Why MLM Doesn’t Work

Why MLM Doesn't Work

Okay, regulars to this website will know that I cover A LOT of MLM (Multilevel Marketing) opportunities.

Now, more often than not, I spend a bit of time in each review stating that I have no time for this form of marketing – but I don’t speak for everyone!

In this article I thought we’d go a bit deeper into the subject – put my money where my mouth is for once!

We will be taking a closer look at why MLM doesn’t work for the majority of it’s members.

It’s extremely popular, a large percentage of the products are quality BUT STILL people come out the other end with a debt in hand…

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How Online MLM is…


Work online opportunities all center on tugging at a specific heart string – usually the one that controls our money woes/worries.

MLM opportunities are GREAT at doing this, it’s the main weapon in their arsenal.

They are very clever at grabbing the attention of newcomers to the MLM setup…and it’s newcomers I worry about most!

You see, MLM is not exactly a transparent industry.

What do I mean by this?

Well, they do a great job of covering the wealth benefits of their system but seldom do they explain the dangers involved with their system.

To be brutally honest with you – the ONLY people I would recommend taking on a MLM position are the ones that have previous experience in the industry!

For those of you that are a little ‘cloudy’ on the subject of MLM – here is a video that I included on a previous review I posted this week. It’s a bit of an eye-opener really, and some of the language may be a little ‘tasty’ for you…

But I feel it covers the subject perfectly:

 

The Secret of MLM


Okay, before we go any further into this subject, I should point out that I’m not the only blogger with these feelings about MLM – many other (competent) marketing bloggers feel the same way.

Why is this?

Well, we get to see the industry as a whole, we get to see the hidden pitfalls that are camouflaged to most (if not all) newbies –  the secret of MLM…

I’m a Hustler Baby…

Whichever way you try and paint it – becoming an MLM operative means you are becoming a hustler.

Right from the word ‘go’ you are pushed in the direction of hustling their products to everyone and anyone who will listen – friends, family, workmates…strangers!!!

Anyone who will listen – is a target.

Let me ask you a quick question…

How much respect would you give a hustler?

Think about it for a minute…

We’re talking a pimp on the street, an insurance salesman who knocks your door, a cold calling phone ass.

They’re not the type of people you would choose to be around…right?

The Secret of MLM

If you choose to take on a MLM hustle you are choosing to put your everyday reputation on the line.

How often have you had to listen to a mate that has been roped into a MLM scheme?

I actually have a great friend, who’s wife is a supporter, and seller, of Isagenix.

Now, I have history with this bunch (involving me receiving New York solicitor’s letters off them), so I have to tread carefully here…

I’m not a supporter of their product.

But…I have heard one of their ‘ant workers’ hustle.

There is nothing more annoying than listening to someone pitch their MLM to you – period.

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HOW MUCH is That???


Okay, so we’ve covered the hustle aspect of the MLM industry…now onto the next pitfall…

The price!

Most MLM structures offer a pretty decent level of commission, if you choose to earn through this path (as opposed to roping new members into your downline!).

Now, how do you think this type of commission is generated?

Do you think the CEO’s of these MLM setups are paying you out of their own pockets?

Not likely.

The ‘awesome’ MLM products you are being tasked with selling have one thing in common – they are WAY overpriced!

This is how the commission is paid – this is how the MLM model works.

Some of the products are quality – there’s no denying that, but some of the products are untested crap that could even be harmful in the long run!

Without overcharging for their products and without having fees or relying on recurring product orders (by the workers/members within the program), an MLM opportunity would hit the dirt quick-time.

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The Failure Rate of MLM


Before we go any further with this article, I really want you to read the statement below.

Now, it’s not my view OR my opinion – it’s fact…

“Two in-depth studies were done by academics who wanted to know the true failure rate of distributors involved in MLM. Robert FitzPatrick and Jon Taylor did separate studies using different methodologies, and both concluded that over 99% of distributors lose money.”

Just think about that for a minute – 99% of distributors LOSE MONEY.

How can that possibly be a solid business model?

How can MLM companies defend themselves against this statistic?

Well, they mange to, time and time again (but that’s a different story – reserved for a different article!).

The Failure Rate of MLM

At the end of the day if you don’t own the business, or you don’t even own a website – YOU HAVE NO BUSINESS.

I’ve lost count of the times I’ve read MLM sales pages that claim you are actually setting up a business – becoming an entrepreneur.

You’re not.

Unlike Internet Marketing, where you are creating a website, a brand and a following – MLM has you constantly hustling your friends and your family into your precious downline.

In most cases, you end up being forced into buying the product every month, otherwise your membership will be canceled (along with all upcoming commissions!).

Does this sound like your own business?

