Legitimate MLM Companies? Do They Exist

Recently, I’ve found myself debating the thought provoking question of what really makes a legitimate mlm company. Now I know some of you are thinking that all mlm legitimate mlm companiesopportunities are basically pyramid schemes and to a certain point a number of them are. But how about those handful of mlm companies out there that are actually helping people accomplish financial freedom. What makes those mlm companies so different than those looking to just get your money? In this article, I want to give my opinion of a what I think makes an legitimate mlm company.

If you’re currently an internet marketer or even an aspiring internet marketer, you know from being online there are numerous mlm opportunities online that offer the latest and greatest products and/or services online. This is also known as the “shiny object” syndrome. Internet marketers tend to gravitate toward mlm companies based on a number of different reasons. But can we as internet marketers justify whether an mlm company is legit based on those reasons alone?

Again, these are only my opinions of  what makes some mlm companies legitimate and if you would like to expound or add to this list, please provide your comments because I’m very interested in your response.

MLM Companies Compensation Plan

One of the biggest factors in determining whether various mlm companies are legitimate are based on their compensation plan. Believe it or not, compensation plans are classified into different categories based on the business model of the mlm company. Some offer the infamous passup compensation plan, which annoys the hell out of me, but many companies claims this offers a certain level of leverage and also helps in increasing retention.

But mlm companies aren’t dumb. They know inorder for the owners to make money they have to introduce a plan that not only will entice you to join their business opportunity, but will funnel in hundreds of thousands of dollars to them. Which is nothing wrong with that, but seems that most mlm companies online are using their compensation plan alone just to sucker people into buying in. I don’t consider that being a attribute of an legitimate mlm company.

MLM Companies Products and Services

Okay, this seems to be the crux of the argument when it comes to determining whether an mlm company is legit. I tend to agree with this notion of having a strong product or service to offer people. Many feel that some opportunities available online are scheming people out of hundreds and even thousands of dollars, but not really offering anything of value. I’ve seen some that just seem to offer the opportunity to become an affiliate instead of pushing the actual PRODUCT or SERVICE. To me, that is a sure sign that the company is a scheme or ripoff. I won’t give any names, but I have left and refused to join mlm companies based on unethical business practices.

Does providing training videos to learn how to properly advertise and market someone’s product considered a legitimate mlm opportunity? If you go and google, top mlm companies online, you will notice that the most legitimate companies are companies that have been around for decades and most importantly, they offer some type of useful product or service.

These products can be anything from health and wellness products, ganoderma infused coffee, or offer some various types of services. I loath companies that seem to offer a product or service and expect you to pay a monthly fee for something you can find online for free or next to nothing. What is the point in paying and how do you expect to sponsor someone else into the opportunity, well at least someone who does due diligence in researching the company?

I know many of these mlm companies rely on their flashy capture pages and sales pages to draw the attention of potential leads for their business, but I believe finding a reputable mlm opportunity online depends on  people doing their research by learning more about the owners of these mlm companies,how long the company has been around and most importantly,quality and uniqueness of their product or service.

These are the main concerns I have with finding a legitimate mlm company who are not out just to get your money, but are committed to doing business the ethical way. I guess another reason why I decided to write on this topic is because I wouldn’t feel right promoting an opportunity that offered lack luster products or services that you can get elsewhere and charge someone a monthly subscription fee in the process. I would find it hard to feel good about my success if I done that to other hard working individuals trying to make a better life for themselves and their families online.

If you should have any ideas to share, please feel free to leave them here on the blog. I’m very interested in learning how others feel about this topic. Until next post!

One Reply to “Legitimate MLM Companies? Do They Exist”

  1. Hi! I wrote a post on my work at home blog last year called “MLM? I’m not that kind of girl!” because I feel pretty much the same way you do about these companies. I have some listed on my site that I think are pretty decent if you are a good sales person. Like you said, they are the compaies you know like Avon, Mary Kay, Tastefully Simple, and others. Basically, here is my thing- you should never spend more than $200 to start an MLM and you should be able to understand why it is $200. A website and some pamphlets should not cost $200. Jewlery, food, candles, makeup…okay maybe. Then I HATE the ones that charge you monthly. If the business charges you money they are making money off the business owners not off their products and so I call that a scam! Besides, if it turns out you make no sales you will be losing money every single month! I also hate if they say you have to have a certain amount of people in your downline or make a specific amount of sales a month. Why? They don’t pay you unless you make money so they lose nothing if you don’t perform. Finally, commission structure should never be less than 20%. Some companies pay 50% and I love that. So those are my personal MLM rules:
    1) You have heard of it and they sell real products
    2) $200 or Less Investment
    3) No Monthly Charges
    4) No mandatory sales or downline standards
    5) Commission should be 20% or higher

    This is, of course, just my opinion 🙂

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