Chapter 1: Understanding the House Edge in MLM

In the realm of gambling, it's a well-known fact that the house always has the upper hand, particularly in establishments like MGM. However, this principle also applies to Multi-Level Marketing (MLM) or Network Marketing, which deserves a closer examination.

Initially, I ventured into network marketing with Jeunesse, a company that exemplified the typical model. To earn any income, participants were required to accumulate a specific number of points or business volume (BV). The compensation structure resembled a sketchy carnival game, designed to prevent anyone from reaching their full earnings potential, ensuring that profits remained with the house.

A few years later, I took a leap into launching my own direct selling business. With a background in financial services, I was drawn to alternative investments. However, the commissions on the products were insufficient. My idea was to implement a subscription model for investment access, generating network commissions while the house reaped profits from product sales. Unfortunately, this venture never took off, but the concept was validated later.

Subsequently, I became involved with rNetwork, which required a monthly fee of $50 for access to substantial discounts on various products. The idea was to introduce banking products, but the venture faltered despite a solid member base, primarily due to the need for a banking license for some offerings.

Recently, I joined LiveGood, a company that sells wellness products at significantly lower prices than its competitors, with a membership fee of just $9.95 per month. Here, the company profits from product sales while network members receive payouts from the subscription fees.

The compensation plan at LiveGood is notably generous, with a substantial portion of the subscription income available for the network. Although profit margins on products are tight, the company boasts approximately 500,000 members within the first six months of its launch, frequently running out of best-selling items.

During my time in the startup ecosystem, I was a founding member of a support group focused on emerging businesses. Subscription models gained immense popularity in tech circles, with companies like Netflix and Amazon showcasing how small, recurring payments can lead to significant growth.

For those seeking a viable side-hustle with a more equitable compensation structure, LiveGood may be worth exploring. Check out the tour video below for more insights.

Chapter 2: Insights from LiveGood and Beyond

The LiveGood model has not only attracted a massive membership base but has also provided a refreshing approach to network marketing. By focusing on value and affordability, it stands apart in a crowded marketplace.

In conclusion, understanding the dynamics of network marketing is crucial for anyone considering this path. The key takeaway is to always assess the compensation structures and ensure they align with your financial goals.