Ultimate Guide To a
Profitable MLM Business

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If you have been searching for a method to earn money, you have probably come across the concept of an MLM business. There are several ways to make money online as a full-time gig or a sideline. You can select from various options, depending on your skill set and preference.

MLM has gained a reputation in the money-making industry; however, I am here to debunk some of the common myths regarding the MLM business. People say that information is power, though I would like to add that you must have accurate information. Otherwise, all that knowledge becomes virtually useless.

Here is what people say about the MLM industry:

MLM does not work.

In the United States alone, the direct-selling industry has accumulated over 35 billion dollars as revenue, proving that there is a market for its products. Numerous MLM businesses run in all 50 states, with some companies operating for over 60 years. These numbers show that the MLM business is a long-standing venture that is here to stay.

MLM representatives do not receive guidance.

With hundreds of companies promoting themselves as MLM, it would be a lie to say all of them provide training to their distributors. However, legitimate MLM businesses offer mentorship sessions, a marketing plan, training courses, and support.

Networking is challenging.

What business is not demanding? If someone encourages you to join a company to make easy money, it is highly likely that industry is a scam. Networking is challenging, especially since not all distributors are born salespeople. However, with the proper training and support, anyone can develop skills to succeed in this venture.

In this guide, I will discuss what you need to know about this business venture. This article includes the top MLM companies, the challenges you may encounter, and the marketing tools to increase sales in an MLM business.

Besides this method, you can make money online through affiliate marketing , putting up your e-commerce business , or blogging .

Now, let us continue by defining MLM.

What Is MLM?

The acronym stands for multi-level marketing, which is a form of direct selling. Other names for this strategy are networking marketing, referral marketing, and pyramid selling.

In this setup, the participants earn revenue from a binary compensation system. Same as in single-level marketing, the salespeople directly sell products to retail consumers. Besides that, they receive incentives or commissions by recruiting other people to become down line distributors.

Participation in an MLM business usually involves the purchase of the company's products as a starter kit. This practice enables the participants to use the goods on their own before promoting them to consumers.

If the MLM business focuses primarily on selling its products to customers, it is highly likely it is a genuine multi-level marketing company. Though the recruitment of new members is essential, it should not be the workforce's principal goal. Otherwise, it becomes similar to the famous pyramid schemes.

One difference between these two business models is the lack of products or services in a pyramid scheme. As such, the business becomes unsustainable as the revenue only comes from the recruitment of potential investors, who pay to have a place on the pyramid.

Now that you understand the crucial difference between a legitimate MLM business and a pyramid scheme let us discover how you can make money with this venture.

How To Make Money With MLM?

I mentioned representatives have two methods to obtain revenue from their MLM business. We will go over those techniques in detail.

1. Sell the products.

To sell the products, you must first choose the right company. Multi-level marketing is a business model, so treat it similarly to how you will consider investing in potential business.

Look for a stable company that has been in the business for five years or more. This detail ensures that it has achieved a level of stability in the market. 

I would also recommend going to a publicly-traded company. These businesses disclose their financial condition and stability. You can find almost anything on the Internet these days, so you should investigate the company and its management’s integrity.

Then, find excellent products that consumers will use. I recommend trying out the product yourself before you sell it. The power of word-of-mouth is immense, and using the goods will help you make a better pitch to potential customers. 

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Lastly, research the company’s compensation plan. Since you sell its actual products, a part of your sales will go to the business. In multi-level marketing, the person who recruited you will also receive a portion. 

Acquaint yourselves with the different types of compensation plans and evaluate if the company has fair and generous practices.  In one section of this article, I will list some marketing methods and tools to increase your product sales.

MLM business model

2. Build downlines

With multi-level marketing, you get more commissions, the more recruits you have. Legitimate MLM companies will let you undergo training to learn recruitment strategies.

You can reach out to the top earners in your industry for tips and techniques to improve your network. Likewise, you can listen to podcasts and join webinars to learn from people outside your social circle.

In this digital age, you can capitalize on social media to build a relationship with total strangers. In most cases, it is better to recruit a cold market, as you usually share the targeted audience with friends and family.

Top Companies To Make Money in MLM

The multi-level marketing industry is massive, with some businesses operating on a global scale. However, I am sure you have heard a horror story or two about people who joined an MLM business and failed miserably.

One of the reasons for this disappointment is the company selection. You must select a stable organization with marketable products to make money in MLM. Otherwise, you will join the long list of people who tried and became unsuccessful.

