Would You Like To Know If Joining MLMs Are Worth It?
The multi-level marketing (MLM) business opportunity is just up your alley!
Is this a rip-off or a real opportunity?
In this article, I will review and decide what really is the best MLM out there.
We’ll talk about which MLM is the right online business for you.
MLMs are a bit of a mixed bag. They CAN be a legitimate way to make money, but some have a reputation for literally ruining people’s lives – so it’s important to know what you’re getting since each one is unique.
Like most of my readers, you were probably introduced to this one via a friend or some influencer you trust online.
And it makes sense why so many people recommend them:
Making money outside of a 9-5 can be… life-changing, to say the least.
So in this article, I want to help you explore two things:
- If MLMs are actually a worthwhile business to pursue
- If Best MLM Compensation Plans is a worthwhile MLM
Before that, I want to clear the air on something.
There are A LOT of people out there who bash all MLMs in any form. I am not one of those people.
Instead, I want to genuinely educate you about them so that you can make an informed decision on how to proceed.
If you’re unfamiliar with what MLMs actually do:
They’re businesses in which you pay money to a company for the ability to sell their products.
Sometimes the products are actually kind of decent (I still remember my mom throwing pampered-chef parties when I was younger).
Other times the products are really poorly made and come with a high price tag.
Typically, the only way to really make money is to get people (mostly friends & family) to sign up with you for a recurring subscription.
If the product is 100% legitimate & valuable, it’s entirely possible to get people to sign-up and continue paying you.
If the product is subpar, you’ll usually burn those bridges kinda quickly and end up with $0 coming in each month.
The biggest issue I’ve seen is that this puts significant stress on your personal relationships, as you’re reliant on selling to your “network.”
Think about it: if you KNEW that every time your friend Sally called, she’d be trying to sell you on one of her products… you’d eventually stop answering Sally’s calls.
Now, this doesn’t mean MLMs are outright bad… it means you need to know what type of MLM you’re getting yourself into before you sign up.
Again, some MLMs provide real value to people, but MOST don’t – and so in this article, I’m going to explore the case with Best MLM Compensation Plans.
But before that, I want to ask you a question: what if there was a way to build actual recurring, semi-passive income?
- Doesn’t have inventory
- Doesn’t make you sell to your friends & family
- Doesn’t force you to recruit people onto your “team”
Something that you could make anywhere from $2,000 – $10,000 consistently, month after month?
A stream of income that you can build as high (or low) as you feel like building it?
If that sounds interesting, you might want to think about becoming a Digital Landlord.
If you want to see what the Best MLM Compensation Plans look like on the inside, keep reading.
MLM Review: What Is An MLM?
A typical network marketing strategy is to get individuals to join, purchase a product, then get their friends to join. Is this another of these?
The truth is that most MLMs show people how to succeed as network marketers, but in reality, most members barely earn anything promoting their products.
Honestly, can you get rich with a measly commission from products that you can get cheaper from Amazon?
If you want to really earn much money online, check out my #1 recommendation here.
But to give you a fair and honest review….
Some MLMs provide helpful ways for people to make money online and get commissions.
In the end, I will answer some FAQs about network marketing as a whole.
And most importantly, I’ll show you the exact system I used to build my own internet marketing business to over $40,000 a month in mostly passive income.
This system made me swear off Network Marketing for good because it uses some of the same skills but in a much more powerful and profitable way!
For now, let’s check out MLMs and their Compensation Plans!
MLM Review: Are MLMs A Pyramid Scheme?
If you’re here, it’s because you want to make money.
Because MLM schemes dupe so many individuals, I’ve decided to devote some of my time to exposing the frauds.
This article seeks to make things clear:
- Is it worth it joining MLMs?
- Can you really get rich with MLMs?
- What is the best MLM compensation plan?
- Are all MLMs a pyramid scheme?
We will look at the various aspects of the organization to help you determine if it’s best for you. And I will give recommendations in the end — so you can truly make a wise decision.
Multi-Level Marketing Review: How Do MLMs Work?
To put it simply, how do MLMs make money?
MLM is a sales model used by companies to make their goods available to the public via sales representatives.
