While the words “multi level marketing,” also known as MLM, tend to bring with them a feeling of mistrust for some and excitement for others, there is no doubt about it that MLMs have made an impact on the work at home and online business cultures. With some research and thoughtful consideration, you can be certain you are making the right decisions when it comes to your involvement in field of multilevel marketing.
It is easy to get a very one-sided perspective about the industry, depending on where you receive your information. For example, viewing a glossy print advertisement in a magazine gives a glowing impression of an MLM organization or business. With encouraging and hopeful language explaining how you can have the freedom to work at home, be with your children and have the income of your dreams, these ads definitely paint a positive picture.
However, on the flip side, it is very easy to come across negative reviews and comments about multilevel marketing as you search the Internet. There are entire message boards and websites devoted to warning people about multi-level marketing scams. People in these forums share about losing hundreds, even thousands, of dollars trying to succeed with MLMs. They tell stories about people at the top levels making money off of the people below them who are working hard, while the lower level workers reap little for themselves.
So has the right answer? While there may not be a clear-cut answer to this question, it makes sense to truly understand the MLM model and consider the potential pitfalls before getting involved and handing your hard earned money over to such an organization.
Multilevel marketing is basically a business model focused on the distribution of products and services. It’s a way for companies to market products directly to consumers through word of mouth, relationship building, and referrals.
People in these companies, known as independent distributors, typically do not have salaries, but rather receive commissions based on the amount of product they sell, the number of sales people they are able to recruit to work under them (downline), and also receive a percentage of the commissions their downline earns.
Pitfalls to multilevel marketing businesses include the fact that a very large majority of distributors and people involved in these companies lose money. While there are MLM success stories, some reports have revealed that as many as 90% of attempts in the industry fail. One problem for people in the business is that the further to the bottom of the downline you are, the more difficult it is to find leads for recruiting and sales purposes.
Furthermore, it can put a strain on relationships. Marriages have crumbled over the financial loss in MLM involvement. Also, family and friends who grow tired of sales pitches can become distant. For people who are desperately trying to make their MLM business succeed, it can become a big turn-off to people around them.
Many people who were once a part of multilevel marketing feel as if the companies mislead new recruits, causing them to believe that the business can be a side-job that brings in supplemental income, or that they can continue to work their regular job while building-up to a full-time income with MLM. The truth is that multilevel marketing takes a lot of time and energy and money. Few people are able to build-up their business to provide a full-time income without putting in hundreds upon hundreds of hours and dollars into their efforts.
Whatever the type of company you are considering, it makes good business sense to carefully weigh the pros and cons. While at first glance it may seem like MLMs bring mostly cons, there are success stories. Research well and know your company in and out before you make your decisions, and your risk of failure will likely decrease significantly.
Learn more about multilevel marketing.
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