up – and so on. The more passionate people you can find, the better. Advantages and disadvantages of network marketing One of the best advantages of network marketing is that you will feel like your own boss – without taking on the responsibility of starting your own company. You’ll typically be able to work out of your home and make your own hours, giving you the flexibility that many entrepreneurs love, with none of the risks. Another advantage is that you’ll gain skills you can use in any future endeavor, like developing instant connections with others, making persuasive presentations, cultivating and leading a team and effective follow-through. The disadvantages of network marketing are similar to those for any sales business: It will take time to build your business, and a lot of people will tell you “no” before you start hearing “yes.” Competition can be fierce, so you must always be a step ahead. Never forget that you are still an entrepreneur, even though you’re part of a network marketing business. You must strengthen your resilience, build your brand, market yourself and innovate – just as you would if you started a traditional business. How to succeed in network marketing Now that you know what network marketing is, it’s time to get started. Running a successful network marketing business doesn’t have to be time-consuming or complicated. You can create a breakthrough with a few simple steps – change your story, change your strategy and the rest will follow. Step 1. Find your passion According to Tony, network marketing is about “picking the right company and realizing you’re a value creator. Whatever you enjoy the most, you’ll do the most.”  Your love and passion for a product or service drives you to properly tell its story, and that’s how you create value. Consider what products have improved your life in the past and what you want to learn more about. Is it supplements? Home décor? Cosmetics? When you choose something you have a deep interest in, that passion will shine through. There’s another benefit to choosing something you love: more sales. Today’s consumer is bombarded with marketing, branding and advertising. They’re on high alert and know when they are being “sold” to. If you’re just doing this for the money, they will sense it right away – and react accordingly. The best network marketing entrepreneurs figure out how to combine their true passion with their ability to make money. What is network marketing at its most successful? It’s your chance to make a difference in the world – and make money while you’re at it. Step 2: Choose the right company Passion is the most essential ingredient to successful network marketing – and choosing the right company that matches your passion is equally vital. You’ll need to research carefully to locate a business whose message, story and products or services capture your image and make you want to join their ranks. The network marketing business you choose must also have the following traits: At least five years in operation: Fifty percent of businesses fail within the first year, and 80% fail within five years. Signing up with a business that hasn’t had its doors open for at least that long is an additional risk. Steady cash flow: Network marketing companies with nothing to hide disclose their financial statements. Take the time to read the statements and ensure the business is well-capitalized. Professional development: Make sure the business provides the coaching, technology and support you need, and will send you to any conferences and meetings required to advance your training. Established customer base: Sign on with an established company that already has raving fan customers. An existing customer base allows a network marketing business to shift gears as necessary. Step 3. Put your resources to work Succeeding at network marketing is largely dependent on how many resources you can cultivate. Start by discovering how you can leverage things you already have – connections, education and achievements – into business success. You may already have dozens of relationships that you can capitalize on to grow your network.  As you consider turning to these people, remember that you want to add value to their lives with your product or service. Don’t pitch everyone in your phone book just because you can. Remember that the secret to living is giving. Those who thrive in network marketing understand that it’s not about selling – it’s about using the opportunity to cultivate an abundance mindset and improve the lives of others. Step 4: Manage your mindset  In network marketing, the way you think about yourself matters far more than your tactics. You might have plenty of strategies to deploy, but if you’re not in the right mindset, you won’t be able to execute them. However, even if you have no business experience, you can succeed in network marketing if you create the right mindset. Before you even start network marketing, you need to learn how to cultivate positive emotions and control your reactions to situations. Choose how you feel rather than reacting to a situation. When you do this, life happens for you instead of to you, putting you firmly in the driver’s seat. You will face plenty of challenges as you learn about network marketing, and viewing each setback as something you can overcome and learn from will help you move on from temporary disappointments. Figuring out how to succeed in network marketing doesn’t have to be time-consuming or complicated. You can create a breakthrough with a few simple steps – change your story, change your strategy and the rest will follow. Tony says, “Most of us get what we tolerate.” It’s time to stop tolerating anything less than being your own boss. Ready to take your business to unreached levels? Discover how to create the ultimate business advantage with Tony Robbins’ 7 Forces of Business Mastery free content series. UNLOCK THE 7 FORCES © 2022 Robbins Research International, Inc. All rights reserved. This website uses cookies to personalize your experience and target advertising.. By continuing to use our website, you accept the terms of our updated policiesOkay, thanks
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                            [body] => Multi-Level Marketing Businesses and Pyramid Schemes Share this page. Facebook Twitter Linked-In Businesses that involve selling products to family and friends and recruiting other people to do the same are called multi-level marketing (MLM), network marketing, or direct marketing businesses. Some MLMs are illegal pyramid schemes. Before joining an MLM program, here are some things to know. What Are MLMs and How Do They Work? What’s a Pyramid Scheme and How Do You Spot One? Is an MLM Right for You? What Are MLMs and How Do They Work? MLM companies sell their products or services through person-to-person sales. That means you’re selling directly to other people, maybe from your home, a customer’s home, or online. If you join an MLM program, the company may refer to you as an independent “distributor,” “participant,” or “contractor.” Most MLMs say you can make money two ways: by selling the MLM’s products yourself to “retail” customers who are not involved in the MLM by recruiting new distributors and earning commissions based on what they buy and their sales to retail customers Your recruits, the people they recruit, and so on, become your sales network, or “downline.” If the MLM is not a pyramid scheme, it will pay you based on your sales to retail customers, without having to recruit new distributors. Most people who join legitimate MLMs make little or no money. Some of them lose money. In some cases, people believe they’ve joined a legitimate MLM, but it turns out to be an illegal pyramid scheme that steals everything they invest and leaves them deeply in debt. What’s a Pyramid Scheme, and How Do You Spot One? Pyramid schemes are scams. They can look remarkably like legitimate MLM business opportunities and often sell actual products, maybe even ones you've heard of. But if you become a distributor for a pyramid scheme, it can cost you and your recruits — often your family and friends — a lot of time and money that you won’t get back. The promoters of a pyramid scheme may try to recruit you with pitches about what you’ll earn. They may say you can change your life — quit your job and even get rich — by selling the company’s products. That’s a lie. Your income would be based mostly on how many people you recruit, not how much product you sell. Pyramid schemes are set up to encourage everyone to keep recruiting people to keep a constant stream of new distributors — and their money — flowing into the business. Often in a pyramid scheme, you’ll be encouraged or even required to buy a certain amount of product at regular intervals, even if you already have more inventory than you can use or sell. You may even have to buy products before you’re eligible to be paid or get certain bonuses. You also may have to pay repeated fees for other items, like training sessions or expensive marketing materials. In addition, the company may say you can earn lavish rewards, like prizes, bonuses, exotic vacations, and luxury cars. However, it often turns out that you have to meet certain product purchase, recruitment, training, or other goals to qualify for the rewards, and only a handful of distributors ever qualify. Eventually, most distributors find that no matter how hard they work, they can’t sell enough inventory or recruit enough people to make money. They also can’t keep up with required fees or the inventory purchases they need to make to qualify for rewards, and they can’t earn enough money to cover their expenses. In the end, most people run out of money, have to quit, and lose everything they invested. Here are some warning signs of a pyramid scheme: Promoters make extravagant promises about your earning potential. Stop. These promises are false. Promoters emphasize recruiting new distributors for your sales network as the real way to make money. Walk away. In a legitimate MLM program, you should be able to make money just by selling the product. Promoters play on your emotions or use high-pressure sales tactics, maybe saying you’ll lose the opportunity if you don’t act now and discouraging you from taking time to study the company. Leave by the nearest exit. Any company that tries to pressure you to join is one to avoid. Distributors buy more products than they want to use or can resell, just to stay active in the company or to qualify for bonuses or other rewards. If you see this happening, keep your money. Is an MLM Right for You? If you’re considering joining an MLM, know that some MLMs — even ones that aren’t pyramid schemes — may not be a wise investment. Other MLMs may not be a good fit for your interests and lifestyle. Here are some tips to help protect yourself against a bad MLM experience. Ask yourself these questions. Do you want to be a salesperson? If you join an MLM, you’ll be a salesperson. Your job will be to sell the company’s product and, in many cases, to convince other people to join, invest, and sell. If you don’t like selling, or if you’re uncomfortable asking people you know to put their time and money into a business venture, joining an MLM is a bad idea. Do you have a solid sales plan? Consider whether you have friends and family who will buy this product from you over and over again. Think about how you would find and keep other regular customers. Can people buy something like this product elsewhere, maybe for less? What are your income goals? You might think that, with your willingness to work hard, you can earn substantial income through the MLM. In fact, most people who join MLMs and work hard make little or no money, and some of them lose money. Can you afford to risk the money and time? Every business venture has risks. MLMs are no different. Even if the start-up costs seem low, additional expenses can add up quickly. Expenses can include training and travel costs, website fees, promotional materials, costs to host parties, and costs to buy products. If you need to borrow money or use your credit card to finance your expenses, you may face hefty interest charges too. Also, consider the time demands of the business, like going to training, recruiting new distributors, managing paperwork, recording inventory, and shipping products. Do your homework. Research the company. Search online for the name of the company and words like “review,” “scam,” or “complaint.” You may also want to look for articles about the company in newspapers, magazines, or online. Does the company have a good reputation for customer satisfaction? Check with your state attorney general for complaints. A lack of complaints doesn’t guarantee that a company is legitimate, but complaints can tip you off to possible problems. Research what distributors are saying. Individual distributors often post their own training videos online to promote the MLM. Search for these materials. Be suspicious if the trainings make earnings claims, tell you that the fastest way to make money is to “recruit, recruit, recruit,” or suggest that all you need to do to build a downline is “find two people who find two people.” Claims like these are hallmarks of a pyramid scheme. Consider the products. MLM companies may sell quality items at competitive prices. But some offer goods that are overpriced, have questionable benefits, or are downright unsafe to use. For example, be very skeptical about health products advertised as having “miracle” ingredients or guaranteed results. Those claims are generally false or at least unproven and, at worst, the products could be dangerous. Understand the costs. Many MLMs make you buy training or marketing materials, or pay for seminars on building your business. You may need to book travel and pay for hotels and meals. Make sure you know what you must pay for, and how much it will cost over time. If the company says some of these things — like periodic product purchases or training — are optional, find out if you’ll become ineligible for bonuses or rewards if you opt out of them. Ask about refunds. In many MLMs, before you can start selling the products, you have to buy them from the company. So get the company’s refund policy in writing. Make sure it includes information about returning any unused products, including restrictions and penalties. Consider whether you’ll get a full refund or only a partial one — and how long it may take. Read the paperwork and have a friend or advisor review it. Read the company’s sales literature, business plan, disclosure documents, and any contracts or agreements you’ll need to sign. Ask an accountant, a lawyer, or someone else you trust — and who is not affiliated with the company — to help you review the MLM’s materials. Ask them to look at your possible earnings and whether the company can back up its claims about how much money you can make. Ask for their honest opinion about whether they think the MLM is legitimate and a good fit for you. Talk with current and past distributors about their experience in the MLM. Ask tough questions and dig for details. Don’t consider it nosy or intrusive. You’re thinking about starting a small business. A good businessperson needs those answers. Here are some questions to ask: How long have you been in the MLM? How much money did you make last year, after expenses? What were your expenses last year? Have you borrowed money or used your credit card to fund your business? How much did you borrow? How much do you owe? Do you need to have recruits to make money? How many people have you recruited? How many did you recruit last year? How many of your recruits have left the business? What percentage of the money you made came from selling the product to customers outside the MLM? What percentage of the money you made — income and bonuses less your expenses — came from recruiting other distributors and selling them inventory or other items to get started? How much time do you spend on the business? How much inventory did you buy from the MLM last year? Did you sell all of your inventory? Remember, you’re on a mission to check out a potential business deal that will require your time and money. The information you learn can help you decide whether it’s really a deal, a dud, or straight up illegal. Tagged with: business opportunity, get rich, invest, multilevel marketing, pyramid scheme, scam May 2021 Stay Connected. LinkedIn Facebook Twitter YouTube FTC.gov Privacy Policy About Us Contact Us Report Fraud to the FTC Register for Do Not Call Report Identity Theft Get Your Free Credit Report Order Free Resources Get Email Updates
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                            [body] => How to Start Your Own Network Marketing Company Small Business | Setting Up a New Business | Starting Your Own Company By Rick Suttle Updated April 09, 2019 Related. Small Scale Business Ideas for Women How to Develop Your Own Multilevel Marketing Plan How to Start a Home-based Business How to Become a Cell Phone Dealer & Reseller With No Inventory How to Start a Home-Based Promotional Supplies Business Network marketing or MLM can be a viable opportunity, provided the emphasis is placed on selling products rather than signing up new members. In order to start your own network marketing company you can enroll with an existing MLM organization or start your own from the ground up, but if you go the DIY route you'll need to establish a relationship with a wholesaler or manufacturer to turn out your actual product. Find a Niche. Select a product line for your network marketing company. Start a nutritional network marketing company, for example, which is the most popular type of network marketing business. Wholesale Suppliers. Search for a wholesale supplier through the National Association of Wholesaler-Distributors at Naw.org. Attend NAW meetings to become more familiar with wholesalers. Sign up for some free trade publications through Tradepub.com, according to article titled "Find Suppliers for Your Business" at Businessknowhow.com. Examine the "Thomas Register of American Manufacturers" at your local library. Call several potential wholesale and manufacturer suppliers. Ask them if they offer drop-shipping services, which will keep your inventory levels down. Find out if the supplier offers catalogs, brochures and order forms for their products. Choose the supplier that provides you with the lowest unit cost per product. Set Price Structure. Set the retail price of your products according to your supplier's recommendations. Establish a commission structure for your distributors on several different levels. Set commissions at 10 percent, for example, for first-level sales where distributors earn money off those people they recruit. Set commissions on levels two and three at 5 percent each, for example, allowing distributors to earn commissions off people your distributors recruit. Organizational and Management Setup. Install network marketing commission-payment software. Use your commission-payment software to calculate the commissions of all future distributors. Create an instruction manual for all distributors, highlighting various ways to advertise their network marketing businesses. Create a distributor's kit for all potential dealers, which includes the instruction manual, a catalog, price list and order forms. Marketing Your Business . Advertise your network marketing company in major business opportunity magazines, including "Business Opportunities," "Home Business" and "Small Business Opportunities." Start with classified ads as they are the most cost effective of all ads. Mail a sales letter brochure and order form out to people who respond to your classified ads. Call people back when they inquire about your network marketing opportunity. Recruit distributors into your business on an ongoing basis. Create a website and include your website in your classified advertisements. This will give people another way to join your network marketing opportunity. Get a merchant account through your bank so you can accept credit cards online. Find a web designer if you are unable to create your own website. Have the web designer create self-replicating sites for your distributors so they can recruit their own distributors. Self-replicating sites will have the same URL or address as your site, but with unique extensions or identification numbers. The success of any networking marketing company is contingent upon building a deep organizational structure. Things You Will Need. Wholesale supplier Commission payment software Instruction manual Catalogs Sales letters Brochures Price lists Order forms Shipping envelopes or boxes Shipping labels References Grimes & Reese: Legal Principles of Multilevel Marketing Business know-how: Find Suppliers for Your Business National Association of Wholesaler-Distributors: Source for Wholesale Products Resources TradePub.com: Source for Trade Publications Entrepreneur: How to Find a Drop-Shipper MLM Know-How: MLM, Network Marketing and Direct Sales Resource Tips Create a website and include your website in your classified advertisements. This will give people another way to join your network marketing opportunity. Get a merchant account through your bank so you can accept credit cards online. Find a web designer if you are unable to create your own website. Have the web designer create self-replicating sites for your distributors so they can recruit their own distributors. Self-replicating sites will have the same URL or address as your site, but with unique extensions or identification numbers. The success of any networking marketing company is contingent upon building a deep organizational structure. Related Articles. How to Start a Company Like Avon. Network Marketing MLM Home Business Ideas. How to Build a Direct Sales Organization. How to Start a Networking Business. Home Business Ideas & Resources. How to Start a Mailing List Company. How to Go to Market Through Distributors. How to Become a Shaklee Products Distributor. How to Start a Promotional Product Company. Small Scale Business Ideas for Women. How to Develop Your Own Multilevel Marketing Plan. How to Start a Home-based Business. Most Popular. 1 How to Start a Company Like Avon 2 Network Marketing MLM Home Business Ideas 3 How to Build a Direct Sales Organization 4 How to Start a Networking Business
