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What is MLM (Multi-Level Marketing)? Top 10 MLM Companies (2025)

What is MLM Business & How Does it Work?

MLM or Network Marketing has been around since the 1950s with the start of Amway the first Multi-Level Marketing Company in the world.

Complete MLM (Multi-Level Marketing) Guide For Beginners

This marketing concept is quite popular and also became very controversial after many companies entered with the idea of Ponzi schemes.

Many people consider this industry to be illegal with several ideas of pyramid schemes that lure naive consumers with the idea of getting-rich-quick schemes.

In order for you to understand whether it’s legal or illegal you need to read the guidelines by FTC or as per your government in your country.

MLM has proven to be very effective and life-changing for many entrepreneurs around the world.

However, at the same time, there are also many people who fail in this industry who further talks about why it doesn’t work.

So let’s see a bit about the direct selling industry in this post.

Multi-Level Marketing also known as the direct selling industry, is a marketing concept used by companies to sell products to consumers using a chain of distributors. When you join an MLM company you become a distributor and to get a commission or a profit you sell those company products to consumers.

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The direct selling business model eliminates the middle man such as suppliers, wholesalers, and retailers. Products are made available directly from the company to the distributors also known as members. Those members, through the word of mouth, bring more members which are referred to as downlines in his/her hierarchy.

This trend continues, which results in more and more new people in the company which makes the structure Multi-Level. With Network Marketing you get a commission based on your direct referrals and the group volume, depending on your company.

History of MLM (Network Marketing):

In 1949 two entrepreneurs named Rich Devos and Jay Van Andel joined an American healthcare company called Nutrilite. For the next 10 years, they continue their journey with the company as successful executives. Finally in 1959 after a decade both entrepreneurs realized that it’s not fair for employees who work their whole life and do not get what they deserve.

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So, they decided to start their own company called Amway with a product distribution system using the idea of Multi-Level Marketing. This system allows them to give a win/win situation to the distributors and the company by eliminating all the middle man.

Suddenly in 1975, the FTC (Federal Trade Commission) in the US decided to take Amway to the law court accusing them of a pyramid scheme business. The term Pyramid scheme comes when a business is operating with an illegal transaction without a legal product or service. This idea manipulates consumers with rewards to recruit more new distributors, paying old members from the revenue generated from the new ones.

1979 Amway wins the case and created the wave of the Network Marketing industry in the world. Since then many companies have started using the concept of MLM to distribute and generate revenue with direct selling. In the last 60-70 years many Multi-Level companies have come and gone, but few of them survive long enough because of lawful & honest business conducts.

Is Multi-Level Marketing Legal?

Multi-Level Marketing Business is completely legal provided the companies abide by the FTC terms or the government guidelines. Network Marketing companies which follow lawful conduct under section 5 of the FTC act, with a legitimate compensation structure with a product or services are legal.

However, there is much confusion concerning pyramid schemes, and MLMs, since many companies enter the market with deceitful practices. In fact, the pyramid structure is legal and also considered one of the most solid structures concerning businesses.

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Every hierarchy in businesses across the globe has a pyramid structure, starting from the CEO to CFO, Directors, Senior Managers, Managers, Executives, and so on. If the pyramid structure is illegal, every business has to be illegal too. An MLM pyramid structure becomes illegal when companies try to lure people with unrealistic schemes.

Such an illegal pyramid scheme pays old distributors with the revenue generated from new distributors without a legal product or services, in exchange for the money. And hence, when the flow of new distributors joining the company stops, the payout will also stop. Many such companies have created a bad impression of some good companies in the direct selling industry.

Why Do People Hate Multi-Level Marketing (MLM)?

Well, not only in the Network Marketing industry, you will find haters everywhere. When you are dealing with Millions and Millions of people, how in the world can you satisfy everyone? That is Impossible. But considering the fact that MLM is one of the most controversial Marketing concepts in the world, let’s see both sides of the coin.

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On one side the Direct Selling industry is highly regarded and preferred by big entrepreneurs like Robert Kiyosaki, Bill Gates, Tony Robbins, etc. On the other side, there are entrepreneurs who are completely against it and will not join any MLM companies even at gun points.

The reason why many people hate it may be because of many reasons. Some of them might be:

They hate selling products and services to people
Many of them got cheated by illegal Ponzi schemes
Some people face rejection after rejection and never succeeded.
You invested a lot and never got a penny back.
People think products are expensive and rip-offs.

Whatever the reason might be, some people think it’s the best and some think it’s a rip-off business. I myself am not involved with any MLM companies and I use technology to build a passive income through blogging.

But I still considered some of these Multi-Level Marketing companies and their concept to be the best to create passive income if you are good with people. Anyway, success and failure, all depend on the person who is in the game. You and your action will ultimately decide who you become.

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Top 10 MLM Companies In The World (2023):

The Top Network Marketing company list has been mentioned in our previous post and you can check it here too (Top 50 Network Marketing MLM Companies)

Amway:

Amway is the First MLM Company in the world which was established in the year 1959.

Avon:

Avon is another network marketing leader in the Beauty Industry.

Herbalife:

Herbalife is a Top MLM company, headquartered in LA, California which provides Top quality health care products purely herbal.

Vorwerk:

Provides High Tech Kitchen Appliances.

Mary Kay:

Another Big name in the Beauty Industry

Infinitus:

Chinese Company based on healthy living

Perfect:

Health care beauty, the personal care Chinese company

Natura Brasil:

Brazilian Skincare and spa product company

Tupperware:

Deals with kitchen Innovative products

Nu Skin:
US-based MLM with spa tools and supplements.