These sales reps usually work from home and buy the inventory to sell. The multi-level part deals with their capacity to recruit and train people into their downline. When recruits generate sales volume and recruit below them, every person above them earns a commission.
Earned income comes from commissions from personal sales volume plus a share of the sales gained by other reps that you have recruited.
MLM Companies: What Are The Top 5 Companies In 2022?
Here are the Top 5 MLM companies with the best revenues earned:
In the multi-level marketing industry, AMWAY has long been the leader. There are a variety of home cleaners, laundry detergents, diet drinks, and other items on the market that people had come to appreciate when Amway was founded in 1959.
Compensation Plan: What Are The Various Types?
Let’s take a look at the various MLM compensation plans first. The following are examples of the first four most prevalent kinds of payment plans:
Stairstep Breakaway MLM Plan
What do MLM companies do when they are focused on efficiently increasing distributors’ sales?
They use the Stairstep Breakaway Plan. When an affiliate reaches the topmost rank, he and his team “break away” and are directly added as a new tree under the admin.
Unilevel MLM Plan
Often referred to as the “universal plan,” the Unilevel Compensation Plan may be found in all compensation schemes. There is just one company level in the Unilevel pay structure, and all sponsored affiliates are immediately placed there. Distributors gain directly from their recruitment efforts since there is no spillover.
Matrix MLM Plan
This is one of a kind. The Matrix Plan has a set depth and breadth, with the first two affiliates on the first level (front line). After the front line is fully staffed, the remaining affiliates are added to the tree in the next available position called spillover. MLM organizations depend on the Matrix model to boost group sales.
Binary MLM Plan
There are two legs or subtrees beneath each affiliate in binary compensation systems. A binary tree is formed as a result of the addition of subtrees. Eventually, as more people join, the company grows to include more and more people, and this process may go on indefinitely. The simplicity of the binary compensation plan makes it easier to attract new employees.
Home Party Plan
This plan increases product promotion as affiliates invite people to the space (usually a homely place) and sell the products with a proper introduction and complete presentation.
This is a famous one.
A “board” is a new tree created for certain members who qualify for specific criteria. A compensation plan may have multiple boards based on the company’s policies. This plan is also called the recycling matrix plan.
To get good retail income and commissions from downline efforts, try the Generation Plan. This plan is structured like a Unilevel Plan but with various generation levels — each with an affiliate and his acquired clients. This plan seems to work great for e-commerce businesses.
Monoline MLM Plan
Also known as the “Linear Plan” or “Single Leg Plan,” the Monoline Plan is truly simple and easy to understand. It has a single-line structure with unlimited levels. Its simplicity makes it popular and a usual choice for most businesses.
Best MLM Compensation Plans: What Factors Make For The BEST Plan?
Question: What is the best MLM Compensation Plan?
The truth is, there is no perfect MLM Compensation Plan. Each has its strengths and weaknesses. Do you think the Mary Kay compensation plan will work at Avon? Or the Avon plan with Amway? Definitely NOT!
The answer is all about being the PERFECT FIT. Is the plan aligned with the company culture and system — direct selling, pricing, field training/culture, leadership development, etc.?
Each multi-level marketing company is unique in its approach to direct selling. Avon, Nu Skin, and Mary Kay may commonly sell beauty items, but they are different in so many ways, too.
So, MLM companies with the BEST and PERFECT FIT actually select one of the primary compensation plan types, use it to establish stable revenue, then use and align other plan types for growth. That being said, I will discuss the factors you need to look for in a great compensation plan.
MLM Compensation Plan: Building Blocks For The Best Plan
1. Customer-Sales Focus
MLMs need to focus on retail sales to customers who are not also affiliates of the company. Why? To lessen the risk of scrutiny and action by the Federal Trade Commission (FTC). Great MLM compensation plans prioritize this.
2. Customer Commission Or Profit
Early rewards boost the drive of affiliates. When they enroll a customer, they have to earn a commission when orders are placed — usually at 20% to 25%. But those companies who give higher percentages for higher volumes have enjoyed better results.
3. Ranks And Recognition
This is truly motivating. On top of commissions, ranks and recognition are crucial in a good compensation plan. When affiliates move up the different levels, they should also get a title for their rank, plus additional compensation.