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                            [body] => When Multilevel Marketing Met Gen ZAmelia Whelan used social media as an accelerant for her sales community. Then things blew up.By Kaitlyn TiffanyNovember 30, 2021ShareSo you’ve been scrolling through Facebook for a while—dull, dull, dull—when you hear the sound of tropical bird chatter. You glimpse a 20-something woman floating in a natural pool of water with her eyes closed, and then she starts to talk to you about her passion for “manifesting money” and how every little thing she’s ever wanted is now hers. What’s this? She’s looking out the window of an airplane, through the clouds at a mossy mountaintop; she’s scooping up sand and blowing it at the camera as if the grains were dandelion seeds; she’s biking in a white dress on a secluded path, no handlebars. She has more time and wealth than she knows what to do with—and so now she will pause to bathe an elephant. Wait a minute, you say to yourself. Could this be my life too? Maybe, because this video is “your invitation to experience lasting abundance” and “financial freedom” and the opportunity to travel the world, ethically, while eschewing plastic water bottles. Amelia Whelan, founder of the Breakaway Movement, shared it to Facebook on her company’s launch day, in the summer of 2019, when she was 25 years old. “I’ve dedicated the last 12 months of my life to this project, so I know you’ll love it,” she wrote at the time. “I invite you to join me and breakaway …”Doing so would cost just $33.33 a month, in exchange for access to a private Facebook group, invitations to weekly group calls, an assigned mentor, and dozens of hours of video-course materials about how to create a social-media brand, how to form an LLC, how to maintain a “money mindset,” and, sort of, how to sell $5,000 K8 water-ionizing machines to your friends and followers on commission for a Japanese tech company called Enagic. (Enagic says it does not have a formal relationship with the Breakaway Movement or Whelan, beyond her being an independent distributor for the company.)Whelan, the self-made (and self-declared) millionaire at the center of the movement, grew up in a small town in New York and moved to Hawaii for college. When she first started selling water-ionizing machines for Enagic, she joined a sales community on Facebook but didn’t vibe with it. The group had a “very predominant male presence,” she’d later say, and its members’ approach to spending money—“they were flashing checks and they were buying Yeezys”—did not appeal to her. “I knew I was tired of working for corporations that did very little for the things I truly care about,” she told me when I first got in touch with her last April. So she decided to start her own Enagic group, built around those things: “holistic health, sustainability, and the environment.” This would be the Breakaway Movement, an expansive community with good vibes and great aesthetics, offering coursework teaching newbies how to set up effective Instagram ads and “attract” a small fortune. Together, they would sell more than they could sell alone, and they would make Enagic machines into something cool.By this time, Whelan had an enviable personal brand under the Instagram handle @saltsandandsmoothies. Now her look would be the movement’s look—young, blond, an even tan, well dressed in the sense that well-cut bathing suits do not come cheap. (In 2019, she posted to Facebook that she was earning “more money than every single person I know.”) The women she’d tag in her posts—many of whom were also part of Breakaway—starred in equally beautiful narratives on their own Instagram accounts, such as renting a luxury tree house in the rainforest or chartering a ship to sail around “secret islands.” And for more than a year, the platform thrived. As the company started receiving monthly fees from thousands of members, Whelan set up a real company with contractors, and planned glamorous retreats where attendees could enjoy yoga, breathwork, and bonding activities.Whelan’s pitch had been tailored to her generation’s fantasy of success: quantifiable influence on a social platform, a flexible schedule working from a MacBook Air, unlimited world travel, virtuous accumulation of wealth. But her business model might have been familiar to the Breakaway members’ grandparents. The best way to get started in the group as a seller for Enagic was to buy at least one K8 water-ionizing machine yourself (or another, less expensive Enagic product, like a $2,890 shower filter); then you were encouraged to bring in other people to sell machines themselves, passing a chunk of their commission checks on to you.In other words, this was classic multilevel marketing, optimized and freshened up for Gen Z. Amelia Whelan’s influencer sheen would help to bring an old business proposition to a wide, new audience. But that same, new audience was about to bring a lot of trouble in return.From the start, Whelan tried to put her rapidly growing water-machine sales force at ease about the nature of their work. “No one wants to get involved in anything that is shady or unethical,” she explained in one of her early informational videos. “It’s a lot like real estate, honestly.”Multilevel marketing is not, in fact, that much like real estate. The phrase describes a form of person-to-person sales in which your income is partly a function of your ability to expand the network. The more recruiting you do for new salespeople, the more money you make. That works fine, so long as the products that you’re selling are easy to unload, and the supply of new recruits never dwindles. In reality, distributors in these MLM businesses may be set up to fail by weak demand, and by a byzantine structure that can leave them to amass unsold inventory while recruiting more and more salespeople into their downline.Read: LuLaRich reveals a hole in the American economyThe best-known MLM companies of a generation ago—Tupperware, Avon, Amway, Mary Kay—mixed suspect commerce with a genuine sense of community. Participants sold functional household items and basic beauty products at cozy living-room parties, surrounded by their friends and family. “You’d get a nice card in the mail or a direct phone call, which was really sweet and feels personal,” says Jane Marie, an executive producer and co-creator of the podcast The Dream, which reports on MLM culture. “It would be a bunch of ladies getting together to have tea or wine and shop, but mostly just, like, hang out.”Whelan’s Breakaway Movement would not seem to have much in common with these sip-and-browse affairs, aside from its connections to a similar commercial structure. In place of cheap, disposable housewares, Whelan and other members sell luxury water machines that are meant to fit into a sleek, environmentally friendly, minimalist lifestyle. And if the Avon lady was someone you knew who would drop by your house and have a cup of coffee while she gave her spiel, Whelan presents herself as an untouchable celebrity posting from thousands of miles away, usually from Indonesia or Hawaii. She’s not your cousin or your neighbor; she’s an influencer. That means she, like others who ascend the ranks of today’s multilevel-marketing companies, can recruit from all over the world—an Instagram-famous salesperson for an Instagram-famous brand, selling access to her expertise in online groups or exclusive meetups: Imagine if an Avon lady could knock on 100,000 doors at once. Recruits come in through referral links, and it takes mere minutes to go from scrolling through an Instagram feed to typing in your credit-card number and getting started.MLMs like Enagic have boomed online in recent years, selling essential oils (doTERRA, Young Living), fitness products (Beachbody, It Works), beauty products (Monat, Arbonne), or women’s fashion (Paparazzi, LuLaRoe). At the same time, their global reach poses problems of its own. An insinuation of grandeur, posted to Instagram over and over, with only slightly varying images and phrases, may well lead to exponential business growth. But the same message, and the same posts, can be quickly fact-checked on the internet, and debunkings will go viral too. Indeed, many of these companies have been publicly excoriated, thanks to ex-distributor testimonials shared on social media, the same platform that enabled their success.The faux-warm “hey hun” used by MLM recruiters in Instagram and Facebook messages is by now a meme, and an “antiMLM” forum on Reddit went from having fewer than 1,000 members at the beginning of 2017 to more than 740,000 by the time of writing. A recent special report from the industry trade publication Social Selling News described the “troubling rise” of anti-MLM sentiment on YouTube, TikTok, and other platforms, and quoted Joe Mariano, the president of the Direct Selling Association, as saying that this was different from “the general kind of public perception issues that we have always had.” Paranoia has been growing in his industry about “a group of unlikely allies,” including anti-MLM social-media influencers, longtime consumer advocates, and government regulators, who are angling for the Federal Trade Commission to get more involved in MLM business practices. The August cover story of Social Selling News was a hand-wringing article about the new FTC chair and “progressive millennial” Lina Khan.Read: The internet is starting to turn on MLMsThe “unlikely allies” have had a real effect, according to data presented by William Keep, a professor of marketing at the College of New Jersey. MLMs are struggling to recruit, he says, and he claims that their trade association has finagled its numbers in annual reports to obscure this fact. (A spokesperson for the Direct Selling Association did not refute Keep’s analysis when contacted by email, but linked to the organization’s own study projecting industry growth.) Time reported last year that consumer complaints to the FTC about MLM companies have been on the rise, and if you search for any MLM that was popular two or three years ago on YouTube, you may see a wall of text like this: “Ex Beachbody Coach EXPOSES THE TRUTH,” “Why I Stopped Selling Younique | THE TEA,” “THE TRUTH ABOUT MONAT | Pyramid scheme? Hair loss? Free car? Why did I quit?” Or even:“Breakaway Movement Scam.”When Kathryn Human, then an undergraduate student at the University of Pittsburgh, found the Breakaway Movement in September 2019, she was working part-time at a restaurant and struggling with medical debt accrued over the course of a chronic illness. She was looking into getting a sugar daddy or selling her plasma when she came across the group on Instagram, and signed up almost immediately. “I was sitting in Starbucks in between classes trying to get through these videos, being like, I just have to figure out what to do to make the money,” she told me.A friend told her it sounded like a pyramid scheme, and she got embarrassed and backed out. Now she gets angry thinking about the group’s worldview. Human, who is Black and biracial, remembers listening to Whelan and other members talk about the idea that, as she interpreted it, poor people stay poor because of their attitudes. “Of course you’re saying this; you’re a wealthy white person who lives on an island,” she said. (Whelan told The Atlantic she did not say this outright, but added, “I have contributed my own poor ‘money mindset’ to personal financial struggles and stress I have felt and experienced in my own life.”) Describing herself as a young, broke college student with an interest in spirituality and community, Human says she was a “perfect target” for Breakaway’s pitch. “I have a great friend group, my family is great, but being supported financially is something that I’d never had,” she said. “The community being like, We all uplift each other; we all get rich together—that seemed really appealing to me.”MLMs can exploit that kind of desperation; indeed, they tend to thrive in times of economic instability. In March 2020, the Breakaway Movement contractor and Enagic distributor Sean Little posted a video that seemed to encourage community members to buy water-ionizing machines to fend off both the health and financial impacts of the pandemic. “No. 1, our immune systems have never needed the help more than right now,” he explained. “Buy the machine; get the machine in your house. No. 2, people are out of work, people are laid off, people are postponed to return to work. People are looking for ways to earn income … There are a whole host of financing options for you to be able to purchase a K8.” (Little told me via email that he does not believe that Enagic machines can prevent COVID-19, but he does think it’s therapeutic to drink ionized water.)Enagic’s water-ionizing machines promise to transform tap water into something different by adjusting its pH by varying degrees. Highly acidic water can be used to clean countertops and toothbrushes, slightly acidic water is “beauty water” for washing your face or conditioning your hair, and strongly alkaline water can be used for rinsing produce and removing toilet-bowl stains. But Breakaway members most often tout the benefits of drinking slightly alkaline, “hydrogen-rich” Kangen Water, referring to its therapeutic qualities and superiority to the knock-off “alkaline” water products sold in (wasteful) plastic bottles at the grocery store. Evidence for the former remains limited; many studies of the topic have been paid for by the so-called functional-water industry. At any rate, Enagic’s K8 machine sits at the higher end of the price range for similar products, and critics note that the pH of water can be altered just as easily with baking soda or vinegar.Illustration by Ryan HaskinsSix months after Little made his pandemic pitch, and with the number of COVID cases entering its third wave, the company discovered that it had accidentally attracted attention from the wrong person: a YouTuber known for studious one-woman documentaries picking apart online phenomena, shared under the name Anna’s Analysis. “I Joined the Breakaway Movement So You Don’t Have To,” she titled her presentation, which is more than two hours long and, she says, based on six months of research. The video runs through a battery of topics, criticizing Breakaway Movement members for promoting pseudoscience, for its obsession with exclusivity and wealth, for its whiteness, and—most of all—for the claims of its founder that it was not an MLM.“I’m gonna try not to get worked up in this video, because there is a lot of stuff that makes me mad,” Anna says, after playing a clip of Whelan saying that Enagic isn’t an MLM. She pulls up the illustration in Whelan’s video of Enagic’s compensation plan. In it, an imaginary distributor’s sales and subordinates are arranged awkwardly side by side, with arrows to indicate the flow of commission checks. “Let me draw this exact same thing for you except for with the lines a little more organized in a way that makes sense,” she says. On a whiteboard, Anna illustrates an imaginary distributor who sells to two people, one of whom also sells to five more people. “It doesn’t matter if you make it a rectangle, or draw a squiggly line over here,” she says. “At the end of the day it’s still an MLM, and it still has a triangle shape.”By November 2020, the feature-length video had more than 400,000 views. (At this point, it’s at more than 850,000.) In the private Facebook group, one Breakaway Movement member encouraged others to watch positive videos about the Breakaway Movement as a means of pushing the Anna’s Analysis video down in search results. (“I think with your support we can work the algorithms in our favor,” the member wrote.) Other YouTubers had already been sharing lengthy investigations of the Breakaway Movement, declaring it a “scam” or a “cult,” but this situation was more serious—the meticulously crafted straw that broke the camel’s back, and attracted the attention of hundreds of thousands of people.Later that month, Whelan led a Zoom call in which she seemed more nervous than usual—though still casual-cool, wearing a silver nose ring, a boxy lavender T-shirt, and matching chandelier earrings. “My intention is just to be super transparent with you all,” she said. Enagic, she’d come to understand, was a multilevel-marketing company after all. (Enagic doesn’t deny this, though it sometimes uses the terms direct sales or human-based marketing instead.) Multilevel marketing is “incredible, and it’s something that I personally am so proud to be involved in,” she continued, highlighting the fact that most MLM distributors are women. “Breakaway Movement is owned by a female,” she added, referring to herself. “Which is dope.”Whelan alluded to her own youth and inexperience, saying she’d begun working on Breakaway as a 23-year-old with no knowledge of how to run a real business. In recent months, she explained, she’d learned a lot about the world and the various bureaucratic entities in it. “FTC is the big boys on the top,” she said, with some uncertainty. The letters stand for “Federal Trading Committee, I believe.” But later in the call, her voice got stronger, and she portrayed the FTC as a pedantic government scold. “FTC likes to view everyone on the internet as vulnerable,” she said, framing the last word with air quotes. “They believe that when we promote income claims, or how much money we’re earning with something, that it can be misleading … or, I’m forgetting the word, like, persuasive to someone who is a vulnerable person on the internet.” This didn’t make sense, she said, because any dentist is allowed to tell you that they make $100,000 a year, and then you’d be like, “That’s dope; thank you for being a dentist.” But these are the rules, she said, and the Breakaway Movement is going to have to follow them even if she feels they are “crazy.”The comments below the video remained upbeat. “So so so happy to have pressed play on this call,” one community member wrote. “Thanks so much for always being as sincere as you can be!” But in the months that followed, while Whelan remained in communication with Breakaway members on Zoom and in the Facebook group, she stepped back from her Instagram account. For the rest of that winter, and all through the following spring, her followers would see no more photographs of the salt, sand, and smoothie lifestyle that Breakaway had helped Whelan build and secure.Last March, I had a call with one of the first Breakaway members and head of community engagement, Gina Marovic, to talk about the company’s handling of the YouTube-video fallout. At the time, she and her colleagues were overhauling their training videos to acknowledge that Enagic is indeed an MLM. The previous error—which Marovic called “misinformation”—had caused them a lot of grief, she said, and Whelan was accepting full blame for that. “Amelia blatantly said, ‘This is not an MLM-marketing thing,’ and it’s like, ‘No, it is, Amelia … Why are you acting like it’s not?’” she said, and laughed a little.Marovic told me that the company was grateful for the original YouTube video from Anna’s Analysis, which brought attention to things it needed to improve. Then she referred to it as “the hate video.” As in, the hate video that is the first thing anyone sees when they Google the Breakaway Movement because they’re thinking about joining. As in, “The hate video has hurt [Breakaway] immensely, which is why we’re doing so many changes.”Whelan posted to the Facebook group herself a few weeks later, explaining that she had been in touch with me about this story. (I had joined that group in February, with The Atlantic paying about $130 worth of monthly fees on my behalf.) She did warn members that my article might not “speak highly” of Breakaway, but she also framed it as a positive development, sharing the news with a Millennial-pink graphic that paired the movement’s logo and The Atlantic’s logo in the manner of a fashion collaboration. “Thank you for the transparency, the trust and your leadership!” one comment read. “You have such a strong yet sincere heart Amelia!”As Breakaway’s leader, Amelia Whelan had presented a fresh, modern face for MLMs. Now her group was encountering a modern problem. In the days of Tupperware parties and next-door Avon ladies, an MLM might fizzle or burn out, but it could do so with less drama, and far less public discussion. “I did not see anyone come out of an MLM and admit that something went wrong,” Jane Marie told me, referring to her own childhood exposure to MLM culture. Participants had an emotional and psychological incentive to accept personal blame for any failure, she remembered—to say, “I wasn’t scammed; I wasn’t ripping off my mom and my aunt and my cousin and my co-workers.” But as a social-media phenomenon, the whole scheme is based on a bigger, looser, more fragile set of social ties. Disillusionment is more threatening because, like growth, it doesn’t happen in geographically isolated groups. Like growth, it happens at scale.Whelan built the Breakaway Movement like any viral online brand, by posting warm invitations paired with images that suggested the possibility of a better life. Viral content made by other influencers put her brand under threat, and Breakaway in the position of needing crisis reputation management. At first, she asked members to avoid watching videos that described Breakaway as a “scam” or a “cult,” and instead watch and engage with positive testimonials about the company “as many times as you can.” That behavior would, of course, push critical takes further down the YouTube search results, though Whelan denied that she had this motivation. But these search results were still a problem, even after Breakaway’s subsequent publication of a video called “Breakaway Movement Exposed | The Truth Revealed,” which co-opted keywords of the anti-MLM community, and in which Whelan and Little spent 30 minutes discussing the “constructive criticism” the company endured.The original video from Anna’s Analysis still shows up at the top of the list when you search for the Breakaway Movement on YouTube; just below it is her two-hour follow-up video from August, “Checking Back In With the Breakaway Movement.” Whelan’s private group has shrunk to about 2,000 members, just half of what it was when I first joined. In my conversations with former members of Breakaway, I spoke with several women who had left the organization. They didn’t express bitterness toward the company exactly, but they did feel disenchanted. “I no longer felt inspired by her,” a 24-year-old former member from Austria told me, referring to Whelan. “I no longer trust her, I guess. Not that she’s a bad person or anything.” (The former member said she did not want to share her name for privacy reasons, and to avoid getting involved "in any drama.")It might still be possible for Breakaway to turn itself around—especially if Whelan continues to be up front about what the company actually is—but the pure excitement of its early days are over. No matter what else changes, Breakaway won’t be able to escape the ethical quandary of its business model: To succeed, you recruit; to recruit, you offer a fantasy. Why else would anyone sign up to market an extremely expensive system for doing confusing things to water? Still, if there's one overarching lesson to be gleaned from Breakaway’s “money mindset” videos, it’s that having these kinds of doubts about the MLM business model will attract nothing but negative energy, and keep you frozen in a place of scarcity and lack. A business like Whelan’s may have to become more rhetorically careful, or make some ethical adjustments, or even suffer public embarrassment. But it can never let the haters win.In May, Whelan announced her return to Instagram after a long, clarifying hiatus—“147 days of true presence and appreciation,” during which time she says she took a candle-making course and rescued a duck named Greg. She quickly resumed sharing dreamy images of beaches and beautiful food and elegant clothes and her picture-perfect life relaxing on soft surfaces with her partner, reading books. There were come-ons for Enagic too—posts about giving away a K8 water machine. By September, it was clear that Whelan had her mojo back. She put up a photo of herself surfing, which was cut into two slides, with SELF-MADE over the first, and MILLIONAIRE over the second.“Don’t let anyone talk you down from your dreams,” the caption said. “You’ve got this. Really, you do.”
