Why Multi-Level Marketing Won't Work & Why You Should Avoid Them
Have you been offered by
someone to join a business venture that seems too good to be true? They claimed
that you could make tons of money by signing up in this business venture. The
business that I am talking about today is a Multi-level Marketing business. For
you to be successful in a multi-level marketing business, you’ll need to
recruit followers into the business. However, the multi-level marketing
business is not sustainable and impossible to actually make money. Every day,
people get sucked into the lure of MLMs (“Multi-level marketing” or “network
marketing”), believing that they can somehow be successful by joining this
business venture. In this article, I will want to share information
about why MLMs business model doesn’t work, and why you should avoid it before
it ruins your life.
1. MLMs are Pyramid Schemes.
Multi-level marketing business is extremely predatory because the only way to make any money is to sign up more and more people under you. This can result in you having to ruin your social relationship with the people you chose to offer the business venture.
I will explain how MLMs business works. First, you sign up and pay the buy-in fee to receive your startup kit, and then you start clogging everyone’s social media feeds about your new venture and beg your friends and family to join you on your journey financial journey to success. You probably host a bunch of fake parties so that you can persuade your friends into buying stuff they don’t want or need. After you subject them to that, you then try to recruit them to join your team of consultants, or whatever term your particular MLM uses.
As with all MLMs, the real money is made not by selling their products but actually in recruiting more people to join your team to do the work for you. The real winners in this business are people who started in the business early on. This top of the pyramid is also where all of the success stories tend to come from.
Sometimes, they claim that their businesses are not multi-level marketing. However, if the business model requires you to recruit members to join to make money, that’s usually a sign of an MLM business.
2. They Sell Fake Dreams.
In most multi-level marketing businesses, the recruiters like to sell fake dreams so that people will be interested in joining. Members of MLMs recruiters at the top of the pyramid will talk about their success stories in the company. They often will show off all the expensive things they had purchased and the lifestyle that everyone dreams of.
They indeed made it in the multi-level marketing world. However, the chances for you to be in the same spot as they are close to impossible. The reason why I said this is because those people that made it were the first few who join the business venture.
Furthermore, these top members usually over exaggerate their success so that they can attract new members to join the multi-level marketing business. This business model is not sustainable because in order to sustain, you’ll need to keep recruiting new members into the business.
3. Products are overpriced and not unique at all.
Most MLM businesses will talk about how their products are exclusive and unique in the market. However, it is completely the opposite. Most MLM products are not unique at all. You can simply purchase similar products in other places for a much lower price.
I have seen my relatives who are in this MLM business. They stock up in MLM merchandise that is super difficult to sell. This results in having them giving away the products to people for free.
Most products that most MLM offers can be purchase elsewhere at almost fraction of the cost. Your friends and family may love you, but when you ask them to part with their hard-earned money, don’t be surprised if those relationships become strained. Even if you’re peddling an amazing product that you believe in 100%, it can be difficult to convince your friends to buy it, especially multiple times.
4. MLMs Business Model is Not Sustainable.
Of all the facts about MLMs, this is the most crucial. When you take a look at anMLM business structure,
it’s impossible for the majority of participants to make money.
In fact, MLMs rely on the continuous recruiting of people at the bottom of the pyramid to send money flowing up to the tiny percentage of the people at the top. Let’s take a look at this from a mathematical point of view. As the number of participants increases, the chance to recruit a large down line diminishes for those at the end of the chain. The thousands at the bottom of the pyramid cannot possibly enroll as many recruits as those few at the top already have.
Based on the proposition of gaining profits from recruiting, 96% would always lose for as long as the scheme operated. This leaves only have 4% who are on top of the pyramid to make money. So, of 1,000 people who join an MLM, 996 will lose money after subtracting expenses.
5. MLMs offer worse odds than playing roulette.Multi-level marketing business is extremely predatory because the only way to make any money is to sign up more and more people under you. This can result in you having to ruin your social relationship with the people you chose to offer the business venture.
I will explain how MLMs business works. First, you sign up and pay the buy-in fee to receive your startup kit, and then you start clogging everyone’s social media feeds about your new venture and beg your friends and family to join you on your journey financial journey to success. You probably host a bunch of fake parties so that you can persuade your friends into buying stuff they don’t want or need. After you subject them to that, you then try to recruit them to join your team of consultants, or whatever term your particular MLM uses.
As with all MLMs, the real money is made not by selling their products but actually in recruiting more people to join your team to do the work for you. The real winners in this business are people who started in the business early on. This top of the pyramid is also where all of the success stories tend to come from.
Sometimes, they claim that their businesses are not multi-level marketing. However, if the business model requires you to recruit members to join to make money, that’s usually a sign of an MLM business.
