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What are the Different Types of New MLM Companies?

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  • Written By: Paul Woods
  • Edited By: Jacob Harkins
  • Last Modified Date: 03 November 2016
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Multi-level marketing companies, which initially focused primarily on nutritional products, have expanded to include many new offerings such as beauty products, a wide variety of consumer goods and many services. These new companies, often referred to simply as MLM, range from in-home wine sales to business travel service operations online. New companies based on the MLM model continue to be created as consumer trends change.

The concept of multi-level marketing is considered to have began in the United States in 1945. The California Vitamin Company began selling nutritional products under the Nutrilite™ brand through independent contractors working under a specific type of compensation agreement. That MLM agreement called for sales distributors to earn commissions on individual sales, commission on the sales of recruited distributors and bonuses for meeting predetermined performance goals. Distributors earned more money with more levels of sales teams.

New MLM companies have evolved in three primary ways since 1945. Some companies developed innovative sales methods. Other companies began selling different types of products ranging from makeup to housewares to cutting-edge health products. New MLM companies also expanded internationally.

The companies that began offering products in innovative ways included Avon and Mary Kay, which used in-home parties. New MLM companies that continue to evolve the sales party technique include Wine Shop at Home. Sales distributors for Wine Shop at Home provide wine samplings for dinner parties of up to 10 couples with the host couple providing the venue.

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Other new MLM companies offer a variety of new products and services. Some of these companies have gone deeper into the health and beauty segment. The products of the new MLM companies include acai berry-based fruit drinks and a wide variety of other nutrient drinks. Other types of products include vehicle fuel, high-end cookware and children’s educational toys. The growing high-end kitchen ware segment is also sold through in-home parties

New MLM companies also began offering services, rather than consumer products. These services include business travel services online, pre-paid legal services and financial planning services. Some MLM companies also offer educational services including online personal improvement classes.

The MLM industry has become a worldwide business, too. This includes more than companies founded in the U.S. that expanded to other countries. It also covers such companies as Vorverk, which is an international MLM based in Germany; Natura Cosmetica, based in Brazil; and Oriflame, a Swedish firm. Each of these routinely ranks among the top 10 MLM companies in the world based on sales volume.

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oasis11
Post 5

@Crispety - I think that some of the best MLM companies offer an excellent support system so when you do have moments of discouragement someone in the company can cheer you up so that you don’t quit.

A lot of times they will have regional meetings in which they share information about upcoming products as well as the best practices among the region. Here you get new ideas on how to run your business and hopefully the meetings will inspire you to earn more.

The meetings should also be educational and offer you addition tips on how to deal with the common pitfalls in this business. I also think that the company should offer products that you love and

would normally buy because it would make it easier for you to convince others to buy as well.

There are really a lot of new MLM companies forming all of the time. The other day I came across a company that sold chocolate. It was amazing because these chocolates were normally sold in store so I know they taste great.

You also wouldn't need to have a lot of inventory only a few samples and a catalog to get people to buy your chocolate.

I think that these selling parties would be so much fun and you could even incorporate a fondue station with the chocolate so that your customers could see different ways to prepare the chocolate. The more innovative you are the more memorable the party will be and the more excited your customers will be as well. I know that is what I would do if I have an MLM business selling chocolate.

Crispety
Post 4

@Cafe41 - I agree with what you are saying because working in the MLM field is not a job but a business opportunity and not everyone is a self starter.

This is definitely a people business because you have to love to talk to people and be comfortable sharing information regarding your products to people you don't even know. You also have to have a little money set aside because you will have to purchase inventory for some of these companies and you don’t want to go into debt doing so.

I think that the MLM training that you receive from the company will really let you know if you are cut out for this business. If you are comfortable doing cold calls and essentially working an outside sales job then basically this is what the work boils down to. If you can’t take rejection then this is not the job for you.

cafe41
Post 3

@Cupcake15 -I wanted to say that I think that a lot of people don’t understand the MLM system and think that they are going to get free MLM leads and when they realize that they are running a business and not signing up for a job then some get discouraged and quit.

Like with any business you have to have a business plan and advertise for customers, this is no different. Many people in the MLM field advertise for both customers and recruits in many local community newspapers in order to get more attention for the business.

Some people look at network marketing companies as a way to get discounts on the products and really don’t develop the

long term thinking necessary in order to develop a successful business for themselves.

A different component to the MLM business involves receiving compensation from the people that work on your team. There is always a percentage that the team leader receives and the figures usually get higher as you team grows.

Most of these people earn the majority of their salaries from the earnings from their recruits rather than their personal sales. The trick is to keep your team motivated and to help them continue to be successful so that they will also continue to make money for you.

cupcake15
Post 2

@Jonrss - I have a lot of respect for anyone that can make a living with MLM network marketing companies. I think that it is really hard to have a good amount of MLM success because most of the time the business is expanded through word of mouth.

You really don’t have a storefront location in which customers could come to see and learn about your products which means that you have to have a lot of initiative in order to make a living with these network marketing companies.

I think that trying to find customers outside of your immediate family and circle of friends is what I think I would have the most difficulty with because there are only so many times you can ask them to buy something from you.

jonrss
Post 1

A friend of mine recently went to a part that included demonstrations of, how should I say this, "marital aids" in the home of one of her friends. Apparently the idea is that most people are kind of embarrassed by this stuff and are quite often put off by the people and places that usually sell them. If you can turn the event into something fun that can be shared with like minded friends, the potential for sales is much higher.

According to her it was great fun an people bought a surprising amount of stuff. Even my friend came home with something. I guess MLM has worked its way into almost every possible market.

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