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                            [body] => What Exactly Is Network Marketing? Kennected June 25, 2021 4:23 pm Navigation: What is Network Marketing?, How Did Network Marketing Start?, Examples of Successful Network Marketing Companies, How Much Do People Make from Network Marketing on Average?, Top 5 Most Successful Network Marketers, How to Start a Successful Career in Network Marketing  Many people are scared of pursuing network marketing and that’s because of misconceptions surrounding this type of business. Also known as multi-level marketing or MLM, some people automatically think that it’s a pyramid scheme because of all the myths and misunderstandings surrounding network marketing.It’s important to understand that network marketing works in the same way as other businesses. It’s not a pyramid scheme and it is not destined to fail any more than a regular business.If you want to succeed in network marketing, first you need to understand what it is all about. When it comes to network marketing, success comes from the work you put in—so it’s not any different from any other business endeavor. What is Network Marketing? Network marketing goes by a variety of names such as multi-level marketing, affiliate marketing, cellular marketing, consumer-direct marketing, and referral marketing. This business model is defined by its person-to-person sales.A business that operates this way may require independent representatives to build their own network of business partners or salespeople to close sales or find leads. Despite its reputation, there are actually plenty of reputable network marketing companies that operate legitimately.If you don’t want to get roped into a pyramid scheme, you need to know the difference between that and a network marketing operation. A pyramid scheme will be focused on selling expensive starter kits for new recruits instead of actually providing a profitable business opportunity. It also helps to work with a company you are already familiar with or one that is well-known.In essence, a network marketing company is made up of non-salaried representatives who sell products and services or recruit more representatives to earn a commission. The earnings of salespeople depend on product sales and commissions from recruitment.The main appeal of network marketing is that people who have great sales skills are able to create a profitable business even with a modest investment. Generally speaking, single-tier network marketing operations are more reputable than multi-tier schemes, but it doesn’t automatically mean that a multi-tier operation is a pyramid scheme. How Did Network Marketing Start? Network marketing has been around for a long time. It began in 1934 when California Vitamin Company developed the concept of multi-level marketing. In 1943, the company changed its name to Nutrilite Corporation, which implemented the first compensation plan for MLM. This means members of the company got paid on multiple levels of sales made. The idea behind this is that the salespeople who sold more products successfully should earn more for their hard work. This is in contrast to the traditional sales jobs where workers only got paid once even when the company continued to profit.This new mode of compensation sought to reward salespeople based on how much they earned for their company. Now there are plenty of examples of network marketing companies that follow this same principle. Examples of Successful Network Marketing Companies. Don’t fall for the myth that all network marketing companies are running pyramid schemes. Most of them run a legitimate operation, and some of these examples are really popular. You may have heard of companies like Amway, Avon, Herbalife, Mary Kay, Coway, Nu Skin, Forever Living, Primerica, Tupperware, Young Living, Rodan + Fields, Atomy, Oriflame Cosmetics, and Ambit Energy.These are some of the most successful network marketing companies out there, and later on we’ll discuss the top 5 most successful companies in this industry. How Much Do People Make from Network Marketing on Average. But before we get into the best of the best, let’s take a look at the average earnings of salespeople in a network marketing company. According to one article from Inc.com, the average sales rep makes about $2,400 per year selling products. It could definitely work in addition to your day job. It can be a nice boost to your salary if you can manage it.But the thing about network marketing is that you get more out of it the more you put in. So for those who are willing to work hard, this number can go up significantly. In fact, that same article from Inc.com said that someone could earn $300,000 per year through MLM. Although this may be inspiring, you should keep in mind that this is the exception and not the rule. But it’s definitely a possibility. Top 5 Most Successful Network Marketers. To be successful in the network marketing business, you can go for a company that is already well-established. The top 5 most successful network marketing companies as of 2021 are the following: Amway, Herbalife, Avon Products, Inc., Vorwerk, and Infinitus. Let’s take a closer look at each of them.Amway is an MLM company that was founded in 1959 and now has an $8.40 billion revenue. This is one of the most profitable direct sales companies of all time, and yes, it is a network marketing company. Amway is a makeup and nutrition company. It owns brands such as Nutrilite, iCook, eSpring, and more.Herbalife is a popular nutrition and supplement company that has a $4.90 billion revenue. Avon is another well-known company that is popular for its cosmetic products. It was founded in 1986 and now has a revenue of $4.76 billion.Vorwerk is a German company  that offers products like cooking appliances and vacuum cleaners. It is ranked fourth in the list of highest earning network marketing companies, with a revenue of $4.23 billion.Finally, we have Infinitus, a Chinese company that also sells herbal health solutions. It has a revenue of $4 billion. These are a few examples of companies that made network marketing work for them. It only goes to show that this type of business is legitimate and it can lead to success for a lot of people. How to Start a Successful Career in Network Marketing. To succeed in network marketing, first you need to set the right expectations. This is how you stay away from pyramid schemes and other scams. You need to arm yourself with knowledge. While you can get rich with MLM, it’s actually not that common—so don’t expect it to be easier than running any other type of business.Learn about the industry standards and research MLM companies carefully before you join one. Sometimes even legitimate companies may not be a good fit for you and your personal goals. Find a company that offers a product or service that you love.You will be able to sell things more efficiently if you actually care about the product. Not only will you know more about the product you are selling, but you will also exert more effort and passion into selling them.Don’t just jump on the opportunity to potentially make big income. Pay attention to what the company is asking you to sell. Having pride in what you’re selling can actually improve the way you sell it.With that in mind, don’t annoy your friends and family by constantly pestering them about your business. While it’s okay to let them know what you’re doing and seeing if they are interested, don’t push it if they say no.A lot of your friends and acquaintances will come to your business once they’ve seen your success. It’s actually a good idea to start with strangers instead of going for your immediate circle right away. Treat it just like any other business and identify your actual audience. Knowing your target audience will make selling a lot easier. For example, if they don’t care about vitamins, fitness, or health, then you’re not going to convince them to buy your product.A lot of network marketing companies provide scripts to help you sell the product or service. But don’t rely on these too much. They are supposed to serve as a guide, but at the end of the day, a genuine conversation will help you sell more than a scripted sales pitch. Listen to your customer and sell the solution instead of the product. Understand their needs so you know how to help them.Do your research, pick the right company, and get started on your network marketing journey today. PrevPreviousWhat Does A Video Going Viral Mean? NextWhat Is The Best Way To Use Video Marketing?Next Schedule a Demo - Grow Your Business. Book a Demo Subscribe For Exclusive Content. Subscribe Now
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                            [body] => Network Marketing How “Ordinary People” Get Rich“Network marketing” is also known as Multi-Level Marketing (MLM) or direct selling.  It describes a business model where independent contractors buy into a company and earn a commission on the products they sell. “network marketing” appeals to many people because they can be their own boss, set their own hours, and work toward their own success. Eighty-nine percent of network marketers work part-time. About 20.5 million people were involved in “network marketing” in the U.S. in 2016, with over $35 billion in retail sales.  Roughly ¾ of network marketers are female.Some of the best known companies in America, including Avon, Mary Kay Cosmetics and Tupperware, utilize a “network marketing” business model.  These companies market all types of goods and services, including jewelry, cookware, nutritionals, cosmetics, housewares, energy and insurance.  “network marketing” distributors forge strong personal relationships with prospective customers, primarily through face-to-face discussions and demonstrations. In this age of social networking, “network marketing” is a go-to market strategy that, for many companies and product lines, may be more effective than traditional advertising or securing premium shelf space. “Network marketing” is a strategy that direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits’ sales. All “network marketing” distributors also make money through direct sales of products to customers.  “Network marketing” programs feature a low upfront investment–usually only a few hundred dollars for the purchase of a product sample kit–and the opportunity to sell a product line directly to friends, family and other personal contacts. Most “network marketing” programs also ask participants to recruit other sales representatives. The recruits constitute a rep’s “downline,” and their sales generate income for those above them in the program. Thus each level in the organization benefits from the success of those below.One common format for “network marketing” is the house party, where a distributor enlists a customer to sponsor a gathering of friends. They socialize and watch a presentation about the product line. This format’s popularity has diminished in recent years to less than ¼ of total sales, as distributors pursue other tactics including one-on-one selling and especially online sales. And, it is increasingly common for a distributor to represent more than one “network marketing” company. Multi-level marketing is a legitimate business strategy, though it is controversial. One problem is pyramid schemes, which use money from new recruits to pay the people at the top, often take advantage of people by pretending to be engaged in legitimate multi-level marketing. Pyramid schemes can sometimes be spotted by their greater focus on recruitment than on product sales.  The Federal Trade Commission (FTC) has been investigating multi-level companies for several decades and has found many that blur the lines between the two. According to industry data, there are 90 million members worldwide, but relatively few earn meaningful income from their efforts. To some observers, that reflects the characteristics of a pyramid scheme.People involved in “network marketing” define success differently, and they are motivated to stay in the industry for a variety of reasons. According to the Direct Selling Association, top motivations include: Being able to purchase products one likes at a discounted price (62%), flexibility and work-life balance (65%), networking aspects (52%) or recognition of accomplishments (23%); and/or entrepreneurial opportunity, including earning extra income (62%), income potential (59%), and the ability to drive their career (41%).According to one expert, here are some characteristics to look for becoming involved with a “network marketing” company include:  . Stability. How old is the company? Are there excellent products or services that consumers will use and need more of?  The secret to long-lasting residual income is customers re-ordering quality products. It’s not about a large “one-time” sale or commission.  And, it’s important to have at least one “Purple Cow”—an Attention Getter product that will grab customers’ interest and differentiate the company’s offerings.Pay plan: How even and fair and generous overall is the distribution? How many pennies out of each sales dollar get paid back to the distributors each month, and how fair is the distribution of these pennies between the old members and the new members?  Be sure it pays both “part-time” and “full-time” people a fair percentage.  If the company pays a commission for recruiting additional reps rather than for selling products, this is a red flag that it could be running a pyramid scheme. Another key to look at in comp plans is whether it pays on volume, not levels. You eventually want to get paid on the volume of your entire “network marketing” organization, not just part of it. The integrity of the “network marketing” company and the management. Assess the experience of the CEO, in the “network marketing” industry, and his or her background.  Read the company’s “Policies & Procedures (P&P)” document carefully. This is one of the best predictors of company ethics and integrity. Many people have built huge incomes and organizations only to have them legally stripped away because of a “gotcha” clause in the contract they signed when they joined. Who does it protect? Are the Rules & Comp Plan set up to favor/protect distributors—or the company?Momentum and timing. Look at where the company’s at, what’s going on with the company, and if it’s growing.Support, training and business systems. This includes mentorship – the people in your “upline” who will integrate you with the “network marketing” company.  “Network marketing” as a business model can be amazingly effective when it is truly about selling products rather than endlessly recruiting more distributors.  It empowers “ordinary people” to develop their own businesses by building a network of relationships that can benefit them for many years.Customer Engagement Topics. Augmented Reality MarketingCustomer JourneyGamification in MarketingNetwork MarketingRetail Store DesignWord of Mouth Marketing Identify what your brand means to your customers! Download Michael’s Brand Audit Template FREE.Call Me to Chat! 610.660.3411. Consumer Insights. Customer Engagement. Market Segmentation. Fashion Psychology.
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                            [title] => How MLM Distributors Are Using Coronavirus to Grow | Time
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                            [body] => Pandemic Schemes: How Multilevel Marketing Distributors Are Using the Internet—and the Coronavirus—to Grow Their Businesses Illustration by Guy Shield for TIME By Abby Vesoulis and Eliana Dockterman July 9, 2020 6:29 AM EDT When Christine Baker, a financially strapped stay-at-home mom to two little girls, made up her mind to lose 30 lb., she took a cue from a friend who’d gotten fit with Beachbody. The company’s online workouts and diet products cost Baker about $160, but they worked. “Literally within 30 days, I looked and felt like a different person,” says Baker, of Roseville, Calif., who was so impressed with her 2015 transformation that she decided to become a Beachbody fitness coach herself. She started paying around $135 per month to set up her own online portal and to purchase Beachbody products, and she got to work looking for customers. Yet as she spent more hours trying to sell people on Beachbody and fewer hours working out herself, Baker says the pounds piled back on but the money did not roll in. “You’re working your ass off. You’re having to check in every day in your group, you’re having to keep everybody motivated, because if they don’t lose weight and see results, they’re not going to keep buying from you,” says Baker, 48. “It was like I was just throwing money away.” By the time she gave up on Beachbody, Baker says, she’d lost several thousand dollars and countless hours that she wishes had been spent with her daughters. Multilevel marketing companies (MLMs) like Beachbody, which rely primarily on distributors like Baker instead of salaried staff to sell goods and services, have long been eyed with suspicion by regulators, and for good reason. The Consumer Awareness Institute, whose research has been posted on the website of the Federal Trade Commission (FTC), found that 99% of people who participate in them lose money. “Statistically, it is more likely you will win the lottery than you will make hundreds of thousands of dollars selling for an MLM,” says Robert FitzPatrick, the co-author of False Profits, a book about MLMs, and the president of PyramidSchemeAlert.org. But as the COVID-19 pandemic sends the economy into its worst tailspin since the Great Depression, some MLM distributors are wooing new investors with promises of big money and the opportunity to work from home–seemingly ideal for people who are unemployed. Facebook posts promising jobs are easy to spot, though the caveats that these opportunities do not offer guaranteed paychecks are rarely mentioned. “Worried about the Coronavirus?” reads a Facebook post by a Young Living essential-oils distributor touting its Thieves product line. “Thieves kills germs!” A similar post by a seller for Color Street, an MLM that sells nail-polish strips, urged members to “invest some of that stimulus check in yourself and start making money instantly.” Attendees at Beachbody’s Coach Summit in July 2019 in Indianapolis take part in a group workout Evan Jenkins for TIME Some sellers imply that their non-FDA-approved supplements and essential oils can protect people from the virus. “With the flu and coronavirus spreading throughout the U.S., things are selling out,” wrote a seller for doTERRA, an essential-oils MLM. “If you are running low on these immune boosting protection items, now is a good time to replenish.” TIME reviewed dozens of similar claims made on social media. The FTC has sent letters to 16 MLMs warning them against making claims about the coronavirus-related health benefits of their products, the potential earnings for investors, or both. But the FTC is fighting an uphill battle as the $35.2 billion industry rapidly evolves, courtesy of the Internet. Unlike MLMs of yesteryear that relied on door-to-door sales, today’s MLM distributors can reach millions of potential recruits around the world on Facebook, Instagram and other social networks. Included in a distributor’s marketing tool belt are private messages, which regulatory agencies like the FTC can’t monitor. “[Social media] can be like a laboratory for deception,” says Kati Daffan, the FTC’s assistant director for marketing practices. “You’ve got all these members competing with each other to deceive more people. And they can do it however they want if there’s no one watching from above.” And with so many people out of work, there’s an eager audience. The Direct Selling Association (DSA), the trade group representing MLMs, says that 51% of the 51 companies that participated in a survey in early June said COVID-19 has had a “positive” impact on their 2020 revenue; 59% reported the same in a later survey. DSA president Joseph Mariano says some sellers have inflated the potential rewards of investing in their companies. “You inevitably have a few overzealous people saying things that perhaps they shouldn’t,” he says. “When you have a vulnerable population of people who have lost their jobs or are concerned about losing their jobs, the fact of the matter is … direct selling is generally a modest supplemental income opportunity. It’s not something that is going to make you rich.” Mariano says the DSA has worked with the Better Business Bureau to monitor claims about products’ benefits and sellers’ potential earnings. The DSA-funded Direct Selling Self-Regulatory Council has referred four cases to the FTC this year for investigation of possible falsehoods. But recessions tend to be good for MLMs, and this recession shows no sign of abating as new COVID-19 outbreaks slow reopenings. During the 2007–09 Great Recession, the number of MLM sellers began rising and went from 15.1 million in 2008 to 18.2 million in 2014, according to a DSA report. Celebrity support helped. Soccer star Cristiano Ronaldo, lifestyle guru Rachel Hollis, former Presidents George W. Bush and Bill Clinton (after they’d left office), and private citizen Donald J. Trump have, over the years, appeared at MLM events or endorsed companies. Many influencers and athletes still back them, as distributors sign on to sell everything from leggings to home cooking products. Attendees at Beachbody’s Coach Summit in July 2019 in Indianapolis take part in a group workout Evan Jenkins for TIME At most MLMs, investors, who are also known as distributors or sellers, make money by selling a company’s products and recruiting others to do the same. They then earn commissions or bonuses based on their recruits’ sales. But after investors have recruited as many friends and relatives as they can find, communities become saturated, making it difficult for new sellers to find customers. Countless distributors end up wallowing in merchandise they can’t sell and sinking into debt as they’re pushed to spend more money attending training seminars and bonding conferences, critics say. “They tell you if you don’t go to a training, if you miss a single training, you will never be successful,” says Illyssa Demarino, 31, a Phoenix bartender who tried three MLMs and spent thousands of dollars without making any money. “It’s so easy to get wrapped up in the cultlike mindset.” MLMs fashion themselves as alternatives to the gig economy, which has been hit hard by COVID-19; apps like Uber are suffering as people avoid shared transport, while others, like Instacart and Doordash, are flooded with new workers, driving down gig pay. The MLM world implies a glamorous and safer alternative, and its prime target is women, who have been hit especially hard in this recession. Their service-sector jobs were the first to go when restaurants, bars, hotels and casinos closed, and when babysitting and housekeeping jobs ended. Even before the pandemic, MLMs adopted the language of pop feminism with hashtags like #bossbabe and #momtrepreneur. Some sellers post doctored before-and-after photos for fitness and beauty products online in hopes of selling not just a payday but unattainable beauty. “I was the perfect target,” says Jamie Ludwig, who in 2014 was convinced by a friend that she could make good money working from home in Kansas City, Mo., while selling weight-loss shakes and other supplements for an MLM called AdvoCare. “A new mom with baby fat I wanted to lose, desperate to be at home with my kids.” New Orleans Saints quarterback Drew Brees endorsed the company, which in Ludwig’s eyes gave it an air of legitimacy. Attendees at Beachbody’s Coach Summit in July 2019 in Indianapolis take part in a group workout Evan Jenkins for TIME She and her husband Josh bought a $79 starter kit, and she scaled back her hours as a hairdresser to devote time to AdvoCare. All they had to do, their recruiter told them, was find enough buyers for the $900 in supplements that arrived on their doorstep each month. “I spent the entire time on the phone trying to sell, giving my kids no attention, working 50 or 60 hours a week, more than I did before,” says Ludwig, 39. She and her husband, who is 41, found only a handful of buyers. They gave up AdvoCare 18 months later, but not before spending about $300 (plus transportation, food and housing) to attend a three-day “success school” sponsored by AdvoCare to learn sales techniques. When their car broke down on the trip, the couple was forced to face their financial straits. For years, Ludwig could not bring herself to look at the boxes of unsold shakes in her pantry. AdvoCare is one of a handful of MLMs that the FTC has declared a pyramid scheme. According to the agency, 72% of AdvoCare’s distributors made no money in 2016, and 18% made $250 or less that year. After its investigation, the FTC in October 2019 required AdvoCare to pay a $150 million settlement and to stop using the MLM business model. (AdvoCare said in a statement that it “strongly disagree[s] with the FTC allegations” but has changed the way it does business.) One month later, the FTC alleged that Neora, an MLM selling supplements and skin creams, was a pyramid scheme. (Neora asserted that it was “not a pyramid scheme under the law” in its own lawsuit against the FTC, where it accuses the agency of reinterpreting laws to unfairly label it.) In the past 41 years, the FTC has filed cases against 30 MLMs alleging they were pyramid schemes, according to Truth in Advertising, an independent watchdog group. In 28 of those cases, courts either agreed with the FTC or companies paid settlements or changed their business plans to resolve the cases. But the number of MLMs makes it difficult for the FTC to make sure each one is operating lawfully, especially since the number is always in flux. The Direct Selling Association estimates that 1,100 MLMs are in operation in any given year but cannot be sure. “Many companies may even come and go before they could even be ‘counted,'” the DSA says on its own website. MLMs are not illegal, but many are at best financially risky. The chances of financial success are so grim that the DSA president, Mariano, has called participating in MLMs an “activity” rather than a job. The numbers that MLMs report often paint a dark picture for sellers. At Young Living, 89% of U.S.