Here are some of the best companies to make money in the MLM business.

1. Amway

This Michigan-based private company started in 1959 and has established an impressive reputation worldwide. It operates in over 100 countries, including China, Japan, India, Italy, Korea, and the United States.

The company’s first product was an organic cleaner, and its line later included laundry detergent, a haircare product, and cosmetics. Now, the business manufactures over 400 unique items, including Nutrilite nutrition supplements.Its primary brands include health and beauty products, a water filter, and energy drinks and snacks.

The company calls its down line representatives, independent business owners, or IBOs, and it has roughly 16,000 employees worldwide. In 2018, the business reported gross revenue of 8.8 billion dollars.

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MLM business plan sample

2. Avon

This UK-based private company started in 1886, making it the second oldest MLM business on our list. Besides multi-level marketing, it utilizes a door-to-door business model to promote its products.

The company primarily deals with beauty, household, jewelry, and personal care products, operating under the brand names Avon Naturals and Skin-So-Soft. It has millions of representatives worldwide and operates in nearly 100 countries.

You have probably heard of the phrase Avon lady, a term the company calls its female distributors. The business has training centers for potential representatives to ensure these people know how to correctly sell and promote its wide range of products.

Avon also participates in philanthropic causes. Its foundations advocated against domestic violence and encouraged breast cancer research. Though most people associate female salespeople with Avon, men are also welcome to join.

The Texas-based private company started in 1963 and primarily productin six categories: facial and skincare, cosmetics, body care, nail care, sun protection, and fragrance. It has a sturdy presence in the United States, but it also has large markets in Mexico, China, and Russia.

The company calls its salespeople independent beauty consultants or IBCs, which numbered at 2.5 million in 2017. Depending on your level, it offers a compensation plan of up to 50 percent.

Mary Kay has an impressive product development process, and it also provides high-quality sales tools to its IBCs, like a top-notch website and detailed marketing materials. The company’s most well-known incentive for top distributors is the pink Cadillac and a black BMW.

multi-level marketing

fastest growing MLM business opportunity

This California-based public company started in 1980 and has since established an excellent reputation in the health and nutrition industry. It primarily develops dietary supplements for weight management, sports nutrition, and personal care.

Herbalife has operations in over 90 countries, with nearly 9,000 employees and roughly 4.5 million distributors. Though the company has been in several scandals in the past, it maintained an estimated net income of 296 million in 2018.

This private American company started in 1946, and it has been around for so long that people sometimes call all plastic containers Tupperware, even if they come from a different brand. It focuses on the production and distribution of plastic products for the home and kitchen.

Though the business sells plastic storage containers, it commits to keeping its products BPA-free since 2010. The fact that the items are recyclable and environment-friendly makes for an excellent selling point when you pitch to consumers and potential consultants.

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6. Vorwerk

This Germany-based organization started in 1883, making it the oldest MLM business on our list. It primarily focuses on the distribution of household appliances and cosmetic products.

The limited partnership has its hands of several fields of business: kitchen appliances, cosmetics, body care products, infrastructural facility services, and financial services. The company does not limit its products to direct selling, as it also promotes its products online.

Vorwerk’s products have high-quality, though they are usually quite expensive and have a long lifespan. The business does apply the concept of multi-level marketing to encourage distributors, but its primary focus is the sales of its various home products.

The Hong Kong-based company started in 1992 and operated primarily in the Asian market.

Its product line has four groups: health, skincare, personal care, and home.

The business placed particular emphasis on the MLM business model, with recruits required to pay a membership fee.  These distributors have immediate benefits, including industry training, leadership support, regular company updates, and discounted prices on the Infinitus products.

Some people find their compensation plan complex, so this business may not be the best option for your first MLM venture.

However, it does have a global reach and one of the least expensive registration fees.

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Why Should You Create a Blog for MLM?

Before we proceed, let us review the two ways to make money in an MLM business: selling the actual products and building down lines. When multi-level marketing first started as a business model, salespeople had to go door-to-door and host parties to promote the merchandise and recruit other people.

Now, there is no harm in throwing a good old-fashioned party and leverage your current network. I would draw the line on going from house to house due to safety and security concerns.

However, marketing strategies should also adapt to changes in the industry. And one of the best ways to advertise your MLM business in this digital era is through bloggingHere is something I wrote for 9 killer marketing strategies to launch your next online business, you can check it our right here.

