The Reality of Multi Level Marketing

A lot of multi level marketing aka MLM has been employed by companies in these past several decades and many have fallen victims to them. MLM has left a lot of grieve and misfortune for people who wanted to “live the American dream” which is usually the sales pitch made by MLM companies to recruit people. The word MLM is so bad right now that most MLM companies do not associate themselves as MLM when in fact they are.

A multi level marketing distributor only source of income is commission. To even become a distributor, one would need to pay from hundreds to thousands of dollars to get the starter kit; most of these people end up bankrupt because of all the fees and expenses incurred after becoming a distributor from the MLM program. In MLM, the early comers become rich from recruiting people where they get commission points whenever the recruited make a sale. The best part is when the recruited enrolls new members, the early comer will even get commission points when the new members make a sale too. That’s how MLM works and how early comers become rich.

pyramid

Some people fake their riches and high lifestyle after joining a MLM program in hopes of recruiting others. However, they usually end up homeless and broke from leasing and buying expensive luxuries. As more people join the MLM Company, the late comers lose since they are competing amongst themselves and prospects are already exhausted (both recruiting for commission points and selling for sales). Turnover rate is high for MLM so there is always a need to obtain new recruits in order for the early comer and owner of the company to prosper.

The company owner and the early comers are the only winners in this zero sum game which makes up the few percent. Basically it reinforces the foundation of the rich getting richer, poor getting poorer. With so much bad publicity and lives wrecked from MLM, the only reason it has survived even now is because we are naïve, desperate and no government intervention. If you want to try MLM, you have to be early in the game to succeed.

8 Comments

  1. Posted October 23, 2007 at 4:41 pm | Permalink

    People need to be very careful when paying money to have the “privilege” to resell anything. The old saying “If it seems too good to be true, it probably is” is especially relevant on the net.

  2. Posted October 23, 2007 at 7:28 pm | Permalink

    Yes indeed Steve. I hope this article will be informative for people.

  3. Posted October 25, 2007 at 7:21 pm | Permalink

    I’m part of an MLM company, from the start I have the mentality of not getting more emotional than rational, and at the begining I was very skeptic, but when I begin to see the results, in health and money, I change my concept about this kind of business, what you got to do when you join a MLM company, is to speak with truth to others, is really hard work, not as easy as they say, but doing it the right way it really works . . .

  4. Posted October 26, 2007 at 9:35 am | Permalink

    Did you pay for the starter kit? Was there a lot of fees for selling their products (like shipping, storing)? Are you doing MLM for passive or main source of income? Is the product safe after numerous testings? Is there some kind of FDA approval? Those are the questions I want to ask you ice because I am curious.

  5. Posted October 27, 2007 at 12:30 am | Permalink

    Did you pay for the starter kit?
    Yes, $25.00 Dollars and included a nylon briefcase, a magazine, a DVD and a energetic product valued in $17.00 Dlls

    Was there a lot of fees for selling their products (like shipping, storing)?
    No, you buy what you need, when you want, there’s no time or quantity limit

    Are you doing MLM for passive or main source of income? The passive of course, but I can’t refuse the extra money a month from direct sales!!

    Is the product safe after numerous testings?
    Yeah, is already in 20+ countries, included the U.S, Spain, and next year India and China

    Is there some kind of FDA approval?
    Yeah, because the products are catalog like food, they are fiber, vitamins, energetics, and they don’t have any kind of drugs, all natural

    I have one second line affiliated that has cancer, and she is doing great with the chemical therapy, she hasn’t have any symptom like vomit, loss of hair, feeling very low in energy; she believes more in the products than myself !!, but everyone has the right to be analytic, and not letting emotional feeling getting through, that is very intelligence, and I mean it !! . . .

  6. Posted October 27, 2007 at 9:46 pm | Permalink

    Thanks for the response icedragon. Seems like you joined a great MLM company =).

  7. Posted December 5, 2007 at 11:39 pm | Permalink

    Well, i am also in to online business more of MLM type. i wud rather take up business where in, even if the person joining does not enroll anyone, he still takes back his invest + Profit. I am doing more of investment in Forex. here if he/she introduces more people they will make more money than normal. if he/she does not introduce any one ,they still make money for the money invested in forex. i never give false commitment.
    -Prem Anand from India
    prem@technosolutions.in

  8. Posted December 5, 2007 at 11:53 pm | Permalink

    Your investment in Forex sounds great Prem Anand. Sounds like a good MLM investment company. Hope you do well in your investment.

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