-based distributors earned an average of $4 in 2018, according to an income-disclosure statement. At the skin-care MLM Rodan + Fields, 67.1% of sellers had an annual median income of $227 in 2019. More than half the distributors at Color Street fell into the company’s lowest tier of earners in 2018, with average monthly profits below $12. Attendees at Beachbody’s Coach Summit in July 2019 in Indianapolis take part in a group workout Evan Jenkins for TIME As the industry grows, so does awareness. Data obtained by TIME through Freedom of Information Act requests shows that consumer complaints to the FTC about MLMs have risen in recent years. From 2014 to 2018, complaints against Amway, a company co-founded by Secretary of Education Betsy DeVos’ father-in-law, went from 15 to 36; in those complaints, consumers reported losing a total of more than $380,000. Complaints against SeneGence, a makeup and skin-care MLM, jumped from two in 2016 to 14 the following year before falling to six in 2018; consumers reported total losses of nearly $25,000. Complaints against Monat, whose hair products stand accused of making people’s hair fall out, jumped from two to 30 from 2015 to 2018, with consumers alleging losses totaling $7,572. (Monat says its products are “dermatologist-tested” and that its research indicates they are safe.) But the resources and time required to determine if a company is operating a pyramid scheme make it impossible for the FTC to investigate every MLM with questionable practices, experts say. “It’s like a policeman trying to stop cars that are speeding on a highway,” says Peter Vander Nat, a retired FTC economist who spent more than two decades representing the government in cases against MLMs. “For every one that it stops for speeding, five roll on by.” States have taken up some of the burden, with Washington, California, Illinois and others representing plaintiffs in suits against various MLMs. But legal action has become increasingly challenging as more companies insert clauses in contracts that force sellers into arbitration rather than litigation in open court. Even if the MLMs are forced to settle for millions in arbitration, their wrongdoing doesn’t become as public as a court settlement. According to the DSA, 74% of MLM sellers are women, and 20% of sellers are of Hispanic origin, a demographic that critics say highlights the industry’s systemic targeting of economically vulnerable communities. José Vargas, a 39-year-old from Connecticut, is one Latino man who suffered. After the mid-2000s real estate crisis forced him out of his career in the mortgage industry, he was struggling to support his family as a cable technician. He was also about 25 lb. overweight. Enter Herbalife Nutrition, which since its founding in 1980 has sold dietary supplements. Vargas started buying Herbalife’s shakes in 2012 and was so happy about his weight loss that he became a full-time Herbalife distributor in hopes of making a better income and helping others get in shape. But as he shed the pounds, his wallet got lighter too. He says he paid about $2,500 for the privilege of calling himself a supervisor, which he was told would help him earn more money faster. He paid roughly $700 a month to rent space for a storefront, which was recommended as a way to build up a clientele. He says he attended mandatory local training sessions and “highly encouraged” national events in faraway cities. By the time Vargas gave up Herbalife in 2014, he says, he had lost close to $10,000. Approximately 30% of Herbalife’s distributors are Latino, according to the company. Herbalife in particular has faced criticism for targeting low-income Latino sellers in Mexico and California. The company has a 10-year, $44 million sponsorship of the Los Angeles Galaxy professional soccer team, which boasts a massive Latino fan base. “You have a lot of Latinos that come here, looking to achieve the American Dream and become successful,” says Vargas, who is back to working as a mortgage consultant. “I think it’s a big smack in the face.” A 2016 FTC complaint accused Herbalife of deceiving consumers and portrayed issues in tune with Vargas’ experiences. Among other things, it said Herbalife banned storefront operators from displaying prices for anything other than Herbalife membership fees. Herbalife evaded official classification as a pyramid scheme, but only barely. Then FTC chairwoman Edith Ramirez said the company was “not determined not to have been a pyramid.” Herbalife said it believed “many of the allegations made by the FTC are factually incorrect,” but it agreed to pay $200 million to consumers who the FTC said had been incentivized to recruit people to buy Herbalife products–whether or not there was a market for them. The Beachbody summit in 2019 drew thousands hoping to earn money selling the company’s products and fitness routines Evan Jenkins for TIME Vargas recalls getting about $600 in the settlement but says worse than his financial loss is that he persuaded others to join Herbalife. Herbalife still operates in the U.S., but its biggest regional market is overseas in the Asia-Pacific region, where FTC rules don’t apply. (Herbalife says it has made significant changes since the FTC settlement to better protect distributors, such as compensating distributors based on how much they sell to customers rather than how much they personally buy, and requiring distributors to be with Herbalife for a year before opening a storefront, but some changes are not yet in effect in non-U.S. markets. In 2016, Herbalife said the settlement with the FTC showed that its “business model is sound.” Company officials declined to comment on the record for this article.) Its website also invokes COVID-19 as a reason to trust its products, which it says have earned Herbalife the designation as an “essential” business. On April 29, Vargas’ former Herbalife recruiter messaged him on social media after being out of touch for several years to ask how his family was faring through the pandemic. Vargas, suspecting the conversation would turn into a recruitment pitch, stopped responding after exchanging pleasantries. This time, he won’t be swayed. “What they promise,” he says of MLM distributors, “is very undeliverable.” Beachbody CEO Carl Daikeler, who is 56 and estimated by Forbes to be worth hundreds of millions of dollars, says that achieving his level of success by selling Beachbody’s shakes and recruiting others to do so isn’t easy. “This is not something you jump into and instantly make a lot of money,” he tells TIME. Daikeler says he sounds a warning to those who want to quit their jobs and be full-time Beachbody coaches. “I will literally say, ‘Are you sure? And do you have money saved? Because this is starting your own business, and starting your own business is very hard. Most new businesses that start, fail.'” It is months before COVID-19 had become a household term, and thousands of Beachbody distributors have gathered in Indianapolis to be inspired, to be motivated and to learn how they can turn the hours they’ve devoted to Beachbody into a profit–or at least earn back what they’ve spent on the company’s products and on attending this three-day conference. A fit man with close-cropped gray hair, Daikeler uses the gathering to announce an array of products to sell: an exercise program designed by a celebrity coach, a plant-based chocolate almond crunch bar, a pumpkin-spice protein beverage. “We have 300,000 coaches,” he says to wild cheers. “And we need to find the next 300,000.” The words I can be my own boss had just flashed on the screen behind the stage he’s now standing on. Author Rachel Hollis speaks at a LulaRoe event in October 2018 Melissa Golden—Redux Rachel Hollis will take the stage at some point, but Daikeler is the person thousands of people in that audience want to be. One of the people in the crowd is LindsayAnn Hammarlund of Atlanta, a mother of three who left her teaching job two years after joining Beachbody, when her sales surpassed her teaching salary. “We were paying so much in day care, and I cried literally every single day I took them to day care and I went to school,” says Hammarlund, 35. She’s recently gone back to the classroom now that her kids are older. But that MLM income, she says, has enabled her to pay down debt and take “many trips” with her Beachbody team. Dozens of other coaches who attended the Indianapolis convention told TIME they signed up because they liked the products, enjoyed the camaraderie and wanted to get in shape–not because they wanted to make money. But on its website, Beachbody emphasizes that being a coach “means earning an income while you help yourself and others live healthier.” Except that wasn’t the reality for more than half of its coaches last year: 57% of them earned $0 in commission and bonuses in 2019, according to the company’s income-disclosure statement. Andy Brown, 38, a former Beachbody coach, thought he’d made between $4,000 and $5,000 in 2015, until he did his taxes. “I was starting to estimate how much money I spent on everything compared to the amount of money that I actually made, and that was sort of a wash,” says Brown. “And then on top of the tax hit I took, that’s when I was like, I’m in the red. This isn’t helping me at all. In fact, I’m probably worse off than when I started.” Christine Baker, who left Beachbody in 2017, says she was paying about $100 per month to remain an active coach, but her highest commission check was $300. (Beachbody says it is possible to remain active by purchasing or selling as little as $67 worth of product per month and paying a $15.95 monthly fee.) Like Brown, Baker says the truth hit her around tax time. She recalls her accountant telling her, “You know, the only reason why you’re doing half good on your taxes this year is because you lost so much money.” The same year Baker left Beachbody, a judge in Santa Monica, Calif., ruled the company must pay $3.6 million in penalties and restitution after the city accused it of charging customers’ credit cards for renewal fees without consent, and of exaggerating its products’ health benefits. Now, Beachbody must clearly define renewal terms, obtain consent from customers for subscription renewals and support its health claims with “competent and reliable” scientific studies. The Los Angeles Galaxy soccer team, in November 2012, wearing Herbalife jerseys Harry How—Getty Images That hasn’t deterred customers. Since COVID-19 closed gyms, Beachbody’s business has been booming. Daikeler tells TIME that April, May and June were the top streaming months for Beachbody on Demand workout videos since the program launched in July 2015: the number of subscribers has blossomed more than 33% since mid-March, and customers are averaging 600,000 fitness classes on the platform per day. And a lot of these customers are attempting to turn their newfound workout regimens into income streams. Of the approximately 405,000 Beachbody coaches who are eligible to recruit participants and make money off them, more than 141,000 signed up on or after March 1. With Reporting by CURRIE ENGEL/NEW YORK This appears in the July 20, 2020 issue of TIME. More Must-Read Stories From TIME These Charts Show COVID-19 Is Still the Pandemic of the Unvaccinated Reddit Allows Hate Speech to Flourish in Its Global Forums, Moderators Say What It Takes to Get Support for a Black Boy With Special Needs Shonda Rhimes Already Knows What You're Going to Watch Next How Harry Reid Paved the Way for Democrats to Kill the Filibuster President Biden's Speech in Atlanta Was Designed to Appeal to Black Voters—But Not Everything About It Succeeded China Is Finding Fewer Reliable Sources of Coal. That Could Be Bad News for the Climate Write to Abby Vesoulis at [email protected] and Eliana Dockterman at [email protected] SHARE THIS STORY Read More From TIME You May Also Like Read Next How President Trump Politicized School Reopenings Amid Coronavirus Pandemic Next Up: Editor's Pick What America's Richest Ski Town's Handling of COVID-19 Shows EDIT POST You have reached your limit of 4 free articles. 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                            [title] => Multi-level marketing companies and the disinformation they sell | On Point
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                            [description] => Multi-level marketing distributors claim to sell life-changing products. They’re also selling something else -- misleading product claims and disinformation
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                            [body] => Multi-level marketing companies and the disinformation they sell46:37DownloadXCopy the code below to embed the WBUR audio player on your site. Copy embed codePlayDecember 30, 2021Jess YarmoskyMeghna ChakrabartiTwitterTwitterfacebookEmailA LulaRoe clothing sales business inside an apartment. (Jeremy Drey/MediaNews Group/Reading Eagle via Getty Images)This rebroadcast originally aired on September 30, 2021.Multi-level marketing distributors promise big money in a way that fits into your life.But for many people who sign up, they quickly discover a problem."Their entire industry is founded upon disinformation," Amanda Montell says.And that disinformation is metastasizing into conspiracy theories.Today, On Point: Multi-level marketing companies and the disinformation they sell.Guests. Amanda Montell, writer and linguist. Author of "Cultish: The Language of Fanaticism." (@AmandaMontell)Stephanie McNeal, senior culture reporter for BuzzFeed News. (@stephemcneal)Also Featured. Jessica Hickson, former It Works distributor.Transcript: Jessica Hickson On The Perils Of MLMs. Jessica Hickson runs a successful YouTube channel where she shares about her experience with multi-level marketing schemes (MLMs), and warns others about the perils of MLMs.When she left It Works in 2020, she lost everything: her income, friends and daily routine. In January of this year, with encouragement from her neighbor, she began sharing her experience on YouTube. Below, she tells her story:My name is Jessica Hickson. I am 30 years old. I currently live in St. Louis area and I was a part of It Works for five years.[Tape from Jessica's It Works marketing videos]: "Hey guys, I just wanted to make a quick video and tell you guys my why. Why I decided to join It Works and why I do what I do."It Works sells a variety of ... what they call health and wellness products. They were initially known for their skinny wrap, is what they call it. So it's just a wrap you put on that allegedly contours you.[Tape from Jessica's It Works marketing videos]: "Anyway, so I tried this wrap and in the morning I took it off and I was like holy crap. It works. It really works!"I actually didn't know what an MLM was before I joined one. I just saw my friend posting about it and she was talking about money that she was personally making. At the time, my husband had just gone to active duty and we were at our first duty station and so we were sharing a car.Advertisement I was nannying here and there, but other than that, it was really hard for me to work outside of the house with his schedule. So I thought, if this is my friend and I know her personally and she's making money with it, then I might as well give it a shot because I can't work outside of the house really anyway.  I was like, all right, let's do this. I'm going to do whatever it takes. I did research on how to be successful.I think the difference in my story and other people's stories when they were in MLMs is that the majority of people we know lose money. But the difference with me was that I was bringing in more money than I could have ever imagined bringing in with a regular job. And so that was a large part of me ... sticking it out. Because I thought if I'm making this amount of money, other people can, too.I saw red flags along the way. But when you're surrounded by everyone who believes the same thing, you're taught to turn off that voice inside your head that it's telling you these are red flags, you need to run away.We didn't actually have to, like, carry an inventory, which is one of their big selling points. However, with that being said, we were highly encouraged to keep product on hand in case someone wanted to buy it off hand or to show that you were using the products. And a lot of leaders wouldn't even speak to someone beneath them if they weren't running their monthly auto shipment.The compensation plan was structured in such a way that if you weren't maintaining ranks, you weren't getting bonuses and you weren't making a significant income. So a lot of people had a huge incentive at the end of the month to buy a bulk order of products in order to maintain that rank so that their paycheck wasn't cut in half the next month.The biggest thing with the products is that they're all made out to be a quick fix. I have a before and after photo that is floating around, it works because I did have good results with the products. But the problem with it is that they are leaving out huge details about my weight loss. So in the before photo, I had just had my daughter. And I had two babies in two years.And I wouldn't go as far as to say that I had an eating disorder in the photos that are circulating of me right now. But I would say that there were times that I went a little more hungry than I should have or I worked out far too much, you know, just to have those before and after photos to show people that my products are working.My husband was deploying. And at the time I had, I think, a two and three year old. And so the months leading up to his deployment, I just wanted to spend with my family. I didn't get on any of our team calls, which we had one weekly. And so my husband ended up leaving.I was talking to my upline shortly after. She had called to do like a check in on me and just say, how are things going? And at that point it was very fresh and new, him leaving. So I was a wreck. I was just crying. I was like, I don't know how I'm going to do this.And then at the end of the call, she just said, OK, well, I just wanted to let you know that I have removed you as a leader in our team page because we need someone who's going to lead by example. And you're not doing that right now.Everything that someone above me said was taken as fact.[ARCHIVAL TAPE] It Works promo video: "It always works. Everything about our company works. The compensation plan works. The people work, we work, the products, all of the above. I love this company."So even if I truly in my heart believed that it wasn't true, I had to portray it in a way that it was true for my team. And then once you do that so much, you start to believe it yourself.[ARCHIVAL TAPE] It Works promo video: "The biggest obstacle everybody needs to overcome is your belief in yourself."MLMs would not exist if they weren't able to tell any lies at all.Interview Highlights. What are MLMs?Amanda Montell: "MLMs, which stands for multi-level marketing, also known as relationship marketing, direct sales, I often refer to them as the legally loopholed fraternal twin of the pyramid scheme. They are these pay-and-recruit organizations powered not by salaried employees, but by coaches, affiliates, distributors, international business owners, whatever sort of euphemistic label the organization chooses for its recruits who are lured in with the promise of this amazing opportunity to become a 'mompreneur.'"As often non-working wives and mothers are the target for most of these MLMs, they can earn a full-time living with part-time work. All they have to do is pay a buy-in fee and then meet certain monthly quotas. ... They need to unload product. It doesn't matter on who, they could buy it up themselves. And they also need to recruit their friends and family to become sellers themselves."The problem is that when you have so many people constantly recruiting, recruiting and recruiting, the market floods exponentially with the dearth of too many sellers. And you find a very small group at the top of this pyramid shape that are making money at the expense of a screwed over mass at the base."How are MLMs today different from MLMs of the past, such as Amway or Mary Kay?Amanda Montell: "MLMs are expert rebranders. And so while groups like Amway and Mary Kay and Tupperware, their sellers were the sort of Suzy Homemaker type that you might picture in the '40s and '50s when MLMs were promised to be the best thing that happened to women since they got the vote."Now, MLMs exploit the sort of Pinterest feminism and natural, holistic, organic proclivities of a younger audience. MLMs will have chicer, updated packaging. They will use language like Girl Boss, Boss Babe, Fempire, SheEO. They'll capitalize on whatever trendy pseudo-feminist buzzwords are resonating with people at the time."On the 'cultish' behavior behind MLMs like LuLaRoeAmanda Montell: "There was a lot of language at play here that made the company so much more than a company and so much more than a scam. So MLMs are not just your average financial scam. They are these complex and life consuming organizations with a language and a culture of their own. They have these strong and pervasive ideologies that are missionary in character. And they have these founding leaders that that recruits come to worship on the level of a spiritual guru."These leaders are thought to be all-knowing, charismatic, enlightened. And there are measures in place to make sure that you do not question them. Everyone in the company is uplifted with labels to make them feel like they're superior to everyone else in the economy. And there are labels there to lambast everyone who's not involved with the business."In fact, recruits are encouraged to either get people they know involved or sniff them out of their life. So incredibly co-dependent relationships form within these groups, especially because financially you're depending on the selling and recruiting of everybody above and below you. So under that type of pressure, things can get quite cultish."On how MLMs can spread conspiracy theories Amanda Montell:"Think of a Venn diagram with MLMs in one circle. Anti-vaxers, wellness warriors, new agers in another circle. And classic conspiracy theorists, say QAnoners, flat-Earthers, Holocaust deniers and the like in the third circle. The convergence there is a deep mistrust of mainstream institutions. Whether that's bureaucratic business, the mainstream media, the government, the health care system. During times of social crisis and turbulence — and I think we're in one of those times right now — alternative affiliations tend to spike."We saw that in the late '60s and '70s with the Vietnam War and the civil rights movement, the Kennedy assassinations. And now with so much ideological separation and political turbulence, the pandemic and certainly the internet, there is now a cult for everyone. And if you've lost trust in these mainstream institutions, if you've internalized a message of sovereignty — the idea that you should take your own health, your own life, your own career into your own hands — you're going to be able to find others who believe the same."On solutions to stop the spread of disinformation from MLMsAmanda Montell: "MLMs are legally loopholed because of a precedent-setting case involving Amway from a few decades ago. The government is incentivized to keep their ties with the direct selling association because they have very strong political ties and donate handsomely to mostly Republican presidential candidates coffers. So there is this sort of toxic symbiosis between the direct selling association and the government there."The government is not really motivated to completely shut down the direct selling association or MLMs in general because they benefit from the industry. I also want to comment on the commenter from before that not every MLM will employ equally cultish tactics. However, the direct selling association in general is its own sort of pyramid scheme."Because let's say you get involved with one MLM and it doesn't work for you. Odds are the pattern shows that you're going to get involved with another one. That's what a lot of people do. And just because one given MLM may not have negatively affected you, it doesn't mean it didn't negatively affect lots of other people. I often like to make an analogy to toxic one-on-one relationships, abusive relationships. You can have a very good relationship with someone who used to abuse other people. So it's all about perspective."From The Reading List. Bustle: "LuLaRoe Isn’t Just A Scam — It’s A Cult" — "I first learned of the 'leggings cult' in the small hours of a 2017 winter morning. I was approaching the event horizon of a Facebook black hole when I came across a post that sent shivers down my spine: my former high school English teacher was trying to shill a scam to her hundreds of digital 'friends.'"BuzzFeed News: "Gen Z Moms Are Building Their Brands Around QAnon" — "Last June, Alexis, a 23-year-old mother of two from Tennessee, created an Instagram account aimed at sharing the bogus narratives tied to QAnon, which she had recently discovered."This program aired on December 30, 2021.Related:. Hey Hun, Want To Talk About MLMs?Some Women Who Sell LuLaRoe Leggings Allege The Company Was A Pyramid SchemeJess Yarmosky Freelance Producer, On PointJess Yarmosky is a freelance producer for On Point.More…Meghna Chakrabarti Twitter Host, On PointMeghna Chakrabarti is the host of On Point.More…Advertisement Advertisement PlayListen LiveMorning Edition/00:00Close
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                            [body] => Network Marketing, Multilevel Marketing (MLM), and Direct Sales I often get asked if Network Marketers, Direct Sales, or Multi-Level marketers are welcome at Bold Networking. And, I always give an emphatic, “Yes!” Network Marketing, Direct Sales, Multi-Level Marketing Though there are some additional guidelines and best practices: You are only representing a single industry in all teams. For example, if you’re an insurance professional by day and a network marketer in health and wellness at night, you will only represent the single industry you are expecting to make the majority of your future income. Which means, during your 60-second presentation, 6-minute presentations, and all outward appearances, you only represent the main thing! During Connect Meetings, in a one on one setting, it is okay to ask for permission to discuss an opportunity. Then, only with explicit permission, it is okay to discuss the income opportunity. While I realize that you may be incredibly excited and having a ton of success in network marketing, not everyone is as excited as you. Please respect their decision to discuss your opportunity or not. It is likely they will still become raving fans of your product or service and will likely be one of your best referral partners. Tagged FAQ Scroll Up Join, network, grow. Register For Free to RSVP. FREE Membership Already have an account?
