Multilevel Marketing – The Complete Guide

Last Updated on October 26, 2021

Multilevel Marketing

Multilevel marketing (MLM) is a business model in which businesses sell items and services through an unpaid workforce at the top of which is a non-salaried supervisor. Companies that utilize multilevel marketing incentivize existing distributors to recruit new ones, known as the “downline” of the prior group. In most cases, distributors do not have customers themselves but are compensated for the sales they bring to the company.

Multilevel marketing companies require their distributors to pay a fee (often known as an “initial investment”) to join and buy products and services from them, along with purchasing other goods or services in order to qualify as a distributor. This means that these businesses work on two levels: those who receive commissions on their product sales and those who gain profits by reselling those same products after buying them. The latter is how multilevel marketing becomes an illegal pyramid scheme.

In addition, because recruitment is what drives MLMs, those more recruited make more money than those less recruited within their respective MLM-company revenue streams.

Multi-Level Marketing Companies

Multilevel Marketing
Multilevel Marketing

Multilevel marketing firms are conquering a wide range of industries, from finance to cosmetics. Multilevel marketing companies in the United States have benefited from the lucrative business model, allowing them to flourish in their fields and help employ millions of hardworking Americans.

Multi-level marketing, often known as MLM, is a business model and sales structure that some firms utilize to expand their income streams. Members of a multilevel marketing company are incentivized to bring in new salespeople, with the collaborator receiving a portion of the revenue generated.

The majority of multilevel marketing firms in the United States provide tools and resources to entrepreneurs, the members who sell their items, with the hope that each sales representative will operate their business at several locations.

What Is A Multi Level Marketing Company

Direct sales companies, like multilevel marketing firms, employ a model that allows businesses to avoid having to set up a permanent store and instead rely on members to make transactions by giving presentations in homes and enterprises across the country. The Federal Trade Commission (FTC) is frequently investigating multilevel marketing firms for legitimacy since salespeople profit from each product sale. They’ve even come under fire in the past due to claims that they operate like an unlawful pyramid scheme.

Even yet, multilevel marketing firms provide a lot of opportunities, as evidenced by the facts and figures surrounding America’s biggest and most successful MLMs.Many big players operate in multilevel marketing throughout the country.

To simplify things, we’ve compiled a list of the top ten largest multilevel marketing firms in the United States, based on their reported annual sales and revenues:

The Avon Company. New York, New York – The most popular Multilevel Marketing Company

  • 2020 Annual Sales Or Revenue: $3.6 billion
  • 2020 Sales Or Revenue Growth Rate: +23.89%
  • Number Of Employees: 23,000
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In terms of beauty products, this multilevel marketing business is a leader in North America. The privately-owned firm sells items under the Avon brand and works independently from the larger worldwide company, Avon Products, Inc.

Avon has relied on independent sales representatives in the United States, Puerto Rico, and Canada to sell its award-winning range of skincare, color cosmetics, personal care items, and fragrances since it was founded in 1876.

Avon has become one of the world’s leading beauty firms and one of the world’s largest direct-selling companies, so its success in the United States and increasing North American earnings are no surprise.

Amway. Ada, Michigan

  • 2020 Annual Sales Or Revenue: $8.5 billion
  • 2020 Sales Or Revenue Growth Rate: +2.0%
  • Number Of Employees: 15,000

It’s no surprise that the country’s most well-known multilevel marketing firm has been in operation for a long time. For more than 60 years, Amway has utilized MLM business tactics to sell food, health, beauty, personal care, and household goods.

However, despite the fact that Amway’s headquarters is in Michigan, the multilevel marketing firm is a worldwide enterprise. Since the 1970s, Amway has expanded across various parts of the world, including Australia, Europe, Asia, Japan, Latin America, China, Africa, India, and Russia to mention a few.

Amway, with more than 800 product patents and thousands of salespeople, or Amway Independent Business Owners, selling products in over 100 countries worldwide, is on track for continued success.

Herbalife Nutrition. Los Angeles, California – The most known Multilevel Marketing Company

Multi-Level Marketing Companies
Multi-Level Marketing Companies
  • 2020 Annual Sales Or Revenue: $5.5 billion
  • 2020 Sales Or Revenue Growth Rate: +13.6%
  • Number Of Employees: 8,000

Herbalife Nutrition is one of the most well-known multilevel marketing firms in the United States. Based in Los Angeles, California, Herbalife Nutrition is a global nutrition business that uses MLM sales approaches to recruit independent contractors to become Herbalife Nutrition distributors and provide unique health solutions to clients.

Following the success of Protein World, a UK-based marketing firm began selling meal replacement protein shakes and teas to health and wellness enthusiasts in over 90 nations. Their popularity is unrivaled; previous studies have ranked Herbalife Nutrition meal replacement shakes like the best brand in the world.

With an anticipated, 4.8 million Herbalife Nutrition protein shakes consumed every day and a rising revenue growth rate, this health-focused MLM leads the way in nutrition sales.

Mary Kay. Addison, Texas

  • 2020 Annual Sales Or Revenue: $3 billion
  • 2020 Sales Or Revenue Growth Rate: -16.7%
  • Number Of Employees: 5,000

Mary Kay Ash, a Texas entrepreneur who founded this billion-dollar, privately owned multilevel marketing firm in 1963, is the founder of Mary Kay. Not only is Mary Kay one of the most successful multilevel marketing firms in the United States, but it has also been ranked as the world’s sixth-largest network marketing company.

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Mary Kay sells cosmetics through independent salespeople, or beauty consultants, in dozens of countries across the world using multilevel marketing techniques.

