Best Rated 2016 Network Marketing Businesses & Top Ranked MLM Companies You Need to Find
We love the world of “Multi-Level Marketing” as the motto of ‘people helping people' will never be truer or better in any other profession or career path. We have outlined our Network Marketing success story (in great detail), but now want to make sure and go over the best rated MLM companies of 2015 and 2016 and what you should expect to see and keep your eyes peeled out for.
Knowing what to research and review for the top MLM companies can literally make or break your entire experience and enthusiasm for building, creating, and crafting a successful organization.
One of the biggest motivators for what we do is to provide and give a voice of reason for anyone who is the least bit excited in making the wild world of Network Marketing Companies and MLM Businesses a fair shot and chance at success.
And in 2015, with the internet marketing playground that we all are able to dabble in, the sky is truly the limit. Everyone who is willing and wondering how to leverage the power of the global outreach of the net can make “attracting leads, customers and sales” a breeze if you follow the right people (experts) and act on the right information (energy).
How To Find The Right Network Marketing Companies & MLM Businesses Review Guide
Network marketing is one of the few remaining get rich quick schemes in the world today. Someone with the right motivation, right connections, and right sales skills can quickly generate a lot of income through network marketing.
But if network marketing was easy, then everyone would be doing it. Discover the difference between network marketing winners and losers today in our complete guide to network marketing success.
How to Get Started with Network Marketing
Getting started with most network marketing companies is relatively easy. You follow this simple step-by-step guide:
Step 1) Find a network marketing company that caters to your skills and interests
Step 2) Join that network marketing company through an existing affiliate or on your own
Step 3) Sell network marketing products to other people and earn commissions
Step 4) Build your network to get other people earning residual income on your behalf
Of course, the steps listed above aren’t always as easy as they seem. Finding the right network marketing company can be difficult. Sorting through scammers can seem virtually impossible. And finding a trustworthy business partner or affiliate can be the hardest part. We haven’t even started talking about how to actually sell network marketing products yet!
Below, you’ll find tips that will help you sort through all of the steps listed above.
Be Careful What You Read Online
One of the biggest problems with network marketing is that the industry is laden with scams. Every new network marketing company calls itself “the next biggest thing” and claims to be generating “more industry buzz than ever before.” It’s just the way the business works.
With that in mind, you need to be extremely careful about what you read online. Nobody gives things away for free on the internet, and people always expect something in return.
In the MLM/network marketing industry, that return comes in one of two forms:
-The site is trying to convince you to join a certain network marketing company so you join their downline and earn referral income through you
-The site is trashing a particular network marketing company and then promoting their own sales guide, downloadable eBook, or another business
Even when a site says that they’re not affiliated with that particular company, they’re not always telling the truth. Just be careful about what you read online and take everything with a grain of salt.
With that in mind, you can keep reading to the next steps.
Understand the Difference Between Network Marketing, Pyramid Schemes, and Multi-Level Marketing Companies
Multi-level marketing, network marketing, and pyramid schemes are all similar concepts that often get intertwined. It’s helpful to clarify them before we begin.
First, multi-level marketing (MLM) is simply a company that pays out on a “multi-level” basis: you get paid based on your level, and commissions are typically passed up through levels to be funneled at the top.
Network marketing is slightly different. With network marketing, you’re part of a group of people (a “network”) recommending products to other people.
In reality, network marketing business are often identical to MLMs because they pay out product commissions on a multi-level basis. That’s why many people use the term interchangeably.
Pyramid schemes, however, tend to be different. Pyramid schemes are illegal business structures in most parts of the world. In a pyramid scheme, the people involved are not actually selling anything: they’re simply earning money from recruiting other people.
Let’s say you pay $200 to join a network marketing company. You pay $200 and become an official member. Once you’re an official member, you can earn $100 for every new member you sign up. You convince other people to join. They pay $200, $100 of which goes to you and the other $100 gets passed up through the pyramid. That’s a pyramid scheme.
