Top MLM Success Strategies for 2020
MLM is an industry that you either hate or love (or you’re just learning about it).
If you hate it, I can’t help you. I would suggest backing up a bit and seeing if your hatred is because somebody misrepresented something or if you really don’t see the potential.
But if you’re like me, I had a light bulb go off the first time I saw circles drawn on a whiteboard.
Network Marketing and MLM is kinda like looking at one of those 3D images that were popular a few years back.
You either see it…. or you don’t.
Anyway, the precise moment I saw a presentation with circles, I saw it. I mean, I really saw it!
At that moment I could see the leverage and understand how it could dramatically change the course of somebody’s financial life and legacy.
I stayed up all night thinking about that leverage.
At the time, it never dawned on me that some people just can’t see it.
So if you’re here, I assume you can see it, but….
Maybe you need some help bringing your vision into reality.
That’s okay. That’s what this entire site is about. So get comfortable and let’s take a look at some strategies that can make you successful in your MLM.
There’s tons of information on this page that will help you build your network marketing business, but we’ve also put a video together (below) because some concepts are easier to see than to read about.
Proven MLM Success Ideas
Have you ever been invited to join a multi-level marketing presentation or home party? What was your reaction?
Chances are, you were nervous because of the myths and misconceptions that surround this kind of business. That’s going to be a normal barrier that all people have and you’ll need to learn to navigate it and overcome it.
Part of the negative publicity stems from the perceived low MLM success rate. However, like any other business, multi-level marketing is destined to fail or succeed based on the work done and the strategy applied to build it.
Most small businesses in any industry fail or barely survive. You’ll need to see your mlm as a serious business if you want to succeed on a serious level.
Unfortunately, most people do not look at MLM as a business like any other.
This is where those who fail go wrong because an MLM venture can succeed beyond your wildest expectations if you focus on it and treat it as a regular business.
Pretend you spent $100,000 buying into a franchise and it was the last of your money. If more people went into business with that mindset, more people would find success.
Applying these ideas will also boost your recruiting efforts in your direct selling business or company.
#1) Understand and Love the MLM Business Model
Many people aspiring to venture into MLM can hardly tell the difference between a pyramid scheme and a genuine MLM.
To remain on the safe side, do proper due diligence and read up on the industry as a whole.
The fact is, while you can excel in MLM, statistics show that out of 100 MLM representatives, only about 1% actually achieve the highest ranks of MLM success.
However, these results can’t be blamed on the MLM business model.
How many actors/actresses fail to achieve their dream?
How many would be sports players never be?
How many kids dream of being president?
How many musicians never make it rock stardom?
How many corporate ladder climbers get stuck on the ladder or fall off?
Life happens, not everyone succeeds.
It isn’t a flaw in the system, it happens in every industry.
If you have an entitlement mentality, network marketing is not for you.
What I love about the network marketing industry though, is that the leaders who climb to the top show everyone what is possible. Not only that, they are predisposed to lend a hand, teach, and help others get there as well.
There is no other industry on planet earth (other than MLM) where a person can only be successful by helping others find success. There’s nothing else like it.
Michael Jackson, Elvis, and Johnny Cash didn’t need to help anybody else be successful on their way to the top.
I say aaalllll that…. to say this.
Most people who complain about the mlm business model either don’t understand it, don’t understand human nature, or just want something to complain about.
If you pause, suspend your preconceived judgement for a moment, and look at it on it’s own merits; you’ll see it’s an incredible business model with embedded support and personal development.
It isn’t great just for the financial freedom it can bring, but more importantly for the time freedom mlm can provide so you can actually enjoy your life… as well as for the person you’ll become in the process.
#2) Pick the Right Company
A lot of people fail to achieve MLM success because they are too obsessed with speed promised through MLM success stories.
Yes, fast success is possible. But jumping from company to company when it doesn’t go fast isn’t going to help if you’re already in a solid company.
If you’re not going fast, it might not be the company or products. It might be you.
I know that stings a little, but you have to acknowledge it or you’ll stay on the same cycle. So slow down a moment. Take some time to pick a good solid company with great products and then stick with it.
These are the things I recommend looking for in an MLM company:
- Good Products
- Good Leadership (Corporate and Upline)
- Good Compensation Plan
#3) Practice Ethical Business Practices
One of the reasons why direct selling earns a bad name is that most reps employ more hype than necessary.
This causes people to believe that MLM companies are supportive of this behavior when in actuality, most are not. Excitement is good. False hype is bad.
Legit MLM companies encourage honesty when dealing with customers and recruits.
If you understand and love your product, then you should have sufficient enthusiasm to market it honestly.