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                            [description] => Learn about network marketing companies, including how they work, what to watch out for and how to determine if you should begin selling
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                            [body] => What Is Network Marketing and Is it a Safe Investment?By Indeed Editorial TeamFebruary 22, 2021TwitterLinkedInFacebookEmailCopy to ClipboardNetwork marketing is a sales structure where products are sold by independent people who purchase the products from a parent company. Although this practice has been compared to pyramid schemes due to the majority of sales occurring between sellers, there are still many reputable organizations involved. This can be a good business opportunity if you are looking for part-time work with a flexible schedule.If you are considering joining a network marketing company, it is important to understand how to protect your interests and identify viable opportunities. In this article, we will learn how network marketing works and how to identify if a company is a good sales opportunity.What is network marketing?Network marketing is an organizational structure where the sale of products from a production company is decentralized. Instead of the company employing a full-time sales staff, the products are instead sold by independent salespersons. Most commonly, this is carried out with the salesperson purchasing products from the manufacturer in bulk and then selling them on their own, often at sales nights they host for friends and family.Network marketing companies exist in many different production fields, including popular companies selling products like makeup, clothing and household goods. The field often faces criticism related to the profitability of a network marketing company's sales force. In many organizations, the majority of sales are in the form of selling blocks of products to salespersons. When considering whether or not to join a network marketing company, it is important to do your research first to avoid losing money.Related: What Is Multilevel Marketing?How does network marketing work?There are two ways that network marketing organizations work, and you need to understand both before deciding to pursue an opportunity in this field. The first way is how a successful and equitable network marketing organization works, and it is how all companies will attempt to represent themselves. The second way is the reality of a majority of network marketing, and it is essential to make sure you are not actually joining this second type.The ideal makeup of a network marketing organization is one in which high-quality products are sold to the salespersons who then successfully sell those products to people for a profit. For a company to work in this manner, the products being sold must fill a need in the market. They should also be sold to the salespersons at prices that allow for markup while still making a profit.In an organization like this, a salesperson can control their own hours and serve as their own boss. On the company's side, they benefit from externalizing the sales force by reducing the costs of marketing, as it is typically up to the sellers to promote their products and events.Many network marketing companies do not meet the same standards as the above organizational structure. Often with network marketing companies, the majority of sales come in the form of selling starter packages to new salespersons. This means that after buying in with a starter purchase, the majority of participants will either lose money or only make money by selling starter packages of their own to new sellers.This creates a system where the majority of the profits are funneled to a small percentage of early adopters, while the rest of the salespersons end up struggling to break even or often losing money. You should always ensure that a network marketing company has a proven track record of success for sellers before joining the organization.Related: How To Be Successful at Direct SalesAdvantages of network marketing. If you're considering starting a network marketing sales career, here are the benefits you may experience when working with an ethical company:You make your working rules. Although there may be rules about how you can and cannot sell or market the products from a network marketing company (because involvement from the company largely ends following your purchase), you have a great deal of freedom for how you make your sales. That means you have the flexibility to work as much or as little as you want for your sales business. You can also choose your approach to sales, ranging anywhere from in-person parties to online sales through advertising or developing a mailing list.Work with products you believe in. Because there are many different types of network marketing companies, that means there is likely a company selling products in a field you're passionate about. When you care about the items you are selling, it makes it much easier to do the work.Sales parties are fun. One of the most popular methods of network marketing is hosting a party where you show off the products you have for sale, usually to friends and family, though this is not always the case. These parties are a fun way to show off your products while also spending time with others, and they can be very enjoyable as well as profitable.These advantages are often the factors that appeal to network marketing sellers when they make their first purchases.Related: How To Write an Effective Sales EmailDisadvantages of network marketing. The general public typically has a negative opinion of network marketing companies because of the downsides that can come from working with one. Potential reasons to pass on a network marketing opportunity include:It can be hard to make money. Although the exact success numbers for network marketing companies vary, the majority feature low success rates. Typically, the percentage of sellers who turn a profit is in single digits, and only a small portion of those individuals get there through selling to customers, as opposed to selling starter packages to new recruits.Selling can make others uncomfortable. Holding sales events with your friends and family can be enjoyable, though there are some challenges you may experience as well. Some people may be uncomfortable attending these types of parties, as the setting can make your friends and family feel pressured to buy your products. A networking marketing sales professional requires tact and understanding to plan parties while avoiding causing any undue stress for their guests.Slow sales can build intense pressure. Having difficulties selling orders can be challenging for network sales professionals. Packages are often large orders, and as such, they can have high price tags, so if you struggle to sell the products, it can become a stressful financial experience.Many companies misrepresent themselves. Unfortunately, it can be difficult to tell a trustworthy opportunity from an unreliable one, as companies with low success rates are likely to obscure this information. Companies may display their data creatively, highlighting some information and obscuring negative elements. This creates an unrealistic understanding of your prospects with the company. Detailed research is required to determine if a company is being honest with its numbers before joining.Knowing both the pros and cons of network marketing sales is essential for making an informed decision for your financial future. By understanding the potential pitfalls and researching companies thoroughly, you can maximize your chances of finding a successful opportunity.Tips for network marketing. Because succeeding in network marketing companies is a challenging proposition, every edge you can get will be useful in your journey. Here are the best tips for succeeding in network marketing:Find your passion. Enjoying what you're doing when selling products doesn't just make you happier, it is great for your business as well. When you have a passion for the type of products you are selling, it is easier to advocate for them and make more sales.Choose quality products. It is important to find products that both you and your customers can believe in. Finding high-quality product lines that people will want to buy is essential in positioning yourself for success as a network marketing professional.Do your research. There is no phase of finding a good company to work with that is more important than research. The more information you have about different companies, the more effective you will be at choosing one that is worth the investment of your time and money.Find a company that will support you. The way a networking company works with its salespersons tells you a lot about the level of investment they have in your success. Although you should expect some degree of self-marketing to be required with any networking company, finding a company that offers additional support for its sellers shows they are putting effort into setting you up for success.Contact sellers first. Whenever possible, you should speak with multiple sellers who are already working for the company and not trying to sell you your starter pack. When you remove the financial incentive of pitching to you, it enables you to get an honest assessment of their experience with the company. You should also search for online reviews to see how happy other salespersons are with their experiences.Investigate where sales originate. One of the most important distinctions between a viable sales opportunity and a fraudulent operation is where sales go. If profitable salespersons are doing the majority of their sales to new salespersons buying into the company, that is not a successful business, and you should avoid it. Success under such a structure requires you to find friends or family to fund your business, and eventually that plan stops with a level of sellers who take losses. You don't want that for yourself or anyone you get to join, so you are better served by finding a stronger opportunity to pursue.Know upline policies. Many network marketing companies include complex upline policies where portions of your sales are paid up to the person who added you to the company, then continuing up the chain to who they joined under and so on. This means that the business is very lucrative for those at the top, while new salespersons struggle to make money because they are missing out on portions of their sales without the corresponding downline payments to offset the loss. Seek out a company where you can succeed on the strength of your sales alone.By keeping these tips in mind, you can assess the merits of any network marketing company before joining to find an opportunity that feels honest and makes sense for you.Related: 9 Different Types of Marketing Channels (With Definition)Related Articles. How To Stop Procrastinating at Work (With 3 Steps). 12 Tips To Stop Procrastinating at Work. What Is a Unique Value Proposition? Plus Examples.
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                            [body] => Direct Selling, MLM, Network Marketing, or Party plan? What’s the Real Difference? By Kenny Rawlins on December 22, 2020 I am often asked, “What’s the difference between the terms ‘direct sales’ (or ‘direct selling’), ‘network marketing’, ‘multi-level marketing’, and ‘party plan’?” Although there’s a lot of similarities in companies’ commission structures, business plans, and the way they work, they’ve invented different names for themselves over the years. This leaves a lot of industry beginners and veterans alike to wonder—”Are these terms really all that different from each other? What does each one mean?” And, even, “Am I using them the right way?”   Unfortunately, there aren’t official industry definitions for the words “direct selling,” “MLM,” “network marketing,” and “party plan.” But, as I’ve worked with many different companies during my career, I’ve noticed some nuances and contrasts that I think would be helpful to post here. These definitions come from my experiences and viewpoints, so I don’t expect them to reflect everyone’s understanding. But I hope these explanations lend a little clarity to anyone who’s curious. So, follow along as we go over each name individually and then make some comparisons for a little extra context.  Looking for an industry-specific commission software solution? Click here to check out our new FlexCloud platform. What is Direct Selling? . First up is the word “direct selling.” It’s generally used as an umbrella term for all types of companies in the industry, and it’s one of the only names with a general dictionary definition. Merriam-Webster defines direct selling as “the selling by a manufacturer, producer, or agent to someone other than a wholesaler or intermediary: selling directly to a consumer.”   So, in a direct selling company, a distributor (or “agent”) markets and sells products directly to consumers. In our industry, we usually understand direct sales companies to have multiple levels of distributors. But the official term can mean both single- and multi-level marketing and sales structures. Here’s a basic illustration to show you how it works:  What is Multilevel Marketing (MLM)?  . Multi-level marketing is the other term I’ll go over that has an official definition. Meriam-Webster says multilevel marketing is “a business structure or practice in which an individual seller earns commissions both from direct sales and from the sales of the seller’s recruits, of those recruited by the seller’s recruits, and so on.”  MLM vs. direct selling  . In the graphic above, you can see that an MLM is very similar to a direct selling company. The only difference is the salesforce. In an MLM, the salesforce is made up of a tiered structure of independent sellers and their recruits. These “levels” are what give an MLM its name. All multilevel marketing companies are doing direct selling, but not all direct selling companies are MLMs.   What is Network Marketing? Network marketing describes the same kind of business structure as an MLM—one with distributors that market products and commission payments to those distributors and the people they recruit. It’s a term that’s gained a lot of traction, but, in my experience, it’s interchangeable with multi-level marketing. I’ve heard some say that Network Marketing companies focus more on customers, but I’ve not seen any evidence of that. The fact is the entire industry has an increased focus on customer sales–regardless of what a company calls themselves.   Network marketing vs. MLM  . As I’ve mentioned, the words “network marketing” and “MLM” are one and the same. “Network marketing” seems to have come about because people think “MLM” has negative connotations, but these terms are really just two different ways of describing the same thing.  What is a Party Plan Company? . A party plan is a direct selling business with multi-level commissions that uses parties to market and sell products. Parties used to be held in person, but now it’s more common to see them happening online. They’re held by a “hostess” (or “host”) who’s normally a customer but takes on a new role during the party to help distributors facilitate sales. Hostesses usually get a reward for doing this but aren’t considered distributors.   Party plan vs. network marketing and MLM . Party plans used to be much more distinct from MLMs/network marketing companies—their comp plans were much simpler, they wanted most selling to happen during parties, and the role of the hostess added a really unique element to the compensation strategy.  Now, though, the line between party plans and MLMs have started to blur. As both MLMs and party plans compete with one another, MLMs are working to be more customer focused and party plans are adding more MLM style compensation elements (like fast start). And, as I said before, a lot of parties have moved online, and customers can now place orders outside of parties for greater convenience.   There are still some pretty clear distinctions between party plans and MLMs. But because a party plan is a direct selling business (sells products through independent distributors) and has a multi-level commission structure, I consider it a type of network marketing/MLM business.  Conclusion. Well, there you have it! The non-definitive guide to the names of commission-driven business plans. If you started reading this blog thinking that direct selling, multi-level marketing, network marketing, and party plan all mean the same thing, I hope this gave you a little context, a better understanding of the nuances of each of these terms, and gave you some insight into why we have so many.  Looking for a software solution for your direct selling business (or party plan, network marketing company, or MLM)? FlexCloud is the best-in-breed solution for commission calculations with a powerful platform of tools. Contact us here to learn more.  Share: Comments are closed.
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                            [body] =>      WHO WE ARE MENU Multi-Level Marketing vs Pyramid Schemes. Print PDF     Multi-level Marketing (MLM) or network marketing, is individuals selling products to the public - often by word of mouth and direct sales. The main idea behind the MLM strategy is to promote maximum number of distributors for the product and exponentially increase the sales force. The promoters get commission on the sale of the product as well as compensation for sales their recruits make thus, the compensation plan in multi-level marketing is structured such that commission is paid to individuals at multiple levels when a single sale is made and commission depends on the total volume of sales generated. Pyramid Schemes are, however, fraudulent schemes, disguised as an MLM strategy. The difference between a pyramid scheme and a lawful MLM program is that there is no real product that is sold in a pyramid scheme. Participants attempt to make money solely by recruiting new participants into the program. The hallmark of these schemes is the promise of sky-high returns in a short period of time for doing nothing other than handing over your money and getting others to do the same. Legitimacy Learn more about the company, by finding and studying the company's track record. Do an internet search with the name of the company and words like review, scam, or complaint. Look through several pages of search results. You also may want to look for articles about the company in newspapers, magazines, or online. Find out: how long the company has been in business whether it has a positive reputation for customer satisfaction what the buzz is about the company and its product on blogs and websites whether the company has been sued for deceptive business practices Check with your state Attorney General for complaints about any company you're considering, although a lack of complaints doesn't guarantee that a company is legitimate. Don't pay or sign a contract in an "opportunity meeting." Take your time to think over your decision. Your investment requires real money, so don't rush into it without doing some research first. Ask your sponsor for the terms and conditions of the plan, including: the compensation structure your potential expenses support for claims about how much money you can make the name and contact information of someone at the company who can answer your questions Get this information in writing. Avoid any plan where the reward for recruiting new distributors is more than it is for selling products to the public. That's a time-tested and traditional tip-off to a pyramid scheme. Keep in mind that when you recruit new distributors, you are responsible for the claims you make about how much money they can earn. Be honest, and be realistic. If your promises fall through, you could be held liable, even if you are simply repeating claims you read in a company brochure or heard from another distributor. If you don't understand something, ask for more information until it is absolutely clear to you.