Most people start a blog as a means to generate income as a sideline, although some begin their blogging career for more altruistic purposes. Since almost everyone can go to the Internet nowadays, house calls and get-togethers have become quite outdated.

The best thing with blogs: you can create one for the actual products and another for your MLM network. You can also monetize your blog in several ways, such as affiliate marketing, advertisements, and sponsored posts.

Before you post your products online, though, I recommend first creating your brand. This step involves establishing your authority on a specific niche.

Writing articles on a narrow subject would drive targeted traffic to your website, making your potential customer base much more significant once you blog about your products. Having a brand persona will also help you connect with readers.

Think about it: visitors go to your website for you, and they will eventually purchase your products because of your trustworthiness. This part sounds very promising, but you should remember that establishing that concrete customer base takes a lot of time and effort.

Nevertheless, taking advantage of digital platforms is one of the best methods to grow your MLM business. If you now have the motivation, let us discuss the technical aspects of creating an online blog.

How To Create a Blog for MLM

For now, let us set aside the content of your blog; instead, let us focus on three aspects of creating your website: themes, platform, and web hosting. I will provide you some options on these parts, but the design for your blog should match your chosen niche.

So let us say your MLM business sells energy drinks and health supplements. It will make little sense if you choose dark and gloomy colors that do not reflect your merchandise’s positive and lively nature.

In the same way, you should think long and hard about your domain name, as you will be stuck with it for a long time. Choose a title that reflects you and your niche so that your audience can easily set you apart.

Best Themes

Regardless of your hosting platform, themes are templates that make the foundation of your blogging website. You can design or make changes to the layout of your blog pages even without extensive coding knowledge because of these templates.

Themes usually come in two forms: free and premium. Most beginners choose the complimentary versions due to tight funding, but these templates generally have limited features and functionality.

If funding is not that much of an issue, you can purchase premium templates from the hosting platform or third-party developers. This version allows for more customization and functionality, and you also get to receive 24/7 technical support.

This website builder is a dedicated service for WordPress (WP) users. Although this one received recommendations from Yoast and WP’s founder, Matt Mullenweg, other software solutions will also work with WP.

One of StudioPress’s benefits is its SEO-friendly framework. Its clean code translates to fewer technical problems that may affect your website’s ranking in search engines. Plus, it also improves the user experience by making your pages load fast and run smoothly.

StudioPress is also an established online brand that saves you from risking your web’s design on independent developers who may not provide updates or maintenance. The reliability of the framework is an excellent selling point for choosing themes on this platform.

The platform boasts of lightweight code, ensuring your WP loads instantly, and mobile-responsive designs on HTML5. As if all those attributes were not enough, StudioPress tightened its code security and made its themes accessibility-ready for the visual and hearing impaired.

StudioPress’ themes do not have as many options for customization than other website builders as it focuses on creating outputs that deliver all-in-one services. In case you want to personalize yours, you can always take advantage of lightweight plugins like the Genesis Responsive Slider and Genesis Simple Edits.

Compared to StudioPress, this marketplace sells themes to a wide variety of platforms and HTML websites. It provides ideas for e-commerce, businesses, portfolios, and other online industry segments, making it a popular destination for website builders.

Anyone who can design a theme can post their work on ThemeForest after passing a screening process. This fact is why most options on the platform come at a more affordable price, a deal-breaker for some beginners.

ThemeForest has an impressive selection of design options, and you can also customize a lot of features. However, it does require you to have more extensive knowledge of coding to set up the themes. Plus, code maintenance and updates vary per product, as each item may have different authors.

Astra theme is the one I am using on a couple of my websites, including this groprone.com and I really think it’s one of the best ones nowadays. I also use Elementor Pro and Thrive Architect all on this same website. Using all of these together, you can do almost any kind of designs, quizzes, exit pop-ups, etc.

Best Hosted Platform

One of the first things you will choose when creating your blog is the hosting platform. There are numerous options available online. However, depending on your coding skills, I recommend choosing one that is easy to set up with a short learning curve.

You probably have a definite vision for your blog today, but the platform must have the flexibility to allow you to make changes eventually. Most hosting platforms have a free version with limited features. With all the options, I will focus on the top five hosting platforms I recommend.

1. WordPress.org

If you are a tech-savvy blogger who wants total creative freedom on your platform, WordPress.org is for you. This website offers open-source software at no cost, allowing millions of people to launch their blogs online.

