In this article we take a quick look at the network marketing industry heavyweight contenders. You should know the features, advantages, and disadvantages of the most popular network marketing companies. The most popular companies are determined merely by number of Internet searches.Popularity of Internet searches certainly isn't a reason to join a company, although we do believe it is wise to understand the strengths and limitations of the most popular companies in the network marketing industry.
The actual popularity of various network marketing companies is calculated by Mark D Worthan's Best-MLM-Opportunities.com which uses Google search volume. His analysis is based on Google Trends, a service of Google Labs comparing assorted keyword searches across time. The service can be used to determine the relative number of searches for various MLM companies. Here are the results from current data, along with a short overview of each company:
1. Amway - Amway began in 1959 when its founders signed up to become distributors of Nutrilite vitamins. Amway is the largest network marketing company and is well-known for "legitimizing" the MLM industry in 1979, based on FTC's ruling that the company did not qualify as a pyramid scheme. The FTC ruling was due to the fact that its compensation system is based on retail sales vs. payments for recruiting. The company's sales were $8.4 billion in 2009. Amway North America was closed in the early 2000's and most North American distributors joined sister company Quixtar, but still order products from Amway Global. At that time, the average monthly earnings for "active" Independent Business Owners was disclosed to be $115. Advantages of Amway/Quixtar are its widespread name recognition. The main disadvantage reported by many is its older style compensation plan which makes achievement of full-time income problematic.
2. Herbalife - Herbalife started up in 1980 and reported net sales if $2.3 billion in 2009. Over the years Herbalife has been in the news because of legal challenges over the safety of its products, although none has yet been upheld. The company reached settlement with the California Attorney General in 1985 for $850 million over making inflated product claims. The company's product formulations were modified to eliminate Ma Huang in 2002 when several US states banned the use of ephedrine alkaloids. In 2007 a scientific study at the University Hospital of Bern Switzerland and Israeli hospitals found an association between consumption of Herbalife products and hepatitis. These items and other media and legal settlements seem to be the company's main disadvantages.
3. Mary Kay - Mary Kay started in 1963 as a skin care and cosmetics products company, based initially on a recipe from a tanner. Worldwide revenues were $2.5 billion in 2009. Representing a well known brand is Mary Kay's main advantage, although the company is mostly limited to women. A high per annum turnover figure has been calculated for both US (68.6%) and Canadian (85%) consultants. Earnings statistics reported for Canada were that of 29,675 consultants, only 1878 grossed more than $100, 276 of the 553 Sales Directors received more than $17,471 and 15 of the 23 National Directors earned more than $100K, indicating a steep climb to significant earnings potential.
4. Pampered Chef - Pampered Chef was founded in 1980, using in-home demonstrations to market cookwares via the party plan business model. The company was acquired in 2002 by Berkshire Hathaway Corporation. Annual sales figures are unavailable.
5. Monavie - Monavie distributes a juice product made from blended fruit juice including freeze-dried acai powder and puree. The company was founded in 2005 and recently was eighteenth on Inc. Magazine's 500/5000 ranking of the fastest growing private companies in the US. The effectiveness claims of the product's key polyphenol antioxidants have been refuted by the FDA, Linus Pauling Institute, and European Food Safety Authority who all claim that these compounds once digested have little or no health value. A Newsweek article reported only 10% of distributors made more than $100 per week and the 2008 rentention rate for new recruits was only 30%. Monavie reamains a very viable opportunity for signifant earnings despite these issues and highly popular #9 ranked on MLMInsider.com's annual report. This is possibly attributable to the company's excellent management team and lucrative compensation plan, although a recent mlmwatchdog.com video reports a significantloss of interest due to compensation plan changes in the last year.
2. Herbalife - Herbalife started up in 1980 and reported net sales if $2.3 billion in 2009. Over the years Herbalife has been in the news because of legal challenges over the safety of its products, although none has yet been upheld. The company reached settlement with the California Attorney General in 1985 for $850 million over making inflated product claims. The company's product formulations were modified to eliminate Ma Huang in 2002 when several US states banned the use of ephedrine alkaloids. In 2007 a scientific study at the University Hospital of Bern Switzerland and Israeli hospitals found an association between consumption of Herbalife products and hepatitis. These items and other media and legal settlements seem to be the company's main disadvantages.
3. Mary Kay - Mary Kay started in 1963 as a skin care and cosmetics products company, based initially on a recipe from a tanner. Worldwide revenues were $2.5 billion in 2009. Representing a well known brand is Mary Kay's main advantage, although the company is mostly limited to women. A high per annum turnover figure has been calculated for both US (68.6%) and Canadian (85%) consultants. Earnings statistics reported for Canada were that of 29,675 consultants, only 1878 grossed more than $100, 276 of the 553 Sales Directors received more than $17,471 and 15 of the 23 National Directors earned more than $100K, indicating a steep climb to significant earnings potential.
4. Pampered Chef - Pampered Chef was founded in 1980, using in-home demonstrations to market cookwares via the party plan business model. The company was acquired in 2002 by Berkshire Hathaway Corporation. Annual sales figures are unavailable.
5. Monavie - Monavie distributes a juice product made from blended fruit juice including freeze-dried acai powder and puree. The company was founded in 2005 and recently was eighteenth on Inc. Magazine's 500/5000 ranking of the fastest growing private companies in the US. The effectiveness claims of the product's key polyphenol antioxidants have been refuted by the FDA, Linus Pauling Institute, and European Food Safety Authority who all claim that these compounds once digested have little or no health value. A Newsweek article reported only 10% of distributors made more than $100 per week and the 2008 rentention rate for new recruits was only 30%. Monavie reamains a very viable opportunity for signifant earnings despite these issues and highly popular #9 ranked on MLMInsider.com's annual report. This is possibly attributable to the company's excellent management team and lucrative compensation plan, although a recent mlmwatchdog.com video reports a significantloss of interest due to compensation plan changes in the last year.
We don't necessarily recommend or advise against joining any of these top 5 companies, but merely wanted to look at a few facts about them. We find that few people take the time to look at what companies are available in the home based business realm. If evaluating home business opportunities, it is advisable to get familiar with the industry, establish some selection criteria and make an informed, unemotional choice. One thing to note is that strong emotions often come into play in the "buying" process of selecting a home business opportunity and after the fact justification of decisions made emotionally is very common.
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