Network marketing, and MLM (multi-level marketing)

 Direct selling, Network marketing, and MLM (multi-level marketing)


"Network Marketing" and "Multi-level Marketing" have been described by author Dominique Xardel as being synonymous, and as methods of direct selling.  According to Xardel, "direct selling" and "network marketing" refer to the distribution system, while the term "multi-level marketing" describes the compensation plan. Other terms that are sometimes used to describe multi-level marketing include "word-of-mouth marketing", "interactive distribution", and "relationship marketing". Critics have argued that the use of different terms and "buzzwords" is an effort to distinguish multi-level marketing from illegal Ponzi schemes, chain letters, and consumer fraud scams.  Some sources classify multi-level marketing as a form of direct selling rather than being direct selling.
The Direct Selling Association, an American industry body, reported that in 1990 twenty-five percent of members used MLM, growing to 77.3 percent in 1999Companies such as Avon, Electrolux, Tupperware,] and Kirby all originally used single level marketing to sell their goods and later introduced multi-level compensation plans. By 2009, 94.2% of members were using MLM, accounting for 99.6% of sellers, and 97.1% of sales.[20] The DSA has approximately 200 members  while it is estimated there are over 1000 firms using multi-level marketing in the US alone

Who are the Top 25 Network Marketing Companies? Well, it really depends on how you define "The Top 25..." As you might imagine, the truth can be a bit subjective. For example...

The best-selling car in the World is the Toyota Corolla. Apparently it's a great car, and yet at the same time is probably not the car of your dreams. Which begs the question, "Does an MLM company deserve a higher ranking simply because more people are involved?" It's a fair question. Here's what we know for sure: Popularity is definitely one of the best ways to determine what's going on in the marketplace. It plays a part in the movies we see, the music we download, and sometimes even where we invest our money.

So is "The Top 25..." just an online popularity contest? Not exactly. To make a fair assessment we gave consideration to things that really don't matter; for instance, 24 of the 25 companies are members of the DSA. And to things that really do matter; like Time In Business!

In short, we wanted you to know the exact criteria we used in order to select, and then to rank, "The Top 25..." You may agree with our findings, or you may not; we welcome your thoughts and opinions either way. Here's the Nexera Five-Factor Formula we used to make our selections:

1) The company must be a self-described Network Marketing, Multi Level, or MLM company.
2) The company must be in business for at least 10 years as of December 31, 2012.*
3) The company must have a Google Page Rank - GPR. A scale of 1 to 10 with 10 being best.
4) The company must have an Alexa Rank - AR. Here the smaller the number the better.
5) The company must show up in Google Trends - GT. All Regions. Last 12 months.**

It is generally accepted that the first multi-level marketing plan was introduced in 1945 by the California Vitamin Company (shortly afterwards to become Nutrilite). The plan allowed Nutrilite distributors with at least 25 regular customers to recruit new distributors and draw a 3 percent commission from their sales. Unlike traditional direct selling, this was an ongoing payment whenever the customer re-ordered, allowing direct sellers to build a sales organization that could generate a residual-like income.


Independent, non-salaried salespeople of multi-level marketing, referred to as distributors (or associates, independent business owners, dealers, franchise owners, sales consultants, consultants, independent agents, etc.), represent the company that produces the products or provides the services they sell. They are awarded a commission based upon the volume of product sold through their own sales efforts as well as that of their downline organization.
Independent distributors develop their organizations by either building an active customer base, who buy direct from the company, or by recruiting a downline of independent distributors who also build a customer base, thereby expanding the overall organization. Additionally, distributors can also earn a profit by retailing products they purchased from the company at wholesale price.