Since the rise of various MLM programs in last decade. Many persons (including me and my friends) believed it way to get success in less time and efforts. I would be honest that not every programs were failure nor every program was successful. But with my hard earned experience I have learned that person need to be very vigilant about program he/she is investing his/her money or will get their hands burn. Before starting further I would like to put an Important disclaimer – Never Invest too much money in one single program which you would not able to payoff if that program fails. I have seen people lose their whole like saving in dream of becoming millionaires via these MLM program.

1. WHAT IS
MULTILEVEL
MARKETING
PROGRAM
AND 5 RED FLAGS YOU
KNOW BEFORE JOINING
ANY MLM PROGRAM.

2. INTRODUCTION
Since the rise of various MLM programs in last decade. Many persons (including me and my friends) believed it
way to get success in less time and efforts. I would be honest that not every programs were failure nor every
program was successful. But with my hard earned experience I have learned that person need to be very vigilant
about program he/she is investing his/her money or will get their hands burn.
“MLM” is a generic acronym for any type of multi-level or endless chain product distribution program.
Multilevel Marketing, or MLM, is a system for selling goods or services through a network of distributors.
MLM firms sell theirgoods not through a conventional distribution system and retail outlets, but through
individual people, selling to their friends, acquaintances and strangers.
Multi-level marketing program is a strategy some direct-sales companies use to encourage their existing
distributors to recruit new distributors by paying the existing distributors a percentage of their recruits' sales. The
recruits are the distributor's "downline." All distributors also make money through direct sales of products to
customers. Amway is an example of a well-known direct-sales company that uses multi-level marketing.
Before starting further I would like to put an Important disclaimer – Never Invest too much money in one single
program which you would not able to payoff if that program fails. I have seen people lose their whole like
saving in dream of becoming millionaires via these MLM program.

3. MLM MODEL

4. FIVE RED FLAGS
Is unlimited recruitment allowed?: Each person recruited is empowered and given incentives to recruit other
participants, who are empowered and motivated to recruit still other participants, etc. – in an endless chain of
empowered and motivated recruiters recruiting recruiters without regard to market saturation.
Distributors: Advancement in a hierarchy of multiple levels of “distributors” is achieved by recruitment, rather
than by appointment.
Business Opportunity: “Pay to play” requirements are met by ongoing “incentivized purchases,” with
participants the primary buyers.
Pay Overrides: The MLM company pays commissions and bonuses on more “distributor” levels than are
functionally justified; i.e., more than five levels.
Pay Plan: (in commissions, bonuses, etc.) per sale for the total of all upline participants together equals or
exceeds that for the person selling the product – resulting in inadequate incentive to retail and excessive
incentive to recruit.

5. MLM PHASES
Attracting: Focused on attracting new members to join its MLM network with a clear marketing strategy and at
the same time, built confidence and trust among members.
Protecting: Created barriers to guard its members from sabotaging the company’s success, while allowing
them to proper within MLM framework.
Training: to enhance the knowledge & marketing capabilities of its team.
Competing: contented for market share with other giant MLM networks. Simultaneously, introduced
varieties of products in the MLM network with partnership with suppliers.
Prospering: launched its own branded products as well as expanded its presence in different parts of the
countries.

6. MLM SEVEN LAWS
The First Person
You Lead is
Yourself:
When you’re
ready to lead,
start with the
person in the
mirror.
You Grow Your
People, and
They Grow the
Network:
Just like your
own growth
grows your
business, the
growth of the
individual
people on your
team is what
causes your
network to
grow.
You Don’t
Manage People
– You Lead
People and
Manage Things:
Manage the
things:
autoships, event
attendance,
volume, training,
etc. But when it
comes to your
people – lead
them.
True Leaders Don’t
Develop People’s
Belief in the
Leader — They
Develop Belief in
the Followers:
Don’t sell your
team on what a
great leader you
are. Sell them on
their own ability to
have more, do
more, and become
more. Build their
belief in their own
unique abilities to
be great, and you
will truly be a great
leader.
If You Ask
Everyone to
Lead — No One
Does:
You need the
whole spectrum:
leaders,
followers, and
product users.
Let everyone
self-select what
category they
want to belong
to.
Leaders Nurture
and Celebrate
the Success of
their Followers:
Recognize and
celebrate the
achievements of
your team, and
there will always
be more to
recognize and
celebrate.
The True Test of
a Leader is Not
How Many
Followers You
Have – It is How
Many Leaders
You Develop:
Your real criteria
should be never
to do something
for a team
member that
they are capable
of doing
themselves.