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                            [body] => Menu Join FREE Facebook Group with Eric Worre. Join the Free Group CREATE AN INCOME. CREATE AN IMPACT. Become a Successful Network Marketing Professional. For over a decade, Network Marketing Pro has been raising the standard of the Network Marketing profession.Through our Coaching Programs, Life Changing Events & High-Level Mentoring, millions of lives around the world have been impacted by what we believe is the BEST entrepreneurial vehicle in the world. CHOOSE YOUR NEXT STEP. JOIN OUR FREE COMMUNITY . An Unfiltered Coaching Perspective on Network Marketing JOIN NOW FREE GROUP SUBSCRIBE TO THE PODCAST . Eric and a world-class line up of guest experts available to you 24/7. SUBSCRIBE FREE GET COACHING & RAPIDLY GROW YOUR BUSINESS . Discover the #1 Network Marketing Business Growth Experience DISCOVER NOW Over 3700+ 5 Star Reviews on Amazon  5/5 The #1 Best-Selling Book by Eric Worre. PURCHASE NOW Audio Book Available You are totally sincere, and you really deliver the goods. You are not just pumping people up, you give people real skill sets to be a Pro! TONY ROBBINS COME TO OUR EVENTS. LIVE IN FABULOUS LAS VEGAS. Go Pro Recruiting Mastery 2021 . Join Eric and 10,000+ Network Marketers from around the world for an unforgettable experience. LEARN MORE CONNECT WITH ERIC. WATCH YOUR BUSINESS GROW. Facebook Instagram Twitter Twitch Linkedin Snapchat Free Training. Straight Talk Facebook Group Most Powerful Women in Network Marketing Facebook Group @ericworre Instagram Facebook Page Rapid Growth. Go Pro Academy Go Pro Recruiting Mastery Helpful Links. Log In To Go Pro Academy Top Earner Referral Request Go Pro in Your Language Studio Rental Podcast Refund Policy Earning Disclaimer Terms & Conditions Privacy Policy
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                            [body] => Network Marketing Moral Compensation. An interview with Bob Proctor from Networking Times Magazine. Bob’s wife, Linda, has hacked the Network Marketing mystery and earned millions of dollars while living with time freedom. Download her book, Earn It and Enjoy It to see how you can do the same and learn more about Network Marketing opportunities. I’ve written (and said) many times that everything I know about Network Marketing I learned from somebody else. I love learning and I love learners– those thinking men and women whose lives are devoted to knowledge. And I’ve never met a learner who didn’t give more than he got. Such is the case with Bob Proctor—he is a master student, and more, a master of a teacher. I take notes when Bob speaks (and I usually never do that), because there are always three or five insightful, thought-provoking, immediately useful things he says that I don’t ever want to forget. Since the following interview is already written down for you, you don’t have to take notes. But I’d sure recommend reading with a high-lighter in hand. As usual, when Proctor speaks, leaders listen. Enjoy. — JMF Robert, you have an extensive background in corporate America, in teaching and training those people. What attracted you into Network Marketing? A doctor I have tremendous respect for got involved with a Network Marketing company. It was seeing his picture in a Network Marketing magazine that brought the industry to my attention and caused me to take a look at it from a totally different perspective. What was the basis of your respect for him? I’ve studied the mind for approximately 40 years, and he probably taught me more about the mind than any other individual. He knows more about the mind than anyone I’ve ever met, or even read about. He’s not a money guy, he’s involved in the healing arts, so when I saw his picture attached with this company, I thought “There has to be something here that I don’t understand.” So I decided to look into it. When I did, my whole perspective of the industry changed. I think I’m like an awful lot of people in that I didn’t understand it but thought I did. If someone had asked me to explain Network Marketing, I would have been at a loss to explain it. And yet, if you had said, “Do you understand it?” I would have said, “Sure” when the truth is, I didn’t. Did you have a negative impression of it, Bob? I don’t think I had a negative or positive impression. It was more disinterest than anything. I often say “I was caught in my own trap.” I have taught in numerous programs that anything we don’t understand we have a tendency to criticize and ridicule carelessly. What did you find when you started looking? I found that, all things being equal—good company, good product—it’s probably the most moral form of compensation I have ever seen. And I’ve studied a lot of them. I believe that the whole universe operates in an orderly manner, and Network Marketing operates more in harmony with the laws of the universe than any other business I’ve seen. A person truly receives exactly what he’s worth. No nepotism, no favoritism. I find that rather unusual in the business world. What are some of the laws you’re referring to, and how does Network Marketing honor them? Well, for example, the law of cause and effect—which is one of the laws in the universe—clearly states that energy returns to its source of origination. Or in more familiar terms, what you sow, you reap. Action and reaction are equal and opposite. This business is so perfectly aligned with that principle. If a person puts the effort out, it does come back. People are recognized for their efforts—recognition is a big part of it, and compensation is a big part of it. I see that there are two sources of income in life, one psychic, one material. The psychic income is the satisfaction we get from how we spend our days. We should earn enough money to provide the things we want and live the way we choose. Network Marketing, for the most part, offers that person the opportunity for both. The people I’ve observed who are successful in this industry truly love what they are doing. Once they understand the system, away they go—helping others understand it, too. Keep in mind that there are a lot of people who are not successful, but that’s their own fault. Another unusual characteristic of Network Marketing is the seemingly small distance from the bottom to the top. Can you say more about that, because a common criticism of this industry, Bob, is that there are just a few people at the top while most people are struggling? That is something that people say, and yet, if you ask them to explain it, they’re unable to. Again, what we don’t understand we have a tendency to criticize and ridicule. I was probably guilty of that. I got up and said that I didn’t know anyone who was earning any money. Well, I really didn’t know that many people involved in Network Marketing at all. There were passing acquaintances, but I certainly didn’t know what they were earning. I’ve since found out, of course, that there are a lot of people earning great money in Network Marketing. My wife has been very successful, and she’s having an awful lot of fun at it. I spend almost all of my time working in this industry now because I enjoy working with Network Marketers so much. I still do some work outside, and it’s not that I couldn’t do more; I just don’t really have a desire to. Bob, besides the moral quality that you’ve already spoken about in the structure of Network Marketing, what other differences do you see between Network Marketing and a conventional business? The difference is like night and day. It’s paradoxical, really—people who do not understand Network Marketing point at it as a pyramid, when the truth is that they are probably involved in something that truly is a pyramid! All business is shaped like a pyramid, but the difference is that in Network Marketing, everybody is at the top of their own pyramid. In corporate America, that’s not the way it is. A good example of a pyramid is a Canadian bank. There are only half a dozen banks in Canada, and the people at the top all earn in the millions, while the teller probably earns $20-25,000 a year, with very little hope of getting to $35,000. A person can sit down and draw her own star, then go and get it in Network Marketing. On top of that, she’ll get help—in Network Marketing, everyone wants to help everyone. That isn’t the case outside this business. In Network Marketing, a person has the opportunity for expansion and fuller expression. In other words, his life can continually improve. There seems to be no end to it. I’ve only been around the industry for a little over three years, but I’m absolutely fascinated with it. People naturally want to expand and express and grow—the corporate structure impedes that growth, while Network Marketing supports it. In fact, it’s to the advantage of the people above you to help you grow. Bob, in looking at the uniqueness of this business, what are some of those challenges that Network Marketers face? I think the biggest challenge a Network Marketer faces is the paradigm shift that they have to make themselves. Second is learning how to present the opportunity to someone in such a way that enables that person to make a paradigm shift, too. We’re conditioned genetically; we’re conditioned environmentally. Like the old economy—if you look at it as the old economy and the new economy. The old economy deals with competition. I think a good example is if you had a pie, and the pie is cut up, and you get a piece, I get a piece, maybe six other people get a piece. If I want more of that pie, I’ve got to outwit, out-market, or out-sell you, or out-scheme you. For me to have more pie, you’re going to have to have less. We’re dealing with a limited supply. In Network Marketing, which I believe is the distribution system that is ushering in the new economy, a person is dealing with an infinite supply, which is in line with spiritual laws. There is no limit. So the person says, “If I want more pie, I’ll make a bigger pie, and I’ll make you aware of how I am enjoying more pie, so you can, too.” It is the most phenomenal system, and it just keeps getting better, because you become more and more aware of the truth of it. What kind of difficulties does that present for somebody who, say, came out of a corporate environment where the rules of the game are different? I’ll give you a good example for your readers to try. Question to the readers: are you right-handed, or left-handed? Okay, now I’m going to ask you to sign your name. Sign your name on a piece of paper. Now put the pen in your other hand. Don’t just read this—put your pen in your other hand. You can feel the tension building in your body. Your mind reacts to it. You think “I don’t write with my left hand. This is so uncomfortable. It’s so cumbersome. I’m going to make such a mess. I’m going to make myself look foolish, and what will my neighbor say?” We’re not programmed to write with our other hand. People are programmed to live a certain way. What we’re saying is change the programming. It’s like learning a new language. It’s almost as if you go home and your family doesn’t speak English any longer, but French or Spanish. Eventually, you would learn what they are saying, but it would be extremely difficult and very stressful at the beginning. Can you speak about the things that need to be reprogrammed, specifically, Bob, or give us some examples of things? We have to begin by understanding ourselves, and improving our self-esteem. We’ve been raised to be dependent on the corporation, the boss, the company. We’re programmed to believe that if you go to school, get a good education and a job in a big company, that you’re safe. Of course everyone knows that that’s not true. People have been being laid off, downsized, reengineered, or fired by the hundreds of thousands—many are walking the street wondering what’s happened. We’re living in a new economy. The world has shifted—I believe it’s aligning itself more with the universal laws. See, there’s a bigger gap today between the haves and the have-nots than there ever has been before, and it’s getting wider. In a recent article in the Toronto Daily Star, they pointed out that the top ten percent of income earners are earning 314 times what the bottom ten percent are earning. The people on the bottom haven’t even a hope of how to get to the top, and the old system isn’t going to help them. Network Marketing clearly explains how you get to the top. The intellect can understand that—”I know I can get to the top. Now I’ve got to change that emotional, conditioned mind of mine.” That’s harder, but people care and want to help you make the transition. There are some absolutely brilliant people who intellectually understand it, and yet don’t make it. They don’t make it because they never get that paradigm changed. I think there has to be more education in that area. Network Marketing is still new enough that it has not come together for the development of people yet—and it may not for a few more years. It’s in an evolutionary state. There has to be more focus on helping the individual change her subjective conditioning. People have a difficult time grasping it, so they struggle. You see, wealthy people have always had multiple sources of income. I believe that wealth is a very real part of life—it has to be addressed and understood. A person cannot live a full life if he doesn’t have any money, because we use money for things, and we need things for the development of our potential. I have been teaching people that they must have multiple sources of income if they are going to accumulate any wealth—not just one source. It won’t work. The beautiful part about Network Marketing is you set up multiple sources of income with each person you bring in. So in a relatively short period of time, I could have two or three thousand sources of income. It makes a difference in a person’s life. Which speaks to the business of leverage? Absolutely. There are three income earning strategies: M1, M2, and M3. M1 is trading our time for money. Approximately 95 to 96 percent of the population does that. It has an inherent problem called saturation. What do you mean the inherent problem is “saturation”? You run out of time. You only have so much time, and if you’re trading your time for money, you obviously have a ceiling on what you can earn. Doctors are realizing that today. The doctor has to spend more time to earn less money. So does a laborer. So does a lawyer—chargeable hours are the most important words in a lawyer’s vocabulary. That’s the M1 strategy that school teaches us and that we’ve observed our parents’ involvement with, for the most part. If a person becomes wealthy on the M1 strategy, it’s at the expense of a life. They’ve compromised on the car they drive, the home that they live in, the vacations they take, the school they give their kids, the clothes they wear, because they need the money to live. M2 is an excellent strategy—investing money to earn money. Those who understand it know that leverage is a great way to work the M2 strategy. There’re only three people out of 100, though, who understand, and some of those aren’t very good at it. Now, M3 is, without question, the strategy that wealthy people have always used. It’s a strategy of leverage. Approximately one percent of the population uses this strategy, but they earn around 96 percent of all the money that is earned. M3 is multiplying your time through the efforts of others, by setting up multiple sources of income. It’s a phenomenal strategy, and Network Marketing is tuned into it. Earning money has absolutely nothing to do with work. This is the real paradox. Say more about that, please. Napoleon Hill, who probably taught us as much about earning money and wealthy people as anyone, said, “If you are one of those people who believes that hard work and honesty alone will bring riches, perish the thought, because it’s not true. Riches come, if they come at all, in response to definite demands, based upon the application of definite principles, and not by chance or luck.” Now, let’s take what he’s saying and relate it to Network Marketing—”Riches come, if they come at all, in response to definite demands based upon the application of definite principles, and not by chance or luck.” Is there a demand for someone who can show that 96 percent, the people who are feverishly involved in a losing proposition in the M1 income earning strategy, how to move to M3? Is there a demand for someone to show an individual how to close the gap between the haves and the have-nots? I think there’s a screaming demand for it, and it’s something that Network Marketing does. We show them how to close the gap. We show them how to spend their days doing the things that they really love doing, and at the same time, earn the amount of money they need to live the way they choose to live. I don’t think we’re made for work, I believe that work is made for us. I work every day, but I never look at it as work, because I absolutely love what I’m doing. I find it amusing that I get paid so well at times. I would do it for nothing, because I absolutely love it. Love is harmony—it’s when your conscious mind, your sub-conscious, and your body are all in sync, and you truly love what you’re doing. Are you willing to talk to me about the role of love in Network Marketing? Sure—that’s a subject that people should spend a little more time with. I see love as resonance. It’s harmony. People who are in love with helping people are huge winners. You see that proven in Network Marketing all the time—the big winners in Network Marketing love watching a person wake up. They love watching them win. I watched a couple being recognized recently—they stood before the audience and said that they had been married for 13 years, and got a divorce. They stayed in touch because of the kids. One of them got involved in a Network Marketing company and got the other one involved, too. It ended up bringing them back together—after three and a half years apart. They’re happily married again now. Those people love what they’re doing, they love each other, and they love helping other people. And who do you think likely received the greatest reward, the most satisfaction? The person who sponsored them. That’s the biggest reward for people—helping others win. Bob’s wife, Linda, has hacked the Network Marketing mystery and earned millions of dollars while living with time freedom. Download her book, Earn It and Enjoy It to see how you can do the same and learn more about Network Marketing opportunities.
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                            [body] => Multi-Level Marketing or Illegal Pyramid Scheme? Multi-Level Marketing or Illegal Pyramid Scheme? CONSUMER ALERT. DANA NESSEL ATTORNEY GENERAL. The Attorney General provides Consumer Alerts to inform the public of unfair, misleading, or deceptive business practices, and to provide information and guidance on other issues of concern.  Consumer Alerts are not legal advice, legal authority, or a binding legal opinion from the Department of Attorney General. Multi-Level Marketing or Illegal Pyramid Scheme? What is the Difference? "Multi-level" or "network" marketing is a form of business that uses independent representatives to sell products or services to family, friends, and acquaintances.  A representative earns commissions from retail sales he or she makes, and also from retail sales made by other people that he or she recruits.  Examples of well-known multi-level marketing companies include Amway and Mary Kay Cosmetics. Some companies call themselves multi-level marketing when they are really operating pyramid schemes that violate Michigan's Pyramid Promotion Act.  Even when a multi-level plan does not violate Michigan's Pyramid Promotion Act, the marketing of the plan may violate Michigan's Consumer Protection Act, if the acts, methods, or practices are unfair, unconscionable, or deceptive.  It is understandable that consumers often have difficulty telling the difference between an illegal pyramid scheme and a legitimate multi-level marketing opportunity.   Governmental regulators and the industry continue to debate where the legal lines are drawn.  Multi-level marketing is a lawful and legitimate business method that uses a network of independent representatives to sell consumer products.  Compensation must primarily be based on the sale of products and services to the ultimate consumer.  Pyramid schemes claim to be in the business of selling products to consumers in order to look like a multi-level marketing company.  However, little or no effort is made to actually market the product.  Instead, money is made in typical pyramid fashion...from recruiting other people to market the program.  Sometimes, new "distributors" are persuaded to purchase inventory or overpriced products/services when they sign up. Pyramid companies make virtually all their profits from signing up new recruits and often attempt to disguise entry fees as the price charged for mandatory purchases of training, computer services, or product inventory. Pyramid schemes are not only illegal; they are a waste of money and time.  Because pyramid schemes rely on recruitment of new members to bring in money, the schemes often collapse when the pool of potential recruits dries up (market saturation).  When the plan collapses, most people, except the few at the top of the pyramid, lose their money. Market Saturation Although pyramid promoters claim that the possibility to earn is endless, this possibility cannot materialize due to market saturation.  For example, if a program begins with one person who recruits two people, each one of whom recruits two more people, and so on, in only 28 levels practically the entire population of the United States - every man, woman, and child - would be involved, as is illustrated below. Level Number of New Participants Total Number of Participants 1 1 1 2 2 3 3 4 7 4 8 15 5 16 31 6 32 63 7 64 127 8 128 255 9 256 511 10 512 1,023 11 1,024 2,047 12 2,048 4,095 13 4,096 8,191 14 8,192 16,383 15 16,384 32,767 16 32,768 65,535 17 65,536 131,071 18 131,072 262,143 19 262,144 524,287 20 524,288 1,048,575 21 1,048,576 2,097,151 22 2,097,152 4,194,303 23 4,194,304 8,388,607 24 8,388,608 16,777,215 25 16,777,216 33,554,431 26 33,554,432 67,108,863 27 67,108,864 134,217,727 28 134,217,728 268,435,455 When investigating a multi-level marketing opportunity, you should ask about market saturation and determine the saturation levels in your area of distribution.  Legitimate companies do not have too many distributors in one area.                                    Warning Signs. Pyramid promoters are masters of group psychology.  Recruitment meetings create a frenzied, enthusiastic atmosphere where group pressure and promises of a large sum of money play upon people's greed and fear of missing a good deal.  Promoters also openly discourage thoughtful consideration and questioning of the scheme.  Victims often find themselves tricked into participating.  At a recruitment meeting, you might hear phrases like "this is a ground floor opportunity which will change your life", "opportunities don't go away, they go to other people", and "if you act now and work hard for three to five years, you can retire and live off of the residual income."  Another warning sign is a confusing compensation plan.  Claims by a company that their plan has been "approved" by the Michigan Attorney General should be bright red flags and you should report such a claim immediately to our office.  A company that misrepresents one fact will likely misrepresent others.  While our office is able to tell you if we have taken any legal action, we will not comment on any specific investigation of multi-level marketing companies.  Additionally, we do not provide any advance form of approval for any company and if you want legal advice on whether a multi-level marketing opportunity is actually an illegal pyramid, you need to seek private legal counsel.  Chain Letters. The simplest form of pyramid scheme is the chain letter that asks the recipient to pay $1.00 or more to each of five names on a list, copy the letter, and then send it out to new people with the recipient's name added to the list.  Many chain letters claim to be legitimate because they offer a product.  Upon close examination, the product is just a pretense.  Often the newsletter simply describes additional "get rich quick" schemes and may be the only item that new members "purchase."  Alternatively, the newsletter may be offered for "free" to every new paying member.  In either case, the scheme is just a pyramid if it pays distributors to recruit new members rather than sell a real product to the wider public.  In recent years, pyramid schemes have become more sophisticated, and many have surfaced on the internet. Use Common Sense and Consider These Tips. The pyramid scheme disguised as a multi-level marketing opportunity is not always easy to spot, but is just as much of a scam as the chain letter.  Here are some tips to consider before participating in a multi-level marketing program: Avoid any program that focuses more on recruitment of new people rather than the sale of a product or service to an end-user consumer.  If the opportunity for income is primarily derived by recruiting more participants or salespersons rather than by selling a product, the plan probably is illegal.  Several courts interpret greater pressure on members to sponsor new recruits than to market company merchandise as evidence of an illegal pyramid. Be skeptical of plans that claim you will make money through continued growth of your "downline" -- the commissions on sales made by new distributors you recruit -- rather than through your own sales of products. Be cautious about specific income or earnings claims.  Many programs boast about the incredibly high earnings of a few top performers ("thousands per week" or a "six figure income").  The reality is that most of the people recruited into the organization are not making anywhere near those amounts and most actually lose money. Beware when presented with "testimonies" from other distributors.  