Is Multi-Level Marketing A Scam?
Maybe???? What???? Let me explain.
Let me start out by saying that I have always been a major skeptic of any M.L.M. (Multi-Level Marketing) company. As far as I was concerned they were scams. I was first introduced to M.L.M. in my early 20’s to a company that you have probably heard of, Amway. Amway was the big thing back then and if you joined you were going to make a million dollars. The skeptics, like myself, said it’s a scam and they will be out of business in a few years. Guess what, they are not out of business and as a matter of fact, they are an 8.6 billion dollar company that is more stable than most any company out there today. I thought the same thing about Mary Kay, Avon, and Herbalife…lol
M.L.M vs Corporations
The thing is, for the most part, M.L.M is really no different from any other big company out there. In big corporations, you have different levels of titles from the C.E.O. and the fancy titled supervisors, all the way down to the entry-level worker. Each level performs their own job with the intention of bettering the company. If you’re a supervisor you recruit people to help out in your department with the intention to make the company more money. The better you perform your job, the more money you can potentially make. Maybe you will get yearly raises or maybe you won’t. It depends on the company.
Within an M.L.M. company, you also have a structure. The C.E.O would be the person(s) who originally founded the company. You will have a varying amount of “employees” under the C.E.O. Instead of supervisors and employees, they are called independent contractors. Within these independent contractors, there are different levels. Instead of higher level employees being called supervisors, they are typically called your upline. Different companies will use different terminology for the levels such as bronze, gold or ambassador. Everyone else will just be called consultants (employees in a typical corporation). Again, different companies will use different names for these levels.
The big difference between a typical corporation and being an independent contractor with an M.L.M. company is that you are NOT an employee, you’re a business owner. This means you will not have to wait until your company is good and ready to give you a raise to make more money. You will also not have to ever worry about being laid off!!! Your success or failure is directly related to you. Your upline is also not your supervisors per say. They are more like a mentor. They want you to succeed. If you succeed, they succeed. No one is stepping on you to climb the corporate ladder per say.
Since it is your business you will promote the products and try and recruit like-minded people into your business to help. So you see, there are not too many differences between a corporation and your M.L.M business.
If you are promoting the products for others to buy, it only makes sense you should be using them yourself. If you do not use the products because you don’t like or trust them, maybe you are promoting the wrong company. You must believe in the product you are selling.
Many people think it’s a pyramid scheme. In a pyramid scheme you are just recruiting people to invest a certain dollar amount and the more people you get in the more you make. The last people in have to keep recruiting or they will make no money. It’s all money based. Sometimes products or services are sold but generally, you are just investing your cold hard cash. There are usually no quality products sold.
That’s where M.L.M.’s differ. You might invest a small amount to get started (you need money to start any business) but that is where the similarity stops. In an M.L.M. you get training, help, and ongoing support on how to build your business, and you have quality products. You can either recruit “workers”, sell products, or both to make money. The guy who just started can actually make more money than the guy who signed him up!!! The only determining factor in moving up and making money is you!!! The more motivated you are, the better you will do.
Let Me Make A Few Suggestions
That being said, for as many good M.L.M. companies that are out there, you have just as many scammers. I have a few suggestions if you are going to try an M.L.M. company:
- Do your research!!! Try and go with an established company with a long track record. Start-ups could be the “in thing” at the moment but could fizzle out in a couple of years leaving you high and dry.
- Believe in the products that you will be selling. If you are joining a company but can’t stand the products they sell, you will not do well. If you believe in the products or services you are selling, you will be excited when you talk to people about them. They will pick up on that excitement. If you don’t use the products, why should they?
- Do not listen to anyone that tells you that you will be a millionaire in 6 months. a good solid business takes years to build. M.L.M. is not a get rich quick business. If you are promised a million dollars in 6 months run do not walk away from them.
- Be wary of any company that wants you to spend hundreds of dollars a month to keep your membership. It’s one thing to buy and use the products but another to have a closet full of “widgets” that you will never use just to remain a member.
The Bottom Line
The bottom line is M.L.M. is not a scam. Many people who try this type of business will fail. It could be because of faulty or inferior products, a large quantity of product to buy monthly, or the company goes out of business. The biggest reason people fail though is themselves. They believe they will become a billionaire and travel the world within 6 months. When this does not happen they quit. They also think it will happen with no work done on their part. Make sure you research the company you will join.
Chris and I have belonged to 2 M.L.M. companies for years. The best part of these types of businesses is that they are location independent. They can be done from anywhere!!! After belonging to them, we actually feel very comfortable and use and love the company’s products. If you’re interested in learning more about either company and how it works for us, follow the link below. You will not be “trapped” into signing up for anything. You will just receive good solid information.
We have been Watkins Consultants for about 2 years now. We originally started to try the products. It had a low yearly membership fee and the company has been in business for a very long time (150 years as of this year!!!) so we thought we would give it a go. It turns out we absolutely love the products. We had been slowly trying to use products that are more “environmentally safe” anyway so this was a no-brainer to at least try. Their products are environmentally safe and never tested on animals. You can make money in multiple ways. You can either sell products online (Watkins gives you your own website), recruit other like-minded people who are environmentally conscious with their product choices or sell the products at flea markets or shows.
or if you are not interested in sales
Wealthy Affiliate has been the best site I have ever joined. A few years ago I had no idea whatsoever on how to build a website. I would not have even known where to start. I stumbled across this site and of course, I was completely skeptical. I read over all the information thinking there had to be a catch.
After returning to the site several different times and researching similar sites offering similar services, I joined their free entry offer to see what it was about. I was surprised that it was truly free to join. After looking around the site and their free courses, I decided to take their premium membership.
Their premium membership opens up all the tools you will ever need to create a website whether you just want a site for you and your family or a business or both. They will even host up to 10 different websites!!! The training and support are ongoing and fantastic. There is a whole community of both veterans and newbies to answer questions or just give you moral support.
This site will also keep you up to date with all the new trends, policies and laws regarding websites. I just can’t say enough about this place. This website is a direct result of Wealthy Affiliate and I am truly thankful.
If you would like to learn more about building a website, check out their no cost/no obligation site.
I hope this page has answered some of your questions on M.L.M. If you have any other questions on M.L.M. or the 2 companies I have listed above, feel free to leave a comment below.