Now in reality, most multilevel marketing companies walk a careful line between network marketing and pyramid scheme. Here’s how these companies typically work:
You pay $200 to join a network marketing company. Once you’re a member, you get access to certain services. There’s an online education program and a downloadable eBook only available to members, for example. You might even get access to health insurance or legal advice for an extra cost. None of these services are very valuable. However, they’re simply in place to prevent the business from being classified as a pyramid scheme. Since the company is technically selling a “product” to its members, it’s not a traditional pyramid scheme.
As you can see, there’s a fine line between multilevel marketing companies, pyramid schemes, and network marketing. Most businesses advertise themselves as legitimate network marketing companies but are actually multilevel marketing-style pyramid schemes.
Keep that in mind when you’re searching for network marketing companies to join.
How Many People Succeed at Network Marketing?
Network marketing has one of the highest failure rates in the business world. One of the best studies on network marketing was performed by a guy named Dr. Jon Taylor. Dr. Taylor analyzed 400 different multilevel marketing companies and published is reports in an eBook called “The Case (For And) Against Multi-Level Marketing.” His findings were pretty interesting:
-In the first year of operation, a minimum of 50% of all network marketing representatives will leave the company
-After five years of operation, a minimum of 90% of network marketing representatives will have left the company
-By year 10 of operation, only those at or near the top of the company have not dropped out and a minimum of 95% of representatives have left the company
It is also widely publicized that most people will actually lose money through network marketing. Since you pay to join, many people simply can’t recuperate that initial cost of joining. Thus, they leave the company at a net loss.
Some studies have put this loss rate as high as 99%. In other words, only 1 out of 100 people who join a network marketing company could earn a profit.
To put those numbers in comparison, approximately 44% of traditional small businesses survive the first four years and 31% survive the first seven years. Only 39% of businesses are profitable over their entire lifespan, and 64% of all small businesses fail within 10 years.
Now, if you’re the type of person who doesn’t have sales skills, social connections, or good work ethic, then you’re not going to succeed at most businesses. That’s particularly true in network marketing.
How Much Time and Money Does it Cost to Succeed at Network Marketing?
Most network marketing companies require an initial sign-up expense. This expense pays the commission of the person who recruited you, with smaller amounts of commission moving up the line.
Dr. Taylor’s report, which we discussed in the section above, found that network marketing businesses typically require about $25,000 total expenses to get off the ground. That $25,000 covers:
-An effective recruitment campaign to build your downline
-Incentives, products, phone, internet giveaways, computer supplies, advertising, travel, and other miscellaneous expenses
Dr. Taylor calculated these expenses by joining a recruitment-focused company for an entire year.
Product-centered network marketing companies – where you get commissions for selling products – typically cost less money. You’ll need to buy a starter kit and invest in basic marketing. You also may need to host parties, pay for office supplies and services, and pay to attend business conferences.
Dr. Taylor estimated the expenses of a product-centered network marketing company start at $1,000 per year and higher.
One of the biggest barriers to launching a network marketing business is finding startup capital. Due to the high rates of failure, very few banks lend to MLM businesses. MLM businesses also don’t typically qualify for government small business loans and other assistance programs.
If you don’t have startup capital, then running a network marketing business can be extremely difficult. Some of the biggest failures in the network marketing industry come from people who join with little startup capital of their own hoping to get rich.
Can I Really Do It Part Time?
Many people start successful network marketing businesses part-time. They might have a full-time job to earn startup capital for their new business, for example.
But can you really be successful at network marketing if you do it part time?
Many network marketing companies promise that you can make thousands of dollars per month by working part-time. But in reality, part-time success with network marketing is rare.
Up above, we talked about how costly and time-consuming launching a network marketing business can be. When working part-time, many people aren’t willing – or able – to put in the hours and money to make their business succeed. When working full-time, you might have a different outlook: you’re more willing to invest more time and money into the business, which then increases your chances of success.
Another problem with working on network marketing part-time is that some of the biggest rewards only come to the highest levels of the company. If you’re just working part-time and generating a few sales, then you might earn a little money – but you’re still perpetually stuck at the lowest level of the company. If working full-time, you could branch out, level up, and maximize the opportunity.
