MLM Companies – 5 Categories of MLM Companies Your Need to Know

MLM companies start every day. Some make it big and the majority won’t even come off the ground. What is the difference?

mlm companies training, mlm teamFirst let’s talk about the industry for a moment. Most people join MLM companies impulsively, based on perception rather than on sound analysis. the fact is, most MLM companies that launch today have a product lines that are not even suitable for this industry. The massive failure of reps in this industry is created mostly by bad choices. I want to share real information here with you because the stakes are high.

When you become successful with an MLM company life can he heaven. What is better than a big, fat, residual check every month, right? But when you make mistake, and things don’t work, it’s a nightmare.

I made a lot of money in the very early stages of my MLM career. It still amazes me when I think about that. I was completely green. I was an unskilled marketer with a full time job. I was shy, I had no money, but I had a dream. My first year in the business  was a huge failure. I was raw and untrained. I made less than $250. Yet, I went on to built a multiple six figure income by age 29. I was fortunate to have joined the right MLM company the first time and had great mentors that thought me the ropes since the very beginning.

It was the type of  MLM company that really knew how to make average people successful.

So please don’t listen to sound bites when you are looking for an MLM opportunity. Don’t make an impulsive decision. Seek the right product, model and the facts behind the company. It’s worth it. According to the DSA (Direct Selling Association) 7.5% of MLM distributors are full time and 21% make a part time living. That’s more success than any other marketing or business model on the planet.

Please understand, there are many contrarians that don’t like MLM and call it a  scam online. It’s not! The mammoth presence of this industry and the inherent failure tendency of human nature can bring about controversies. But you look at the doughnut, not the hole, right? There are SCAMS in EVERY industry. MLM simply gets more visibility. There are ONE million real estate agents, 800,000 insurance agents and few hundred thousand stock brokers in this country, but there are 16,000,000 MLM distributors in the USA alone and 120 million world wide! Real estate, insurance, stock brokerage and many other industries have way more scams and daily malpractice than MLM. You just don’t hear about it.

MLM business opportunities represent the greater choice in the home-based business industry. About 475,000 people join the industry every week. The internet carries more MLM business advertisers than any online.  It’s simply a very active industry.

So, here is what can work for you: First the justification for joining an MLM company has to come from a deep business common sense sheltered by prejudgment of the industry, what it is and how it really works and how it really works. Second, you have to know how to divide the industry and where the good  companies  are.

I break MLM companies down in FIVE major categories:

1. The money games, chain letters, gas cards,  grocery or travel coupons, silver coins, software packaged, Google wannabe search engines, Facebook wanna be sites that pay commissions, mortgage reductions and all the other scams. When you look at this part of the industry, it’s very easy to get horrified.

2. The old companies like Amway, Shaklee, Nu Skin, Avon, Herbalife, Morinda, Forever Living, Mary Kay etc. These companies have been around a long time and will be around forever. These MLM companies are tedious to grow now. They are bureaucratic and not progressive. They have horrible compensation plans. I personally stay far away of them. I’m looking for more than just earning a few thousands dollar a month.

3. The good companies that despite their good products never made it big. Their recruiting pitch is we are “stable,” we’ve been around a “long time,” we have a “great product,” BUT there is something either in their product or compensation plan or management or marketing strategy that just doesn’t jive. They are stuck and can’t move forward.

In reality they will never hit critical mass.  If you are to make a lot of money in MLM, you need a company that can reach critical mass early on, not 15 years from now.

4. MLM companies owned by billionaires or people with a high degree of success in other industries. These are the MLM me-too, pretenders and wanna be’s. Many billionaires, Wall Street tycoons, high-level corporate figures, commercial moguls and celebrities have tried to come in MLM. They think because they made  it big before they can score a billion in MLM as well. NEVER HAPPENS!

I have worked with two billionaires, Hollywood celebrities and real estate magnates. I have interviewed and negotiated with seven of them. I have “closely” observed  every single MLM start ups with billionaire ownership. It’s a loser every single time. They don’t get it.  They do not have the right mentality for MLM. You can’t buy your way into this industry. You have to grow with it. You need the HEART for it, not just the money.

If  I ever decide to get into the financial or real estate or TV industry, I would love to get advice  from Donald Trump  or Guthy Renker or Clay Parker. But when it comes to MLM, they don’t even make it on my list.

Choosing a company with this type of owners is one of the most dangerous business decisions you can make. Make sure you ask a lot of questions.

5. Then there is my type of MLM company. Like a company that is young, yet has everything in place to become the next icon in the industry. They have nailed the right product, comp plan, have good capital, great functions, ownership with an extensive MLM background, and the leadership  to understand human nature and care for people. God, they are so hard to find!

So who do you listen to? The answer is yourself. If the product is good, it will sell. Put a killer comp plan, great marketing and great leadership behind a good product and how can you fail?

If this product is the hands of the right company, there’s no one that can stop you, but yourself. If you have energy and passion, you can succeed.

Don’t get influenced by the sound bites, naysayers, bamboozlers, affiliate marketers or your negative friends.

It will cost you a fortune.

You are the dictator of your own life decisions. My personal review of MLM can only give you the right perspective without all the hyped crap you will read throughout the internet.

My suggestion is to stick to this industry, choose the right company and chase wealth and freedom! What else is there to chase?

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To Your Success!

Riccardo Ferrari

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riccardo ferrari

Riccardo Ferrari is a former naval engineer. For years worked in the maritime industry as an officer on cruise ships. He is in direct marketing full time since 28 years and become the #1 income earner in five major direct marketing companies and top earner in several internet ventures. Along the way, worked as VP and senior consultant for several companies. Some were owned by billionaires, doctors and celebrities.