Top 10 Ways to Choose a Great Network Marketing Opportunity

Top 10 Ways to Choose a Great Network Marketing Opportunity
From John Venezia, CLU, ChFC
See More About:
• network marketing
• business opportunities

There are a few network marketing opportunities that are just scams. There are far more that may be well-intentioned, but have a poor track record, for any number of reasons. So how do you separate the wheat from the chaff? Here are ten tips to help you pick the right network marketing opportunity for you.
1. Has the company been around for at least 5 years?
If you want the efforts you put in today to pay off for many years in the future, choose a company that has proven that it will be around for the long term. 90% of all network marketing companies FAIL within their first 2 years. You don't want to invest your precious
time and resources (not to mention your future) in something that may not be in business next month, do you?
2. Is the company well capitalized?
In other words, does it have the cash that it will need to grow, to maintain a solid infrastructure, to attract talented management, to keep pace with technology — and, of course, to pay your commissions! (I prefer publicly traded companies because they're required to disclose their financial condition in DETAIL every 90 days to the SEC and other governmental agencies. You may not be able to obtain this information on a private company, so you'll be taking a risk on its financial condition.)
3. Does the company offer products or services that are unique?
That is, they're not readily available elsewhere (especially at a discount) and they're not just another "me too" product that has loads of competition.
4. Is there a genuine need for the product or service?
You've probably heard horror stories about people ending up with a garage full of expensive water filters - the reason that happens is because only other distributors will purchase the product at that price! Your product or service must fill a REAL need at a fair price - and there should be a large untapped market for it. In other words, it MUST provide tremendous value, so the customer is the biggest winner.
5. Is the product or service trendy or a fad?
You can't build long term residual income (i.e., your retirement!) if the product or service only has short term appeal (e.g., beany babies, etc.). Think long term instead. Is the product or service something that your customers will continue to use for a long time?
6. Can you generate immediate income?
So that you can finance your marketing and expansion efforts from cash flow.
7. Does the marketing system take full advantage of technology?
Not everyone is a sales type, but ANYBODY can plug into a system and tools that do the selling and sorting for you!
8. Is the person who is introducing you to the opportunity committed to YOUR success?
If they are, the company is strong, and the product or service is a winner, (and, of course, you're willing to learn) you WILL succeed. There's a big difference between a "sponsor" and a "recruiter." A sponsor coaches. motivates and trains and a recruiter just signs people up and in most cases, abandons them.
9. Is there a way to build your business part-time without losing your full time income?
The company must have automated systems that can do the heavy lifting (i.e., selling and sorting) for you so that you can use your limited time efficiently.
10. Will you have FUN?
Although this may not be an element of your current JOB, we think it's important! You should have a lot of fun with your business partners while you work together to build a long term business and your financial army.
So there you have it — ten criteria for selecting a superior network marketing opportunity. Of course, even with a great company, there's no such thing as a free lunch. You WILL have to work! But, with the right opportunity (unlike your job), it won't have to be forever!
___________________________
John Venezia is a career insurance and financial services professional, both a Chartered Life Underwriter (CLU) and Chartered Financial Consultant(ChFC), who after 24 years in the Insurance industry decided to also explore network marketing as a business model. Since finding a company that met his criteria, he has built a team of 1,600 people in the last 6 or so years, many of whom are also insurance and financial services agents.

The Top 25 Network Marketing Companies

The Top 25 Network Marketing Companies
by The Staff at Nexera™ LLC

Who are the Top 25 Network Marketing Companies? Well, it really depends on how you define "The Top 25..." As you might imagine, the truth can be a bit subjective. For example...

The best-selling car in the World is the Toyota Corolla. Apparently it's a great car, and yet at the same time is probably not the car of your dreams. Which begs the question, "Does an MLM company deserve a higher ranking simply because more people are involved?" It's a fair question. Here's what we know for sure: Popularity is definitely one of the best ways to determine what's going on in the marketplace. It plays a part in the movies we see, the music we download, and sometimes even where we invest our money.

So is "The Top 25..." just an online popularity contest? Not exactly. To make a fair assessment we gave consideration to things that really don't matter; for instance, 24 of the 25 companies are members of the DSA. And to things that really do matter; like Time In Business!

