We're currently considering implementing a multi-level marketing
(MLM)/network marketing distribution model for our product but are
highly concerned about the stigma associated with MLM companies.  The
vast majority of the stuff we've come across is very negative and
understandably so.

We are looking for any "good" MLM companies that are out there.  In
other words, companies that have implemented an MLM or network
marketing distribution model and done so in a highly ethical and
upstanding fashion.  I'm not ragging on MLM here but rather looking
for example of a company that has acknowledged some of the problems
with MLM in the past and made efforts to right those wrongs.  To date,
the only company we've found that is along these lines is the
following one:

http://www.melaleuca.com

Anyway, if anyone can point me to others I would highly appreciate it.
 I realize this question is of a subjective nature but I figured I
would ask it anyway.  Please post your answer as a comment first and
then I'll approve it before it gets posted as a question.

Thanks!

I think that one of the main problems with MLM is that it is easy for
people to get so caught up in recruitment that actually selling
product becomes secondary.  The benefits are often set up to encourage
this, and in the extreme (chain letters) the product dissapears
altogether.

Some companies that rely on home sales (Avon, Tupperware) share some
characteristics with MLM companies, while remaining focused on an
actual product.

Melaleuca is definitely a legitimate business opportunity.  I think
you'll find that they tend to argue that they are NOT an MLM company
even though they operate and function like any other MLM I've ever
seen.  They prefer the term "consumer direct marketing" but it's
really the same business model.

When considering a business for yourself, I believe that you can
eliminate 95% of most MLMs in the marketplace by simply asking a
couple of questions:

1.  Would I buy this product or service if I were not going to get a
check for promoting it?  If the answer is no, then you should really
question how passionate you are about marketing something you have no
interest in.

2.  Would I buy it at this price?  The key to success in any home
business is to be able to offer a unique product that isn't available
in a million other places.  Because, if your product IS readily
available at any store, then you're going to be competing on price and
convenience....which is very difficult to do.  In other words, why pay
$5 for a bar of soap if you can buy soap at Walmart for "4 bars for
$2"?

3.  In my opinion, the last question is crucial:  how long will it
take me to get into profit?  Forget whatever your presenter shows you
about how much money you'll make if you have "three people who get
three people who get three people and so on".

The real consideration is to figure out how many people you will need
buying product in your new business in order to break even and get
into profit.

For instance, in the case of Melaleuca, as a "Director", you'll be
spending about $110 per month.  Your customers will be spending
between 29-75 "product points" per month.  (In Melaleuca, commissions
are not calculated on dollars spent.)  You earn a straight 7% in
residual income on their purchases.

So, do the math.  You're earning (at most) about $5 per person in your
group and you're spending about $110.  That means that (excluding
bonuses) you'll need about 22 people in your downline just to break
even.

I'm not saying that's good or bad.  I'm simply saying you need to
investigate this aspect of ANY company that you're considering. 
Otherwise, you'll wind up operating in the red for months and not
understanding why your income is always lower than your expenses.

Investigate other businesses and don't just choose the first one
you're approached with.  Do the "break even" math and see where your
time and effort will be most rewarded.  (There are many home
businesses that allow you to break even with 6, 10 or 12 people.  Our
business allowed us to get completely into profit with only four
people and we earned more than $10k in our first month).

MLM is a great business and there ARE lots of legitimate companies. 
Just take your time and carefully examine the marketplace to see which
one is best for you.

To your success!
Tony Rush
http://www.tonyrush.com