If you’re looking for the best MLM to join right now, this article might give you a better idea.
First, here are 10 of the top MLM companies in the world based on annual revenue.
- Avon Products
- Natura Cosmeticos
- Mary Kay
- Nu Skin
I could also give you the newest, best MLM businesses that will allow your downline to explode, but that wouldn’t be a good idea for any distributor.
If I were to pitch any of the 10 MLM companies that I’ve listed or the one that I belong to, that would be an extreme disservice for you.
If you’re reading this article, I really don’t want you to join my team.
You’ll soon find out “why” as I go over the evaluation criteria.
Just to let you know ahead of time, there is no one size fits all company. If that’s what you were looking for, then look for a different website as I don’t want to sell you a bunch of B.S.
Table of Contents
- 1 What Is the Actual Product That You’re Offering?
- 2 What Type of Marketing System Is Used?
- 3 The Online Marketing Approach
- 4 How Much Money Can You Make?
- 5 How Long Will It Take to Reach Your Income Goals
- 6 How Stable Is The Company?
- 7 In Conclusion
What Is the Actual Product That You’re Offering?
What audience would you like to serve?
What expertise do you have?
Utilize your experiences and talents!
- If you’re into health, fitness, wellness, beauty, or helping people with weight loss, you can offer dietary supplements, skincare products, hair care products, essential oils, fitness programs, or other nutritional products.
- If you’re into teach others about money, then a financial services MLM might be cool for you
- Into home and garden products? There are network marketing businesses that sell pots, pans, knifes, and other kitchen products.
- If you’re into fashion, there are fashion / clothing MLM companies
- If you’re into life coaching, there are life coaching MLM’s
There are so many options out there. I would highly suggest that you pick a company that specializes in products or services that you really want to promote.
Joining a company for the sole purpose of making money is a wide goal. Wide goals aren’t a good idea. People like to find coaches or advisors that are more specialized. Hint, hint: that’s one of the easiest and fastest ways to build your MLM business.
What Type of Marketing System Is Used?
Believe it or not, there are different types of network marketing systems, as there are different ways to network with people and allow them to know, like, and trust you enough to become a customer of your product, service, or your business opportunity. These systems teach people MLM-focused marketing skills and direct sales skills to help boost your success rate in the business.
The Warm Market Approach
You’ve might have created your top 25, 100, or 250 prospects that consists of your friends and family members. Using this approach, you’ll be contacting all of them and encourage them to attend house parties, hotel workshops, business opportunity meetings at your company, a 1-on-1 or team-based sales meeting, or a 3-way call. Some of these meetings will use the bubble approach mentioned below.
The Multi-Level Marketing Bubble Approach
Back in the early 1990’s, a friend of the family came over to my house. My parents knew him and he just called last minute and asked if he could stop by. He was just driving through town from SoCal.
He rang the door bell, did some small talk, then asked to be excused because he had to grab some equipment from his car.
He was all dressed up in a suit and tie. Obviously he was dressed to impress.
He setup his easel and dry erase board.
From there, he started to draw out his bubbles that formed something like a pyramid where 1 person would bring in another person, and that person would bring in 2 people, how the team would explode if each distributor just did that. Pretty much a multi-level business model. If you’ve been in this line of business for sometime, I’m sure you’ve seen this approach for selling the business opportunity.
From this type of presentation, the critics might start to think that the business that you’re presenting is an illegal pyramid scheme. You’ll have to do your own due diligence to make sure that you’re in a reputable MLM company. That’s one of the risks of choosing a very new business and not knowing how things will turn out in the coming years or months.
The FOMO Approach
Have you ever seen the FOMO marketing strategy that’s used by MLMers?
“You’re just about to join a ground-floor opportunity.”
“When an MLM business launches, you’ll be able to get spillover and we’ll start putting people below you. Join now so that we can start building your leg.”
“Join now while we’re launching and become a company founder!”
In order to succeed in this business and create stable, long-term passive income, you have to work your butt off. If you fall for the FOMO approach and you reel in people that have the same idea, realize that FOMO is short-term. Telling people that their starting off a new, ground-floor opportunity 10 years later isn’t cool. That’s just one of the tactics used by those that want to play the hyped-up MLM game, something that I don’t want to be part of.
Who wants to build a downline filled with lazy butts that expect you to do all the work for them?
“You’re just one event away from an explosion.”
I’ve gone to many MLM conferences and huge events through my lifetime. They’ve been extremely motivational and I did hustle more after attending. Just seeing all the people on stage created a paradigm shift, a new vision.
Later down the road, I asked myself, what if I could build up that momentum on my own?
Is it possible?
It sure is.
One breakthrough experience that I had was after reading my first Tony Robbins book. In fact, I got my first copy of Unlimited Power from my first MLM upline (that was before the internet).
Cool beans and I highly recommend reading all of Tony’s books.
The Shiny Object Syndrome
Most of the MLM companies that I’ve seen are shiny objects. There’s going to be something cool in one that may not exist in yours. Just realize that life is filled with many imperfections. So don’t expect your MLM company to be perfect. You can find an imperfection in every company.
Also, jumping from one company to the next while in pursuit of your next shiny object won’t help. With that being said, I’ve created mental justifications to leave MLM companies because of the main reasons people even leave jobs – they just don’t like their boss (in this case, upline).
I get it. That’s a decision that you’ll have to make. I just felt like stress and frustrations were increasing too much. That’s pretty unhealthy.
That’s a different topic.
The main point that I wanted to drive with shiny objects is that if you keep chasing them, you’ll severely decrease your chances at becoming successful in any business.