Don’t be tempted to use exaggerations or false claims to achieve your goals.
In the long run, it doesn’t work anyway because your recruits and customers won’t want to be associated with you if you’re making false statements.
Secondly, they’ll quit as soon as they figure out it’s not as easy as you led them to believe.
I think it was Eric Worre or one of his podcast guests that said it best when they said “The truth is good enough.”
But it aint easy.
It will take work.
It will take time.
It will take money.
It will require grit.
It will require determination.
You will need to learn more, grow more, and stretch more.
But in the end, the leverage of the mlm business model can provide financial freedom, security, and TIME freedom like no other industry.
#4) Do NOT Nag Family and Friends
A lot of people get it completely wrong when they turn family, friends, and workmates into their prime business target.
It’s not wrong to give them a chance to see what you’re offering but if they say no, have the courtesy to respect that boundary.
Pestering easily turns you into a nuisance and will put them on the defensive. If you really want them in your business, then go show them success.
During training sessions, most companies encourage you to have a list of at least 100 prospects.
However, research shows that many successful multi-level marketers only recruit a handful of people from their original list. Often, family and friends start trooping in after seeing or reading about your MLM success.
Success in this business comes by you focusing on the people who are looking for the product you are offering or looking for an opportunity. MLM success doesn’t come from converting people from “No” to “Yes”.
It comes from sorting through lots of people and finding those who are already a “yes”.
Amateurs convince, professionals sort.Amateurs convince... professionals sort. Click To Tweet
#5) Single out your target market.
One great sin that multi-level marketers commit is blindly going everyone with a pulse.
The thinking is, if they’re breathing… they’re a prospect.
The more shy and timid you are, the more apt you are to rotate among friends and family, only mustering the courage to talk to strangers once in a while. Unfortunately, this also increases the change you’ll become annoying to your friends and family.
Perhaps you need just to imagine that you are in a foreign land where nobody knows you and carve out your target market from total strangers.
As earlier stated, friends and relatives will follow your MLM success, but you have to have some success first.
#6) Cast a Wide Net
Most MLM sponsors advocate for the recruitment of new business builders.
But do you realize that your income in a legit MLM enterprise comes from the sale of products, regardless of whether those product sales are direct to consumer or through your recruits?
In fact, usually when a customer (not a recruit) makes a purchase, you get an immediate commission rather than points added to your team commissions.
Furthermore, customers who value your products or services may opt to join your business builders’ team as a natural progression.
It’s probably easier to make $200 a month building a customer base than it is building a team. But if you want to make the big money, you’ll need to build a huge, massive team of distributors and customers.
#7) Be a Master of Marketing
Spread word about the benefits of your services by investing in a website and integrating it with all your relevant social media accounts.
This approach will yield better results if you learn how to use targeted marketing through social media.
Years ago, the “marketing” part of network marketing was largely ignored. It still is in many instances.
This was due in part to the fact that you make very little on the front end and it just wasn’t feasible in the old days to “market” without spending thousands of dollars.
Everyone wants to focus on making a list of your network and then targeting them. But large organizations are typically not built from family and friends.
Think about this site for a moment. You are here reading about how to grow your business. Some of you will decide you want to join our team and work with us.
That’s called marketing. Attraction marketing, content marketing,… whatever type of marketing you want to call it but it’s marketing.
In this day and age, with technology and social media… marketing is far more powerful, scalable, and leverage-able (if that’s a word) than relying on just your friends and family.
Master marketing and you’ll have a larger reach, regardless of who you are.
#8) Sponsor More; Recruit Less
One main key to MLM success is your ability to usher in new business builders and accrue profits from their sales.
Although some people consider this exploiting others, just ignore those people. Capitalizism revolves around sales. Those people probably don’t think one second before hopping on Facebook or Amazon.
If you don’t think those companies are out to make a sale and separate you from your money, you’re not thinking very clearly.
The truth is you reap what you sow.
If you use people, you may make a little money upfront, but you’ll never reap a harvest. Help people and you’ll have a harvest. Help lots of people and you’ll have a bountiful harvest.
For you to do better, you need to concentrate on being a leader to those who are already on your team and help them find success. The aim should be the success of those you’re bringing into the business. If you do that, your success will take care of itself.
That’s the beauty of this business model. It’s just like Jim Rohn said, “Help enough other people get what they want and you can have everything you want”.
So how do you accomplish this in your MLM business?
You can do it in a variety of ways, such as:
– Conducting training sessions
– Celebrating individual successes
– Be available to your team
– Answering questions
– Giving Recognition for Progress & Achievement
– Providing support and guidance
#9) The Purpose of a Home Meeting/Party is to Book Another One
Multi-level marketing is a person to person business.
