The MLM business model is one of the oldest ones out there.
However despite it existing for many years, does that mean its something for you.
Alot of research and feedback from individuals who have joined say that getting involved in Multi-Level-Marketing may not be the best idea.
From my view and having had experiences with them I have never favoured them.
Afterall most of them are set up to make it hard for others other then themselves to earn.
The odds of you making money are really low, to the point where you have lost before you have even joined.
In this post I aim to cover 5 reasons why MLM’s won’t be for you.
1. Odds Of Succeeding Is Remarkably Low
No matter what you do has a career you are competing against odds. They will either be low or high in that you will be successful.
In this case you will likely not be surprised that the odds of making it work with a MLM is rock bottom.
So many people attempt to make money only to come out with nothing.
This is mainly due to the set up of a MLM and how every detail of it is made for your average joe to not gain.
All the specific terms, maintaining personal/group volumes, paying for starter packs/products/memberships, and of course recruiting more and more people to join.
This is what you has a MLM member have to battle with, this is why not only do people not make money they lose a lot as well.
Its exhausting, and if you can’t keep up, you won’t last.
2. The Constant Recruiting
If you want to have any chance of coming out on top you will need to be efficient when it comes to recruiting.
While MLM’s sell products and services which you can sell to other people.
The majority of your profit if you are to make anything is by building a downline.
This is why those who get into MLM’s weeks/months after there launch stand the best chance of making money.
Because with the hype of a new program means a lot of people want to try it out.
So if you know what your doing you could get some sponsors under your belt, that will do the work for you.
However after a while the hype will die down placing pressure on you to keep recruiting more people.
Of course you can direct sell products to others, but the thing is that has been proven to be hard to do.
The main issue is that a lot of these MLM’s products are too expensive.
That unless you want certain that exact product you could find elsewhere far cheaper.
For instance a reputable MLM in Young Living Oils sell products up to $80.
Taking into account you are paying that amount for just a single oil, well you can start to understand why selling these products are hard.
So because of this you are going to find it easier to recruit people, and then hope they can sell the products instead.
3. Known To Cause Mental Issues
MLM’s have a habit of prying on the less fortunate and those who are naive, by inviting them into there schemes promising the world.
I have heard of several stories where people were taken advantage off.
These people were left with mental issues such as depression and also had debt.
Now because of the brainwashing that goes on and all the promises that these companies make, you can hardly blame these people for sticking with it.
4. Pyramid Schemes, But Legal
When a MLM first comes on the scene the first question people will be eager to know the answer too is whether they are a pyramid scheme.
MLM’s tread a fine line as while they are similar to a pyramid scheme the fact they put some focus on selling a service or product albeit a small amount means they are just about technically legit.
Pyramid Schemes are built on the basis that you need to recruit people to make money.
Because of that it has become illegal in almost every country.
This is why you must be careful when it comes to joining any MLM, as some can turn into pyramid schemes.
Those the ones that do slowly transition from selling products to focusing solely on recruiting.
So just remember that while MLM’s have the go ahead to run they pretty much follow the same structure and therefore is nearly impossible for anyone to profit.
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5. Destroys Families Relationships
Getting involved isn’t just a damage to your own mental health and being but it can put strain on relationships with others.
One of the main instructions MLM’s will give to there distributors is to build there downline.
So your first point of action will be to ask some friends or family to become apart of your downline.
Now to make money you and the people will need to sell a certain amount of products in order to make commissions.
Technically it sounds doable, and if your reading that you’re probably wondering whether the catch is.
Well let me get on to that.
You see MLM’s are sneaky so they will put other requirements you must fulfil to get paid, such as buying inventory.
In other words they are making it as hard as possible for you to make money.
Now going back to the original point, this will ruin relationships as the likelihood is that those who you brought in to invest will lose their money.
This is why a new study came out where 73% of people quit or don’t get started because they are uncomfortable getting people they are close with to join a MLM.
What I find sick, is that you now have people who have tried to make money and failed, but the companies have profited from all the products you have purchased from them.
That is the main target of the business model is to get as many people who aren’t seeking your products to buy them.
6. Don’t Have The Money To Invest
Now unless you have the money to invest into a MLM and can financially afford to look into it.
Then you are better of staying away.
All MLM’s require an investment, some are smaller, some larger.
But not only do you need to invest with a starter pack you will need to pay a monthly subscription.
For instance I looked into a company recently called iBuumerang, which is a high ticket MLM and there prices are high.
If you want to get started selling you are looking at $250 followed with $50 a month from then on.
That’s for the basic package as well.
But what that tells you is that getting involved, requires more than a bit of spare change.
And unless you have money to invest and can carry on funding it then thi
7. Becoming An Entrepreneur
If you ever speak to someone who has started in a MLM or you have been pitched to about their products.
Then you may have picked up on this false sense of entrepreneurship that they believe they are getting into.
For me I have never understood how an MLM can be combined with being an entrepreneur.
Mainly due to you having no control over anything, you don’t influence anything you are just someone working for a company selling and recruiting.
Now here’s the thing. We have established that you are more working for a company then being in charge of a business yourself.
Its like working a 9-5 each day, however you have to pay to work for them.
Because like I spoke about unless you are profiting with sales and through sponsors you will have nothing to your name.
Creating an online business and becoming self employed does involve months and even years of hard work.
This is why the majority of people in the early stages, work a normal job while working on there own business on the side.
But with MLM the business model isn’t set up so that you reap the benefits in the long term.
Instead its built for vulnerable people to be sucked in and make the owners more money.
What’s the sad part is that those who join MLM dedicate so much time to it, where they could of put there time to better use.
If being self-employed and an entrepreneur is the goal there are so many avenues to go down. That don’t require recruiting, purchasing companies products, direct selling, etc.
So is this is what you want to be and essentially be your own person, MLM’s aren’t it.
Become Your Own Boss
Chances are you have heard that thrown about before from a MLM. They claim to offer this fantastic opportunity for you to become your own boss and work for yourself.
However reality is your just a guinea pig being encouraged to continue this cycle of selling other peoples products with no commissions.
I don’t know about you, but any model where I must meet X, Y and Z terms to make money doesn’t sound like freedom to me.
The thing is you can become your own boss, live life on your own terms and create a business for yourself where you are in control of everything.
What I am talking about is a business model called affiliate marketing.
Now the reason why I prefer this to MLM’s is because I can promote what ever products I like and make commissions with no strings attached.
Let me talk you how it works simply:
- Create a website
- Choose a passion of yours, it can be anything your interested in and would enjoy building a website on
- Next job is to gain traffic to your site.
- Lastly monetize it so you can earn revenue
Now while I have gone through that simply, you may still have some questions and therefore want to know where to go to learn more.
Well I have done a full review including a video that talks you through how it works and how I make a full-time income from home copying that formula.
If you have been approached by someone to join a MLM or just wanted to learn more about them then hopefully this post has helped you.
This post wasn’t to stop you from joining them, but more to educate you on some of the negative reasons why you should think more carefully about joining.
I know MLM is a difficult business model to understand so if you have any questions about bring them forward to me by leaving a comment.