4. Rank Advancement Bonuses
The best MLM compensation plans give a one-time fixed bonus when an affiliate moves towards a properly carved-out career path. What a boost this bonus gives to hardworking members. Advancement means growth!
5. Strategic Compression
Strategic compression happens when an upline affiliate is compensated as if ineligible or inactive members were not present in the tree. This way, hardworking affiliates are still encouraged despite the inactivity of others.
6. Activity Requirements
If companies want to increase sales, they should establish activity requirements to reward desired behaviors. The goal is to increase sales, company profits, and affiliate retention.
7. Fast Start
The best MLM compensation plans start fast and strong. By rewarding new recruits, companies have seen great benefits in affiliate retention.
8. Career Path
An affiliate’s career path is the center of a good MLM compensation plan. Making sure that they have a future in the company motivates affiliates to work hard, stretch themselves to reach higher, and remain in the company. This path determines how affiliates will sell, recruit, lead, and build their team.
9. Mentoring And Team Building
Building and mentoring a strong team must be rewarded. Since the whole MLM organization exists in the presence of each member, affiliates need to be appreciated for doing their part in team building.
10. Leadership Rewards
Company leaders are potent influencers. Thus, they need to be rewarded well for coaching, mentoring, and growing their downline.
11. Recruiting Rewards
Recruitment activities should also be rewarded, besides compensation for sales volume. But, due to compliance regulations, recruitment should not be the focus of MLMs. Nevertheless, these bonuses can be the cherry on top of your cupcake.
How Do I Create An MLM Compensation Plan?
I will give you seven ways to create a good compensation plan for your business:
1. Understand Your Company’s Objectives
Before anything else, look into these key aspects of your direct selling company:
- Product type
- Product or service offered
- Corporate goals
- Cost to consumer ratio
- Ease of sales
- Distributor experience
- Room for incentives, etc.
2. Do Your Research
Study the terrain before entering it. Try to watch educational videos on compensation plans. Or read thoroughly on relevant subjects. These will give you a head start.
3. Know Your Numbers
Before diving into compensating your affiliates, be aware of the numbers game. Be familiar with your cost of goods, distributor price, retail sales price, etc. By knowing more, you will be more ready to face questions.
4. Choose An MLM Compensation Plan
Next step, you can now select from the various standard types of compensation plans discussed above.
5. Hire An MLM Marketing Agency
Getting quite overwhelmed? Don’t worry. You can hire an MLM marketing agency to help set your goals, navigate challenges, and set realistic expectations. They will help you sort out the best compensation plans.
6. Consider An Incentive Program
Sometimes, there is really a need for that extra boost for your sales team. Why not consider a bonus or a profit-sharing program. Taking care of your team will ensure your success.
7. Be Ready To Make Changes
You certainly will make mistakes — despite your research work and preparation. At yearend, always take time to assess. Reexamine your plan and make changes if necessary. Are you still within budget? Is your team motivated?
Stick To What Works
Simply put — keep it simple. Yes, you can be unique but don’t go too far from the standard. Learn from the mistakes of other MLM companies. It pays to be wise and use the best compensation plans.
What Is The Highest Paying MLM Company?
AMWAY is currently the highest paying multi-level marketing company.
Why is that?
Check out the benefits they offer to affiliates:
Amway Benefits For Associates:
- Buy discounted products at the distributor’s prices
- Participate in their Loyalty Program (loyalty points can be redeemed as products)
- Gain points for purchases
Amway Commissions And Bonuses:
- Commission: 3%
- Retail profit: 15% of sales
- Income: retail profit + commission
Which MLM Has The Best Compensation Plan?
I will give you not one but 5 MLM companies with the best compensation plan. Here they are:
Products: Lifestyle brands (Nutrifii, Puritii, and Nucerity)
MLM Compensation Plan: Ariix uses the industry’s first multiline plan called Activ8. This gives you unlimited width and depth, unlike matrix plans. You get a 50% payout — the highest commission structure right now.
Lastly, they use an algorithm that computes the cost-of-living-increase to support you over time adequately. Activ8 also allows members to enroll under one affiliate in a separate team.