Although many people loathe this aspect especially in this digital era, the fact remains that it’s the personal touch that sells the business and products as well as retaining the customers and business builders.
Even if you’re building online, you’ll need to connect with your team and prospects some way or another. Otherwise, you’ll lose a lot and have retention issues.
That being said, a home meeting or home party has a specific purpose.
To make sales? Yes!
More importantly though, it’s to book another home meeting. The first time I was in the industry, home meetings was what we did. But it took me a loooong time to figure out that you book a meeting in order to book another meeting.
It works really well in a binary compensation plan, since you only have to build two teams.
Here’s how it works:
Let’s suppose you just signed on a new rep who wants to build the business. You help them “launch” their business by having a home party. They invite as many people as possible.
You’re goal should be to help them enroll at least 1 person (hopefully more) and book a party to “launch” the new person’s business. That way you are “tapping” into the network of other people. Each week you are presenting to new people who you would not have had an opportunity to do before.
I have found that this works best when there is excitement.
This is where you want to use excitement (don’t over-hype) and try to go really fast. You’re goal is to over-deliver on how fast you can grow their organization (which of course, is also yours).
If somebody wants to do a meeting the next day- go for it. If you book back to back meetings and/or one on one presentations, it stops people from thinking too much and self-talking their way to quitting.
Plus, it gets them some initial success really quickly.
#10) The Fortune is in the Follow Up
This is a mantra that is spouted all over our industry. It’s true.. to a degree.
However, Kim Klaver said it best when she said something like “The fortune is in the follow up… IF you’re following up with the right people”.
If there’s no interest and no desire, you can waste time following up with the wrong people, time that could be spent prospecting or marketing to the right people.
You know what is good follow up?
Re-targeting on social media and/or email campaigns. Email requires them to be on your list, re-targeting does not.
Re-targeting is when you send ads specifically to people who have visited your website.
You know they’re interested enough that they either stumbled on your site from a google search or they landed there from a previous marketing campaign. So there is something that resonates with them.
Regardless, they were on your site consuming content at some point. So re-target the heck out of them if you have the funds, you can always make more money. But you can never create more time.
If you’re prospecting large numbers, the follow up needed would quickly require more time than the initial prospecting.
You know why?…
Because lots of people will say no.
Yes, really- I’m not joking!
If you’re new to network marketing your upline may not have told you, but I’m an honest guy. The truth is, more people will say “no” than “yes”.
You can’t possibly follow up with all of them consistently unless you’re using something leveraged like re-targeting or email.
In addition, if we’re talking about friends and family then let’s get really honest and real for a moment.
Do you really want to be that person everyone is avoiding because you pester and annoy them all the time. If they are somebody you’d really enjoy working with then yes, you need to follow up consistently.
But do it with tact and professionalism AND balance. Maybe once per six months or every 3 months at the most. But only if you are continuously building the relationship in between.
These are tried and tested network marketing tips for guaranteed success, especially if you are just starting off.
Don’t Miss These Related Articles:
- How to Succeed in Network Marketing (7 SECRET Strategies)
- The Evolution Network Marketing (It aint what it used to be!)
MLM commission structures
Okay, let’s talk a bit about commissions and compensation structures in the mlm industry.
Many newer multi-level marketing organizations leverage the binary plan in their organizational structure.
Here, each new member is inducted into a tree-like structure where they have a right and left team, referred to as a leg.
Binary plans were introduced by multi-level organizations in the late 1980’s and quickly become one of the four most utilized organizational structures by the year 2000.
Each “leg” or team of the binary plan has the
- inside ( profit ) leg
- Outside or overflow leg (sometimes referred to as a power leg).
Under the power leg, in-coming distributors are placed under the person who recruited them. It could be you or anybody in your upline (that’s why it’s called an overflow leg).
The profit leg (or inside leg) consists of distributors or members who are directly enrolled or sponsored by you or people you have personally enrolled.
Additionally, under the binary plan, each member is responsible for bringing in only two others to join their tree. This can potentially trigger a quick expansion with a large network of members.
However, you can still sponsor as many people as you want by placing them underneath other people in the tree.
This allows everyone to benefit by accruing points for products sold, regardless of who enrolled them. It is a process called spillover and it provides incredible leverage.
This is especially true in a binary which calculates points for infinity. That means, you can build your team in depth as deep as you want (go down 2,500 levels and you still get the points).
There is no breakage in a binary (i.e. people break away after reaching certain ranks or certain depths such as 7 levels deep).
That’s why I promote a binary. It’s the best chance for the little guy to create exceptional income.
