Is MLM aka multi-level marketing legit? This is one of the most important articles I’ll ever write because I want to see hard-working people that want to make more money find a legit way to do that. MLM is a “sexy business opportunity” that leads you to believe it can take you from rags to riches. What’s the truth?
Let’s get into it. But real quick, before we do. Let me give you a quick disclaimer: First, I’m not a financial advisor and this isn’t financial advice, just my opinion. Second, at the end of this article, I’m going to recommend what I think is a better way for people to make money. If you think that discredits what I have to say about MLM then maybe you should go ahead and leave now. I’m not sure why you would think that’s a logical decision before analyzing all of the information, but then again people aren’t exactly that logical to begin with (which ironically is why MLM is so enticing).
Now, I don’t want you to think this is coming off as judgemental in any way. I was involved in a couple of different MLM companies before as well. Wait…are you already getting the idea how this is going to go? This is just an MLM bashfest eh? Look, I’m going to try to be as objective as humanly possible here. We’ll look at all aspects-the good and the bad.
The bottom line is that it is possible to make a lot of money from doing MLM. No question about it. That’s exactly why people get involved. They see Joe Schmoe make “15k in one month” and see the possibilities.
But let me ask you a question. If there was no business opportunity for you to make X amount of money, would you be just as interested in the product? Or have any interest whatsoever in the product?
That is what will tell you whether or not whatever MLM venture you are considering is worth it or not. The problem is that for most MLM companies the answer to that question is a resounding no.
I’ll be more specific though because I’m not going to make a blanket statement and say that 100% of MLM products are trash. I’m sure there are some good products out there, but the problem is that even the “good products” are overpriced. If it’s a good product and it’s selling for $100…in reality the actual value is probably close to half-$50 (if you’re lucky).
This is the main problem with this industry as a whole, in order to pay the distributors they are marking up prices on these products, most of which are shit in the first place, in order to have an “amazing business opportunity”.
This is why there is some debate though-I mean is MLM legit? One one side you have people pointing to distributors making 100k plus per year saying look at the evidence, and on the other side you have people calling it a pyramid scheme.
The truth is you can make both arguments. You can call MLM legit because of the fact that it’s technically possible to make a lot of money. If that is all you’re wondering. Is it possible to make a lot of money with MLM? The answer is yes. Now, is it likely? No. But yes, anyone who signs up technically has the same opportunity as the next to make money.
That’s it. That’s basically the only reason to join any MLM company! That’s just the simple truth. If you can show me an MLM company that isn’t either selling a shit product, or overpricing the f*** out of a decent product then I’d love to hear about it.
So are MLM companies actually legal? Can some be considered illegal? The fact that these companies are still operating tells you they are legal, but many are paying out legal fees and going through legal battles to stay in business.
The FTC considers a pyramid scheme to “promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits on profits from any real investment or real sale of goods to the public. Some schemes may purport to sell a product, but they often simply use the product to hide their pyramid structure”.
If I’m being completely honest, that’s pretty much all of these MLM companies. To some extent, they are all pyramid schemes because of what I mentioned above about either having a shit product to begin with or by overpricing products.
Now, to be clear, this is my opinion. If you have another opinion or have any evidence to the contrary I’d love to hear about it!
Who Can Make Money In MLM?
Now, if none of this concerns you and you still want to know who can make money in MLM, or if you possibly can, I’m going to break down some things you need to know.
First off, if you’re considering joining an MLM company, it’s probably because you’re an open-minded person who has dreams and aspirations above working a 9-5 the rest of your life. I don’t blame you for considering joining an MLM company.
In fact, I can remember being involved with a couple companies and when other people would say “those are pyramid schemes” it kind of made me angry.
They would typically respond with…”Over 90% of people in those industries fail” or “you can’t make money with those things”. Man, honestly hearing that nonsense just made me want to do it more. I could care less about the people that fail, I want to be one of the people that succeed, I mean if everyone could do it then it wouldn’t be worth doing.
But…regardless of all of that. I never made any money. I mean never even made one damn sale. How pathetic is that!? LMAO
Why on earth did I fail so bad??? For me, it was because subconsciously I knew that it was only about making money, and even though I liked the products I realized they weren’t worth it. Not to mention I’m more on the introvert side.
This brings to who can actually succeed in MLM.
First and foremost, I would argue the number one trait to have that will help you be successful is to be an extrovert. I mean how else are you going to talk people into bullshit? LOL
I’m not saying it’s impossible to make money in MLM as an introvert but it just puts you at a huge disadvantage.
Think about it like this, are you the type of person that people tend to follow regardless? Do people hear about what you’re doing and tend to respond positively? To be honest, if you’re a naturally popular person then that is going to be a very high indicator of whether or not you’ll be successful.
If that is you. Then go right ahead, BUT WAIT!! Can you morally sell overpriced products? That’s the next question you have to ask yourself.
The truth is that you want to believe the product is amazing and worth the price because you want to have something to strive for and let’s be honest-you’re excited about making money. But deep down, what do you really believe if you’re being truthful with yourself?
That was always my issue-I wanted to believe it was a legit opportunity, but deep down I knew it really wasn’t.
An Alternative to MLM (That is Actually Legit)
If you want to take the entrepreneurial route and aren’t sure where to start. In case you haven’t figured it out by now, making money online is the direction you should be heading.
It has a lot of the positive aspects of multi-level-marketing without all of the dirty feelings behind it LOL. You can literally create an online business in any niche you want to and can do it your way.
You don’t have to have a ton of money to invest to get started and you can build your business with whatever time you want to invest. You literally have complete control and don’t even have to have any of your own products.
Low start-up costs, little to no inventory, unlimited potential, and best of all-complete freedom to do whatever it is you want to do. Personally, I think that sounds more appealing. But where to begin? In my opinion, this is the most comprehensive online course to make money online. Thanks for reading and have a great day.