It provides complete flexibility on your website, but it does require you to have some technical coding skills to take advantage of this feature. WordPress.org has over 54,000 plugins to choose from, including forums, online stores, membership, and newsletter systems.

A primary downside is the steep learning curve. Either you try to learn all those coding requirements on your own or hire a web developer. Plus, although the software is free, you will have to purchase hosting and domains to get your website online.

2. Wix

This site builder has a free version that allows you to host your website as a subdomain. If you prefer to use a custom title and remove Wix ads on your pages, you would have to purchase a premium plan.

What I like about this platform is its intuitive interface, allowing you to drag and drop features even with zero knowledge on coding. Compared to WordPress.org, this builder is perfect for beginners who want a blog and a website.

Upon purchasing a premium plan, you also get access to 24/7 technical support through phone and e-mail. Though it has less blogging features than other platforms and lacks storage space, it is the best choice for beginners on a budget.

This hosting platform targets explicitly artists and designers because of its design templates and polished layout. Unlike Wix, you cannot use Squarespace for free. Instead, you have to choose from its limited number of pricing plans.

The company boasts top-of-the-line aesthetics, with designs like grid layout and 3D scrolling to give your blog a distinctive look. Some of its blogging features include displaying blogging categories, allowing comments, and adding an RSS feed.

Aside from those high-quality templates, you also get to have creative freedom with customization. If you place high importance on your blog’s visuals, Squarespace is the way to go. However, it is more challenging to use than Wix, especially for beginners.

This website builder is similar to Wix with its drag and drop functionalities. Beginners will find the platform easy to use, and it offers a vast range of blogging features. Some attributes include comment management, social bookmarking, an easy-access archive, and scheduled sharing.

Weebly offers a free plan with a subdomain, but purchasing the lowest-priced policy already allows you to connect a custom domain. Some people feel that Weebly has limited long-term growth options, but you can upgrade to an advanced plan for more functionality.

5. Blogger

This free blogging platform is the oldest on our list, and it is perfect for non-technical users. Likewise, you can expect essential blogging tools. Since Google acquired the company in 2003, you can now use your Google details to log in.

Blogger has a free version that comes with a subdomain and an SSL certificate. Since Google manages the company, it developed a secure and reliable reputation. The website builder sticks to the bare essentials, but you can still come up with an eye-catching platform.

Some of its limitations include the character count and the number of blogs. Also, you can only monetize your website through the use of Google ads.

Best Web Hosting

If you plan to use open-source software like WordPress.org to build your MLM business website, you need to look for a web hosting provider. In that scenario, you will virtually place your blog on somebody else’s server, so this step always comes with a fee.

However, taking advantage of a web hosting provider’s services is much cheaper than you think. When selecting a provider for your blog, you have to take note of three factors:

  • Uptime –The higher the uptime, the more reliable a provider is. If the website often goes down, it will hurt your brand’s reputation and lose traffic.
  • Speed – Slow loading speeds will cause you to lose readers and get low search engine rankings.
  • Customer Support – Since someone else powers your website, you must reach them when you need assistance.
Keep these three elements in mind when picking a web host. To help narrow your search, here are three of the best web hosting providers today.

This hosting provider has an impressive uptime of 99.99 percent, making it my top pick. WordPress also officially recommends this company.

Some of its features include fast and competent customer support and a 30-day money-back guarantee. If you plan to use WordPress as your site builder, it is the best option with competitive pricing. Its primary disadvantage is the small storage space for basic plans.

This provider does not fall far behind Bluehost in terms of uptime, clocking in at an average of 99.97 percent six months. The company has unlimited bandwidth and storage, which is why millions of websites use it worldwide.

Some of its features include a 45-day money-back guarantee, free migration to WordPress, and regular backups. Though new users get an extremely competitive price upon signup, renewal costs are much higher.

This web host offers a more expensive basic plan than the other two, but it provides excellent customer support with all the necessary blogging features. It has an easy-to-use interface with an uptime of 99.98 percent.

Some of its features include free SSL certificates, site migration, e-mail accounts, daily backups, and a content delivery network. One downside is its limited storage space for basic packages.

How To Write a Blog for MLM

One of the most demanding steps in putting up a blog is creating your content. If your primary goal is to drive traffic to your website and generate income, your blog articles should have relevant and helpful insights.

