Is Multi Level Marketing A Scam
You want to get rich now. There are so many opportunities around you that you are not sure where to start. Then someone offers you a business card and invites you to a Seminar.
Do you go or stay?
Why Am I Writing This
I recently received an email from one of my readers asking me about my thoughts on Multi Level Marketing.
I decided to write this article so that I can not only answer his question, but offer my thoughts to you as well.
The information in this article will tell you the pros and cons of Multi Level Marketing by offering an honest opinion.
I Was Involved In Multi Level Marketing
For those who do not know, I was involved in Multi Level Marketing and saw success.
At my height I had an organization of over 200 people.
For a short time some of my people were the top sales people in our Region.
After I stopped being involved with the one company I ended up trying out another company, but I kept having these small gut feelings telling me to go on to better things.
I was trying to build my own brand but couldn’t get it to fit into Multi Level Marketing.
The Final Straw
The final straw came when I realized that I made more money at my Grocery Store job than I did with Multi Level Marketing.
Don’t get me wrong there were times where I would make $400 in a day, but the amount of work I had to do meant a low ROI.
With a standard job you know that if you work X hours then you will make XXX.
When it comes to Multi Level Marketing you could work XXX hours and only make X.
You have to set up meetings, bring people to seminars, and do 2 hour-long conference calls.
The system works because there is strength in numbers.
We humans like to be a part of something bigger than ourselves so in Multi Level Marketing they fill this need.
You will get guilted for not coming to every event.
Leave Your 9-5 And Become A “Business Owner
One thing that got me into Multi Level Marketing was being told it was the easiest way to start your own business.
They sold me on how Multi Level Marketing was one of the lowest startup businesses you could have.
They told me about all of the money you can make, bonus checks, and that I could drive my own BMW.
At 18 years old I couldn’t believe this existed.
I knew that something wasn’t right about the 9-5.
I had also been interested in business for years.
So to say the least I was sold.
I Paid My “Startup” Cost And Got To Work
My initial investment was a little over $250.
At the time that was an enormous amount of money.
When I finally got my business license and business kit I was super excited.
I felt as if I could finally have a legit business.
They told me to write a list of 10 people who I knew.
That list was going to be the foundation of my business I was told.
I called every person on my list.
At the end of it I was able to sell 3 memberships.
I also recruited my first person into my sales team.
The feeling that I got from getting my first team member was almost like taking MDMA.
I felt on top of the world.
Like I could do anything.
My First $350 From Multi Level Marketing
The first time I got a decent check, I made $350.
That check made me go farther down the Rabbit hole.
My Dad had told me that I would never make any money from Multi Level Marketing.
Well I made $350 so I lost belief in what he said about Multi Level Marketing.
I thought, “Maybe this Multi Level Marketing thing isn’t a scam”.
Find Your Prospects And Making The Sale
In Multi Level Marketing they hammer into your head the following:
- Pique Interest
- 3-Way Call With Up-line
- Get To Event
- Make Sale
If you are good you can get them to sign up at step 2.
This is the System that they want you to follow.
Your Up-line will pound this into your brain countless times.
If you don’t know this your Up-line is basically your team leader.
Generally your Up-line will be the person who brought you into the business.
Without The System Your Business Will Fail
When you first get involved you will have tons of ideas flowing into your head about how to market your offer.
As with most things you should not reinvent the wheel.
The secret to success in Multi Level Marketing is in following the system, training your people to follow it, and keep duplicating it.
If you look at the top earners they all follow the system.
(Fun Fact: Most of the top earners in Multi Level Marketing companies have paid positions. Which means your company placed them in their position to add to the illusion of success. The top earners usually have a following and successful track record. This doesn’t mean that they didn’t work their butt off, but do not give into the illusion.)
When I was into Multi Level Marketing the guys in my team that made the most money always followed the system.
The guys who tried to reinvent the wheel failed 99% of the time.
Multi Level Marketing is a business where you must follow the system while also standing out from the crowd.
Multi Level Marketing Or Nah
If you would have asked me several years ago if you should get into Multi Level Marketing I would have said, “Here is my card.”
Now that I have experienced real business and grown up, I would say, “You can learn Entrepreneur Skills, but I can show you a better way.”
Multi Level Marketing gave me great skills when it came to leadership, speaking to random people, and showed me how predictable humans are.
But my advice to my fellow young readers is to save your money and not get into Multi Level Marketing.
Instead start a website and learn how to make money online.
If you get into Multi Level Marketing you will find yourself working long hours for little pay.
You really can make more money working a 9-5 than you will from Multi Level Marketing.
To make any real income from Multi Level Marketing you must work 70 hours a week.
Or get a paid position which is unlikely to happen.