These "success" stories rarely reflect reality. Be cautious about participating in any program that asks distributors to purchase expensive inventory.  There are horror stories of people with a basement or garage full of merchandise that no one will buy. Make sure the product or service offered by the company is something you would buy without the income opportunity and the product or service is competitively priced.  Illegal pyramid schemes often sell products at prices well above retail or sell products that are difficult to value, such as health and beauty aids, new inventions or "miracle" cures. Never sign a contract or pay any money to participate in a multi-level marketing program, or any business opportunity, without taking your time and reading all of the paperwork.  Talk the opportunity over with a spouse, knowledgeable friend, accountant, or lawyer.  If you feel that you are being subjected to high-pressure sales tactics or are not being given enough time to review the details, go elsewhere. When questions are raised about pyramids, comparisons may be made to corporations where there is one person at the top who makes the most money.  What they fail to state is that corporations do not seek to recruit an unlimited number of employees or pay employees based on recruiting new employees. Beware when the products or services are simply vehicles for recruitment.  The products may be gimmicks and/or overpriced, but even high quality products may serve as a cover for recruitment activities. Your Responsibilities. If you decide to become a distributor, remember that you are legally responsible for the claims you make about the company, its product, and the business opportunities it offers.  That applies even if you are simply repeating claims you read in a company brochure or advertising flyer.  If you decide to solicit new distributors, be aware that you are responsible for any claims you make about a distributor's earnings potential.  Be sure to represent the opportunity honestly and avoid making unrealistic promises.  If those promises fall through, remember you could be held liable. If you join a pyramid scheme disguised as a multi-level marketing program, your decision will affect not only you, but also everyone you bring into the program. Many people devote a substantial amount of time trying to market these worthless ventures.  Ultimately, if a multi-level marketing opportunity sounds too good to be true, it probably is. For General Consumer Complaints, Contact the Attorney General's Consumer Protection Division . If you have a general consumer complaint, please file a complaint with the Attorney General's Consumer Protection Division at: Consumer Protection Division P.O. Box 30213 Lansing, MI 48909 517-335-7599 Fax: 517-241-3771 Toll free: 877-765-8388 Online complaint form Related ContentGifting Circles Good, Gifting Schemes Bad: How to Spot an Illegal Pyramid SchemeWhat You Need to Know About the Equifax Breach Tax Debt Resolution ScamsDebt Collectors & the IRSDisaster ScamsGovernment Imposter ScamsAuto Title Loans: Put the Brakes on Before You Get Caught in a Cycle of Debt or Lose Your CarAdvance-Fee Loan ScamsPension Advances Are a Shaky Deal for Borrowers and Investors AlikeCosigning A Loan? Know the Risks!Charitable Donation Refund ScamTravel TipsInternational Sweepstakes & Lottery FraudDebt Collection & Debt Collection ScamsMichigan's Scanner Law - The Shopping Reform and Modernization Act Embezzlement Prevention for Small OrganizationsHey! Why Isn't That Price Fixing? The Real Story of Manufacturer's Suggested Retail PricesPrescription Drugs - How To Safely Save MoneyPrepaid Funeral ContractsGrandparent-Family Emergency Scam brandarea. Michigan Department of Attorney General Written Public Summary of the Department's Freedom of Information Act Procedures and GuidelinesMichigan Department of Attorney General Freedom of Information Act Procedures and GuidelinesFOIAAG Privacy PolicyAG Web DisclaimerMichigan.gov HomeADAMichigan NewsPoliciesCopyright 2022 State of Michigan
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                            [body] => 20 Reasons Why Network Marketing... May Be Your Best Option . 20 Reasons Why Network Marketing... May Be Your Best Option . 20 Reasons Why Network Marketing May Be Your Best Option . If you are new to network marketing or are considering network marketing, in today’s economy it will be the best decision you could make. The opportunities have never been greater for success than it is now with all the resources available online. To be really successful in network marketing it is very important to understand why you should even bother. I decided that to help you with either your belief or with what prospects say, you will have some great information to get you motivated and on the right path. Here are 20 reasons why network marketing may be your best option, though I could give you many, many more. #1. Work From Anywhere: This has been one of Americans biggest dreams is the possibility to be able to work on their laptop from anywhere around the world. To me this is priceless. As long as you can get internet connection you can run your business. If anything changes in your life you just move to another state, city, etc. and you business is portable because your business is portable. #2. Your Own Schedule: This is a big one for me. If I have an appointment I do not have to ask for time off work from a regular job. Because you can set your own schedule, it is also very easy to not work your business in network marketing so you must become disciplined if you want to grow the business. You only get out of it what you are willing to put into it. In a traditional business the same holds true as well, however, you have a far greater investment at risk. #3. Low Cost of Entry: With network marketing companies you can start with just a computer and a small investment to get started. Some have even started with no money to invest. Only time and hard work. If you were considering starting a traditional business, generally speaking, you are looking at $50,000 minimum investment, just to open the doors. Franchise type of business would even be a far greater investment of $100K, or more and most of the owners do not even start to see a profit for over 5 years. My question to you would be: Which would you rather invest, say a small amount of $1000 or $50,000 or more? #4. No Employees: This in itself should make you take a serious look at network marketing. There are no payroll worries, tax worries, workers compensation worries like you would have in a traditional business that are all cost associated with employees. No one asking for salary increases or just plain old making sure others are getting the work done for you. The only employee you need to worry about is yourself. #5. No Billing/Account Receivables: You do not have to worry about billing any of your customers, or collecting any money, that is all handled online, and even if you sell physical products, the products are drop shipped for you with most companies. In a traditional business sometimes you wait 90 days or more to collect their money. #6. Tax Benefits From A Homebased Business: This is a huge benefit. With a home based business you will receive some of the same tax breaks that the rich are already taking advantage of. You can have access to over 250 tax incentives that rich people know about and take advantage of! The tax benefits alone are generally greater than the cost to get started. #7. There is No Discrimination Between Men/Women/Age/Race: Everyone who enters network marketing has the same opportunity as the next person to succeed. I have even heard of someone that was bedridden becoming successful in their network marketing business. #8. No Commuting: Just imagine the time and money you would save from not having to commute back and forth to your business or day job. One thing we can never get back is time. Time is something we seem to never have enough of. I personally do not consider sitting in rush hour traffic a good use of my time. #9. Security: We hear everyday of companies laying employees off. Cut backs. There is no such thing as job security when working for someone else. With the shrinking job market and technological advances leading to fewer and fewer people needed to do the same job as there once was. What’s more secure…having one income stream with a job where you could be outsourced or downsized in an instant, or additional income coming from a network marketing business? When you have your own network marketing business you have the stability of your network. Yes, even in network marketing, there are companies that come and go, but those companies, however, can not take your network. That is your security in this business. #10. Residual Income: Boy, this is priceless. I hope you can understand this amazing benefit and the power of it. Network marketing allow you to get paid a residual income, even when you are not working, plus it can grow month to month. Imagine when you retire and you still have that residual income coming in for you. #11. Training Already In Place And Readily Available: Because Network Marketing is a system which has many independent distributors, the companies typically have training available at your fingertips. Why not learn from those that have already proven there success. #12. Receive The Help, Encouragement, and Support From Others In The Same Profession: I have benefited so much from this. You will find that everyone is willing to help each other to succeed. Find yourself a mentor to follow and work with. Generally in America everyone is out for themselves, clawing their way to the top of the ladder. You will find network markets different. Everybody helps everybody and you will find that you will be doing the same in a very short time. #13. Personal Growth: This is big in my personal opinion and a synonymous with network marketing. The personal growth you must experience along with the growth of your business is essential. You must grow, especially if you want a large income. You must grow to become the person that helps others, encourages others, and helps others to also get what they want out of life. If you don’t grow then you will become stagnant. #14. You Build Social Skills: You become a better person, which improves so many other areas of your life. When you build your social skills other look forward to working with you and being around you. #15. Allows You To Help Others On A Massive Scale: The ripple effect that your business can have on others can be larger than you could ever imagine. Your personal impact can touch more people than you will ever even know about. To people who love to help others this is a huge benefit. This reason should be at the top of your priority list. #16. Quickly Profitable: Unlike traditional businesses, which generally speaking take 3-5 years before they even think about seeing a profit, in network marketing, depending on what you are doing, you could see a return in days. #18. Build Your Business By Using The Internet: The internet is changing the world as we use to know it. The possibility of reaching a greater audience for your business is just at your finger tips. Here you can focus on people who are only interested in what you are selling. This makes any advertising cost much lower. With the traditional business, yes this can be done, depending on the type of business, but the cost for a traditional business can be far greater than what you will experience because you are reaching out to people one at a time. #19. Ability To Work In A Stress Free Environment: Today people are working in a FEAR based environment. With more and more jobs being outsourced, there are less jobs available. Employers can pay less and require more, and this is happening every day. With network marketing you are working from the comfort of your home, and the fear and stress are far less. You are creating your own dream, not someone else’s dream. #20. Ability To Involve Your Kids: Since you can work from home, you can involve your kids, and teach them a strong work ethic and social skills. Working around your schedule is a plus in order to spend more time with your kids taking them to that ball practice, with you being able to stay and watch. With you kids around you, they see what you do, how you do it, learn how to be entrepreneurs, as well you can also involve them in your business and have them do projects you choose for involving them in your business. I can’t think of a better way to instill a good work ethic in your children. I understand that network marketing is not for everyone, but to me it is a better way. If you are considering network marketing, or if you are already a part time network marketer I hope this helps you to appreciate what a great opportunity you are a part of . The friendships, personal growth, helping other people, are all priceless. I have given you 20 Reasons Why Network Marketing May Be Your Best Option, I could have give you many more.You are your only limit. Bottom line is, you determine the amount of success or failure you have in network marketing. It is like anything else in life. You get out of it what you are willing to put into it. If you show up and work your business consistently, grow yourself, success will happen. So the only limit is the one you put on your business. If you are looking to join a marketing company , or want to find out what company I have partnered with CLICK HERE. Connect with Barbara Marian. Barbara is using Smore newsletters to spread the word online. Follow Barbara Marian Contact Barbara Marian Direct link: copy Embed code for website/blog: copy Embed code is for website/blog and not email. To embed your newsletter in a Mass Notification System, click HERE to see how or reach out to [email protected] Done close Design beautiful online newsletters and publish instantly. The days of posting a newsletter around the neighborhood are over. Smore helps you create amazing pages that you’d be proud to share. Try it now   Created with . Communicate quickly and effectively with interactive newsletters. Smore empowers educators to connect with their community, streamline school communications, and increase engagement. Create a newsletter  
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Part 1


Part 1 of 3:Finding the Right Company
	
	
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Part 2


Part 2 of 3:Starting at a Company
	
	
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Part 3


Part 3 of 3:Building Your Network Marketing Business
	
	
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                            [body] => How to Succeed in Network Marketing Download Article Explore this Article parts 1 Finding the Right Company 2 Starting at a Company 3 Building Your Network Marketing Business Other Sections Questions & Answers Tips and Warnings Related Articles References Article Summary Author Info Last Updated: November 12, 2021 Approved Download Article X wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 70 people, some anonymous, worked to edit and improve it over time. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 54 testimonials and 90% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 1,034,159 times. Learn more... Working in network marketing seems like a great gig—you get to be your own boss, choose your own hours, and set your own goals—but you really only get to enjoy these perks if you’re successful enough to earn a steady income. After all, you probably won’t love being your own boss if you’re not making enough money to pay the bills. Don’t worry—we’re here to help you be as successful as possible in network marketing. This article will walk you through everything you need to know, like how to choose the right company, build new leads, and grow your business. Steps . Part 1 Part 1 of 3:Finding the Right Company Download Article . {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/4\/44\/Succeed-in-Network-Marketing-Step-1-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-1-Version-3.jpg","bigUrl":"\/images\/thumb\/4\/44\/Succeed-in-Network-Marketing-Step-1-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-1-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 1 Investigate companies. Choosing the right company is key to becoming a successful network marketer. Quick and easy internet searches can usually answer many of the questions you may have. Do some research to determine which company is best for you personally. Some questions you should ask yourself when researching companies are:[1] X Trustworthy Source Federal Trade Commission Website with up-to-date information for consumers from the Federal Trade Commisson Go to source [2] X Research source How old is the company? Is it well-established or is it just starting out? How are the company's sales? Are they rising or falling? What is the general reputation of the company? Reviews and blogs can usually give you a good idea if the company is reputable or suspicious. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/7\/73\/Succeed-in-Network-Marketing-Step-2-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-2-Version-3.jpg","bigUrl":"\/images\/thumb\/7\/73\/Succeed-in-Network-Marketing-Step-2-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-2-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 2 Look up CEOs and other company leaders. Keep the same things in mind as when you investigated companies. Is the company leadership reputable and law-abiding? If company leaders have been accused of carrying out scams or have had legal trouble, you may want to avoid this company. Advertisement {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/d\/d7\/Succeed-in-Network-Marketing-Step-3-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-3-Version-3.jpg","bigUrl":"\/images\/thumb\/d\/d7\/Succeed-in-Network-Marketing-Step-3-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-3-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 3 Investigate the products or services the company sells. Since you'll be responsible for pitching and selling this product, make sure it is reputable. Some MLM companies market questionable or dangerous products, and you could face legal action if you take part. You should keep the following in mind when considering a product:[3] X Trustworthy Source Federal Trade Commission Website with up-to-date information for consumers from the Federal Trade Commisson Go to source Is this product safe? Are the product's claims backed up by legitimate research? Would I use this product? Is this product priced fairly? {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/2\/2a\/Succeed-in-Network-Marketing-Step-4-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-4-Version-3.jpg","bigUrl":"\/images\/thumb\/2\/2a\/Succeed-in-Network-Marketing-Step-4-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-4-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 4 Question your recruiter. When you've found a company you're interested in, you'll likely meet with a recruiter or another representative. Be skeptical during the recruitment process. Remember that your sponsor makes more money if you sign on, so they may not be as open with you as they could be. Don't get distracted by promises of how much money you'll make, and really think about what you're about to do.[4] X Trustworthy Source Federal Trade Commission Website with up-to-date information for consumers from the Federal Trade Commisson Go to source Ask direct and specific questions. If you find the answer too vague, ask for clarification. Ask exactly what the company will expect of you—how much are you expected to sell? How many people are you expected to recruit? Are you required to take part in training programs? {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/7\/76\/Succeed-in-Network-Marketing-Step-5-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-5-Version-3.jpg","bigUrl":"\/images\/thumb\/7\/76\/Succeed-in-Network-Marketing-Step-5-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-5-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 5 Read your contract carefully. Don't sign anything right away. Take some time to read over and understand the entire contract. You may even want to consult a lawyer or accountant to make sure you're getting a fair deal and that the company is legitimate. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/0\/02\/Succeed-in-Network-Marketing-Step-6-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-6-Version-3.jpg","bigUrl":"\/images\/thumb\/0\/02\/Succeed-in-Network-Marketing-Step-6-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-6-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 6 Watch for red flags. According to the Federal Trade Commission, some businesses posing as MLM companies are actually illegal pyramid schemes. Pyramid schemes scam recruits into buying into a company and almost always result in a loss to the recruit. Some things to look out for are:[5] X Trustworthy Source Federal Trade Commission Website with up-to-date information for consumers from the Federal Trade Commisson Go to source If a company makes more money selling products to distributors than to the public. If a company makes more money recruiting members than by selling products. If anything seems wrong to you, don't sign a contract. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/f\/f8\/Succeed-in-Network-Marketing-Step-7-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-7-Version-3.jpg","bigUrl":"\/images\/thumb\/f\/f8\/Succeed-in-Network-Marketing-Step-7-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-7-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 7 Draw up a business plan. When you have a few potential companies in mind, write out your plan for building and expanding your business. Even before you've officially aligned with a company, it helps to have this plan figured out early. That way you can hit the ground running when you do eventually start at a company. Keep these things in mind when designing a business plan: What product or service are you intending to sell? Who is your intended market? How much time will you dedicate to this? Will it be a part-time commitment or are you planning on working 7 days a week? What is your goal? Do you want to get rich or just make some extra money? Think long-term. Where will you be in 5 years? 10 years? What is your marketing strategy? Will you make cold calls? Use the internet or social media? Go door to door? You can update or change the plan as needed, but it helps to have a guide when you're just starting out. Advertisement Part 2 Part 2 of 3:Starting at a Company Download Article . {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/f\/f1\/Succeed-in-Network-Marketing-Step-8-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-8-Version-3.jpg","bigUrl":"\/images\/thumb\/f\/f1\/Succeed-in-Network-Marketing-Step-8-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-8-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 1 Choose the right mentor. In most MLM models, the person who recruited you becomes your mentor. That mentor will coach you through the early stages of your work. Typically, the more successful you are, the more money your mentor makes, so it is in their best interest to be there for you. In a mentor, you'd want:[6] X Research source Someone who is available if you need help. Someone who you could see yourself working with. Someone who will be honest with you if there's something you can do better. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/a\/a3\/Succeed-in-Network-Marketing-Step-9-Version-3.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-9-Version-3.jpg","bigUrl":"\/images\/thumb\/a\/a3\/Succeed-in-Network-Marketing-Step-9-Version-3.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-9-Version-3.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 2 Study your products and know them well. It's your job to sell these products, so you should dedicate yourself to knowing everything about them. You'll need to plan how you will pitch the product to potential customers, how to answer any questions or doubts they may have, and any relevant research or studies that support your product.[7] X Research source {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/4\/49\/Succeed-in-Network-Marketing-Step-10-Version-5.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-10-Version-5.jpg","bigUrl":"\/images\/thumb\/4\/49\/Succeed-in-Network-Marketing-Step-10-Version-5.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-10-Version-5.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 3 Attend company meetings and training calls. These will help you make new contacts and learn new skills. You can leave them better prepared to build your business successfully. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/8\/80\/Succeed-in-Network-Marketing-Step-11-Version-6.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-11-Version-6.jpg","bigUrl":"\/images\/thumb\/8\/80\/Succeed-in-Network-Marketing-Step-11-Version-6.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-11-Version-6.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 4 Build new leads. In network marketing, leads are potential customers. You'll need to keep finding new leads if you want to keep making money. There are various ways you can find new leads, and you should use multiple strategies to attract the largest market possible. Social media is a cheap, easy way to generate buzz for your product. Start a page for your company on each of the major social media sites and update them all regularly. Buy advertising space online and offline. Websites and newspapers can help build awareness for your product. Cold calling, though old fashioned, is still a popular method of finding potential leads. Personal interaction is also useful. Always have business cards on you and be ready to talk about your company. You never know when you may come across someone who is interested in what you have to offer. