Real Entrepreneurs Stay Clear of Multi-Level Marketing

Last Modified: Apr 4, 2018 @ 1:29 pm

What is Multi-Level Marketing?

Multi-level marketing is a strategy that some direct sales companies use to encourage their existing distributors to recruit new distributors by paying the existing distributors a percentage of their recruits sales. The recruits are known as a distributor’s “downline.” All distributors also make money through direct sales of products to customers.

Wikipedia explain it as Multi-level marketing (MLM), also called pyramid sellingnetwork marketing, and referral marketing. It is a controversial marketing strategy where revenue by a non-salaried workforce is derived from a pyramid-shaped commission system via two potential revenue streams according to the MLM’s specific “compensation plan”: from commissions on sales directly to their own retail customers, and from commissions based on sales by other distributors below them.

Multi-level marketing is a legitimate business strategy, though it is controversial. There are problems with pyramid schemes, which use money from new recruits to pay the people at the top. They often take advantage of people by pretending to engage in legitimate multi-level marketing. You can often spot pyramid schemes by their greater focus on recruitment than on product sales.

Why Do I Not Personally Like Multi-Level Marketing?

The main frustration to MLM is these people usually exploit close friends and family.  MLMs are “doomed by design” to recruit too many salespeople, who in turn will then attempt to recruit even more salespeople. What you start to find is the people usually take to their Facebook profile and constantly start to push new products or services.

They prey on friends and family to buy the next amazing green tea product, diet pill, makeup, air purifier, healthy juice food sachets. Whatever other product they can basically purchase cheap but sell for ridiculously high prices. All the referral chain of promoters can receive a cut on everything the person towards the bottom of the pyramid can sell. But guys do not take my word for it alone and please read these links below when you get chance which properly explains Multi-Level Marketing:

What’s Wrong With Multi-Level Marketing?

Business Insider says Avoid MLM

MLM is a scam

I am writing this article in hope that it might spare many from the inherent and associative pitfalls by avoiding the practice. I have seen first hand it ruin valuable relationships with no regret or conscience. Just another product or service gets released and the MLMer is off again selling to friends and family. What the MLMer doesn’t notice is that the neighbourhood turns into a marketplace. When this happens you lose something precious… which is not easy to regain.

Summary of What’s Wrong With Multi-Level Marketing

  • MLMs are “doomed by design” to recruit too many salespeople. They in turn will then attempt to recruit even more salespeople, ad infinitum.
  • For many, the real attraction of involvement in multi-level marketing is the pyramid con-scheme.
  • The ethical concessions necessary to be “successful” in many MLM companies are stark and difficult to deal with for most people.
  • You should treat friends and family as such, and not as “marks” for exploitation.

multi level marketing

Making Money Online

Making money online can be very easy if you pick up real life skills. These skills could be SEO, teaching yourself adwords, social media marketing or website development. All these ‘get rich quick’ schemes are ridiculous. In my opinion MLM is just another pyramid marketing strategy to prey on the vulnerable. I am not saying you can’t make money in the Multi-Level Marketing because you certainly can. But this is normally at your friends’ or family’s expense. My personal recommendation is stay well clear if they ask any of these from you:

  1. Fee to “get your business started.” If their business model is really from selling products, then up-front fees should be unnecessary and are inappropriate. Unless these costs are for personal development training because you need help in acquiring a skill do not spend big money for a few brochures.
  2. Promise big money with little work. There are of course things that you can do to make money without having to work all that hard. But, it’s just not possible for everyone who joins a business to be able to make so much money without working. Making money takes work. You need a skill and usually in business need to take some massive action to start making good money.
  3. Purchases encouraged as “investment.” Often times MLM companies want you to think that making purchases for products within the company will advance your status, or grow your business, more than satisfy sales. Do not buy products upfront as this is where you are investing £200 as a rough figure for £30 of product (guess who takes all your commission, your referrer).
  4. High income projections. Many companies love emphasizing how much you will make, but rarely mention how you are going to make it. MLM opportunities have proven historically to be, at best, a little better than a side income for most people.
  5. Money from recruiting. If they would rather have you recruit another distributor than a new customer, then their products are not what is driving the company. A company full of people with no products is still just a group of people, not a thriving company.

Look to invest time and money into developing skills to market and work online. These skills is where you can start to earn money online. No it is not easy to learn and it takes a lot of commitment to develop the skills to optimise websites and fine tune paid advertisements. However once you pick up these skills it is very rewarding.

Why SEO is Different?

If you are not sure what SEO stands for then this link explains what it is. Teaching yourself how to optimise websites to rank better in Google is a skill. It is a skill I think all business owners and young people should look to achieve. If you want to learn SEO and are seriously interested and committed then hit me up on social media. I will point you in the right direction to learn this and get more information.

learn a trade like SEO

WATCH THE WEBINAR

Marketers carry out SEO to commercial real life businesses. So whatever the trade the company is in like roofing, plumbing, conservatories, dentists or basically any niche they can rank higher within google to get more enquiries. More leads should convert into more sales and therefore more profit.

This is not preying on anyone vulnerable and there is a real skill with this. The SEO industry is booming and will continue to grow for years to come. Therefore it certainly is not too late to learn this skill in any niche. Read this article about how this industry has now become a $65 billion trade – http://searchengineland.com/seo-industry-worth-65-billion-will-ever-stop-growing-248559

Conclusion

To summarise, if you have an interest in any of the following I would personally stay clear of MLM techniques. Instead, develop your skills to learn about search engine optimisation, social media marketing and digital media. These skills can help real commercial businesses in all sectors throughout the world:

  • Wanting to become an SEO Manager
  • Make money online working at home
  • Travel and earn more being a digital nomad
  • Laptop Lifestyle course essentials
  • Online SEO Course > Outdated University Marketing Course
  • No fluff but Complete SEO Training Course
  • SEO Training for Stay at Home Mum
  • Cheaper University Digital Training Course

There is a serious lack of talent within the world for great SEO individuals or marketing people. Just speak to any local recruitment company if you want to find out more. They will say if you have any digital marketing knowledge they could place you into work right away. If interested to learn SEO then message me and I will put you on the right path to success.

James Dooley

About James Dooley

Digital Nomad who loves travelling the world networking while working on my laptop. Life is a perception of your own reality. You have no excuses and should be making memories every single day #LearnSomethingNew #Develop #Synergy #Network

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