Multi Level Marketing Software?

Are there any multi-level marketing companies where the marketing consultants earn primarily through sales of a product and secondarily through finding new consultants? If not, why?

• I've noticed a trend every time somebody tries to pitch a multi-level marketing company to me. It appears that the primary way that  to earn money is by finding new marketing consultants who will work under you, who will find new marketing consultants who will work under them, etc. There seems to be very little emphasis on the actual product and the commission to be earned through it's sale. I'm wondering if there exists a company that puts their product first, but also offers some secondary incentive to find new marketers. It seems to me that a company that's put their product first would be drastically more successful since there is actually something to be confident in. If no, or very little, companies operate in such a way (which it seems to be ) I'd be interested to understand why not?

• Answer:

  Your question needs a little clarification. The short answer is: Absolutely. In fact, any legitimate multi-level company should ONLY compensate you for the sale of retail products. And to compensate for recruiting Representatives is one of the defining characteristics of a pyramid scheme. Now to clarify, it's entirely common for a consultant (rep, distributor, etc.) to earn overrides/commissions/bonuses for the retail sales made by other team members (their "downline", or "group"), but not for the enrollment of new consultants themselves. Accordingly, because your earning potential increases by applying the leverage of a large organization with each person doing a small part, many network marketers focus their sales presentation on that element. They "lead" with the opportunity. As famous billionaire John Paul Getty once said, "I would rather have one percent of a hundred peoples' effort... than to "just" have 100 percent of my own effort." And it's not uncommon for a prospect being exposed to the information for the first time to misunderstand exactly how commissions are paid out. That being said, there are also many companies that "lead" with their product and focus on the value of using/owning it, taking the approach that if you focus on the product you'll be find a broader, more accepting market. And with strong product sales, anyone interested in the business opportunity will easily recognize the earning potential of becoming a distributor. A lot can vary from presenter to presenter, even in the same company. But a number of newer companies like Stella & Dot, ViSalus, Organo Gold, or our company (WorldVentures), are product-focused.