Would this make you feel like an entrepreneur?

Nope, you are nothing more than a lowly block in a pyramid model – yes, MLM systems ARE pyramid schemes…no matter which way you look at them.

When it finally dawns on you that you are in above your head, and you call it quits, count the amount of product boxes you have left in your garage.

These leftover products mean one thing – you were never in it for the product itself…you were in it for the promise of money from roping others in.

Sound like a business to you?

 


Conclusion – Why MLM Doesn’t Work


If by chance you are reading this when you are involved in a MLM – please try and take it the right way.

You ARE NOT a bad person for getting involved in this sort of marketing.

People enter MLM schemes for various reasons but more often than not…it’s down to money.

And who would blame you?

I’ve been there.

The bright lights and the promise of a better life are hard to ignore, for all of us.

This article has been put together so that you know what you are getting yourself into.

More importantly, there are FREE opportunities out there for you that can carry you far beyond any MLM program could ever, internet marketing being one of them.

Good luck.

12 comments on “Why MLM Doesn’t Work

  1. Thanks for your post.  Just curious, have you personally tried MLM before? Which company(s)? Oh – I’d love to hear more about your receiving solicitors letters off that company you mentioned – what happened here? Personally I’m not a supporter of their expensive powders that are full of unnatural substances – what about eating healthier food – but I guess there’s no MLM income to be made from that health trend. I’d love you to share more of your war story with that company 🙂

    Thank you for presenting better options and you highlighting the 99% failure rate for most people is compelling!

    1. Sorry John – I don’t want that bunch knocking at my door again, so I have to keep the name of the company under wraps I’m afraid! 🙂

  2. MLM actually works for those who join the programm at the outset, all others are going to be working for them and the rich keeps getting richer at the detriment of the down lines.

    Some have unmarketable product that you need to work out your ass  to sell a unit. They promise you financial freedom travel around the world and brand new car which is given to a few or even non existent.

    You need to sweet talk people and convince them to join and part with their hard earned money.

    1. LOL I love that Kabirat – ‘you need to work out your ass to sell a unit’.

      You definitely win the comment of the day award! 🙂

  3. Thanks for this great article. You raise a number of really good points. I had a friend who got drawn into an MLM scheme. As you say, once that happened, he stopped being my friend as his conversations and motives were all about trying to hustle me into the scheme too. Eventually he saw the light and got out of it, but he lost money and friends in the process. I hope this article helps others avoid the same mistake my friend made.

  4. I’ve dipped my toe into the MLM water a couple times, but each time it just was too hard to get people to be interested in the products. I’ve also seen so many people jump into programs such as these but very quickly abandon them. Don’t know a single person that stuck with one long-term.

    The biggest reason I steer clear of them is that they rarely actually come out and say who they are upfront and are dishonest in their marketing. If you want me to consider Amway, then say “I’m from Amway. Look at my success.” Or, “I’ve been in Mary Kay for 15 years. This works…”

    Instead, the sales push covers all kinds of lifestyle improvement “carrots”. If you even ask them simply, “What’s the company??”, they often won’t tell you during their sales pitch!! Serious red flag.

    I also hate how when you get in one of these, you have barrage the people you know with the hype and opportunities. It always felt wrong to me, and that’s why I quickly abandoned it. People are more embarrassed for you than anything!

    1. Yeah you effectively have to change your personality into that of a hustler’s – and nobody really likes a hustler, do they? 

      Glad to hear you have left this form of marketing alone now mate. 

  5. I had joined an MLM not realizing exactly what I joined. My membership was free, and came with what they called a duplicated site to theirs. I was unaware that I was to push this product onto my friends and family, mostly through Facebook and Messenger until I got some emails and joined a couple of their Facebook groups. They also pushed the product on me saying how I should try it before I recommend it to others, and they wated me to sign more people up. 

    Needless to say, I lost interest in the program, and have unjoined so to speak. I didn’t like the direction they were trying to take me, as you said, do you really want to be a hustler to your friends and family? 

    I did not! 

    This is a great article, I wish I would have read it before I got involved with the MLM I signed up for.

    Stacie

    1. Hi Stacie, 

      Well I’m really glad to hear that you got out of that opportunity pronto, those types of Facebook groups are complete poison as well! 

  6. Hi Chris, I find that there is more awareness about how MLM’s work and that there is a bit of a backlash happening towards MLM marketers.  You see them on social media sites pushing their products as a means to cure all ills; preying on people who are sometimes desperate for help and a meaningful answer to their problems and struggles.  Not to blame the marketers perse, because they are trying to work within a system that is stacked against them.  I guess the trick is knowing not to get sucked in; and if someone does get sucked in, to get out as early as possible to cut the losses.  

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