The Best Tips for Network Marketing Success
Recruit, then Sponsor
There’s a difference between recruiting people into a network marketing company and actually sponsoring them to succeed. Some people try to recruit as many people as possible and then hope a few of those people succeed. Others take the time to nurture, sponsor, and grow their recruits into successful salespeople. Guess which type of network marketer is more successful? If you spend time sponsoring your downline to succeed, you’ll be much more likely to earn a nice residual income.
Sell Products You Actually Use and Enjoy
Many people fail at network marketing because they try launching a business in a niche they know little about. Others try to sell products they’ve never used. The most effective marketers, however, sell products they’ve genuinely used and enjoyed.
Always Plan at Least Three Parties Ahead
Sales parties are the most effective tool in the network marketer’s arsenal – whether it’s a product-focused MLM or a recruitment-focused MLM. That’s why you should try to plan at least three parties ahead at all times. Once one party is over, try to make sure you have at least three more lined up on your schedule. This ensures your business will continue to grow as opposed to just staying flat.
Diversify your Marketing
Decades ago, network marketing companies could rely on door-to-door sales and recruitment parties to succeed. Today, there’s a whole new wave of technologies at your disposal. Diversify your marketing to include website development, SEO, social media marketing, direct selling, and other communication strategies. You’ll cast a wider net and be able to cater to multiple demographics.
Avoid Terrorizing your Family and Friends
Have you ever seen a family member or friend join an MLM? If so, then you may have received the recruitment speech at some point or another. It’s okay to be excited after you just joined an MLM. But don’t sacrifice your personal relationships in your quest for money. One of the best recruitment strategies out there is to let your lifestyle do the talking: if your friends see you driving a luxury vehicle and buying nice things for yourself, they’ll naturally become interested in your new business. Let them come to you.
How to Choose the Perfect Network Marketing Company
One of the biggest challenges for those new to the network marketing industry is learning how to pick the right company with which to work. There are thousands of companies out there that all promise pretty much the same thing: fast profits, easy money, and a great lifestyle.
Sifting through these offers can be challenging. Here are a few tips that will help you distinguish good network marketing companies from bad ones:
Avoid Companies that Over Promise
One of the biggest red flags in the network marketing industry is a company that over promises. Does the company claim you could be a millionaire in six months? Does it talk about luxury car benefits and other incentives? Good network marketing companies don’t need to over promise: they let their representatives do the talking.
Avoid Weird Job Interviews
Weird job interviews are a trademark of the multilevel marketing industry. Typically, network marketing company interviews take place in a weird part of town in a building that the company doesn’t actually own or operate. Some network marketing companies perform a group interview where you hear a presentation about the product, while others simply give you a one-on-one interview. You can find countless offers like this on Craigslist and your local classifieds.
Watch Out for Companies that Focus on Recruitment over Product-Selling
We talked about pyramid schemes up above. In a pyramid scheme, the company only sells recruitment/memberships and doesn’t sell a legitimate product. Pyramid schemes are illegal. That’s why it should be a red flag if you see a company focused heavily on recruitment instead of product selling. It’s not a definitive indicator of a scam, but it’s a sign that the company could be shut down in the future.
Choose a Company Whose Product You Genuinely Want to Sell
Maybe you had a good experience with a weight loss supplement. Or maybe you enjoyed the health benefits of some high-priced coffee or tea. Whatever the case may be, your situation is guaranteed to be easier if you’re selling a product you genuinely want to sell.
Avoid Companies that Don’t List or Describe their Products
When researching network marketing companies, you’ll inevitably encounter companies that refuse to describe their products. They’ll dance around questions like “What do you sell?” and talk about the tremendous opportunity available instead of focusing on the actual products. At best, these companies are selling a crappy, unsellable product. At worst, they’re pyramid scheme scams.
How to Recruit People
In the multilevel marketing world, there are two primary ways to recruit people: you can build a following or audience of people, or you can build leads locally.