Here are some tips to help you come up with the first article for your MLM business.

1. Address a targeted audience.

If you search online, there is almost always every kind of blog. Whether you target students who are fresh off college and full-time moms who want a side income, your blog should have a specific group of readers. In this way, you get to build a connection with them.

2. Give something of value.

The chances are high that people will read your blog if your articles provide helpful information on a specific topic. People go on the Internet for a reason, and you want them to step away from their screens with new insights or a fresh perspective. I recommend sticking to tips, suggestions, and how-to guides to give benefit to your readers.

3. Use visuals.

No matter how eloquently you put your thoughts into words, fewer people will read your content if you present massive text walls. Around 65 percent of the general population prefers visual aids, so incorporating photos or custom images will undoubtedly increase your reach.

Challenges With MLM

All business models have their weak points, and multi-level marketing is no exception. Awareness of these challenges will improve how you handle your MLM business.

You may have started in the industry recently or have been a consultant for some time. Regardless of your status, this section will address the typical challenges one encounters in multi-level marketing. Likewise, I will give you concrete tips to overcome these obstacles.

But, you have to commit yourself. Most people find it easier to give up than experience all these challenges. However, you will never reach your goals with that mindset.

Even when the times get tough, you must hold on. Here are some roadblocks you might face in your MLM business journey.

Lack of quality people

With multi-level marketing, the business requires you to recruit high-quality people. Many join an MLM business but rarely do they put in the work to succeed. If your primary targets for recruitment are close friends and family, I recommend that you look further than your current social circle.

These people will most probably join your business to support you, but multi-level marketing needs individuals who genuinely put in the work. The key to discovering quality people is recruiting up.

Instead of engaging people with zero skills and experience, reach out to those who have the drive and work ethic to succeed in their chosen career field. These people usually have an excellent attitude with a large sphere of influence and reliability.

Overpriced products

Most MLM companies have high, fixed prices on their products, making it challenging for their distributors to sell. With the rise of e-commerce, customers can usually buy similar products at a much lower cost. If your chosen company does not offer unique and patented merchandise, making sales is an immense challenge.

The best solution is to find a company that focuses more on the products and customers than the second level of MLM. Often, these businesses provide exceptional and fast-moving goods at a fair price point.

No system

Successful companies have systems in place for every aspect of the business. These segments include training, sales, marketing, and lead generation.

Having no concrete method in place is a guaranteed recipe for failure.If you plan to join amulti-level marketingcompany, ask your sponsor of systematic techniques for training, sales, etc.

Their answers will help you manage your own business, including taking care of your down lines. If your sponsor cannot give relevant answers, it would be best to steer clear that organization.

Bad reputation

Let’s face it – the multi-level marketing industry has gained a bad reputation due to scandals and fraudulent practices. Even if you have a worthy product, it is challenging to overcome negative perceptions.

You cannot change the way people think, but you can transform yours. If it helps, imagine yourself as a corporate executive. This mental image will help you keep your professional persona at all times. People turn away from untrained individuals who use hype and pressure, and you want to avoid that.

Best Marketing Methods and Tools To Increase Sales And Customer Lifetime Value

Regardless of the industry, all businesses depend on marketing to attract new customers. With MLM, marketing will also help you build a distributor network. 

If you plan to use a blog to promote your MLM business, you must have a marketing plan to generate traffic. Here are some methods that you will find useful for your online business.

Social media sharing

Nobody should underestimate the power of social media, even in the direct-selling business. Platforms like Facebook and Instagram are excellent methods to promote your products. You can choose to use free accounts for a more organic way of building an audience. But if you have funds to spare for advertising, these websites can run your merchandise in ads for a fee.

E-mail marketing

If you are putting up a blog, website, or online business, e-mail marketing is necessary. It is one of the oldest forms of advertising, but this method has never lost its touch. Some tools you can use are AWeber, ConvertKit, ActiveCampaign, GetResponse, MailChimp and Drip. These e-mail applications also offer automation and reporting to track your progress.

We have finally come to this guide’s conclusion. I sincerely hope that you found all this information about multi-level marketing helpful. If you find that MLM business is not for you, you can check other business types, such as e-commerce, like dropshipping and Amazon FBA .

Not all businesses work out for everyone, as people have different strengths and weaknesses. However, I believe that the determination to succeed is a crucial factor in any business venture. You already have the resources for building an MLM business; the rest is up to you.

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