The rather harsh statement, Multi Level Marketing is a scam isnt going to sit well with alot of people on the online world. While I been involved with MLM in the past ( huge mistake but we learn from experience) I hope to shed some light and why I believe most if not all MLM business opportunities are scams.
This is going to be my opinion (with facts) on why maybe you should think twice about joining or maybe you should decide to run the other way when a close friend or relative promotes you a total life changer business opportunity.
I would like to start off by saying, why do pretty much all MLM companies make you invest in the companies products before gaining the opportunity to promote their products. Some people are so stubborn that they dont realize they been ripped off and keep following the path striving for success but that seems hard to do with tunnel vision, doesn’t it ?
I mean, when you first enter one of these schemes you are trained by your coach. In fact, he’s usually training about 5 to 10 people at least( my case). Now usually one or two people leave but the others that stay are being pushed to promote this amazing one of a kind opportunity. Think about it, most times you are sold on the opportunity to make a lot of money( which hardly ever happens, the people that do are at 1%).
Why not review the actual products ? The problem with MLM opportunities is the issue that you have to be walking every day talking about the opportunity with these amazing products but the hard reality is that if these products were so great then no marketing of any kind would be necessary because the product would just sell by itself.
MLM are known to blind people from concrete judgement as they promise that you will make a crazy amount of money but today I’m going to explain why this is all lies.
Work Your Butt Off For Bum Change
If you, yourself don’t believe in the actual product you are promoting then what are you selling to people ? A product or a scheme ? Most MLM comapnies that emerge are companies that no one has ever heard of because one, people shy away from multi level marketing or network marketing because too many companies have been cracked down and exposed.
How do you promote these products ? Well, you can either do cold calling if given a list of some sort , your closes friends and relatives, or in the streets. Let’s just state that most people aren’t comfortable with any of those 3 options but for the sake of this article I’m going to assume your an outgoing, energetic person, and have some entrepeneurship in you.
That hard truth is that you are overcharging people on low quality products but let’s say that these products are of extremely high quality, right. Downline compensation would not be made possible if companies weren’t charging some extreme high cost amount which is usually double the cost of what you will find in your retail stores. Is that a way to create a real business, by cheating people of their money ? I’m sorry, that just isnt a business I would want to take part in.
You are put at risk most of the times because you are making fake promises on products that in some cases arent even safe and can be quite damaging to the wrong person. You are blindly promoting products that you don’t even know the real pro’s and cons to.
If their weren’t people doing this then I’m pretty confident that there wouldnt be any MLM companies around today. It will come the day that MLM will be considered an illegal form of marketing in my experience.
I Didn’t Like Making Money Off My Friends
It’s true the easiest way to make money is off your friends and relatives due to the fact that they already trust you, well more than a stranger would. I once was in a MLM where I promoted the “business opportunity” to my mom , step dad , uncles , aunts, and friends. I thought I was this crazy entrepreneur but these people I promoted it too didn’t believe in the actual program themselves but why would they invest in the opportunity ?
It’s harder to say no to someone you care about.The harder realization was when my mom asked me, “son do you believe in the products yourself”? This was in the middle of my presentation, to not embarrass myself I said yes, I truly do but in my head I had a million thoughts just popping up. How could I just lie to the people closest to me and feel like it’s all fine?
I was being pushed so hard by this company that I ignored what was right and wrong for the sake of a couple bucks. I had just gotten out of high school and needed the money but just straight up lying blindly. I’ve always had dreams of building my own schedule and making money whenever I chose to but this wasn’t the way. I always wanted to build a business but being considered a fraud or a scammer wasn’t part of my vision. I literally had to rethink everything I was being taught.
Do You Own A Business ?
This was a question that I was asked by my professor in college class and it really sat with me for a while. He had a good point, what If you are making money with a certain company promoting their business but all of a sudden they drop you like they’ve done to others in the past.
Tell me, what do you actually own ? Nothing and that’s the hard truth that people dont put into consideration. Why are MLM labeled pyramid schemes ? It’s rather simple if you think about it. Remeber that 1% that actually makes money, well they are on the top of the pyramid as long as there are other distributors under them then they will always make money. Their line of money will always be supported because there are so many people helping the top of the pyramid but no one is helping the ones at the bottom.
MLM Doesn’t Compare To Affiliate Marketing
This was a big reason why I completely left MLM and went down the path of affiliate marketing. It feels like I’m in a completely different world now and I do have ownership of many websites which I can sell if I wished or keep making money off them, which is what I plan on doing.
I work for myself ! I don’t need to purchase products just to promote them. In fact, I can promote every single product on amazon without wasting a single penny.
How many programs can you promote while being part of a MLM ? Just one. The difference between the two is pretty drastic in my opinion but this article wasnt about which is better but if you please to learn what Affiliate Marketing is about I suggest taking a look at my number one recommendation.
What I do find crazy is the realism that so many MLM companies are still breathing but that’s usually the case until they crack down on them hard. They really are trying to stay hidden but in due time they all become exposed one way or another.
My Conclusion On What Is Multi Level Marketing
My opinion, if you are a person wishing to enter the world that is MLM I suggest you do some thorough research on the company and it’s products. If the products are expensive to the naked eye then it’s a waste of time. Are people selling you the actual products or the opportunity .
Most of the time, MLM comapnies hide behind accreditation from BBB or other ones just to convince you that they are legit. Don’t trust these credentials as they can easily be bought or even raise your reviews. From what i’ve experienced and heard from other people as well, all the MLM i’ve encountered have been scams.
I hope to see the day where we will see a legitimate MLM opportunity but that just hasn’t happened. This is a shame because there are over a thousand of these companies.
There will be opportunites out there but it will be up to you to make a sound decision on which one is legit or just another blatant scam. I hope this article raised some awareness.
Feel free to leave your comments as I will try to get back to you as soon as possible.