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/4\/45\/Succeed-in-Network-Marketing-Step-12-Version-5.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-12-Version-5.jpg","bigUrl":"\/images\/thumb\/4\/45\/Succeed-in-Network-Marketing-Step-12-Version-5.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-12-Version-5.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 5 Follow up with all leads. To turn leads into paying customers, you'll have to follow up with them and pitch your product. Set up your web page with an auto responder designed to contact people who visit your page. Manage all your contacts in an organized file with all their information easily accessible. Have a sales pitch ready at all times when you contact a lead. Try more than once to turn a lead into a customer. Just because someone wasn't interested once doesn't mean they will never be interested. Be careful not to overdo it, though—you could easily get a reputation as a spammer, which can hurt your business. Advertisement Part 3 Part 3 of 3:Building Your Network Marketing Business Download Article . {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/5\/5a\/Succeed-in-Network-Marketing-Step-13-Version-4.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-13-Version-4.jpg","bigUrl":"\/images\/thumb\/5\/5a\/Succeed-in-Network-Marketing-Step-13-Version-4.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-13-Version-4.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 1 Recruit new members. Just like you were recruited to a network marketing company, you'll have to recruit members to your team if you want to be successful. Always be on the lookout for new prospects who you think will be valuable additions to your team. Try recruiting services, like MLMRC. Also, you'll want someone who is personable, a good salesperson, and a team player committed to cooperating with you. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/5\/54\/Succeed-in-Network-Marketing-Step-14-Version-4.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-14-Version-4.jpg","bigUrl":"\/images\/thumb\/5\/54\/Succeed-in-Network-Marketing-Step-14-Version-4.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-14-Version-4.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 2 Mentor your recruits effectively. If recruits are successful, you make more money, so you should be prepared to train them well. This may be a substantial time commitment, even up to several weeks. But you should understand that you're building a team and it is in your best interest to spend enough time making sure your recruits are competent enough to go off on their own.[8] X Research source [9] X Research source {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/6\/61\/Succeed-in-Network-Marketing-Step-15-Version-6.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-15-Version-6.jpg","bigUrl":"\/images\/thumb\/6\/61\/Succeed-in-Network-Marketing-Step-15-Version-6.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-15-Version-6.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 3 Give your team members good commissions. By compensating your recruits well, you're ensuring that they have a good incentive to sell. That way, they'll earn more money for you and for themselves. It will also help keep them around longer, which is good for you—you want to keep talented sellers on your team to keep your business successful. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/d\/da\/Succeed-in-Network-Marketing-Step-16-Version-4.jpg\/v4-460px-Succeed-in-Network-Marketing-Step-16-Version-4.jpg","bigUrl":"\/images\/thumb\/d\/da\/Succeed-in-Network-Marketing-Step-16-Version-4.jpg\/aid84913-v4-728px-Succeed-in-Network-Marketing-Step-16-Version-4.jpg","smallWidth":460,"smallHeight":345,"bigWidth":728,"bigHeight":546,"licensing":"\u00a9 2022 wikiHow, Inc. All rights reserved. wikiHow, Inc. is the copyright holder of this image under U.S. and international copyright laws. This image is not<\/b> licensed under the Creative Commons license applied to text content and some other images posted to the wikiHow website. This image may not be used by other entities without the express written consent of wikiHow, Inc.\n<\/p>\n<\/p><\/div>"} 4 Consult professionals about your business. Remember, you are responsible for everything associated with running a business—taxes, laws, etc. It helps to have an accountant and lawyer on hand to help you manage your business in the most effective way possible.[10] X Research source Advertisement Community Q&A . Search Add New Question Question How can I build a team and enhance prospects if I am already in network marketing? Community Answer Work with people interested in your business or products. Don't focus too much on people who are not interested in your business. Thanks! Yes No Not Helpful 17 Helpful 194 Question How do I convince someone to join a business? Community Answer It's much like selling a product or service. Prepare information about incentives, commissions, future plans for your business, etc. The right people should come to you. Thanks! Yes No Not Helpful 13 Helpful 158 Question How do I approach new friends? Community Answer Give them a short but effective and exciting notice, and ask them to meet you. If they turn up, show them your plan. Thanks! Yes No Not Helpful 13 Helpful 112 Question How can I find network prospects? Community Answer Social media is a good way to make contact, especially sites such as LinkedIn (which is designed for networking) and Facebook. Thanks! Yes No Not Helpful 16 Helpful 128 Question Where can I start to become a network marketer? Community Answer You can begin searching for a position anytime you want! Once you've gotten a job, it may take a few weeks or months to get fully trained and ready to begin working, but after that you'll be able to become a full blown network marketer. Thanks! Yes No Not Helpful 9 Helpful 73 Question How can I initiate this business? Community Answer Once you have decided to join a network marketing business, first decide which company is best for you. Do market research and buy the package. Upon buying package you will get in touch with your upline who is already in the business. Follow your upline to move forward. Just remember one thing always, network marketing is an awesome business which works on the compound interest theory. Initially you will have to work hard and results are less, but as soon as you grow you will have to work less and you will earn more. Thanks! Yes No Not Helpful 6 Helpful 45 Question Is it necessary for a recruiter to have your photos? Community Answer Recruiting can involve any form of communication like email, private messaging and others, such as phone calls. No picture is needed to start a network marketing business or to be recruited by a network marketer. Thanks! Yes No Not Helpful 5 Helpful 55 Question What are the most important things for success in network marketing? Community Answer Commitment, dedication, hard work and good communication skills are what it takes to succeed in network marketing. Thanks! Yes No Not Helpful 9 Helpful 78 Question How can I convince people to purchase my product? Community Answer Know your product well so that you can easily explain to someone how much it could improve their life. Once you know the potential benefits of your product, all you have to do is convince your customer that these benefits would help them. Thanks! Yes No Not Helpful 2 Helpful 26 Question What is the minimum amount needed to start network marketing? Community Answer There's no minimum amount, It's an investment that you do for yourself and to help other people. You shouldn't make a decision based on the amount or what it costs, but rather on what it can bring to you as a result. Thanks! Yes No Not Helpful 13 Helpful 83 See more answers Ask a Question 200 characters left Include your email address to get a message when this question is answered. Submit Advertisement Tips . This is not a get rich quick scheme. It is a substantial commitment, and you should be willing to spend the time required to make it successful. Thanks! Helpful 0 Not Helpful 0 Seek advice from those who have succeeded in network marketing. Thanks! Helpful 0 Not Helpful 0 Don't reinvent the wheel. Follow those before you. Thanks! Helpful 0 Not Helpful 0 It may help to read books by successful businesspeople for ideas and inspiration. Do remember, however, that just because something worked for one person doesn't mean it will work for you. Read these books for ideas, but take advice with a grain of salt. Thanks! Helpful 0 Not Helpful 0 Advertisement Warnings . Always keep your business legitimate and law-abiding. Thanks! Helpful 2 Not Helpful 0 Make sure you don't quit your fulltime job right away. You should only leave your current employment when you're certain that you can live on your earnings from network marketing. Thanks! Helpful 2 Not Helpful 0 Advertisement You Might Also Like. How toSet Up Your Home Transcription Office How toBecome a Beta Tester How toPrevent Calls from Telemarketers (USA) How toMake a Product Catalog How toLaunch a New Product How toWrite a Marketing Report How toLearn Affiliate Marketing How toStop Telemarketing Calls How toIdentify Key Competitors in Marketing How toMake a Movie Trailer How toGet Your Name off a Direct Marketing List How toUse Social Media to Market Your Business How toGenerate More Money in Network Marketing How toManage a Social Media Marketing Campaign Advertisement References . ↑ http://www.consumer.ftc.gov/articles/0065-multilevel-marketing ↑ http://www.entrepreneur.com/article/77700 ↑ http://www.consumer.ftc.gov/articles/0065-multilevel-marketing ↑ http://www.consumer.ftc.gov/articles/0065-multilevel-marketing ↑ http://www.consumer.ftc.gov/articles/0065-multilevel-marketing ↑ http://www.entrepreneur.com/article/77700 ↑ http://www.entrepreneur.com/article/77700 ↑ http://www.entrepreneur.com/article/77700 ↑ http://www.forbes.com/sites/chicceo/2013/04/04/the-correlation-between-mlm-success-and-mentorship/ More References (1) ↑ http://www.entrepreneur.com/article/77700 About This Article. wikiHow is a “wiki,” similar to Wikipedia, which means that many of our articles are co-written by multiple authors. To create this article, 70 people, some anonymous, worked to edit and improve it over time. This article has been viewed 1,034,159 times. 12 votes - 90% Co-authors: 70 Updated: November 12, 2021 Views: 1,034,159 Categories: Marketing Article SummaryXTo succeed in network marketing, start by finding an established, profitable company with an appealing, effective product. Organize a meeting with a recruiter and ask any questions you have about the company, and look at income disclosure statements on the company website to see what the average seller makes. Be sure to learn your products well, and build connections with prospective customers. Follow up with all leads for sales, and make an effort to recruit new salespeople. For tips on selling products and recruiting new members, read on! Did this summary help you?YesNo In other languages Español:tener éxito en las redes de mercadeo Italiano:Avere Successo nel Network Marketing Bahasa Indonesia:Sukses Di Pemasaran Jaringan العربية:النجاح في مجال التسويق الشبكي Tiếng Việt:Thành công trong việc kinh doanh theo mạng ไทย:ประสบความสำเร็จในการตลาดแบบเครือข่าย Print Send fan mail to authors Thanks to all authors for creating a page that has been read 1,034,159 times. Reader Success Stories. Stefan Jan Giergiel May 4, 2017 "The article gives solid, common sense advice, presented in a very professional, attractive manner with pictures that illustrate the points brilliantly. I think its perfect for anyone considering network marketing as a profession. Great work!"..." more Rated this article: More reader stories Hide reader stories Share your story Did this article help you? Yes No Advertisement Cookies make wikiHow better. By continuing to use our site, you agree to our cookie policy. About This Article. Co-authors: 70 Updated: November 12, 2021 Views: 1,034,159 90% of readers found this article helpful. 12 votes - 90% Click a star to add your vote % of people told us that this article helped them. Stefan Jan Giergiel May 4, 2017 "The article gives solid, common sense advice, presented in a very professional, attractive manner with pictures that illustrate the points brilliantly. I think its perfect for anyone considering network marketing as a profession. Great work!"..." more Rated this article: Edward Mutasa Feb 24, 2017 "I am involved in a network marketing company, and I have found the right mentor who teaches and coaches me the right way. Now I am doing the same, and my business is growing in different cities and countries."..." more Kevin N. May 8, 2017 "It's good for a person to start something this type of network marketing, not just in terms of income but also for boosting your personality and developing a good attitude toward everyone."..." more Laura Hornbrook Nov 9, 2019 "This article is fantastic! I was looking for some information to send a skeptical potential partner. I believe this has everything someone new to MLM should look for in a company. "..." more Rated this article: Jordan McNie Feb 5, 2017 "The general breakdown was good. I have worked with a couple of different MLM concepts, and sometimes it's tough to get all the proper information out on demand."..." more Share yours! More success stories Hide success stories You Might Also Like. How toSet Up Your Home Transcription OfficeHow toBecome a Beta TesterHow toPrevent Calls from Telemarketers (USA)How toMake a Product Catalog CategoriesFinance and BusinessMarketing wikiHow Newsletter You're all set! Helpful how-tos delivered toyour inbox every week! Sign me up! By signing up you are agreeing to receive emails according to our privacy policy. Home About wikiHow Experts Blog Jobs Contact Us Site Map Terms of Use Privacy Policy Do Not Sell My Info Not Selling Info Contribute Follow Us × Don’t miss out! Sign up for wikiHow’s newsletter Subscribe You're all set! X 656
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                            [body] => How to Make Money with Network Marketingby Jessica Sommerfield · 4 commentsFacebookTweetPinLinkedInEmailNetwork marketing, otherwise known as multi-level marketing (MLM), is a business structure in which “hiring” consists of recruiting others into the company, and “payroll” consists of personal sales and commission from downline sales.At the end of the day, everybody becomes salespeople who sell products and get other recruits to sell products. You earn for each product you sell and for each product your recruits sell. It can be thought of as a networking matrix, where the more recruits you get on board, the more income you make.Pros of the System. It is possible to make money in a MLM system. The key is to get in at the right time and do well selling the product. Studies show that the majority do not make enough money to live off in such an environment, but the average does make between $2,000 and $3,000 a year. Getting in at the right time is important. In the early stages, the system has more possible people to recruit, while in the later stages it can be difficult to recruit and sell products.Cons of the System. The system is widely criticized for a number of reasons. It widely resembles a pyramid scheme where the bottom pays the top. It is only different in that there is a product involved. Once the system reaches a certain level, there will be a shortage of recruits in the market, which may lead to it failing. A 5×5 matrix (each recruit getting 5 more recruits) will fail around level 10. At this point, the recruits towards the bottom will begin dropping out because they are losing money, which leads to a domino effect all the way up to the top.That’s why MLM companies are often stigmatized as get-rich-quick or pyramid schemes. Still, some network marketing companies are nonetheless establishing solid reputations and pulling more and more interest from people disillusioned with the job market, failing pensions, and their lack of financial independence.While the myth that all network marketing companies are scams is steadily being dispelled, some still question whether these businesses are actually worth getting involved in — can ordinary people be successful at them?My answer is yes, especially if you consider the following tips. 1. Avoid companies with vague or manipulation in business opportunity presentations.Companies that are legitimate shouldn’t be hesitant to tell you exactly what product(s) they sell, what’s required to get started, and how the compensation plan works. Many questionable MLM companies tend to use high-pressure sales tactics or manipulation to get you to sign up. Any company that won’t give you at least 24 hours to think over your decision isn’t worth your involvement.2. Pick the right company and be wary of too-good-to-be true promises.Check out the company’s business plan thoroughly and look for anything that seems fishy or unrealistic. Make sure there are testimonies of ordinary people who have found success with the business. If possible, get in touch with them, as company-sponsored testimonials could be exaggerated. Beware of companies that allude to you receiving compensation without putting time or effort into building your business. And don’t forget that, like any other self-employed person, you’ll need to file a 1099 and pay tax for any income you receive.3. Take advantage of any and all training.One of the greatest pitfalls of many network marketing companies is their failure to properly train recruits and equip them with the skills necessary to be successful.Even though you don’t need a degree or a background in business to succeed as an independent contractor in a network marketing company, you’ll need to know how to run your “business” to maximize your profit. How far and how fast you go will usually depend on how much training you’ve had. Unfortunately, most of these companies don’t offer much in the way of training. They psych you up, hand you your materials, and let you loose.This means you’ll have to pursue the information for yourself once you pick the right company to work with. One of the best ways to do this is by picking the brain of the person who recruited you, or someone else who’s been with the company a number of years and found success. Ask detailed questions about their business practices, take notes, and request any materials or tools they can spare. If the company is legitimate, there should be at least someone who is genuinely interested in your success and is willing to help you.4. Show up for your “job.”. You can’t just expect the money to start rolling in without putting time and effort into your business. View your company as a real job to which you have to devote a certain number of hours every week. The more work you put in, the more you’ll get out.If you’re not a go-getter, this can be challenging — because no one is telling you what to do. Network marketing is almost like being self-employed; you’re the boss. This can be a great perk, but it also means you have to exercise control over your one employee — yourself.5. Determine your goals for your company.Is your goal to use your network marketing as a side job to supplement another income? You should devote at least a few hours a week. If your goal is to turn your network marketing business into a full-time income, you should set aside 15 or more hours a week. Write a list of your immediate and long-term goals and how you plan to accomplish them.6. Find out what works for you.Some people naturally have great salesmanship skills and succeed with seemingly little effort at network marketing businesses. Others struggle to make connections and be a salesman. You may not be a natural salesman, but you can still use what comes naturally to you.The best way to sell any product and recruit others into selling it is to believe in it and have a story to tell. Most people are more receptive to a person who is genuine, honest, and has personal experience with their products and customers.This is why it’s important to find a company you believe in and can get excited about. Selling will come naturally, and you’ll be successful before you know it. With as many network marketing companies as there are, finding one you identify with shouldn’t be hard.Network marketing companies are a unique and exciting type of home-based business that can provide great success to those who pursue training, devote time to their business, articulate and pursue their goals, and use their own unique story to recruit others.Have you ever considered delving into network marketing?FacebookTweetPinLinkedInEmailTagged as: Business Idea, Career, Make MoneyYou May Also Like:. How to Deal with Constant Sale Pitches from…More Ways than One to Make Money OnlineMaking Money from Different Sales TaxAre You a Victim of Marketing?Does a Higher Price Always Mean Higher Quality? Money Saving Tip: An incredibly effective way to save more is to reduce your monthly Internet and TV costs. Click here for the current AT&T DSL and U-VERSE promotion codes and promos and see if you can save more money every month from now on.Subscribe (and Get a Mini-Course Too!). Subscribe to our newsletter to grab free amazing content and have it delivered to you. A 7-part mini course to help you spend less and be happy will be sent to you when you subscribe, and you will also get an ever-expanding How to Save Money on Everything ebook. Alternatively, stay engaged in our discussions via our twitter and facebook pages. (Don't worry about spam, because we hate it as much as you do!)Follow on TwitterConnect on facebookSubscribe to the RSS FeedFree signup to get a free ebook on How to Save Money on Everything! Constantly expanding, it will be the biggest money saving ebook available, and it's FREE! →(I hate spam and promise that your information will never be shared.) Popular. Best Online Savings AccountsVerizon Fios Promotion Code, Promo CodesAT&T Promotional Code, Coupon CodeRecent Posts. How to Rock Your Financial Goals in 2022 How to Teach Kids to Grocery Shop Frugally Stop Wasting Time with These Money-Saving Habits How to Have Yourself a Minimalist Little Christmas 5 Money Moves to Make Before Year EndReviews. Ting ReviewPersonal Capital Review Information presented on Personal Finance Blog by MoneyNing is intended for informational purposes only and should not be mistaken for financial advice. While all attempts are made to present accurate information, it may not be appropriate for your specific circumstances. Any offers and rates shown on this site can change without notice and may contain information that is no longer valid. For further validation, always visit the official site for the most up-to-date information. This site may receive compensation from companies to offer an opinion about a product or service. We strive to provide honest opinions and findings, but the information is based on individual circumstances and your specific experiences may vary. We also treat your privacy seriously. Please take some time to understand our full privacy policies and disclaimers by clicking here.Copyright © 2007-2022 MoneyNing Share this ArticleLike this article? Email it to a friend! Friend's Email Address Your Name Your Email Address Comments Send EmailEmail sent!
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                            [body] => Skip to Content Warning! It seems that JavaScript is not working in your browser. It could be because it is not supported, or that JavaScript is intentionally disabled. Some of the features on CT.gov will not function properly with out javascript enabled. × Settings Menu Language High Contrast High Contrast Mode On or Off switch On Off Font Size regular font size large font size Disclaimer COVID-19: Get the latest updates on COVID-19 at ct.gov/coronavirus.  Find a vaccination site near you at ct.gov/covidvaccine. Connecticut's Official State Website Search Bar for CT.gov Search Language + Settings Top Connecticut State Department of Consumer Protection . To protect the health and safety of the public and our employees, DCP has limited on-site staffing at 450 Columbus Blvd. While mail and phone calls will be processed as quickly as possible, we recommend using our online services, or sending an email to the appropriate division/person instead. We apologize for any inconvenience. Multi-Level Marketing. The Department of Consumer Protection regulates Multi-Level Marketing under CGS Chapter 741, Contingent Transactions. Multilevel marketing plans are ways to sell goods or services through distributors. Typically, these plans promise that if you sign up as a distributor, you’ll get commissions not only from the sales you make, but also from the sales of the people you recruit to become distributors. These recruits sometimes are called your “downline.” See also "Business Opportunities." Pyramid Schemes are Illegal Not all "multilevel marketing opportunities" are legitimate. Some are pyramid schemes, which are illegal under state and federal law. If the plan's way of making money is based not on selling a product or a service, but on recruiting new members into the plan in order to get paid, it is an illegal pyramid. In these schemes, each participant puts up a set amount of money to "buy in," such as $1000. The potential for large sums of money is promised, and persons who get into the scheme early do make money. However, later participants get less and less because it becomes harder to find people willing to pay in $1000.  Any offer that requires upfront money with promises of big profits that is dependent on recruiting others should be considered suspect. Beyond causing financial loss, these schemes put every participant in the position of scamming the people they recruit, thus commiting fraud themselves. More information from the Federal Trade Commission.
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