This promotes cross-line support and team building. Cool huh?
Indeed, Activ8 is one of the best MLM compensation plans right now.
Products: Biohacking products (fitness, nutrition, beauty)
MLM Compensation Plan: There are 2 ways for you to join —
- Preferred Customers – purchase products wholesale
- Distributor – gain commissions via sales and from your downline
Initially, the payment plan can be complicated. But if you sell well and are up for it for the long haul, then you can make good.
You can earn income through these avenues:
- Retail sales
- Smart start bonus
- Launch bonus
- Royalty commission
- Generational matching bonus
- Elite bonus pool
- Rank achievement bonus
- Business center
3. Total Life Changes
Products: Lifestyle products (beauty, skincare, hygiene, essential oils)
MLM Compensation Plan: Upon joining as a representative, you can begin earning on products sold. They use a hybrid binary plan. Here are ways you can earn:
- Retail profits and commissions
- Fast Start Bonus
- Binary pay
- Matching bonus
- Lifestyle bonus
Products: Lifestyle products (weight loss)
MLM Compensation Plan: You gain 20% on client orders when you become a brand promoter. And you enjoy free products when customers join the auto-ship program. Via the uni-level path, you earn up to 8% per level of your placement tree. And to top it all, there are cash bonuses toward luxury cars and vacations.
Products: Lifestyle products (renowned line of essential oils)
MLM Compensation Plan: Here are the three ways you can earn:
- Retail profit
- Fast start bonus
- Power of 3 bonus
DoTerra doesn’t only pay well. They’re also the fastest-growing MLM worldwide!
Which Is The Fastest Growing MLM Company In The World?
DoTERRA has spread like wildfire since its founding in 2008. Within seven months, it reached $1 million in sales! In 2012, doTerra was hitting $1 million in sales, and by 2015, it reached a whopping sales revenue of $1 billion!
But it doesn’t stop there. DoTerra has grown to more than 3 million affiliates of “Wellness Advocates,” and by year-end 2016, they gathered 30,000+ affiliates in a convention!
Can You Really Make Money With MLMs?
Yes, You can!
There’s a lot that comes along with Network Marketing (MLM) that many people struggle with.
In fact, check out my Top 5 Reason Why Most Network Marketers Fail.
Now, don’t get me wrong…
You can certainly make money with MLM, but if you’re gonna put in the amount of grueling work to do this business (which, trust me, isn’t easy), you might as well bring in some REAL money while you’re learning the ropes.
The program that helped skyrocket my online business to over $40,000+ per month is so simple that making money really does become second nature.
Are MLM Companies A Scam?
So, time for the $1,000,000 question: Are the best MLM Compensation Plans a scam?
No, not technically. They aren’t going to run off with your money and not give you what you paid for. It’s 100% possible to make money with this program.
That being said, it’s not nearly as simple as they want you to think it is.
There’s A LOT of work to be done upfront and no guarantee that you’ll be successful. The commissions are also fairly small.
Don’t get me wrong; I’m all for doing hard work now so that I can reap the benefits later.
But if you’re going to work really hard for 3 months, and your reward is a $100 check… it’s not really a great opportunity.
If I’m gonna do that, I want the rewards to be HIGH and virtually guaranteed.
I’d rather put in that same three months of work (in my spare time) & build a handful of Digital Rental Properties that each produces $500-$2,000 checks every single month afterward (AKA recurring income).
And the cool part is that you can do it in a lot less time than 3-months (I personally did it in my first 2 weeks of being a Digital Landlord).
Unlike with MLMs, you can do it from anywhere in the world, so it’s a genuine “laptop-lifestyle” business.
All you need is an internet connection.
Some of my friends are Digital Landlords that run their 6-figure businesses from:
- Camping trips at national parks
- Beachfront in Hawaii
- On the road in a camper-van (with a pet pig!)
They focus on living an enjoyable life first and focus on income second. All thanks to this program.
They can take weeks or months off, and money keeps rolling in.
Living happily is their top priority.
If the thought of living perpetually at your dream vacation spot interests you, being a Digital Landlord might be for you!
