by Hans Rusi
Multi level marketing appears to be both a good and bad thing. If you have done any reading about MLM, you may be knowledgeable about this. Basically, it is the pyramid structure that MLM operates on.
Easily the most obvious lie spread by MLM companies everywhere is that they are the newest, easiest way to create financial freedom. In reality, MLM isn't new at all, as it's been around for a very long time. It has been online practically since the Internet became popular and before that it was done as door to door sales. These days most people are already willing to avoid anyone selling MLM. This is also the primary reason why MLM newbies have such a hard time finding new recruits to join their downlines. It's likely that you've seen at least a few of these businesses saying things like "Network marketing is the most popular way to put new products on the market". It is absolutely 100% false. It is no longer nouveau to go door-to-door and try to peddle merchandise and represent your MLM company. People just don't do that today. Products today are sold using methods that are technologically advanced, much more efficient than the ones used years ago. The truth is that MLM relies almost completely upon the idea of hiring other people to do your work for you. Most of the people that get in believe exactly that, and therefore no one does any work at all.
If you have been around for some time, you have more than likely heard that MLM opportunities afford you the best possibility of making money. This is not true. In fact, only 1% (or less) actually make any money at all with MLM. That is the truth! Earning money online, with a website selling products and services, is probably a better way to go. The business model presented by MLM companies is on shaky ground, a way of business that is not recommended for all. It is so shaky that a simple bookkeeping error could stop it in its tracks.
You will often hear the MLM cannot possibly be a pyramid scheme because actual physical products are being sold. But, the similarities are so much alike that MLM cannot be called anything else by a pyramid scheme. It does not mean that you are not being scammed just because you are selling physical products and not mailing money. The courts had to make a ruling on this because it was so difficult to decipher. Now at least seventy percent have to be promoted and sold to non distributors. If the numbers dip any type of way, then it will be believed that someone is getting scammed.
A lie that is told to many new recruits in most any MLM business is that the products they are selling will soon be offered in retail stores, right after they have been sold to their downline. To make a profit, the only way that most MLM companies can make money is to convince people in their company to buy their products wholesale, and sell them to other people. What typically happens is the MLMer is unable to sell his merchandise and turns to retail outlets in an attempt to sell at wholesale or perhaps on consignment just to get rid of the stuff. MLM has been associated with being absolutely pointless as a business model for the majority of people for a very long time. Yet, the industry still manages to attract more newbies to give it a shot, and so it remains. Sadly, those people who do get sucked into MLM often lose a lot of money - and a lot of friends - before coming to the conclusion that all online business must be the same type of scam. Take note of this article and don't become one of those people.
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