In short, we wanted you to know the exact criteria we used in order to select, and then to rank, "The Top 25..." You may agree with our findings, or you may not; we welcome your thoughts and opinions either way. Here's the Nexera Five-Factor Formula we used to make our selections:

1) The company must be a self-described Network Marketing, Multi Level, or MLM company.
2) The company must be in business for at least 10 years as of January 1, 2010.*
3) The company must have a Google Page Rank - GPR. A scale of 1 to 10 with 10 being best.
4) The company must have an Alexa Rank - AR. Here the smaller the number the better.
5) The company must show up in Google Trends - GT. All Regions. Last 12 months.**

The five factors above are taken into account at the end of each quarter, and then a ranking decision is made. As of June 30, 2010, The Top 25 Network Marketing Companies are:

Company	Time In Business	GPR - AR   -  GT
1. Amway	1959 - 51 Years	6 -   8,827   - 1.88
2. Herbalife	1980 - 30 Years	6 - 28,745   - 2.10
3. ACN	1993 - 17 Years	6 - 25,913   - 1.12
4. USANA	1992 - 18 Years	5 - 14,192   - 0.44
5. Pre-Paid Legal	1972 - 38 Years	5 - 15,181   - 0.04
6. Nu Skin	1984 - 26 Years	5 - 21,184   - 0.18
7. Forever Living	1978 - 32 Years	5 - 39,035   - 0.38
8. Arbonne +see footnote	1980 - 30 Years	5 - 45,151   - 0.68
9. 4Life	1998 - 12 Years	5 - 66,884   - 0.12
10. Shaklee	1957 - 53 Years	5 - 86,528   - 0.21
11. Advocare	1993 - 17 Years	5 - 111,544 - 0.11
12. Sunrider	1982 - 28 Years	5 - 174,567 - 0.10
13. AmeriPlan	1992 - 18 Years	4 - 43,066   - 0.12
14. Nikken	1975 - 35 Years	4 - 69,578   - 0.30
15. Nature's Sunshine	1972 - 38 Years	4 - 51,775   - 0.01
16. Freelife	1995 - 15 Years	4 - 61,325   - 0.03
17. Tahitian Noni	1997 - 13 Years	4 - 68,887   - 0.15
18. Reliv	1988 - 22 Years	4 - 144,541 - 0.10
19. Amazon Herb Company	1990 - 20 Years	4 - 161,757 - 0.01
20. Oxyfresh	1983 - 27 Years	4 - 186,543 - 0.01
21. Team National	1997 - 13 Years	3 -   93,588 - 1.10
22. Neways	1994 - 16 Years	3 - 105,702 - 0.17
23. GNLD	1958 - 52 Years	3 - 121,571 - 0.07
24. Univera	1992 - 18 Years	4 - 259,655 - 0.04
25. New Vision	1995 - 15 Years	3 - 380,925 - 0.51

*Why 10 years? Because that amount of time really seems to matter. For example, according to research, since 1957 thousands of different MLM, Multi Level, or Network Marketing companies have opened their doors; and to date only 50 MLM companies have found a way to celebrate their 10th anniversary and still remain in business today. Now, to be completely fair, we should also point out that each and every company on our list was at one time a start-up company too.

**For purposes of comparing Internet search term interest using Google Trends (GT), all 25 companies were compared to the term, MLM. A score of 1.00 would indicate the same level of Internet search interest; anything above 1.00 more interest, anything below 1.00 less interest.

+According to an online post by Chapter11Library.com: Natural Products Group, LLC, the holding company for Levlad, LLC and Arbonne International, Inc. filed for Chapter 11 on January 27, 2010. Arbonne's Chapter 11 Reorganization Plan was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware on February 22, 2010, and became effective on, March 5, 2010. As of that date, Arbonne International, Inc., along with its parent company, Natural Products Group, Inc., and related U.S. entities have all officially emerged from the Chapter 11 reorganization process.

A few noteworthy points on this list... The only companies considered for this list are U.S.A. based; and if you click on each and every company linked above, what you will not find should be as interesting to you (and as revealing) as what you will find. There are no travel companies, only one technology company (ACN), just three services companies (Pre-Paid Legal, AmeriPlan, and Team National), and 21 health and wellness companies. Even Amway, whose core product line still includes soap, really got started by way of the wellness revolution! Read this book by Paul Zane Pilzer and you'll understand why skincare, nutrition, and weight management products continue to drive the trends in this industry to this day.

Lastly, if the company is publicly traded, and six are, we have linked their year in business above, in red, over to MarketWatch for a real time stock quote and other financial information.