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Best Selling MLM Products:

Most MLM companies manufacture high-quality FMCG products (fast-moving consumer goods) and are a Multi-Billion dollar industry. Some of the products have proven from time to time with huge sales volumes and high demand in the market. A Few top-selling Multi-Level Marketing products may be categorized as follows:

1. Health Care Products:

Global health care is a Multi-Trillion dollar industry and in the US alone health-related products are at top of the list. Healthcare product demand is the highest in the US compared to any country in the world. Some of the highest-selling MLM healthcare products are:

Weight Management Products
Supplements & Vitamins
Energy Drinks
Sports Nutrition

2. Beauty & Cosmetics:

The beauty and cosmetic industry hit $50 Billion in the year 2019-2020 in the US alone and is the most popular MLM product next to health care. Some of the highest-selling cosmetic products are:

Facial Products
Anti Aging
Acne Treatment Products
Moisturizing Creams
Hair Products
Eye Shadows, Lipsticks

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3. Personal Care Products:

Personal care products are the daily FMCG items that consumers need in their daily life and the demand is huge for these products. Some popular personal care items are:

Shower Products
Hair Care
Oral Care Products

4. Home Care Products:

Home care products have higher profit margins and some of the top MLM companies provide high-quality concentrated home products.

Surface Cleaners
Water Treatment Products
Disinfectant Products
Dishwashers
Air Treatments
Cookware Products

There are also companies like Vorwerk which manufactures high-tech Kitchen appliances which make your kitchen activities simple and easy.

MLM, Direct Selling Business FAQs:

When you are an inexperienced new beginner in the Network Marketing Industry there may be certain questions that you may ask. Let’s see some FAQs of the MLM Industry:

Q. Is MLM Legal in all countries?

Answer: Network Marketing is completely legal in almost all countries, provided it follows lawful business practices. In some countries like Mainland, China MLM is considered illegal.

Q. How Much Money do I need to start a Direct Selling Business?

Answer: Most Multi-Level Marketing business has an initial start-up cost of $50-$100 in the beginning. It also depends on the companies you are joining.

Q. How much Money Can I Make with a Multi-Level Marketing Business?

Answer: Since the Biz involves the selling of products and services, the profit margin can be anywhere from 10-15% per sale. You will also get a percentage of the group sales volume in your team as well. Earnings totally depend on the person who is doing the business. The sky is the limit.

Q. What are the Chances of My success with Network Marketing?

Answer: Network Marketing is certainly not an easy business and is not for people who hate selling. So think hard before you join a company and make the decision. The chances of your success depend on how dedicated you are and what you are willing to do to achieve success.

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Q. Is it a Pyramid Scheme?

Answer: An illegal pyramid scheme and Multi-Level Marketing are different. There is nothing wrong with the idea of MLM if it involves honest business practices with high-quality products.

Q. Does MLM involve knocking on doors and selling?

Answer: Network Marketing involves selling and yes you will be selling something if you are in the direct selling business. Not necessarily, you don’t need to knock on every door and it’s about creating a highly trained workforce to multiply your results.

Q, How long does it take to be successful in a Multi-Level Marketing Business?

Answer: Well, success in a Multi-Level Marketing business is a long-term goal and certainly it is not going to happen in 3 months or 6 months' time. For many, it takes 2-5 Years of hard work and for others, it takes 10 years or more. The Sad part is many people quit in 3-6 months with credit card debt.

Q. Why are Most MLM products expensive?

Answer: The Products available in Network Marketing are usually higher in price compared to the normal products. This may be because of High quality and highly concentrated products which may give better results than normal ones.

Q. What are the Best MLM companies to join?

Answer: We have given some of the Best MLM companies here in this post. You may also check other Network marketing based on the niche you are interested in.

Q. Will the market get saturated?

Answer: Market saturation is out of context and is an unrealistic idea based on those people who don’t know the human birth and death rate. The moment you are reading this post, already 10,000s human beings are born on this planet. Saturation will never happen to any market as long as new human beings are being born, every single day.

Q. Do they have Money Back Guarantee?

Answer: Many of the big companies give money back if you return the products in the conditions they want. Read the company policies before you purchase.

Pros & Cons of MLM Business:

Every business in the world has its benefits and disadvantages. Let’s see some good and bad things about the Network Marketing Business.

Pros:

MLM business requires a low start-up cost.
You can work part-time to make extra money from home.
Through training, personal developments are great for your future.
One of the better choices for making passive income from home.
Products are mostly high quality and helpful to people’s needs.
Teamwork may be exciting.
Group of Like-minded people trying to achieve a goal.
A win/win situation for everyone.

Cons:

Sometimes MLM plans are too pushy toward people.
Definitely not for people who hate sales and approaching people
The Failure rate is high if you are not patient.
Rejection after rejection you will face for sure.
A Lack of proper knowledge is dangerous.
Too many Network Marketing companies can be confusing for a beginner.
Results are not going to happen fast.

Final Thoughts About Multi-Level Marketing:

With all the people who hate Multi-Level Marketing Biz to the core and to the people who make it big time in the game, it’s confusing for a beginner. Certainly, MLM is not for people who don’t have thick skin. You are reading this because you want to Make Extra Money and have financial freedom. Now that you know about the business, it’s completely up to you to score in the game. Know your WHY, make a strong decision, and choose your path carefully. You too can do it, if someone else can make it happen.

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