Below, you’ll find a detailed description of which system works and why they work:
Building a Following or Audience
There are a few strategies that fall under this approach, including search engine marketing, social networking, “warm marketing”, and attraction marketing. Building a following comes with the following advantages:
-You’re selling products/opportunities to people you know (or people who know you)
-You’re letting people come to you, which means they don’t feel like they’re being sold something they don’t want to buy
-When people finally approach you and ask bout your opportunity, it shows they’re actively interested in the business, which means they’re a warm lead and are more likely to convert
Ultimately, the more warm prospects you can find, the more success you’ll have with network marketing.
Building a following or audience is also the best long-term strategy for network marketing success. There are network marketers out there who have jumped between 5 or 10 different companies and dragged most of their network along with them: if you can convince people you’re a good network marketer, they’ll follow you wherever you go and become a perpetual part of your downline.
Local Lead Generation
Local lead generation is a time-honored MLM strategy. It’s also called cold market prospecting. You’re dealing with a “cold” market of people who probably don’t know you. If you’ve ever been bothered by Amway sales representatives while you’re at the grocery store or having a nice day out with your family, then you know how this lead generation model works.
Like all cold market selling, you’re going to face a lot of rejection with this model. People are smarter than ever about spotting scams, and many of the people you’re approaching have been burned – or know someone who’s been burned – by a shady MLM company.
Local lead generation isn’t ideal – especially when you have a wealth of new technologies at your disposal. Nevertheless, it’s an effective way to fill your parties with semi-warm leads.
Best Network Marketing Tips for Selling Products and Recruitment
In product-based network marketing companies, you’re constantly selling something. You’re either selling products to your own retail customers or you’re selling booster packs and membership packages to new recruits.
If you don’t have any sales experience, then you’ll need to learn fast. Here are some sales tips network marketers use to succeed:
Work With Stable, Long-Term, Honest Companies
The vast majority of MLMs shut down after just a year or two in business. There are a rare few MLMs that have survived the years. These network marketing companies have survived economic downturns and proven their value time and again. They’ve proven their products can sell and they’ve shown that their representatives can make a decent living. Unless you find a new company that offers a truly revolutionary product, established network marketing companies are typically your best option.
Learn from the Best
Every network marketing company has a top tier of representatives. These reps love to talk about how successful they are. They also like to share wisdom with newer representatives. Learn from these people and practice what they teach: their sales strategies clearly work.
Learn How to Open a Cold Call
Cold calling is an important part of network marketing for many people. If you’re cold marketing to people on the street for recruitment opportunities, then you’ll need a good ice breaker. Some network marketers claim the four most important words for opening a cold call are: “I Need Your Help.” It appeals to our human desire to help people and get someone’s attention.
Neutralize Objections Fast
Objections are your kryptonite in sales. Neutralizing objections is one of the most important parts of your job. Many companies actually have special objection neutralization training: when a customer says an objection, you offer something to neutralize that objection. Here’s one example below:
Customer’s Objection:“Wow, that product is really expensive.”
Salesperson’s Objection Neutralizations: “Too expensive compared to what?”; “Really, how are you coming to that conclusion?”; “How much will it cost you to do nothing?”; “Is it a cash flow issue, or a money issue?”; “Will price really keep you from getting what you want?”; “Is price the only thing that’s keeping you from joining/buying?”; “I understand. In fact, I’ve had three other customers just like you who were uneasy about the price, but what they found was…”
If you can repeatedly neutralize objections, you can repeatedly make sales. It’s that simple.
Ask for Someone’s Time, Attention, or Assistance, But Not their Money
People love money. That’s not going to change anytime soon. They don’t like it when someone suddenly asks for their money. It makes them feel like they’re being taken advantage of. Instead, start by asking for their time, attention, assistance, input, or help. Seek their input first and then make the sale.
