Not all MLM companies are created equal. Many see an initial burst of success followed by a gradual tapering off of profits, causing them to collapse and go out of business. MLM companies that succeed have sound business models, both for those who run the company and for those who sell product and recruit new sales agents. There are many sites devoted to MLM rankings, creating lists of companies likely to provide a return on investment to sales agents interested in the industry. Here are the top 5 MLM businesses. 1.

doTerra

doTerra is one of several MLM companies selling essential oils for health and wellness. These kinds of products are incredibly popular right now, and doTerra has a significant advantage in terms of search rankings and word-of-mouth marketing over its chief competition, Young Living. 2.

Jeunesse

With its anti-wrinkle cream and other products, Jeunesse promises to reverse the signs of aging, if temporarily. Jeunesse also sells products to reduce mental distraction, provide nutrition on the go, and help people lose weight. The company’s impressive live demos and message of remaining forever young have placed them on Inc.’s list of fastest-growing American companies. 3.

Younique

Recently valued at $1 billion, Younique sells moisturizers, lipsticks, and other cosmetic items. While Younique encourages home parties like similar MLM businesses, the company has devised its strategy around selling its products on social media, allowing people who are shy about hosting parties to sell cosmetics with “Facebook parties.” 4.

Digital Altitude

Unlike many MLMs that sell products directly to consumers, Digital Altitude sells a business system to entrepreneurs in the form of courses and methods that teach them to effectively market their own companies. While many of the packages can cost thousands of dollars, Digital Altitude offers a $1 trial, making the risk to try its product very low for the consumer. 5.

Tecademics

Like Digital Altitude, Tecademics sells business and marketing education for entrepreneurs. These courses range from online learning to on-ground courses three to four times per year, and affiliates are encouraged to earn high commissions through a matching bonus of $100,000 when they reach $100,000 in commissions. Drawbacks of MLM While MLMs are often sold to potential sales agents as easy ways to make money from home, there are risks associated with getting involved with an MLM.

Not All MLMs Are Legitimate

The structure of MLMs is very similar to a pyramid scheme. This doesn’t mean that all MLMs are pyramid schemes, but some certainly are. Those interested in pursuing a career in multi-level marketing should do research before joining a particular MLM. Generally speaking, if the bulk of the money you stand to earn comes from recruitment rather than direct sales, it’s wise to be very cautious. Hidden Expenses Can Add Up Many MLMs have fees for signing up or require sales agents to buy products up-front and make their money by selling those products. Learn what you can about the company’s compensation structure, what your total up-front investment is likely to be, and the company’s refund policy.

Expectations Can Be Unrealistic

As with any business venture, it’s important to manage your expectations when signing on with an MLM. Marketing materials may sell you the idea of making good money without leaving your house, but business ventures like these take time to deliver a return on investment. Not every sales agent will be making $100,000 per year right away or even five years down the line. Be realistic about how much you’re likely to sell and how much you’re likely to earn.

Become an Entrepreneur

Whether you’re looking into multi-level marketing or interested in starting a different kind of business venture, the right education can make all the difference. An online MBA from Rivier University can help you acquire the skills you need to make your mark in the business world. Learn in a dynamic, flexible environment on a schedule that fits your lifestyle. Rivier University proudly boasts textbook-free MBA programs that save students about $1,500 in textbook costs. Find out about the benefits of open educational resources (OER).