MLM Network Companies: Tricks to Learn


The public has a very bad attitude towards Multi Level Marketing or MLM companies. People often think poorly of MLM entrepreneurs and the salespeople they recruit. The reason for this is the great number of pyramid schemes hiding behind the MLM business model, which in its real form is not at all bad. The real MLM model is very effective, especially when it comes to sales and it is praised by entrepreneurs, the recruited sales force, and the loyal customers.

There are many great examples of both successful MLM corporations and entrepreneurs that have gotten rich by implementing the MLM business model in the right way. Some of the major corporations that use MLM for promoting and selling their products are:

  • Amway;
  • Herbalife;
  • Tupperware;
  • Avon.

There’s definitely a lot of useful sales and marketing tricks and insight that we can learn from the business models of these companies and in this article we are going to list the ones that are the most useful in the digital age.

Tricks to Learn from MLM Network Companies

A Satisfied Customer Is the Best Promoter

People like to hear nice stories, especially when the lead role shares some values and social status with them. Think about it, would Cinderella be so popular, if she was rich from the start, and wasn’t the “ordinary girl” who married the price in the end?

Stories told by satisfied customers are actual gold for companies. They are the ultimate promotional tool, and the type of referral that is most likely to bring in returning clients and new ones as well. Entrepreneurs need to keep their friends close, their enemies closer and their best customers on the very top of their contact list. When it comes to sharing customer experiences, companies need to go far beyond simple webpage testimonials, and introduce their loyal customers to the public, by inviting them to promotional events, helping them with everyday problems and any way they can think of to bring them up front. This is where social media plays the most obvious part. You do not want to treat your company profiles as additional websites, as they add absolutely no value as such. You need your profiles run by charismatic individuals, the kind you would gladly send out to meet your clients personally if these were different times. A human representation of your brand, like in those few Community episodes, but online.

Working on Commission Stimulates Employees to Work and Sell Harder

Commission work is the best way to tie the seller’s interest with the company’s agenda. Depending on the amount of sales, companies might not need to let their sales personnel work exclusively for commission of the goods they have sold. They can introduce one part of their salary that is fixed and upgrade it every month with a commission bonus.

Why Do People Join MLM Network Companies?

In companies that follow multi level marketing (MLM) practices, product sales work like a charm, mainly because of the outstanding commitment presented by their salespeople.

Employees Should Use Company Products Themselves

It’s very hard for salesmen to sell a product they have never tried before. This doesn’t happen in MLM. The number one reason why MLM promoters do their job is because they expect to get free products and presents and for most of them money is only the second priority. It is safe to say that MLM is a true example of a lifestyle brand.

This is a good reason for companies to fully introduce their employees with the benefits their products bring. They shouldn’t be stingy when it comes to sharing their products and promotional material with employees, because only by realizing the product benefits will sales people be able to present them in the right way to potential customers and they can only do it by having firsthand experience with each product.

Personal Stories + Social Networks = Success

Everybody knows about Herbalife fans, sharing their “before and after photos” on Facebook and Instagram. Some people feel annoyed when their friends do this, but there’s no question that this is one of the most effective ways of promotion. When a person shares a “before and after” photo, all of his/her friends see the direct result of a product’s effects, wrapped in the firsthand experience of a person they know. If they have any interaction with the post, the commercial’s reach grows fast, and when thousands of people start sharing how great a company’s products are, the road between an entrepreneur selling his weight-loss protein shakes from the trunk of his car to him owning an international corporate business worth billions of dollars is very short.


Of course a great social network campaign is not the only reason why Herbalife is currently worth $1.703 billion, but it is worth mentioning that the company’s yearly sales went from $2.1 billion in 2004 up to $7.5 billion in 2013, which are the years when social networks made a big breakthrough all around the world. It’s easy to realise how big an impact these posts have had on Herbalife sales, which is why it’s the right time for both MLM and other entrepreneurs to start using social networks and unleash the great marketing potential they come with.

There are many other useful practices entrepreneurs can learn from companies that have fully implemented the MLM business model. That is why network marketing training courses can be very useful even for employees who work for companies that don't directly implement this business model.

📝 'MLM Network Companies: Tricks to Learn' is a guest post by Kate Flannery on Kate is a startup enthusiast and IT/marketing blogger. The two interconnect in the brand promotion business, online brand promotion to be exact. Her past as a boating blogger has taught her that any business can be successfully marketed online, and if you feel it cannot, you are simply misinterpreting your audience.