The Online Marketing Approach
Many of the modern MLM companies allow distributors to use internet marketing for their businesses. This includes blogging, vlogging, podcasting ore more.
When I first started with this approach, I created review sites that covered various MLM company rankings.
I personally like this approach and it can be used to easily tap into the cold marketing instead of only focusing on your friends, family, and their referrals.
It’s another type of skill set, but I do find it easier that doing in-person direct sales.
(and there are many more ways to promote an MLM company)
How Much Money Can You Make?
Hmmm, I just want an extra $500 a month.
Most MLM’s can help you make an extra $500, $1000, or even $10,000 plus.
However, you need to figure out what it takes to make that much money. Check out the company compensation plan. That will give you a better idea.
Besides your commission rates and override amounts, realize that not all compensation plans work the same. There are different compensation structures too like binary MLM’s, matrix-based, uni-level, stair-steps, breakaways, and hybrids of all of these. They all have advantages and disadvantages. I’ll even go as far as saying that not one is the best. For serious long-term network marketing builders, you can create an excellent income if you’re able to reach your goals with the company (with the right amount of money and in a reasonable amount of time).
There’s a different level of effort and time to reach your goals depending on the profit margins. I’ll discuss that more in the next section.
The Direct Sales Route
To give you a little quickie, consider the following:
- Company 1 has an offer that makes $500 commission per a sale. If you want to make $5000, then you just need to sell 10 products.
- Company 2 has an offer that makes $3 commission per a sale. If you want to make $500, then that requires at least 167 sales. If you want to make $5000, then that would require 1667 products to be sold.
That’s over simplifying the commission breakdown and how much it takes to reach your goals. It doesn’t factor in the company track record, returns, sales, or other factors that can impact your bottom line.
If you don’t want to bring in people into your business opportunity and just focus on direct sales, keep in mind that you can probably join a direct sales company that purely does that and make more commission. In this case, you’ll be working with a bunch of sales agents and the vibe is different as well. That’s not bad news, it just depends on what you gravitate towards and if you just want to focus on selling products.
The Multi-Level Approach: Building Residual Income By Recruiting Others
With this approach, you’re not just selling products, you’re selling the dream.
I still remember when I did my first presentation and I sold it hard! My audience consisted of work at home moms and some employees from a nearby company.
It wasn’t just me, I had my upline there, and he shared his personal success story.
Earlier, I mentioned various compensation models. Most of the MLM companies that I’ve been part of have used a matrix or hybrid approach which combines at least 2 different compensation models. The hybrid helps overcome some deficiencies of a single compensation model and to provide more of an incentive for people to join.
For the sake of simplicity, I’ll discuss how you can make passive income through the matrix compensation model.
The matrix allows a fixed width, that can be 3, 4, 5, 6 or even higher. The beauty of having a small fix width is something called spill over. That means that if I recruit 5 people, 3 people will be on my 1st level and the next 2 will be on my 2nd tier. That also means that my 1st tier have downline under them without doing any work.
The geometric growth with passive income makes this highly attractive.
Using this model, there’s typically fixed depth. For example, with a 5×7 matrix, each person can have 5 people on the 1st tier and then downline can spillover up to 7 levels.
Level 1: 5 distributors
Level 2: 25 distributors
Level 3: 125 distributors
Level 4: 625 distributors
Level 5: 3,125 distributors
Level 6: 15,625 distributors
Level 7: 78,125 distributors
This matrix has a total downline of 97,655.
It’s not just about the number of people. The distributors still need to make sales. Those sales can be to others or even from personal consumption.
Most MLM companies will have different commission percentages for each level.
For illustrative purposes, let’s say that the average profit margin per distributor for items sold is $25 per a month and use a hypothetical commission of 1% across the whole 5×7 matrix. These are pretty conservative numbers.
$25 x 97,655 x 0.01 = $24,413.75 per month in residual income and that doesn’t include commissions from personal sales.
Again, this is just a hypothetical example just to provide an idea of how people make residual income from team overrides.
How Long Will It Take to Reach Your Income Goals
I joined an extremely affordable multi-level marketing company roughly a decade ago. What was really attractive at first was the cost. It was roughly 20 bucks a month. That’s to receive the benefits of the product and the ability to earn commissions from my efforts.
The issue is that it was similar to Company 2 in the last section. It required thousands of sales from my team to earn a decent living.
I then learned about my upline’s upline that was in the business from its earlier launch phase. Even after being a top recruiter for over 7 years, I was still making more money from my job at the time compared to her.
After doing more math, it would take me roughly 10-15 years to make a full-time income.
That length of time might be okay for some, but it wasn’t cool with me.
How Stable Is The Company?
You can always do your own analysis or listen to your upline, but that’s not the full truth. I’ve seen huge companies taken down because of a small accident that had a tremendous impact (that led to closing down the company).
Just because the company has a huge, smart legal team, it doesn’t mean that they can eliminate all risks. They’re there to mitigate risks and sometimes the risks are created by things that are very difficult to control. If anything, check out the company’s annual sales and recent news.
Also keep in mind that there are new companies that can be stable too.
The big advice that I have here is to do your own due diligence and understand that all business ventures have risks.
Thanks for checking out this article! I’m hoping that you now understand why the best MLM companies to join isn’t what you should be looking for.
The best network marketing company to join will depend on the “best fit” for your situation…not your friend’s, family, or downlines situation.
Instead, look for a company that fits you’re interest, has a rock solid plan, and can exist for the long-term.