MLM Analyst

Look, I was hoping I could generally avoid singling out individual companies when doing my analysis. But lately I’ve received so many confused comments & emails from apparent MonaVie distributors regarding the Inc. 500 list that I’ve got to clear up some things for them. I’ll try not to be unkind…

Within this site’s comments you’ll find the following,

Do you also think the INC magazine top 500 companies (in the September issue) list is also bologna because MonaVie is the only mlm that made the list. Should we also be calling that publication a bogus, bias, poorly researched and invalid lie?

And you’ll also find this gem,

When was this research taken?? Because the September addition of the Inc. 500 magazine (The annual report of the fastest growing private companies in America) states the ONLY nutritional beverage to rank was MONAVIE! Placing #1 in the Food & Beverage category, #3 in Revenue and #18 OVERALL!!  GO TAKE A CLOSER LOOK AT YOUR STATS.

If I were a MonaVie distributor, when I first heard about the Inc. 500 list placement I’d tell all my prospects about it. But after that I’d probably:

1. actually go read about it
2. figure out that it only includes private companies that proactively submitted their own annual revenue numbers
3. think to myself, “Oh, well. I guess it’s better to be on it than not on it.”
4. just keep it to myself because I didn’t want to be dishonest and manipulative by ever implying that MonaVie somehow “beat out” any other MLM companies since it appears that MonaVie was the only one who submitted their info

Just about the same process would apply to leveraging my company’s placement on a MLM Top Earners List: A) get excited, B) ignorantly tell others, C) finally learn the facts, D) and then keep it to myself because I want to be able to live with myself.

I just thought of another motivation for keeping it to yourself. What if you attracted an intelligent team member/distributor/customer who likes to read and learn facts for themselves? What if they actually read Inc. Magazine’s methodology (<- notice that link) and figured out you were either deceitful or ignorant? Either one is bad, right?

And can you image an intelligent new recruit actually looking at, and then analyzing, the methodology behind the creation of a Top Earners List? Their trust in you would be pretty well shot. You don’t want that.

See, I’ve not only avoided being unkind, I’ve actually been very nice to MonaVie people; helping them retain their recruits. You’re welcome.

You can now find a summary of my ongoing research on MLM top earners lists on a dedicated page: MLM Top Earners. You can find the page link up on the navigation bar between “About MLM Analyst” and “Contact MLM Analyst.”

I recently finished a post on why you should be nervous about MLM companies that release distributor earnings. I finished that post suggesting that if your MLM company shows some distributors with massive monthly income numbers, there’s a great chance that its compensation program is unfairly top-heavy.

Fair vs. Unfair MLM Compensation Models

What makes a top-heavy MLM comp plan imbalanced & unfair? If you aren’t one of a few dozen of those top earners you may never see a decent income no matter how hard you work at it. Wouldn’t you rather be part of an organization that gives a fair chance for everyone to prosper?

MLM comp plans can be pretty complex and in the near future I’ll do some more detailed comparisons. But for now, bear with my over-simplifications and let’s graphically compare a top-heavy comp plan to a more balanced comp plan.

Comparing MLM Compensation Models

Choosing the Right MLM Compensation Model

…of course the plan would need to be complex enough that the rank-and-file members wouldn’t understand that they just got jacked…

OK, yes, I realize I’m exaggerating a bit on both sides. But I’m trying to illustrate an important point (that, and I don’t have all day to make graphics, I have a business to run). At least you get the picture, right? Which one would you want to belong to; the one that lets a few dozen people make a few extra million per year at the expense of everyone else who is working hard to support them, or the plan that spreads those millions around? Wouldn’t an ideal plan be easy on initial participants, rewarding to the middle-class distributors and still very motivating to the top leaders?

Look at it this way. What if you were starting an MLM company and you wanted to poach a few huge distributor organizations? I’ll bet you’d be tempted to implement a top-heavy plan that convinces some top guys to move their groups to you. Of course the plan would need to be complex enough that the rank-and-file members wouldn’t understand that they just got jacked. Are you sure you understand your network marketing company’s compensation plan?

Are You Excited About Your Guys at the Top of a High Earners List?

…go ahead and milk that warm fuzzy feeling for all it’s worth. It’s likely to be the highest compensation you ever see…

So, let’s go back to the topic of “top earners” and think about all of those mid-to-low-level distributors that are so excited to show off the fact that their upline leader is on top of the list. Pal (yes, I’m speaking to you, confused MonaVie guy), if you’re proud that some top earners list shows your guys at the top, go ahead and milk that warm fuzzy feeling for all it’s worth. It’s likely to be the highest compensation you ever see.

Everyone else who actually understood this argument should be asking themselves, “How do I identify the best possible network marketing company to join?” Lucky for you there are quite a few equitable MLM companies. To identify which one is right for you, you’d want to find out about their upline support, product quality, company support, compensation plan, cost, etc. And if the business opportunity was your primary concern, you’d definitely want to look at what companies are growing – and on top of that, which are experiencing momentum? Those are the ones who probably got the overall mix “right.”

As always, there’s more to come…. And, please feel free to comment anytime if you agree or disagree or if you have any questions or subjects you’d like me to cover in the future.

I was looking at the (very warped) “before” and (still warped) “after” tables in my recent post about the changing MLM 500 Earners List wondering how well one could trust the self-reported income figures of most top distributors – especially those posted on a publicly open site like the MLM earners list. At first glance you might think there is a lot of benefit to be gained from reporting the highest possible numbers, regardless of their validity.

If I was a distributor anxiously recruiting people into my downline I might state the largest imagined number as frequently as possible. If there was some public list where I was able to submit whatever average monthly income number I felt like…well, you get the point.

What if you were part of some top earner’s downline? Would you be tempted to submit to some free-for-all public list the highest rumored number you’ve heard to help support your claims that you belong to the best organization in the best company? After doing so would you blog and comment all over the web to promote your organization? Haven’t we all read dozens of such posts and comments? Can you trust them?

Finally I wonder about the companies who are anxious to publish their distributor numbers online. If most normal companies, including most reputable MLM companies, wouldn’t reveal their sensitive internal numbers online which companies would be desperate enough to release such numbers?

My research on MLM company momentum seems to indicate that the companies most anxious to publish their distributor numbers (for those of you keeping score that would be MonaVie and Amway) are actually those experiencing NEGATIVE momentum & growth. Perhaps a slightly altered Shakespearean quote applies, “The company doth promote too much, methinks.”

Want to know which companies seem to be experiencing the greatest momentum? I’m still crunching some numbers but it’ll be out soon.

BTW, I can see why a short-sighted distributor or company might want to publish some high earnings figures. But what is that really saying about the opportunity for all other distributors? Could it be that their compensation structure is so top heavy that the cash is only flowing to a few elite? Here’s my analysis on that topic, appropriately titled Which MLM Comp Plans Screw the Typical Distributor?.