All the best,

The Staff at Nexera™ LLC

P.S. Network Marketing continues to gain in popularity throughout the world. By some estimates there are currently over 1,000 different companies to choose from, and yet the truth is the vast majority of these companies will never survive to celebrate their 10th anniversary. According to, Future Choice: Why Network Marketing May Be Your Best Career Move, "This week, 175,000 people will find a new way to increase their financial security and personal freedom. They will join more than 57 million others who are earning a living, full- or part-time, through Network Marketing." Therefore, if you are one of those people looking into Network Marketing, and would like to learn more, reading Future Choice would be an an excellent way to begin your journey.

The Top 25 Network Marketing Companies

The Top 25 Network Marketing Companies
by The Staff at Nexera™ LLC

Who are the Top 25 Network Marketing Companies? Well, it really depends on how you define "The Top 25..." As you might imagine, the truth can be a bit subjective. For example...

The best-selling car in the World is the Toyota Corolla. Apparently it's a great car, and yet at the same time is probably not the car of your dreams. Which begs the question, "Does an MLM company deserve a higher ranking simply because more people are involved?" It's a fair question. Here's what we know for sure: Popularity is definitely one of the best ways to determine what's going on in the marketplace. It plays a part in the movies we see, the music we download, and sometimes even where we invest our money.

So is "The Top 25..." just an online popularity contest? Not exactly. To make a fair assessment we gave consideration to things that really don't matter; for instance, 24 of the 25 companies are members of the DSA. And to things that really do matter; like Time In Business!

In short, we wanted you to know the exact criteria we used in order to select, and then to rank, "The Top 25..." You may agree with our findings, or you may not; we welcome your thoughts and opinions either way. Here's the Nexera Five-Factor Formula we used to make our selections:

1) The company must be a self-described Network Marketing, Multi Level, or MLM company.
2) The company must be in business for at least 10 years as of January 1, 2010.*
3) The company must have a Google Page Rank - GPR. A scale of 1 to 10 with 10 being best.
4) The company must have an Alexa Rank - AR. Here the smaller the number the better.
5) The company must show up in Google Trends - GT. All Regions. Last 12 months.**

The five factors above are taken into account at the end of each quarter, and then a ranking decision is made. As of June 30, 2010, The Top 25 Network Marketing Companies are:

Company	Time In Business	GPR - AR   -  GT
1. Amway	1959 - 51 Years	6 -   8,827   - 1.88
2. Herbalife	1980 - 30 Years	6 - 28,745   - 2.10
3. ACN	1993 - 17 Years	6 - 25,913   - 1.12
4. USANA	1992 - 18 Years	5 - 14,192   - 0.44
5. Pre-Paid Legal	1972 - 38 Years	5 - 15,181   - 0.04
6. Nu Skin	1984 - 26 Years	5 - 21,184   - 0.18
7. Forever Living	1978 - 32 Years	5 - 39,035   - 0.38
8. Arbonne +see footnote	1980 - 30 Years	5 - 45,151   - 0.68
9. 4Life	1998 - 12 Years	5 - 66,884   - 0.12
10. Shaklee	1957 - 53 Years	5 - 86,528   - 0.21
11. Advocare	1993 - 17 Years	5 - 111,544 - 0.11
12. Sunrider	1982 - 28 Years	5 - 174,567 - 0.10
13. AmeriPlan	1992 - 18 Years	4 - 43,066   - 0.12
14. Nikken	1975 - 35 Years	4 - 69,578   - 0.30
15. Nature's Sunshine	1972 - 38 Years	4 - 51,775   - 0.01
16. Freelife	1995 - 15 Years	4 - 61,325   - 0.03
17. Tahitian Noni	1997 - 13 Years	4 - 68,887   - 0.15
18. Reliv	1988 - 22 Years	4 - 144,541 - 0.10
19. Amazon Herb Company	1990 - 20 Years	4 - 161,757 - 0.01
20. Oxyfresh	1983 - 27 Years	4 - 186,543 - 0.01
21. Team National	1997 - 13 Years	3 -   93,588 - 1.10
22. Neways	1994 - 16 Years	3 - 105,702 - 0.17
23. GNLD	1958 - 52 Years	3 - 121,571 - 0.07
24. Univera	1992 - 18 Years	4 - 259,655 - 0.04
25. New Vision	1995 - 15 Years	3 - 380,925 - 0.51

*Why 10 years? Because that amount of time really seems to matter. For example, according to research, since 1957 thousands of different MLM, Multi Level, or Network Marketing companies have opened their doors; and to date only 50 MLM companies have found a way to celebrate their 10th anniversary and still remain in business today. Now, to be completely fair, we should also point out that each and every company on our list was at one time a start-up company too.