Bottom Line: Is Joining MLMs Worth It?
So, is it worth joining multi-level marketing with a good compensation plan, like those I mentioned? We can see that not all MLMs are scams. They sell legit products and pay affiliates properly.
And those companies I mentioned DO PAY big bucks.
I wouldn’t mind recommending them to a friend — especially to one who really wants to earn good money via the MLM structure.
But are these the best business opportunity for YOU?
I want only the best for YOU. My goal is to help you gain financial stability.
When it comes to building a business, you have plenty of options.
And even if you’re dead set on becoming an MLM marketer, you’ve got way better options.
Keep in mind that I don’t get paid to promote any of the programs I review. I think the MLM companies I mentioned have a great business model, but you could end up leaving way too much money on the table.
What Is My Top Recommendation For Making Money Online In 2022?
I’ve personally tried all of the major online business models:
- I’ve sold fidget spinners through Amazon FBA
- I’ve drop-shipped a toilet bowl putting green on Shopify
- I’ve sold women’s health supplements via Clickbank affiliate marketing
And I made money with all of them, so trust me when I say: there is no “perfect” business model.
I’ve also been on the other side of old friends trying to sell me their fancy new MLM products.
That being said, my #1 recommendation for making real money online is, hands-down: being a Digital Landlord.
Whether you’re a complete newbie or you’ve been around the block before but have never had that “big win” to propel you forward, becoming a Digital Landlord is for you.
Time: If you’ve got a spare hour or two each day, you can do this. If you want to drop everything and go all in, you can do this. More time means faster results, but even putting in a few hours per day is enough to see real success.
And because of that flexibility, you don’t need to trade your time for money. Once the income starts, it’s recurring.
That means you can take a month off, travel the country, pursue a passion project, chill on the beach, or charter a boat across the world.
But you can only do that once you’ve created an income stream that doesn’t require YOU to be there all day, every day.
Ownership & Control: With MLMs, you don’t really “own” anything – everything belongs to the MLM.
If you read the contracts, they can kick you out or change your commission at any time (it’s happened in a few high-profile MLM cases recently).
Why pour your soul into a business that could be taken away from you at the drop of a dime?
When you’re a Digital Landlord, you literally own all of the assets, which means you have ultimate control.
Big Margins: With MLMs, you’re often going to have really slim margins. That means you need to have a VERY large network to make serious money. This usually entails spending A LOT of money on ads and other methods for recruiting members.
Being a Digital Landlord, your profit margin is nearly 100%. Watch here to learn how.
These Digital Rental Properties are worth (at a minimum) $500/mo in semi-passive income. And each time you create another one, your income increases, and the effort put into creating the next property decreases.
Best case scenario, you have properties bringing in over $3,000+/mo on auto-pilot.
It’s Effectively Copy-Paste: Here’s my favorite part: once you have your first Digital Rental Property up, you can literally copy-paste another version of it and find another willing “renter” in a few days. DOUBLING your income doesn’t get much easier than that…
If you wanted to double your income with an MLM, you would need to sell twice as much inventory. And I can guarantee you that’s a lot harder than a few clicks & a phone call.
You’re Helping REAL People: My biggest gripe with MLMs is that you’re likely going to ruin your personal relationships.
The MLM may have convinced you that you’re helping people, but it’s often not really true.
But when you’re a Digital Landlord, you’re helping solve REAL problems that people are ASKING for help with:
Small local businesses around the world need one thing: customers. Without them, their business would fall apart. If you can provide those customers, they’re going to be really happy – and they’re going to pay you for it.
You’re helping a struggling mother or father put food on the table for their families, put their kids through college, or simply live life a little bit more comfortably.
Having this type of impact on the world is what will help you sleep soundly at night.
So, the rest is up to you. You could keep looking at other MLM programs like Best MLM Compensation Plans, which might make you money 12 months from now.
You could keep researching and researching for the next few months (or a few years), never making a concrete decision.
OR, you can look deep inside, think about those dreams, hopes, & desires, and make the decision to ACTUALLY make it happen, just like it has for thousands of other students before you.
Making a fortune while actually helping real people that need it.
If this sounds like you, click here to see how it all works.