How to Determine the Best MLM Companies
By Kerry Ng
First of all, was defined what MLM is. MLM stands for Multi Level Marketing.
Some people also referred to it as Network Marketing. Basically this method of marketing is where a manufacturer/company decides to sell their products through a network of independent distributors. These independent distributors will sell their products through personal referrals and face to face contacts. A couple of good examples would be Amway and Tupperware.
MLM sales reps are considered to be independent contractors or independent business people. They are not salaried employees of the company. They earn their income through the sales of their products and recruits of other people.
The vast majority of these independent contractors build their market mostly through their own contacts of families and friends, as well as acquaintances. The majority of these independent distributors will also try to recruit their families and friends into their business. With this particular style of marketing, some independent distributors have become very wealthy and at the same time help build the company’’s sales.
However, even some of the best MLM companies can still being painted as a scam or a pyramid scheme. Despite the fact these companies have been around for decades and have a proven track record, some people still look upon them as a “Ponzi” scheme. Ponzi schemes are illegal and are vastly different from the legitimate MLM companies.
So what is a Ponzi scheme to begin with? The term Ponzi Scheme was named Charles Ponzi. Charles Ponzi was a man who immigrated into the United States from Italy back in 1903. Although he was not the first man to use this pyramid scheme, he was the most “successful” at it. (if ripping people off be considered “successful”) Charles Ponzi became a multimillionaire by 1920 using this scheme.
A Ponzi Scheme is an investment plan that pays profits to the investors from the money they invested or monies paid by following investors, as opposed to from real profit. In a Ponzi Scheme, there is no real profit, it just relies on recruiting more and more investors, and using their funds to feed fraudulent profits back to investors who got in on the deal earlier on to keep them satisfied. Eventually, the number of potential investors dries up and the scheme collapses.
Practically all of the top MLM companies are not Ponzi schemes. They are legitimate businesses that offer a legitimate way of earning an income by selling real products at a profit. And yes, recruiting others into the organization are a part of the business.
Distributors who are involved with selling and recruiting often feel pride in their work because they know that they are selling something of value to the marketplace.
With the best MLM companies, the independent distributor makes commissions only on sales of the company’’s products and or services. While there are no sign up fees, a percentage of a “recruit’’s sales is typically part of the deal, which is fine and legal.
In alphabetical order, some of the best legitimate MLM companies are:
Ameriplan, Amsoil, Amway, Arbonne, Creative Memories, Eniva, FreeLife,Herbalife, Isagenix, Longaberger, Mary Kay, Melaleuca, Mia Bella (Scent Sations), Nuskin, Pampered Chef, Party Lite, Passion Parties, Prepaid Legal, Quixtar, Shaklee, Southern Living at Home, Stampin Up, Tastefully Simple, USANA, and Xango.
This article is not an endorsement of or rating of any of these companies, but is meant to be informative only.
About The Author
Building a MLM business can be tough. Learn how to build your MLM business completely online AND have it fund itself. For more tips and information on how to build your MLM completely online, head over to
Kerry Ng’’s Blog