Beauty consultants make money by selling products to individuals in their community or getting a commission on wholesale purchases made by people they recruit as part of the MLM network.

The pink Cadillac advertisements for Mary Kay are perhaps the company’s most recognized. The business gives free automobiles to its top sellers as a bonus to their nearly 3 million beauty consultants, provided that they fulfill specific criteria. Although there are many different automobile prizes available today, the pink Cadillac is still the best reward.

Nu Skin. Provo, Utah

Multi-Level Marketing Companies
Multi-Level Marketing Companies
  • 2020 Annual Sales Or Revenue: $2.58 billion
  • 2020 Sales Or Revenue Growth Rate: +7.0%
  • Number Of Employees: 5,000

This Utah-based multilevel marketing firm, which was founded in 1984, distributes more than 200 dietary supplements, personal care, and anti-aging goods.

In the 1990s, the billion-dollar firm was listed on the New York Stock Exchange and began expanding internationally. Today, through a network of over 1.2 million independent salespeople, Nu Skin distributes its personal care items in about 54 countries worldwide.

Despite its popularity as a multilevel marketing company, Nu Skin has faced opposition. The FTC and other regulatory authorities have conducted numerous investigations into the firm. As a result of this, there was a $47 million federal lawsuit against Nu Skin that was ultimately resolved.

Melaleuca. Idaho Falls, Idaho

  • 2020 Annual Sales Or Revenue: $2.7 billion
  • 2020 Sales Or Revenue Growth Rate: +8.0%
  • Number Of Employees: 4,400

Melaleuca has marketed more than 400 nutrition, personal care, domestic cleaning, and cosmetics items to American customers via multilevel marketing since its inception in 1987.

The company was founded by Frank L. VanderSloot in 1985 and now has operations around the world. It currently serves thousands of houses in North America, Taiwan, Japan, Korea, China, Malaysia, Singapore, Australia, Hong Kong, New Zealand, Germany, Austria, the Netherlands, Ireland, and the United Kingdom.

Today, it has more than 1 million monthly customers and refers to itself as one of North America’s largest e-commerce and catalog stores.

Melaleuca, as a major manufacturer of consumer packaged goods, takes great pride in offering non-toxic home cleaning solutions and a complete range of supplements, functional foods, and wellness items to assist consumers to reduce weight and improving their health.

Primerica. Duluth, Georgia

  • 2020 Annual Sales Or Revenue: $2.2 billion
  • 2020 Sales Or Revenue Growth Rate: +8.0%
  • Number Of Employees: 1,966

Primerica is a multilevel marketing company that specializes in the sales of financial products. The MLM behemoth connects with over 130,000 authorized independent agents to offer term life insurance, mutual funds, life insurance, and annuities to middle-income families across North America.

According to the company, Primerica had more than two million client investment accounts and insured about 5 million lives in 2018, making it one of North America’s major term life insurance providers.

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Primerica’s flagship offering, with a cost of living allowance (COLA) of 3.5 percent, is designed to target middle-class individuals and families in the United States, Canada, Puerto Rico, and Guam with household incomes between $30,000 and $100,000 per year.

Tupperware. Orlando, Florida – The Multilevel Marketing Company With Most Employees

  • 2020 Annual Sales Or Revenue: $1.74 billion
  • 2020 Sales Or Revenue Growth Rate: -3.0%
  • Number Of Employees: 10,698

Tupperware is no longer the greatest multilevel marketing firm in the United States, but it is still well-known.

Tupperware uses multi-level marketing (MLM) to sell its line of kitchen preparation and serving products as well as plastic food and home storage containers. Today, the firm distributes its goods across nearly two million salespeople in over 200 countries around the world.

During the 1950s, Tupperware was boosted in popularity by the direct marketing and sales methods of Tupperware parties. This party atmosphere allowed individuals to make money while remaining at home, resulting in significant business expansion.

Rodan and Fields. San Francisco, California

  • 2020 Annual Sales Or Revenue: $1.58 billion
  • 2020 Sales Or Revenue Growth Rate: +5.0%
  • Number Of Employees: 700

Rodan and Fields is a dermatologist-founded skincare and beauty company located in San Francisco, California.

Estée Lauder purchased the brand in 2000 and sold it in department stores across the country. However, the physicians bought the firm back a year later and implemented a consumer-connected commerce business model, using MLM sales tactics to boost profits.

From 2008 to 2010, Rodan and Fields saw exponential growth. Now over 300,000 independent consultants and salespeople work for the company, as well as more than two million preferred clients. In addition, Rodan and Fields have expanded into Canada, Australia, and Japan.

Jeunesse. Lake Mary, Florida – The Multilevel Marketing Company With Most Growth Rate

  • 2020 Annual Sales Or Revenue: $1.35 billion
  • 2020 Sales Or Revenue Growth Rate: +17%
  • Number Of Employees: 924

Jeunesse has achieved a lot of success in its 12 years of operation as a relatively young multilevel marketing firm. The billion-dollar firm makes health supplements and wellness and personal care items available at 47 distribution centers across the world through MLM techniques.

Since its creation in September 2009, Joven has been dubbed one of the most rapidly developing privately held firms in the direct selling business, having achieved sales of $8 billion over that time.

The multilevel marketing business, which specializes in improving general health, has operations in more than 145 countries across the world and maintains 34 offices spread across their eight sales territories.

Jeunesse is a family-owned company run by husband and wife Randy Ray and Wendy Lewis, with the goal of making a “positive impact on the world by assisting individuals in looking and feeling young while also empowering them to reach their full potential.”

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