In this article we take a quick look at the heavyweight contenders in the network marketing industry. We review the features, pros and cons of the top 5 MLM companies based on their popularity. The measure used to determine the most popular is simply the volume of Internet search traffic. Although popularity may not necessarily be the best reason for anyone to join, we thought it would be helpful to know a little about these companies that are garnering the most attention in the online world.

The actual popularity of various network marketing companies is calculated by Mark D Worthan’s Best-MLM-Opportunities.com, using Google search data. His rankings are based on Google Trends, which is a service from Google Labs that allows you to compare the number of searches for various keywords over time. The service can be used to determine the relative number of searches from various MLM companies. Here are the current data results, along with a brief description of each company:

1. Amway: Amway got its start when its founders became distributors of Nutrilite vitamins in 1959. Amway is famous for “legitimizing” the network marketing industry in 1979, based on the FTC’s decision that the company did not qualify as a pyramid scheme. This was based on the finding that Amway’s compensation system was based on product sales vs. recruitment payments. Amway reported sales of $8.4 billion in 2009. Amway North America closed in the early 2000s and most North American distributors became members of sister company Quixtar, but continue to order Amway products. At the time, it was revealed that the average monthly earnings for “active” Independent Business Owners was $115. The main advantage of Amway is the wide recognition of its name in the industry. Its main drawback, as reported by many distributors, is its compensation plan that makes it difficult for most IBOs to earn adequately.

2. Herbalife: Herbalife was founded in 1980 and achieved net sales of $2.3 billion in 2009. Over the years, Herbalife has faced occasional legal challenges over the safety of its products, none of which have yet been upheld. The company settled with the California Attorney General in 1985 for $850 million when accused of making inflated product claims. The company’s product formulations were changed to eliminate Ma Huang in 2002, when several states enacted laws to ban the use of ephedrine alkaloids. In 2007, a scientific study at the University Hospital of Bern, Switzerland, and in Israeli hospitals found an association between the consumption of Herbalife products and hepatitis. These articles and other media and legal fixes seem to be the main disadvantages of the company.

3. Mary Kay: Mary Kay began in 1963 as a skincare and cosmetics company, initially based on suntan lotion formulations. Worldwide revenue was $2.5 billion in 2009. Brand recognition is the main advantage of this company, which obviously appeals to women more than men. Both US (68.6%) and Canadian (85%) consultants experience significantly high annual turnover. Reported earnings statistics for Canada were that out of 29,675 Consultants, only 1,878 earned more than $100, 276 of 553 Sales Directors earned more than $17,471, and 15 of 23 National Directors earned more than $100K, suggesting that only one few first-rate consultants.

4. Pampered Chef: Pampered Chef was founded in 1980 and used home demos to market cookware through the party plan business model. Berkshire Hathaway Corporation acquired Pampered Chef in 2002. Earnings figures are not available.

5. Monavie: Monavie distributes a juice product made from fruit juice blended with main components of freeze-dried acai powder and puree. Monavie, founded in 2005, was recently ranked 18th in Inc. Magazine’s 500/5000 ranking of the fastest growing private companies in the US. The company’s claims about the efficacy of its key antioxidant polyphenols have been refuted by the FDA, the Linus Pauling Institute and the European Food Safety Authority, who claim that such compounds have little or no value after digestion. A Newsweek article reported that only 10% of distributors made more than $100 per week and the retention rate for new recruits in 2008 was only 30%. Monavie remains a very viable opportunity for significant gains despite these issues and is ranked #9 in MLMInsider.com’s annual report. This may be due to their more up-to-date and potentially lucrative compensation plan and excellent management, although a recent video from mlmwatchdog.com reports a significant loss of interest due to compensation plan changes in the last year.

We don’t necessarily recommend or discourage joining any of these top 5 companies, but just wanted to see some advice on them. The main point to make here is that few people check the background of the company, the founders and/or the compensation plan before joining. If you’re evaluating home business opportunities, it’s a good idea to familiarize yourself with the industry, establish some selection criteria, and make an informed, emotionless choice. One thing to keep in mind is that strong emotions often come into play in the “buying” process of selecting a home business opportunity and, after the fact, justification of emotionally made decisions is all too common.