Saturday is Research Day:

I looked up graphs and various info on network marketing and found the DORKIEST (and most out-of-date) pyramid information graph on the SEC.gov website. Clearly the government is totally unable to keep up with the times.

That prompted me to look up the Top 100 direct marketed companies in the world to see how they're doing. Here are the Top 15: notice anything similar?

DSN Global 100: 1-50

1. Avon Products, Inc.
2010 Revenue: $10.9 billion
Country: USA
Compensation Plan: Single-level and multi-level
Products: Beauty, fashion jewelry and apparel
Markets: 100+
Distributors: 6.5 million
Employees: 42,000
Headquarters: New York, N.Y.
Year Founded: 1886

2. Amway
2010 Revenue: $9.2 billion
Country: USA
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Nutrition, beauty, personal-care and home-care products
Markets: 80+
Distributors: 3 million
Employees: 14,000+
Headquarters: Ada, Mich.
Year Founded: 1959

3. Natura Cosmeticos SA
2010 Revenue: $3 billion
Country: Brazil
Marketing Style: Person-to-person and retail
Compensation Plan: Bi-level
Products: Personal-care products and fragrances
Markets: 7
Distributors: 1 million
Employees: 5,000+
Headquarters: São Paulo, Brazil
Year Founded: 1969

4. Vorwerk & Co. KG
2010 Revenue: $2.9 billion
Country: Germany
Marketing Style: Person-to-person and party plan
Compensation Plan: Multi-level (JAFRA Cosmetics)
Products: Cosmetics and home appliances
Markets: 61
Distributors: 600,000
Employees: 23,000
Headquarters: Wuppertal, Germany
Year Founded: 1883

5. Herbalife Ltd.
2010 Revenue: $2.7 billion
Country: USA
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Nutritional supplements; health/fitness, wellness, skin- and hair-care; and weight-management products
Markets: 75
Distributors: 2.1 million
Employees: 4,300
Headquarters: Los Angeles, Calif.
Year Founded: 1980

6. Mary Kay Inc.
2010 Revenue: $2.5 billion
Country: USA
Marketing Style: Person-to-person and party plan
Compensation Plan: Single-level and multi-level
Products: Skin-care products and color cosmetics
Markets: 35+
Distributors: 2 million
Employees: 5,000
Headquarters: Addison, Texas
Year Founded: 1963

7. Tupperware Brands Corp.
2010 Revenue: $2.3 billion
Country: USA
Marketing Style: Person-to-person and party plan
Compensation Plan: Single-level and multi-level
Products: Storage and serving products; beauty- and personal-care products
Markets: Nearly 100
Distributors: 2.6 million
Employees: 13,500
Headquarters: Orlando, Fla.
Year Founded: 1946

8. Oriflame Cosmetics S.A.
2010 Revenue: $2.2 billion
Country: Sweden
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Beauty products
Markets: 62
Distributors: 3.5 million
Employees: 8,000
Headquarters: Luxembourg, Luxembourg
Year Founded: 1967

9. Forever Living Products
2010 Revenue: $1.7 billion
Country: USA
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Aloe vera drinks, skin-care products and cosmetics, nutritional supplements
Markets: 142
Distributors: 9.3 million
Headquarters: Scottsdale, Ariz.
Year Founded: 1978

10. Nu Skin Enterprises, Inc.
2010 Revenue: $1.5 billion
Country: US
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Personal care and nutritional products
Markets: 51
Distributors: 800,000
Employees: 1,200
Headquarters: Provo, Utah
Year Founded: 1984

11. Belcorp/L’Bel Paris
2010 Revenue: $1.3 billion
Country: Peru
Marketing Style: Person-to-person and party plan
Compensation Plan: Single-level and multi-level
Products: Skin-care, fragrance, makeup, body-care, hair-care
Markets: 15
Distributors: 840,000
Employees: 8,000+
Headquarters: Lima, Peru
Year Founded: 1967

