4 Things To Know About Multi-Level Marketing
Multi-level marketing (MLM) is meant for persons who have the innate skills in marketing to a wide range of people, whether part of a social network or not. As a side-gig, MLM is one of the quickest ways to earn extra cash,
This moneymaking scheme has, indeed, resulted in success stories, but it has accompanying risks as well. That’s why the key to avoiding investment loss is to choose the right and legitimate MLM company that boasts of a best-selling product range.
So, how do you make sure that your hard-earned cash grows exponentially and doesn’t dissolve as fast as you can say, “MLM”? Learn the basics of this type of business in this article.
1. What Is MLM And How Does It Work?
One of the best ways to succeed at MLM is to think of your fee as an investment. You can even do it while engaging in non-traditional ways of investing to diversify for your portfolio.
In MLM, there’s typically very few salaried workers, and most of the sales and marketing manpower are non-salaried individuals who derive their earning mainly from getting people to become members and sell the company’s products.
2. The Top MLM Companies In The World
Most of the top MLM companies founded in the USA have been in existence for decades. Below are the top network marketing companies, as ranked based on recorded revenues:
- Amway: This company earned $8.4 billion as of 2019 selling a wide range of products that include home care, health and cosmetic, as well as personal and skin care items. The company was founded in Michigan in 1959.
- Herbalife: Earning $4.89 billion as of 2018, this company is known all over the world for its weight-loss products and other nutritional supplements. It was formed in 1980 with over 4 million independent distributors and members.
- Avon: This company has been repackaged as a direct selling company, but it still employs some of the basic MLM principles. Of the lot, this company has been around the longest, having been founded in the United States in 1886. Like Amway, this business venture also sells a wide range of products such as cosmetics, personal care, household items, and beauty products, earning a total of $4.7 billion as of 2019.
- May Kay: Another company that’s geared toward making women (and men) feel good about themselves, this MLM company focuses on skin care and beauty products. As of 2020, the enterprise has reportedly raked in a total of $ 3 billion from its transactions worldwide.
- Tupperware: This network marketing company is a household name and for good reason. Tupperware sells home product lines that help families store, prepare, and serve food anywhere and at any time. Its first products were sold to the pubic in 1948, and the company has reportedly earned $2.22 billion as of 2017.
If you want to learn more about the companies that made it to the top MLM list, check out sites like https://www.scamrisk.com/top-mlm-companies/.
3. How Can You Make Money With Multi-Level Marketing?
This income-generating scheme will start providing you with revenue streams once you purchase a set of physical or digital products as indicated in the membership package. While you’re earning once you get any of the products sold, a huge chunk of your earnings will come from inviting other persons to become members, who’ll later be called your “downline”.
Once you get members, you’ll earn a commission fee from each product they sell, and you’ll get a certain percentage from the fresh members recruited by your downline and so on. These commission fees are structured and will depend on the MLM company you’re working with.
4. Is MLM legal?
Multi-level marketing, which is also known as network marketing, is legal, in a broader sense. But, while this marketing model is not illegal, it’s highly regulated in many countries, including the United States. The contention is that most MLM companies operate with high complexity. Some business models are deliberately vague that it becomes hard to prove whether the enterprise relies on the earnings coming from the products being marketed or the salespersons’ abilities to recruit more people under their wing.
There are networking companies that have stood the best of times and are existing globally, as you found in the earlier section of this article. These businesses are known for their high-quality product offers, and there’s little effort on the part of the marketers to sell their products.
On the contrary, those who oppose the business model claim that relying on long-term and steady income streams from MLM is statistically impossible.
The Bottom Line
Before you spend your hard-earned cash in any of the MLM business models, make sure that the company is legitimate. Choose the company that offers high quality and lucrative products, and one that has a reputable record in the market. A word of caution: If the offer sounds too good to be true, it probably is.