Are Network Marketing Companies A Giant Scam?

Many of our students want to know about how to generate income to pay off loans or just supplement what their future job might make for them by knowing and understanding how multi-level marketing works.

For this purpose, we are going to talk about one specific MLM or network marketing company to give you a glimpse of how things work and what is required to make it happen for you.

Young Living is at the forefront of the essential oil game, and it has been one of the largest suppliers of essential oils for a decade now. While many people claim that the essential oils sold by Young Living have dramatic health benefits, other people have claimed the products are nothing but worthless.

Some people call the entire company a giant ponzi scheme. However, most people don’t actually know much about Young Living or how it operates and therefore unfairly label the company a scam when it isn’t true by any stretch of the imagination.

MLM Businesses Legal Troubles

young living network marketing companyPart of Young Living’s image problems come from the several legal issues Young Living has had in the past. As recently as 2014, Young Living has been in hot water over the promotion of its’ products. According to the FDA, Young Living was actively promoting its’ products as a cure for the ebola virus.

This crosses into the drug world and the FDA warned Young Living to stop promoting its’ products this way because it causes them to be drugs, which is regulated by the FDA.

Young Living has also been in trouble for exaggerated claims made by its’ distributors. Both the FTC and FDA have warned Young Living against these practices. We also talked about this in our Le-Vel Thrive review a few days ago.

Young living’s legal troubles have only added to the poor image surrounding the company, which takes away the focus from the actual products and more on just the company. Thankfully, Young Living’s product quality has managed to keep the company’s image somewhat good, despite the setbacks from the legal side of the company.

Are All Network Marketing Opportunities a Ponzi Scheme?

Many people are quick to identify network marketing companies as pyramid, or ponzi schemes without understanding truly how they work. Ponzi schemes have no real product to back up the value of the investments and the company itself.

Young Living sells literally hundreds of products, which obviously means the company has something to actual back up its’ value to distributors. If the company stopped recruiting new distributors today, existing distributors could still earn commissions by selling products the Young Living would still end up making its’ 10 or 15% profit on all sales. That’s hardly the example of a company that is a ponzi scheme.

Why Do MLM Distributors Fail with Most Companies?

If you look deeper into Young Living reviews, then you’ll often find that most people claiming Young Living is a scam are distributors that simply failed with the business opportunity. In fact, this is typical for any network marketing company, not just Young Living.

So why do distributors fail with Young Living if it is such an exciting business opportunity? There are really two main reasons:

• Reason #1: The person is lazy and doesn’t want to put in the effort or work to actually build an active downline and sell Young Living products.

• Reason #2: The distributor is a poor marketer and doesn’t understand just how to sell Young Living Products.

In both cases, the failure is a result of the distributor, not Young Living. Of course, there are exceptions to this rule but most distributors fail predominately on their own fault.

Final Thoughts

In reality, network marketing companies are far from the scam that some people claim it is. MLM offers the opportunity for distributors to make a legitimate income, provided they can sell Young Living products and recruit new distributors or for any business or program. If someone cannot do either of those two things, then they probably should avoid Young Living – or any network marketing company for that matter.

Le-vel Thrive Business Opportunity

The Le-vel Thrive Business Opportunity Review

Le-vel Thrive is a network marketing company primarily operating in the United States that sells weight management products, health supplements, as well as multivitamins.

Le-vel Thrive

Founded in only 2013, Le-vel Thrive is one of the newest and fastest growing network marketing companies on the globe.

Originally founded by three direct sales experts, Le-vel Thrive has grown exponentially over the past two years.

Lev-el Thrive Products

As of right now, there are only three Le-vel Thrive products, and they are:

• Thrive M – Specifically formulated for men
• Thrive W – Specifically formulate for women
• Thrive Lifestyle Mix – protein powder/fat burner
• Thrive Lifestyle DFT – for healthy weight loss

Le-vel recommends doing an “8-week challenge” with their products to truly reap the benefits of each product. They make the claim that you’ll also save money since you won’t have to spend as much money on food due to the high nutritional content of Le-vel products.

Joining Le-vel Thrive

Unlike other network marketing companies we’ve reviewed, there is no sign up fee to join Le-vel Thrive. All you need to do is maintain at least 100 PV (personal volume) to be paid each month by Le-vel Thrive.

Of course, you will need to find a sponsor into the program, which is sometimes easier said than done. However, a quick search should be able to connect you with an existing distributor willing to sponsor you.

Le-vel Thrive Compensation Plan

The Le-vel Compensation Plan offers distributors a dozen ways to earn commissions and rewards for their hard work. While we won’t go over all of the ways to earn, here are the basic ways to earn commissions through the Le-vel Thrive Experience:

#1 Retail Sales

Retail sales are the core focal point behind Le-vel Thrive. All new brand promoters earn 20% commissions on all of their customers’ orders. In addition, they’ll earn 12% commissions on level 1 customers, and 4% on level 2 and 3 customers.
#2 Infinity Fast Start/Infinity Fast Start Match

As an active promoter, you’ll earn an Infinity Fast Start Bonus on product purchases from new or upgrading promoters. Each package has a defined bonus amount, which you earn directly from your personally enrolled promoters and their enrolled promoters – up to four levels deep.

In addition to the fast start bonus, you’ll earn a 10% match on any Infinity Fast Start commissions on your personally qualified promoters. So If a personally enrolled promoter earns a $1,000 bonus, you’ll receive a $100 bonus.

#3 Uni-Level Team Commissions

Uni-level Team Commissions are given to the most active brand promoters who have a monthly team volume of over 4,000. There are several different levels and requirements to achieve this bonus, but you can earn a 8% commission up to 8 levels deep, if you achieve the highest status.

In addition, there is a matching bonus, similar to the Infinity Fast Start Bonus Match.

#4 Other Bonuses

Rather then bore you with each individual bonus given, here are just a few other mini bonuses given to Le-vel Thrive promoters: GO VIP Bonus, I-Pad Mini Bonus, VIP Auto Bonus, and Lifestyle Giveaways. As you can expect, these rewards are only given to the most active promoters, so it will take a long time and effort to reach any of these bonuses.

Is Le-vel Thrive a Scam?

Many people are quick to assume ever network marketing company is a scam. It’s partially understandable since most network marketing companies don’t last more than five years. However, Le-vel Thrive is much different than most network marketing companies.

For one, customers are incredible loyal to Le-vel Thrive. Customers continually order new products and are die-hard Thrive fans. Second, Le-vel Thrive was started by seasoned professionals who know how to run a business. They simply aren’t going to let Thrive run into the ground. Their business model is actually sustainable, which is why Thrive continues to well, thrive.

Can You Make Money With Le-vel Thrive?

At the end of the day, whether or not you make any money with Thrive depends solely on how much work you want to put into it. We’ve found numerous success stories of average people earning 10k+ a month in commissions, so its’ not unreasonable to think you couldn’t do the same. However, you’ll need to be to work for it, otherwise you’ll just be wasting your time.