11. Primerica Inc.
2010 Revenue: $1.3 billion
Country: US
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Financial services
Markets: 5
Distributors: 100,000
Employees: 2000
Headquarters: Duluth, Ga.
Year Founded: 1977

13. Miki Corporation
2010 Revenue: $927 million
Country: Japan
Marketing Style: Not available
Compensation Plan: Not available
Products: Foods, cosmetics and household products
Markets: 3
Distributors: Not available
Employees: 270
Headquarters: Osaka, Japan
Year Founded: 1964

14. Ignite Inc.
2010 Revenue: $902 million
Country: USA
Marketing Style: Person-to-person
Compensation Plan: Multi-level
Products: Electricity and natural gas
Markets: 1
Distributors: 195,199
Employees: 262
Headquarters: Dallas, Texas
Year Founded: 2004

15. Melaleuca Inc.
2010 Revenue: $750 million
Country: USA
Marketing Style: Person-to-person
Compensation Plan: Single-level
Products: Personal-care products, cosmetics, cleaning supplies and vitamins
Markets: 18
Distributors: Not available
Employees: 1,200
Headquarters: Idaho Falls, Idaho
Year Founded: 1985

Some of them have been around almost since the CIVIL WAR (!! - I did not know...), all of them are evidently profitable, and most are of very good reputation and I daresay are members in good standing of BBBs all around the globe.

So we have to wonder if anyone from the government knows how these companies market their products. Hmm....  Anyway, moving along -


Why is network marketing so beloved by people like Mike and me, who for years owned traditional businesses? Let me illustrate:

Found a charming website put together by an Indian gentleman whose conversation I could not understand too well, but his graphs came through LOUD and CLEAR!

I copy them here for you:

#1.  Income from your job is directly linked to the time you put in.  His example is $5.00/hr. income requires 10 hours to make $50.  And to make more than that requires 1 hour for every $5.00.  Let's say you make $20/hour.  Ten hours = $200.00.  To make another $200.00 requires another 10 hours OF YOUR LIFE.   (And this doesn't take into account how many hours you have to work to PAY THE GOVERNMENT what they want from your $20/hour.  This is ACTIVE income that you have to DO to make.

 

#2. Mr. Jain goes on to show that in network marketing you get paid on yourself AND ON OTHERS.  The SEC frowns on getting paid on others' work:  to this we can only rest assured of how behind times they are!    You can see that your income climbs without your time input climbing -- this is because not only are you building your business, but others are, too.  Like Mike's two brothers, who LOVE what Core does for them and are busily telling everybody they come into contact with.  So now it's not Mike alone:  it is Mike and some others.  

 This is PASSIVE income, where you get paid on what you START.  Wouldn't work be wonderful if you could find other employees, train them, and get paid a portion of what they make for life?  The more they make the more you make-- and the more the company makes.  It's a beautiful thing and you just wonder why more businesses don't operate this way.  Warren immediately saw the value of it!

 

#3.  The difference is arithmetic growth vs. exponential growth.   2 + 2  or 2 X 2?  Which seems like a better way to market FOR you?

I think we're all in agreement on which way we'd rather get paid.

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Now, as to the company's perspective:  as Warren has shared many times, when he and his Board were deciding how to market Terra-bio Tech, they did a lot of research.  They knew they had a winner for a product and they wanted to help people, but what was the best way to market Warren's Wonderful Blend?

Warren examined many companies, but two examples Warren gives:

One juice product marketed traditionally by two surfer-dudes from SoCal:  in 10 years they were doing $500 million.  Not bad.   BUT consider:

One acai juice product marketed multi-level:  in 4 years, went over $1.2 billion.

Warren made his decision.  I rest my research!

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HELP SOMEBODY TODAY.  SHARE A BOTTLE OF NECTR!

TODAY AND TOMORROW ARE THE LAST TWO DAYS TO DOUBLE YOUR FAST START!  Turn off the Olympics and go help a friend get healthy!

NectrHugs,

Barb