Frustrated Network Marketer-When is an MLM Not an MLM

First it would be best to describe what MLM is.  According to Wikipedia Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation.  MLM is also called network marketing or referral marketing. So when is an MLM not an MLM?

Follow the chat back and forth in a chat room discussing this very issue.

MG:  Anyone know of the Company ‘Medifast’…with a program called Take Shape for Life?…they have ‘Health Coaches’ who help you with your program.

BB: Beach Body does that too …

KM: Yes MG…I am familiar with Ta ke Shape for Life…what would you like to know?  $200 to be a health coach, then another $200 to become the next level up coach….NO PRODUCTS…just their useless “certification”.  They swear up & down they are not an MLM

KJ:  the money from bonuses, etc comes “from different pools of money”…well folks….all those “different pools of money” come from the same ocean called PRODUCT SALES!

MG: Thanks K this is good….currently trying to ascertain how many folks my friends need to Make 10K

MG: so they do not make money on products?

KM: yes the health coaches do make money on products…that’s what’s so silly about this one gal’s claims they are not an mlm…

KM: their focus is for people to get on the plan, lose weight, then on about month 7 the company starts sending info on becoming a health coach…”cuz now everyone is noticing how you lost weight”…

KM: you pay to get into the biz and do not get any products

KM: you make a commission (but this gal didn’t want to call it that cuz she says its not an MLM) from product sales to your customers and you get paid on the health coaches under you….of course…they are not a downline cuz as this lady insisted…it is not an MLM…very annoying to talk to her after awhile

FK: All that sounds very odd –    wonder how people want to get into such a strange program at all 🙂

So why do companies such as Medifast, Beach Body, Market America and  others insist  they are not MLM when clearly they are selling products for a commission and also recruiting others into the business opportunity to be compensated for their efforts?

One conclusion could be because network marketing and MLM have a bad reputation for being considered a pyramid scheme. For that reason the sales recruiters for these “Non-MLM” companies want to convince you that you are not joining an MLM company. If they can accomplish this their recruiting becomes much easier. Let’s face it, how many want to join an MLM company?  Exactly…because  of the misconceptions. 

So lets be honest and call a spade a spade.  Take Shape For Life, Beach Body, Market America and all the others that insist they are NOT MLM>>>well read the definition again; they are, so don’t fall for the “We are not MLM”.

There are many small investment, legal and legitimate companies that are proud to be MLM companies.  These companies have been providing really great products, services and incomes for hundreds of thousands of ambitious entrepreneurs who are looking to better their financial future and will continue to do so…

So what is going to be easier for you, staying with your current 9-5 job or learning about a business opportunity which would help you make more money more easily without jeopardizing your current job or career?

Commit To Success Today
Dave and Darlene Mills
Leadership With A Vision



“You cannot teach a man anything. You can only help him
discover it within himself.” — Galileo

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Dave and Darlene Mills

Welcome and thank you for visiting our blog. We are Mentors with "Mentoring for Free". A community of volunteers who believe in the value of education, personal development, and in sharing what we know that works to build a solid online business. We use this system to build our business and can be used with any MLM/Network Marketing company. We devote much of our time mentoring ANYONE in ANY company to build THEIR personae so they too acquire the skills they need to be successful. We will be more than glad to give you 100% of our effort and support. Today, Life is Grand!! We will never look back!! Darlene and Dave Mills "Be a Mentor With a Servant's Heart"

2 thoughts on “Frustrated Network Marketer-When is an MLM Not an MLM

  1. Hi Dave & Darlene,

    Great post! I agree that people need to make sure they understand the difference between a legitimate MLM and a pyramid scheme.

    Due diligence absolutely means understanding the opportunity you are getting into is an MLM (or not). I personally don’t want anything that is not an MLM. If its not MLM, then it’s a business I can never retire from building.

    I was recently pitched on a company called Unicity. They say you are buying into a franchise! Yikes! No thanks! BTW, their comp plan reads like an MLM!

    One small correction. Medifast is the company that produces and distributes the products and diet plan. Take Shape For Life is the business opportunity (the MLM or non-MLM) that is a division of Medifast (or maybe not, lol). It is Take Shape For Life that certifies the health coaches and pays out whatever they want to call the commissions.

    Complete education is the key. People need to stop treating home business opportunities like they are a magical pot of gold at the end of the rainbow!

    Thanks for sharing!

  2. Hi Karen,

    Thanks so much for stopping by to leave a comment…and for clarifying “Medifast is the company that produces and distributes the products and diet plan. Take Shape For Life is the business opportunity (the MLM or non-MLM) that is a division of Medifast (or maybe not, lol). It is Take Shape For Life that certifies the health coaches and pays out whatever they want to call the commissions.”

    Appreciate having that pointed out.

    Too many just jump in but I probably did not have to tell you this. They see $$$ and never really check out whether it is a “legitimate” opportunity. There is a big difference between and MLM and a Franchise…

    Of course we all know the we “Can” retire from any job or franchise…but what happens when we stop working? Yup the income stops coming in. That is why MLM is so much better as long as the company has a clause that allows you to retire without “ongoing” responsibilities and such.


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