Here’s an old video I made for a different post, but it still explains the binary fairly well.
How is Compensation Calculated?
Companies typically payout on the weaker leg or the leg with the lowest volume.
Before you get your panties in a wad, take some time to think about it.
Paying out on the weaker leg does two important things:
- It makes it mathematically possibly to pay for infinity without running out of money.
- It ensures that only producers get paid.
0% of zero is zero. If you produce nothing, you get paid nothing. It’s the way it should be and it’s also the reason that I chuckle when people refer to the system as a pyramid.
The work world is a pyramid. People at the top get paid the most and you’ll never make more than them regardless of how hard you work.
Network marketing doesn’t work that way. I’ve said it before, I once had somebody I sponsored pass me up in rank and income. I’ll never let that happen again (I hope) because I’m competitive and I like to win.
But it’s possible.
The other reason a job is more like a pyramid is because the people on the bottom and middle still get paid, even if they don’t pull their weight.
Have you ever worked at a place where people didn’t pull their weight? I know I have but guess what, they still got paid as long as they were able to look like they were producing.
So you get paid on execution. But you get paid very, very well if you execute well.
MLM or Pyramid/Ponzi Scheme- What’s the Difference?
At a glance, it’s not always easy to tell the difference between a pyramid (Ponzi) scheme and a legitimate MLM marketing company.
This is because both of them are premised on a model of several layers of distributors and recruits. Harsh MLM critics claim that all mlm’s, including those which are legally legitimate, are pyramid schemes in their various forms.
It’s interesting to me that the real estate industry, insurance industry, franchising, and affiliate marketing don’t deal with the same scrutiny from the FTC.
I imagine it’s because they are more organized (right now) and have poured some money into lobbying.
Hopefully that will change in the near future. Too many lives and businesses have been been affected and disrupted by companies being bullied by the FTC in this industry, most recently, Advocare.Too many lives and businesses have been been affected and disrupted by companies being bullied by the FTC in this industry, most recently, Advocare. Click To Tweet
*Disclaimer: The thoughts and opinions expressed in this blog post are for informational and entertainment purposes only.
The US boasts several well established multi-level firms like Mary Kay, Avon, Tupperware, Amway, and The Pampered Chef.
All these companies support a mega network of distributors and their downlines that retail all types of products from health and wellness products, to kitchenware, to dietary supplements, and beauty products.
Their salespeople work from homes and they are officially known as Independent Business Owners, distributors, or something similar.
The lingering question is why mlm’s are so often charged with being pyramid schemes. The biggest and most successful win for the network marketing industry was when the Federal Trade Commission (FTC), in a 1979 ruling declared Amway, not a pyramid scheme.
This was a huge win for Amway and a huge win for the industry.
The ruling opened room for many other MLM’s to adopt Amway’s business model.
- A legit MLM does not pay distributors for the mere effort of recruiting new salespeople.
- You only make money by either managing a team or selling directly to consumers.
- A manager gets a certain percentage of their recruit’s sales.
- Salespeople should not be compelled to buy starter kits or fulfill a minimum order value to remain a member.
- A pyramid scheme focuses on recruiting more salespeople while a legit MLM focuses more on selling products.
Here are some key differences between an MLM and a pyramid scheme
- Pyramid schemes compensate you for simply recruiting people, regardless of products sold and this cash may be paid as a bonus for recruiting someone.
- Pyramid schemes typically charge very high joining fees. Usually a product is given, but in a pyramid scheme, the cost to get the product is nowhere near the value of the product because most the money is piped back into the “scheme”.
- The products that are sold by a legit MLM have real value, and they are competitive in price. They should also be products of reputable brands and their manufactures must not be embroiled in lawsuits.
One great way to avoid a pyramid is to stop seeking the quick and easy buck. If it sounds too good to be true… it probably is.
Another way is to just go with an already established and reputable company.
Below is a list of the top 100 mlm companies to choose from based on revenue.
Top 100 network marketing companies in the world
As the cost of living continues to skyrocket in many countries, more people are taking up Network Marketing as a side hustle to boost their revenue.
Those who have excelled have even quit their cooperate jobs to sell the products and build teams on a full-time basis.
Statistics and data shows that Amway has been this industry leader for a while. If nothing changes, the company will remain at the helm as the highest producing revenue company.
This year it still emerged on top on the list of 100 best performing Network Marketing companies with revenue of $8.60 Billion.
However, the biggest doesn’t necessarily mean the best opportunity for the distributor.
What is the best MLM Company?
Here a list of the top 100 MLM companies right now.
So have a look at the list but being the biggest and being the best (opportunity) are two different things.