2. They Sell Fake Dreams.
In most multi-level marketing businesses, the recruiters like to sell fake dreams so that people will be interested in joining. Members of MLMs recruiters at the top of the pyramid will talk about their success stories in the company. They often will show off all the expensive things they had purchased and the lifestyle that everyone dreams of.
They indeed made it in the multi-level marketing world. However, the chances for you to be in the same spot as they are close to impossible. The reason why I said this is because those people that made it were the first few who join the business venture.
Furthermore, these top members usually over exaggerate their success so that they can attract new members to join the multi-level marketing business. This business model is not sustainable because in order to sustain, you’ll need to keep recruiting new members into the business.
Most MLM businesses will talk about how their products are exclusive and unique in the market. However, it is completely the opposite. Most MLM products are not unique at all. You can simply purchase similar products in other places for a much lower price.
I have seen my relatives who are in this MLM business. They stock up in MLM merchandise that is super difficult to sell. This results in having them giving away the products to people for free.
Most products that most MLM offers can be purchase elsewhere at almost fraction of the cost. Your friends and family may love you, but when you ask them to part with their hard-earned money, don’t be surprised if those relationships become strained. Even if you’re peddling an amazing product that you believe in 100%, it can be difficult to convince your friends to buy it, especially multiple times.
4. MLMs Business Model is Not Sustainable.
Of all the facts about MLMs, this is the most crucial. When you take a look at an
In fact, MLMs rely on the continuous recruiting of people at the bottom of the pyramid to send money flowing up to the tiny percentage of the people at the top. Let’s take a look at this from a mathematical point of view. As the number of participants increases, the chance to recruit a large down line diminishes for those at the end of the chain. The thousands at the bottom of the pyramid cannot possibly enroll as many recruits as those few at the top already have.
Based on the proposition of gaining profits from recruiting, 96% would always lose for as long as the scheme operated. This leaves only have 4% who are on top of the pyramid to make money. So, of 1,000 people who join an MLM, 996 will lose money after subtracting expenses.
MLMs will happily lie and deceive to recruit members to join. They’ll talk about the ‘income opportunity,’ introduce to their top sellers, and create fake testimonies from happy reps. The loss rate for all of these MLMs ranged from 99.12% to 99.97%, with an average of 99.6% of participants losing money.
It’s impossible for most people to make money in MLMs, so why do people stay with them. The truth answer to this is that they don’t. For example, Herbalife, which is an MLM company, loses 90% of its distributors who are not supervisors in just a year. I hope this statistic can give you readers an image of the probability of failure in joining an MLM business.
6. MLM reps are unpaid sales reps, not ‘business owners’.
Many MLM reps like to describe themselves as ‘business owners’; however, they are practically unpaid sales reps. Unlike a real business owner, they don’t get to choose their own product to sell. Moreover, they are not able to shop around for suppliers for the best deal. Instead, they’re stuck with the products and prices available from their MLM. They also can’t decide what profit margin they want to make; instead, their commission level is decided for them.
7. MLM ruins relationships.
This is probably the saddest part of joining an MLM business venture. MLMs often harm and even destroy reps’ relationships with their family, friends, and close ones.
MLMs use reps’ relationships as opportunities to sell and recruit. They often force them to approach people they know to buy their products and even join them in the ‘income opportunity.’
I have personally encountered this problem before. I wasn’t the one that joined the MLM business, but my older brother who did. He was recruited by our aunt, who is in the MLM business. It didn’t take long for my brother and aunt to have a ruined relationship. My brother, till today, is still mad at our aunt for inviting him to a business that doesn’t work. My aunt didn’t stay in business for long; she eventually quit the MLM business since it was just a failure.
In Conclusion.
I hope from this article, you readers understand the reason why you should avoid multi-level marketing business. If someone wants you to join, its better you avoid it at all costs. A multi-level marketing business is an unsustainable business that requires you to recruit members in order to make money. The products that most MLM provides can be purchase somewhere else at a lower price. It has no competitive advantage in purchasing products from an MLM. The products are often marked up, making their products overpriced. Also, not only MLM businesses make people lose money, but they also destroy the relationship with the people around them. I hope from this article, you readers will be educated to the reason why we should avoid MLM businesses at all time.
I hope from this article, you readers understand the reason why you should avoid multi-level marketing business. If someone wants you to join, its better you avoid it at all costs. A multi-level marketing business is an unsustainable business that requires you to recruit members in order to make money. The products that most MLM provides can be purchase somewhere else at a lower price. It has no competitive advantage in purchasing products from an MLM. The products are often marked up, making their products overpriced. Also, not only MLM businesses make people lose money, but they also destroy the relationship with the people around them. I hope from this article, you readers will be educated to the reason why we should avoid MLM businesses at all time.
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