7. MLM FEATURES
1. Enrollment of distributors and customers
2. Building and maintaining the downline
3. Order placement
4. Payment methods
5. Commissions payment
6. Bonus calculation
7. Ability to assume distributors and customers identity for call center users
8. System and call center users administration
9. Money withdrawal
10. Replicated sites administration

8. MLM STAGES
 Risk Takers
 Confident & Extroverted
 Entrepreneurial Achievers
 Achievement
 Social Astuteness
 Presentable
 Confident
 Presentable
 Confident
 Friendly
 Enthusiasm
 Routine
 Follower
Became a
member
Aspires to Achieve
50%
Not yet on Achiever
25%
Target Achiever
15%
Like to buy the product,
discount & expand
network
Like to succeed through
promotional products &
activities
Achiever
7%
Super Achiever
3%
Successful Members:
Director & Manager
Successful Member:
President

9. FIVE STEPS PROCESS OF MLM
1. Create Your Attitude
a. Develop a positive attitude
b. Beware of dream stealers
c. Apply basic principles in your life
2. Write Your Values, Dreams and Goals
a. Determine what is important to you
b. Re-establish your values
c. Define your dream
3. Gain the Basic Knowledge
a. Know your products
b. Know your company
c. Know your compensation plan
d. Know the industry
4. Understand Business Finance
a. Understand accounting process
b. Be realistic about money matters
c. A dollar save is a dollar earned
5. Build Your Prospect List
a. Who do you know
Dream & Goals
Values
Daily
Activity

10. MLM PLAN
MLM (or) Multi-Level Marketing has always considered as one of the best sources of regular income.
Despite any controversy, MLM still survives because of its eye-popping compensation plans.
Modern Multi-Level Marketing Industry deploys various MLM Strategies and derives numerous
compensations plans that can suit to the present economic policies.
Each Plan has its own pro’s & con’s, Strength & weakness. Before getting into actual network
marketing environment, it is essential to acquaint the current and varying trends in Multi-Level
Marketing.
For Multi-Level Marketing companies, choosing an MLM Software will be quite easy as they know
about the current Network Marketing plans. But in the case of a beginner, it takes a lot of time to
study and understand how each MLM Plan will work. Let's see the possibilities of most popular MLM
Compensation Plans

11. BINARY PLAN
Binary plan is the most widely used MLM compensation plans.
It involves a bit of teamwork and endeavor.
★ Simplicity
★ Spillover
★ Unlimited depth
★ Volume Driven
★ More than onebusiness Center

12. MATRIX PLAN
Asthe name indicates, Matrix plan concerns of a matrix-like
structure of fixed no. of rows and columns. Matrix plan
limits to a certain width.
★ Potential for spillover
★ Potential to have more than one sponsor
★ Downline grows faster
★ Distributors will remain motivated

13. UNILEVEL PLAN
Unilevel MLM Plan allows you manage all downline in
one single level. There is no width limit on the imposed.
★ Simple enough to explain to beginners
★ Easily customizable
★ Effortless integration of rewards and bonus

14. BOARD PLAN
Board Plan is a unique system that makes your success
certain and gives you an opportunity to make benefit from
the effort of all the board members.
★ Auto splitting of Boards
★ Re-entry
★ Unlimited board income
★ Cross matrix

15. MONOLINE PLAN
From the name itself we can understand the basic concept
of this plan, it is all about pertaining about a same
"mono"(single) line.
★ First come first serve methodology
★ Fast return
★ No limit or no mandatory level

16. GIFT PLAN
Also known as Donation Plan or help plan. Gets benefit by
Gifting or Donating to others. Simply this is a typo of “give
and take” concept. Basic concept is to send gift to one
member and receive multiple gifts from many other
members
★ Give and take concept
★ Chance of Getting high return

17. GENERATION PLAN
MLM Generation plan is concerning of a whole volume
from upline to downline (this includes people with the
same and different ranks).
★ Whole volume Calculated
★ Paid to many leveldepth

18. FOREVER LIVING PRODUCTS MLM PLAN
Forever Living
Products

19. CASE STUDY
The top 3 MLM companies:
Avon Products, Inc. founded in 1986. Avon has annual sales of $11.3 billion and over 6.5 million
sales associates. Avon markets various beauty products, jewelry, and fashion apparel. Binary Plan is
implemented for marketing the products.
Amway founded in 1959. Amway has annual sales of $10.9 billion and over 3 million sales associates
selling cosmetic, wellness and food and beverage products. Matrix Plan is implemented for marketing the
products.
Herbalife Ltd., founded in 1980. Herbalife has annual sales of $4.8 billion and has over 2.7 million
sales associates. Products include cosmetics, personal care items and nutritional supplements. In 2016
Herbalife was cleared of allegations of having a fraudulent business model after an investigation by the FBI
failed to find sufficient evidence. Binary Plan is implemented for marketing the products.

21. THANK YOU
PLEASE SHARE YOUR THOUGHTS.