So if you’re looking for the best mlm to join, here’s what we feel is the best opportunity and more importantly, our reasons why we feel so strongly about it.
|1||Amway||$ 8.60 Billion|
|2||Avon Products Inc.||$ 5.70 Billion|
|3||Herbalife||$ 4.40 Billion|
|6||Mary Kay||$3.25 Billion|
|9||Nu Skin||2.28 Billion|
|10||Tupperware||$ 2.26 Billion|
|13||Oriflame Cosmetics||$1.537 Billion|
|14||SUN HOPE||$1.536 Billion|
|15||Young Living||$ 1.52 Billion|
|16||Rodan + Fields||$1.50Billion|
|22||DXN Marketing Sdn Bhd||$1.10Billion|
|23||USANA Health Sciences||$1.05Billion|
|32||Juice Plus||$730M million|
|33||Team National||$719M million|
|43||AdvoCare (Update: Advocare is no longer MLM)||$472Million|
|54||LG Household & Healthcare||$292Million|
|55||Family Heritage Life||$284Milllion|
|56||OPTAVIA / Medifast, Inc.||$257Milllion|
|57||Hy Cite Enterprises, LLC||$253Milllion|
|61||Best World Int’l Ltd||$237Million|
|70||New Image Group||$200.815Million|
|75||Giffarine Skyline Unity Co.||$179.0Milllion|
|82||World Global Network||$165Million|
|95||Usborn Books & More||$107Million|
|97||Immunotec Research Ltd||$102Million|
The network marketing industry is expanding really fast and many new companies are opening doors.
Work with an established MLM company and pick a team that resonates with you and can lead you to success!
Just for Fun- Here are the 2020 Network Marketing Startups to Watch
Just be careful because the risk that they could go down in a fiery blaze after you build a team is a little higher.
Founded by Dr. Sven & Audrey Goebel and Sven & Christina Hennige, Enhanzz Global is Switzerland oriented company based in Europe. The company is tech-based with a consumer-oriented compensation plan. It features modern technology including Blockchain for more transparency.
It offers high quality and fashionable Swiss-made consumer product lines. The company’s value system and philosophy is anchored in its proven Happiness model.
Cellements thrives on a robust business model that offers pharmacy and vaccination clinics products to the average consumer.
It does this through its Direct Selling Partners. It focuses on offering pocket-friendly products that are under $0.25 per day.
Cellements positions itself to help companies reduce the spread of germs among their employees.
This is an excellent company under Ron William’s leadership. So far this is the only company that offers nutrition solutions based on an individual’s DNA. No doubt, Uforia will cause a stir in the nutrition industry.
Uforia science has been growing really fast and you may want to know why.
Well, there many reasons but perhaps their idea of labeling the supplements with the user’s name is top among the incentives.
You are motivated to take supplements daily because of seeing your name on the product.
This is a beauty and wellness company on a mission to turn around the digital sales industry.
It plans to do this by initiating the first full digital marketing integration. Univia engages product experts who aid in making beauty products using low environmental impact methods.
This is the next generation ecosystem consisting of
- MELiUS – Top education platform
- MELiUS Marketing- a great marketing platform with a complete set of tools for business owners
The MELiUS ecosystem applies the blockchain technology to create a decentralized and transparent space for business owners to interact and pursue their goals
It was founded by Peter Verdegem, an expert in the management of nutrition companies.
He is also an experienced professional in the development of science-driven nutritional products. After college, he landed a job with a leading marketing company where he managed a 100 million dollar market.
The company promotes healthy living through several major business elements. These are:
- Health-driven products
- An opportunity that empowers
- A community that engages its members
- Mission driven by purpose and heart
IQ Legacy was founded to provide an ecosystem to facilitate the empowerment and advancement of progressive thinking people around the world.
The goal is to help these people to leverage currency systems and new technologies.
They commit to helping people keep up with the most recent technological innovations for solutions in finance, wellness, and finance.
Founded by Korey Johnson, Cellis health deals in health products (go figure).
They specialize in marketing health products and leadership. The company has a comp plan that generously pays members for their hard work.
As you progress, you get entitled to bonuses in trips cars and more.
With 30 years in the industry, Johnson manufactures his products at a US facility
Today, most jurisdictions only permit direct selling under very strict requirements. This is done to curb the proliferation of pyramid schemes or fly by night operations.
We hope this article has thrilled you with winning ideas on how to start network marketing.
However, before you choose one of the network marketing companies above, read more articles written on the MLM success rate. This will not only highlight the pitfalls to avoid but also show you how to succeed in network marketing fast.
If you are currently looking for a business, consider having an exploratory strategy session with us.
Remember, If nothing changes… nothing changes.