Why I Hate MLM
I thought I’d talk a little about Multi-Level Marketing (MLM) today. The basic gist of this post will be to stay away from MLM.
The other day I posted about Pyramid Scams, and MLM is pretty much a pyramid scam with a product.
Not all MLM “opportunities” are scams. Some actually promote products that you can sell. But in any MLM your real profit will never come from selling products. Your profit will come from recruiting others to join.
An exmple of a non-scam MLM is the original: Amway. Amway has evolved and now has a new offshoot called Quixtar. They are the same company. Quixtar is just Amway’s internet version.
But although Amway/Quixtar is not in and of itself a scam, you better believe the business is bursting with scammers. I was recently “recruited” by a Quixtar “business owner”. I went along with his spiel so that I could learn a little about the company.
Here’s how it works: You can sell the products retail, and there are thousands to choose from. But the best you can really do with this route is maybe a couple of hundred dollars a month. And that’s only if you have family and friends that love you, have deep pockets, and don’t like to shop.
So how do you make big money? By recruiting people?
Maybe. But you have to recruit a lot of people to start making real money. Why? Because like I said above, in order to make a few hundred dollars a month you have to sell a lot of products. If you want to get a piece of your downline’s action, they have to sell a lot of products. And most people don’t sell a lot of products. Most people don’t sell any products!
The scammers came up with a solution — tools. There are multiple companies that will sell you marketing tools and coaching for a large sum. The best part is, you can get a piece of that action by selling these tools to your recruits. That’s where the money is in MLM.
So here’s the big question. If you can’t make money selling the hard products (face cream and dish soap), but you can make money selling information products, then why not create your own information products? Why hand your money to the guy above you? If you’re good at recruiting people, that means you’re good at selling. So sell your own products.
And if you’re good at selling hard products, then why sell for Amway? Why don’t you just get them at wholesale yourself and sell them? I have no need for 50, 100, 200, 400 middlemen between me and my profits.
Check this out if you’re looking for some good, real products to sell.
