120 Billion Reasons Why MLM is For Real

August 11, 2009 by Len Estrada  
Filed under Life, Recent Posts

DSAIn 2006, according to the Direct Sellers Association, global sales from MLM  (multi-level marketing) companies were at $109 billion, in 2007 it shot up to $114 billion. It’s a good estimation to assume that the total annual sales from MLM will more than exceed $120 billion in 2009.

We’ve all heard the sales pitches, we’ve all been pulled aside by a co-worker, friend, or family member trying to recruit us into their “Next-Gen” company. To be honest, it can be annoying. This is why there is such a stigma attached to the term MLM.

Over the years I’ve found that most people who are not familiar with direct selling, or the home business industry fail to realize that MLM is a legitimate way to build a healthy income. It’s ridiculous how many people believe MLM to be synonymous with ”scam.” This misnomer is so rampant, that even these Independent Business Owners, or IBO’s, within the MLM industry are frightened to even use the term, MLM,  themselves!

When an IBO approaches you, the pitch always comes with a company description, seminar invite, an income claim, a business card… I’ve been on both ends of the pitch, I know how it works. But here’s the thing; these IBO’s are working diligently to build their organization which, in the not-so-distant future, will bring them great returns, even wealth!

MLM Robbers

These IBO’s are trained to move on past you when you reject their offer or invitation. They see the big picture, they don’t want people like you in their organization. If you don’t see the value of the product or the earning potential of the company’s compensation plan, then they don’t want you to waste their time any more than you think they have wasted yours.

In 2007, there were an estimated 62 million IBO’s worldwide. That is twice as many IBO’s than in 1998. What is it that has attracted more than 30 million people to start their own business in the MLM industry over the last 10 years?

I’ll tell you why… MLM is the fastest, most efficient, and legal marketing strategy in the world for becoming wealthy. If you’re interested in living a lifestyle that less than 10% of the U.S. is enjoying today, then maybe next time you should listen to that  co-worker, friend, or family member. See what they have to offer. An easy way to break the sales pitch and to assert your position is to say something like, “Look, I want to hear what your company has to offer, but don’t try to sell me. If I feel your pressure, I’m gonna bounce. Just talk to me.”

MLM Structure

The image above illustrates the basic structure of an MLM downline organization, with you being at the top. Level 1 represents the 3 first line distributors that you recruited. This is just a simple example, you can have an unlimited amout of people in each respective level. Your 3 distributors recruit 2 each which becomes your 2nd Level. Level 2 recruits Level 3, and so on.

Depending on your company, each level pays you a certain percentage of total sales for that level. Obviously, the more people you have in your downline, the higher your income. This type of structure allows for rapid growth, and higher income potential.

If you’re one of those people who are skeptic about everything, who believes that it’s impossible to make a solid income without working a 9 to 5, who laughs in the face of someone offering you a legitimate business opportunity…  have a look at the following MLM companies, then leave your thoughts below.

AmwayAmway - A global company celebrating 50 years of business. Amway offers nutrition and wellness products, cosmetics, and housewares. The Orlando Magic play their home games in Amway Arena. Not bad for an MLM.

AvonAvon – Is a global company that has been doing business for over 120 years. Annual sales are $10 billion. Avon is a publically traded company that has been endorsed by celebrities like Reese Witherspoon and Patrick Dempsey.

ACNACN – A global company founded in 1993. They are the worlds largest direct seller of telecommunication services. ACN made network marketing history when they received the personal endorsement of Donald Trump.

AmeriplanAmeriPlan – The nation’s premier Discount Medical Plan Organization, saving its members hundreds of millions of dollars in supplemental healthcare benefits since 1992. Mark Jarvis was AmeriPlan’s top IBO making over $1 million a year in RESIDUAL income. This means he could have taken a 365 day vacation, without working his business, and he still would have made $1 million!

KirbyKirby -  Another global company doing business for over 90 years. We all know Kirby vaccuums, and if you’ve ever owned one, you know that they are the real deal.

Mary Kay CosmeticsMary Kay Cosmetics – Celebrating 45 years of business in over 35 markets worldwide. Mary Kay has a sales force of almost 2 million consultants

MonaVieMonaVie – A global brand introduced in 2005 that offers premium quality nutritional products. I see this brand plastered on many local vehicles around the city.

Pampered ChefPampered Chef – Founded in 1980 as the premier direct seller of essential kitchen tools and part of the Berkshire Hathaway family of businesses. We personally own Pampered Chef products and they are top notch.

PartyLitePartyLite – A global company specializing in all things candles. From extravagant to simple, if you’re into candles this is a must. PartyLite boasts a salesforce of over 50,000 consultants.

Passion PartiesPassion Parties – For more than a decade, Passion Parties has been enhancing the sexual relationships of their clients with sensual products designed to promote intimacy and communication between couples. They are recognized as the premier sensual products, party plan company in North America. Passion Consultants are trained by experts like Jack Canfield, Sue Johanson, Dr. Jennifer Berman, and Brian Biro to name a few. Passion Parties has also been featured in Oprah Magazine, The hit TV show The Doctors, the Today Show, Anderson Cooper 360, Time Magazine, and Primetime LIVE.

ScentsyScentsy – Founded in 2004 to bring value to the world by “providing an industry leading, family-friendly business opportunity selling creative, artistic, high-quality wickless and flameless candle products that warm the heart, enliven the senses, and inspire the soul.” Kinda cheesy, but I didn’t write it.

TupperwareTupperware – We’ve all heard of Tupperware. This company has been in business for over 60 years. Chances are you have a product from this company in your house, at least one that was inspired by Tupperware.

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Steven
Quinn Wiltshire

Comments

3 Responses to “120 Billion Reasons Why MLM is For Real”
  1. Terence says:

    Awesome post Len. I too have been on both ends of the pitch. I reckon you’re absolutely right though. I for 1, feel the product should trump the opportunity. Other wise it ‘feels’ like a pyramid scheme.

  2. Len Estrada says:

    Exactly… It’s the product that drives the economy. From a customers point of view, is it something that I need right now?

    From a sellers point of view it should be, is this a product that I believe can help others fill a need?

    If you can align these two questions, you’ve found a winning combo.

  3. MLM is just a marketing channel no different than any other company. A company has a VP of Marketing and Sales, MLM has Directors. The VP has a manager, the MLM has Senior Consultants, the Manager has Staff, MLM has Lead Consultants. As you can see, there is not much different, plus MLM you are your own boss.

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