MLM Billionaires – How Did They Get There, Will They Stay There?

Becoming an MLM Billionaire is not a ride in the park, and staying an MLM Billionaire is even harder. So let’s look at the three MLM Billionaires listed in the 25th Anniversary Issue of the Forbes 400 Richest People in America.

Kenny A. Trout #380 ($1.3 Billion) Excel Communication.

Kenny started excel in 1988 and within 8 years took the company public. It was the first publicly traded communication company to build it’s brand 100% based on a network marketing compensation plan.

However, after taking the company public, Kenny moved on to divest his connection to Excel. He divested his equity in Excel and reinvested in other stocks, bonds, and horses. By 2004 this billion dollar communication powerhouse was bankrupt and tens of thousands of thousands of distributors scattered.

Arthur L. Williams #271 $1.8 Billion A.L. Williams / Primerica Financial Services

Art launched A.L. Williams in 1977 with 8 front-line leaders and a team of 85. They had one mission… To teach middle America about “Buy Term and Invest The Difference!”

Five years later (1982) Art took the company public creating three historic business events.

• First was the public offering – it is largest self-underwritten stock offering in business history.
• Second was the fact A.L. Williams was the first life insurance company to use a network marketing compensation plan.
• Three was the fact the company’s success was built around a part-time field force.

In the same year they reported their first Billion dollar month in new business. By 1983 the #1 rep was being paid $100,000 per month (Hubert Humphrey – later left to form his own company). And to top it off, in less than 8 years this small rag tag army of part-time network marketing field force had become the fastest growing life insurance sale force in the USA beating the old #1 & #2 combined.

Twelve years after founding the company Art selling to Citi Group and becoming one of the largest shareholders (and still is today).

Today the company is know as Primerica Financial Services. Last year they did $89 Billion in new business, and paid out close to $700,000,000.00 in commissions. In the last 30 years the company has created:

• 5000 leaders earning $50,000 annually
• 2000 leaders earning $100,000 annually
• 200 leaders earning $500,000 annually
• 60 leaders earning $1,000,000 annually

Richard DeVos #89 $3.6 Billion Amway (Alticor)

Richard and his best friend Jay Van Andel (.d2004) followed their high school dream of becoming business partners and creating financial independence for their families. Launching their partnership in 1959, what started out in their garage has now grown to include:

• Quixtar.com – #1 ranked health and beauty retail sales site ($6.8 billion in sales)
• Access Business Group – One of the leading international companies in the the categories of product development, sourcing, manufacturing, printing, packaging and distribution.
• Amway – The global leader in multi-level marketing
• Amway Grand Plaza Hotel
• And several sports teams

Quixtar paid $2.2 billion in bonuses and commissions at the end of 2006, and is now adding an additional $60,000,000 in new incentives to their field force, along with another $200 million in new product development, brand building, training and other compensation enhancements.

Alticor is now run by the second generation of the original partners, and the future looks as bright as ever.

Do you see anything interesting with the top three stories? It took me a while as I was reading about these three to see something very interesting.

Two of the three companies are still thriving and creating new four, five, six and seven figure earners each and ever year – Alticor and Primerica. Although both companies have had good and bad years, I believe what has allowed them to continue their success far after the average tenure of most direct marketing companies is the following facts:

• The visionaries who launched the companies stayed true to their passions
• The visionaries who launched the companies stayed engaged with their top leaders far after retiring from running the companies.
• The visionaries who launched the companies are still training and motivating the field force
• The visionaries pass the baton of leadership to the next generation of leaders

So the next time you hear someone say “MLM/NWM doesn’t work, share this post with them.

I am proud to be in this wonderful profession.

Never Give Up,

Troy