**For purposes of comparing Internet search term interest using Google Trends (GT), all 25 companies were compared to the term, MLM. A score of 1.00 would indicate the same level of Internet search interest; anything above 1.00 more interest, anything below 1.00 less interest.

+According to an online post by Chapter11Library.com: Natural Products Group, LLC, the holding company for Levlad, LLC and Arbonne International, Inc. filed for Chapter 11 on January 27, 2010. Arbonne's Chapter 11 Reorganization Plan was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware on February 22, 2010, and became effective on, March 5, 2010. As of that date, Arbonne International, Inc., along with its parent company, Natural Products Group, Inc., and related U.S. entities have all officially emerged from the Chapter 11 reorganization process.

A few noteworthy points on this list... The only companies considered for this list are U.S.A. based; and if you click on each and every company linked above, what you will not find should be as interesting to you (and as revealing) as what you will find. There are no travel companies, only one technology company (ACN), just three services companies (Pre-Paid Legal, AmeriPlan, and Team National), and 21 health and wellness companies. Even Amway, whose core product line still includes soap, really got started by way of the wellness revolution! Read this book by Paul Zane Pilzer and you'll understand why skincare, nutrition, and weight management products continue to drive the trends in this industry to this day.

Lastly, if the company is publicly traded, and six are, we have linked their year in business above, in red, over to MarketWatch for a real time stock quote and other financial information.

All the best,

The Staff at Nexera™ LLC

P.S. Network Marketing continues to gain in popularity throughout the world. By some estimates there are currently over 1,000 different companies to choose from, and yet the truth is the vast majority of these companies will never survive to celebrate their 10th anniversary. According to, Future Choice: Why Network Marketing May Be Your Best Career Move, "This week, 175,000 people will find a new way to increase their financial security and personal freedom. They will join more than 57 million others who are earning a living, full- or part-time, through Network Marketing." Therefore, if you are one of those people looking into Network Marketing, and would like to learn more, reading Future Choice would be an an excellent way to begin your journey.

Criticism of MLM

Criticism of MLM

The Federal Trade Commission (FTC) issued a decision, In re Amway Corp., in 1979 in which it indicated that multi-level marketing was not illegal per se in the United States. However, Amway was found guilty of price fixing (by requiring "independent" distributors to sell at the low price) and making exaggerated income claims.^[25][26]
The FTC advises that multi-level marketing organizations with greater incentives for recruitment than product sales are to be viewed skeptically. The FTC also warns that the practice of getting commissions from recruiting new members is outlawed in most states as "pyramiding".^[27] In April 2006, it proposed a Business Opportunity Rule intended to require all sellers of business opportunities—including MLMs—to provide enough information to enable prospective buyers to make an informed decision about their probability of earning money. In March 2008, the FTC removed Network Marketing (MLM) companies from the proposed Business Opportunity Rule:

The revised proposal, however, would not reach multi-level marketing companies or certain companies that may have been swept inadvertently into scope of the April 2006 proposal.^[28]

Walter J. Carl stated in a 2004 Western Journal of Communication article that "MLM organizations have been described by some as cults (Butterfield, 1985), pyramid schemes (Fitzpatrick & Reynolds, 1997),^[29] or organizations rife with misleading, deceptive, and unethical behavior (Carter, 1999), such as the questionable use of evangelical discourse to promote the business (Hopfl & Maddrell, 1996), and the exploitation of personal relationships for financial gain (Fitzpatrick & Reynolds, 1997)".^[29][30]
MLM's are also criticized for being unable to fulfill their promises for the majority of participants due to basic conflicts with Western cultural norms.^[31] There are even claims that the success rate for breaking even or even making money are far worse than other types of businesses:^[32][33][34] "The vast majority of MLM’s are recruiting MLM’s, in which participants must recruit aggressively to profit. Based on available data from the companies themselves, the loss rate for recruiting MLM’s is approximately 99.9%; i.e., 99.9% of participants lose money after subtracting all expenses, including purchases from the company."^[32] In part, this is because encouraging recruits to further "recruit people to compete with [them]"^[7] leads to "market saturation."^[35]
Because of encouraging recruits to further recruit their competitors, some people have even gone so far as to say at best MLMs are nothing more than legalized pyramid schemes^{[7][22][23][36]} with one stating "Multi-level marketing companies have become an accepted and legally sanctioned form of pyramid scheme in the United States"^[22] while another states "Multi-Level Marketing, a form of Pyramid Scheme, is not necessarily fraudulent."^[24]

