The 5 Pillars of MLM Distributor Success

Pillar #1

The 5 Pillars are ingredients that anyone CAN have in their business, but not everyone does. Some people have 1 pillar that is very strong, some have a few, and some have very weak pillars.

The 5 Pillars are the foundation for business success. If one of them is weak, people will struggle. It’s not their fault, it’s just the design of the business structure.

The 5 Pillars is a great way to talk about any company(and I mean ANY company) in a generic way and highlight strengths and weaknesses.

Pillar #1 is super important, and if one doesn’t have Pillar #1, it’s pointless to look at the others.

That is because Pillar #1 is Company Management & Experience with Integrity.

Here are some Tips:

– Do a Google search for the owners of the company.

– Try adding the word scam to your search and see if any real negatives are out there. Sure, negative people always complain, but often real issues are at the top of Google.

– Do the owners have a Corporate background or have they ever built a downline before? One thing my mentor taught me, after he joined 100 different MLM companies during the 90s and did consulting for companies, is that lots of times the creators of the company are more concerned with how much THEY are going to make, and how to minimize THEIR losses – sometimes at the expense of the distributors. If your CEO has never built a downline before, watch out. Imagine being at work under a boss who has never worked your job before and doesn’t understand what it takes to get the job done. It can be frustrating at work, and in MLM it can be devastating to your paycheck.

– Read your Policies & Procedures. Just do it. I know it sucks. If it is a super long contract, start from the end and read backwards, since legalese often involves putting the safer stuff up front. If you have it in PDF form or online, do a CTRL + F search for the terms “ongoing” “termination” and read the sections that these terms appear in.

Some contracts have clauses built into them that allow the company to terminate your contract with or without cause, and if you don’t believe that they put those clauses in there to use them, get in touch with me so I can share some stories with you.

-Look for policies that strike you as unreasonable, and ask yourself “Does this contract protect me or the company?” “Is it clear which way this leans?”


Does the company charge you for a company web site?

Does the company charge you for each paycheck they send you?

Is it a cash only business? 2 minute video on why cash gifting is illegal:

If a company is publicly traded, financial decisions will be made in favor of the stockholders at the expense of the distributors. It’s just business, nothing personal.

Pillar #2 is Timing in the Company, Timing in the Industry

99% of companies do not last over 2 years. Seriously, if you are in business to gamble, maybe poker is your game. Being skilled at poker can reward a person with gamble in them.

There is NO rush to get in on the ground floor. If it’s a good company today, it will be GREAT tomorrow.

It’s good to be aware that most people don’t make money in the first 2 years while MLM companies deal with start up issues. Beyond the “early failure” timeline, it’s good to know that companies that are household names and passed their momentum phase probably don’t have any realistic potential for big growth.

Pillar #3 is A Remarkable Product at a Reasonable Price

Self explanatory, however, a few pointers:

If there is both a retail and wholesale price for a product, the company has a recruiting business model as opposed to a product movement model. Think about it, if you were going to sell a health product to your mom, would you sell it at the price you got it at, or would you up it to “retail”?

Company managers think this makes sense, to promote joining the business. In practice, it often creates stress & lowers existing distributor success. If you find yourself having to justify your company’s business model, you are no longer in the position of Problem Solver, but the position of Sales Person. Ouch.

Pillar #4 is A Compensation Plan that Pays Part Timers

Pillar #5 is a Proven Business System for Duplicable Team Success

Read my article “Pillars #4 and #5” for more detail on these 2 Pillars

Bob English

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