Understand the Crucial Difference Between Selling and Recruiting
When you’re selling a product, that’s a one-time transaction-based event. When you’re recruiting someone, you’re opening the door to many events in the future. In that sense, selling a product is about closing someone, while recruiting someone is about opening a future for someone. Approach these two transactions differently.
Understand the Three S’s
Network marketing companies love talking about anagrams and word plays. One important word play to remember is the Three S’s. When you’re talking to friends and family, always be Short, Simple, and Sincere. Your family knows you and will see right through some crappy sales presentation. If you remember the three S’s, you’re less likely to annoy them
Promote Hope and Security Instead of Hype
When recruiting someone to a network marketing company, you shouldn’t focus on the hype surrounding a company. Don’t talk about how it’s the best product ever. That doesn’t impress people. Instead, sell them on two important concepts: hope and security. Talking about hype makes you sound like a scam artist. Talking about hope makes it sound like you’re building a genuine emotional connection with someone.
Network Marketing Business Overview
In the business world, there are many different opinionated-options a prospective entrepreneur can choose from when it comes to establishing his own business. While all sounding the same, we are sending the wrong message. There's a fundamental difference between network marketing, affiliate marketing, internet marketing and direct sales.
Before we digress and dive into different degrees of diversification and classification of what entails network marketing vs online marketing, ANY kind of marketing is about leadership.
But few options offer the range of opportunities that MLM marketing offers. When you find the right network marketing opportunity for you, then you can start to lay the foundation for your future success.
Network Marketing Has A Variety Of Choices
There are a lot of network marketing companies to choose from for someone who is anxious to start a dynamic career. You can choose from a range of products and a variety of different companies that can help launch your future. You will find that most of the network marketing MLM companies are more than willing to work with a young entrepreneur who has the drive to be successful.
No Experience Required
One of the more helpful parts of getting involved with network marketing is that most companies will train you and help you to develop your career from the very start. If you have no experience in sales or networking with others, then that does not stop you from living your dream of network marketing success. You will have a chance to learn from your mentors and gain valuable on-the-job training that will help propel you to success.
Your Success Builds As Your Business Grows
With most sales jobs, you get paid once for a product you sell and then you have to quickly move on to the next sale. When you get promoted to the position of manager, your responsibilities increase, but your compensation rarely keeps pace with the burden of your new responsibilities.
But with network marketing, your hard work is rewarded instantly and your ability to bring in new associates can develop into a steady and growing income. The idea behind network marketing is to sell the products people need to a base of repeat customers, and then show others how to make money selling those products as well. You are rewarded for your ability to sell products, and you are rewarded for being able to grow your organization as well.
An Opportunity That Opens Doors
When you have a network marketing opportunity that you are working with, you will find that there are a lot of people interested in hearing about your new business. Not only can people benefit from your products, but they can also get involved with the financial rewards of being part of your MLM organization as well. This is a very effective way to open doors and take advantage of business opportunities.
A network marketing business is something that becomes more valuable as it grows. When you find the right MLM company to work with that has products that you understand and believe in, then you can take that opportunity and expand it in ways that you never thought possible. If you are looking for an opportunity that helps you to use your people skills to sell products and build a lucrative organization, then look into network marketing.
Conclusion: Who Should Try Network Marketing?
Network marketing is a very viable home business opportunity in 2016 and beyond. If it wasn’t, then there wouldn’t be 1,000s of multi-level marketing companies and opportunities operating today. In the United States, network marketing sales generate an estimated $50 billion per year – and growing – especially as the internet and product borders shrink global MLM distribution model.
With that being said, running a successful network marketing company is rarely as easy as companies describe. It requires thousands of dollars of startup capital and more hours of time than you would typically spend at a full-time job.
If you’re willing to invest the time, effort, and most importantly, the money into your network marketing business, then there’s no reason why you wouldn’t succeed.
If you have poor work ethic, little startup capital, and are currently working at another full-time job, then 2016 multi-level network marketing may not be the best opportunity for you (nor would any business be a good opportunity). We also discuss the benefits of Job Killing and how it differentiates itself from network marketing and helps local businesses generate more leads.