Legality and Legitimacy

Legality and Legitimacy

MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new businesses may use terms like "affiliate marketing" or "home-based business franchising". However, many pyramid schemes try to present themselves as legitimate MLM businesses.^[6]
The FTC states "Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes. Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people-except perhaps those at the very top of the pyramid-end up empty-handed."^[19]
In a 2004 Staff Advisory letter to the Direct Selling Association, the United States Federal Trade Commission (FTC) states:

Much has been made of the personal, or internal, consumption issue in recent years. In fact, the amount of internal consumption in any multi-level compensation business does not determine whether or not the FTC will consider the plan a pyramid scheme. The critical question for the FTC is whether the revenues that primarily support the commissions paid to all participants are generated from purchases of goods and services that are not simply incidental to the purchase of the right to participate in a money-making venture.^[20]

The FTC warns "Not all multilevel marketing plans are legitimate. Some are pyramid schemes. It's best not to get involved in plans where the money you make is based primarily on the number of distributors you recruit and your sales to them, rather than on your sales to people outside the plan who intend to use the products."^[21] and states that research is your best tool, giving eight steps to follow:

• 1) Find — and study — the company’s track record
• 2) Learn about the product
• 3) Ask questions
• 4) Understand any restrictions
• 5) Talk to other distributors (beware shills)
• 6) Consider using a friend or adviser as a neutral sounding board or for a gut check
• 7) Take your time
• 8) Think about whether this plan suits your talents and goals^[21]

However, there are people who hold that all MLMs are nothing more than pyramid schemes even if they are legal,^{[7][22][23][24]} rendering the whole issue of a particular MLM being legal moot.

Income levels

Income levels

Several sources have commented on the income level of specific MLMs or MLMs in general:

• The Times: "The Government investigation claims to have revealed that just 10 per cent of Amway's agents in Britain make any profit, with less than one in ten selling a single item of the group's products."^[
• Scheibeler, a high level "Emerald" Amway member: "UK Justice Norris found in 2008 that out of an IBO [Independent Business Owners] population of 33,000, 'only about 90 made sufficient incomes to cover the costs of actively building their business.' That's a 99.7 percent loss rate for investors."^[15]
• Newsweek: based on Mona Vie's own 2007 income disclosure statement "fewer than 1 percent qualified for commissions and of those, only 10 percent made more than $100 a week."^[16]
• Business Students Focus on Ethics: "In the USA, the average annual income from MLM for 90% MLM members is no more than US $5,000, which is far from being a sufficient means of making a living (San Lian Life Weekly 1998)"^[17]
• USAToday: "While earning potential varies by company and sales ability, DSA says the median annual income for those in direct sales is $2,400."

Setup

Setup

Independent, unsalaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the company that produces the products or provides the services they sell. They are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of their downline organization.
Independent distributors develop their organizations by either building an active customer base, who buy direct from the company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the company at wholesale price.
This arrangement of distributors earning a commission based on the sales of their independent efforts as well as the leveraged sales efforts of their downline is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchiser as well as to an area or regional manager. Commissions are paid to multi-level marketing distributors according to the company’s compensation plan. There can be individuals at multiple levels of the structure receiving royalties from a single person's sales.

what "network marketing' means ?

Multi-level marketing

From Wikipedia, the free encyclopedia

Multi-level marketing (MLM), (also called network marketing, direct selling and referral marketing,) is a term that describes a marketing structure used by some companies as part of their overall marketing strategy. The structure is designed to create a marketing and sales force by compensating promoters of company products not only for sales they personally generate, but also for the sales of other promoters they introduce to the company, creating a downline of distributors and a hierarchy of multiple levels of compensation.
The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.^[13]
MLM companies have been a frequent subject of controversy as well as the target of lawsuits. Criticism has focused on their similarity to illegal pyramid schemes, price-fixing of products, high initial start-up costs, emphasis on recruitment of lower-tiered salespeople over actual sales, encouraging if not requiring salespeople to purchase and use the company's products, potential exploitation of personal relationships which are used as new sales and recruiting targets, complex and sometimes exaggerated compensation schemes, and cult-like techniques which some groups use to enhance their members' enthusiasm and devotion. Not all MLM companies operate the same way, and MLM groups have persistently denied that their techniques are anything but legitimate business practices.