You can make money, but only if you lose your soul.
(Fun Fact: If you still want to give Multi Level Marketing a try, think outside of the box. Instead of wasting your time on building your list, take your focus online, and take your business to groups. Present your opportunity to a group instead of individuals.)
Is Multi Level Marketing A Real Business
As I said above they try to sell you on how Multi Level Marketing is your very own business.
They are half right.
Multi Level Marketing is a business, but not your own business.
When you get into Multi Level Marketing you are becoming a sales person for a sales company.
Instead of having your own business you are creating a sales organization.
If you truly believe you have your own business, then you need to slap yourself in the face.
The only people who actually have a business in this model are the Owners.
You are nothing but a sales person in the Multi Level Marketing business model.
Do not be fooled by their very systematic indoctrination.
Their system works because it is based on human emotion.
Everything from Events to Conference Calls are all designed to keep you hooked.
I’m Young What Should I do
You are young and want the world.
I understand that as I am in the same boat.
There are more opportunities than you know what to do with.
You see people in high paying career fields.
You see people making bank from their websites.
It seems like everyone is making money doing what they love while you are lost in the wilderness.
Where should you turn?
You are told that you are young and don’t know what you want.
But the truth is that you do know what you want, you just lack the belief in yourself to choose your path.
Don’t look around for which path you should take.
Don’t pay some Guru 100’s of dollars to reveal his “Breakthrough Passive Income System”.
Instead believe in yourself, decide which game you want to play, and then take action every single day.
How To Find Your Purpose
Instead of trying to find the next way to “Get-Rich-Quick”, decide on your purpose.
Choose something that fulfills you and wakes you up in the morning.
You do not have to search Google to find your purpose.
Just find something that you enjoy and start doing it.
Start a website and begin writing.
Do anything, just get started.
You never will know what your purpose is unless you start taking action.
A year ago if you told me I would be running a blog/making YouTube video’s I would have laughed in your face.
If you would have told me that I could make money from a website for putting my ideas out there, I would have not believed you.
My purpose is writing for Calm and Collected.
My Mission is building my “You Inc” and showing people like you that you can do the same.
(Update: I quit my job 4/9/2016.)
What is your purpose?
You have decades left on this earth to do what you want.
It is up to you to decide how you will spend your time.
You can live the life you were destined to live.
You can be miserable and live how the masses live.
As always it is up to you.
Is Multi Marketing A Scam?
No, but do not believe that you are running your own business.
You are simply a sales person.
If you want to have an actual business then start one.
Be the Owner and have other people work for you.
Until Next Time Go And Dominate.
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Really enjoyed reading this Dylan. It sounds like you’ve managed to get some positive experiences and learning from your experience. I didn’t know much about MLM before reading this so it’s been educational.
It would be interesting to do a comparison from MLM to what you are doing now over a set period of time taking into account all the time you spent setting up your sites and writing. I don’t doubt that you’re on a more profitable path now though.
I really did learn a lot from it. The path I am on now is going to be more profitable because I am in control of the business.
That is a good idea for an article about the comparison.
Thank you for your comment.
I did MLM for a while, but it was entirely online. Built an organization of 65 people or so and made a few thousand that year. Not sure the exact reason I stopped, but kinda glad I did. While the company is still around, not a single one of their “170k members” uploaded a video in the last week on YouTube. That’s a bad sign.
I feel much better making pennies (for now) doing something I enjoy. Top level vloggers like Roman Atwood pull in over 2.5 million per year ( http://thehustle.co/the-richest-people-on-youtube-2015 ), so there is some serious potential.
Thanks for this epic post!
Yeah you made a good move Gabe. The pennies you make now will grow greatly with the quality videos you have been putting out. You will be able to build a business around it as well.
I had a classmate from college involved with this kind of business (gave me a crash-course at a coffee shop), he is making a decent chunk of money and has no need for a job but that is because he’s the perfect profile to succeed in this area: 1) has a LOT of connections, in other words prospects who know and trust him 2) is a skilled salesman.
However MLM is BS because they make you think that anyone can succeed in it, which is not the case. When you don’t know many people and you’re trying to sell aloe vera products to friends and family, you will fail miserably.
My former classmate is an exceptional case and all other guys I know who are involved in this shit are either making peanuts or gave up. I love the argument “we have doctors and engineers among us!” as if those people cannot make wrong choices.
MLM is a scam that attracts mediocre people with no vision or sense of commitment to actually work on their own businesses. Only those at the top of the hierarchy are making profit while the rest survive on hope. Bottom line is, never trust an entity (MLM, company, government) to ensure your financial success. The only serious way to achieve it is by going solo or becoming the head of said entity.
Great Comment Khalid! You are right.
MLM is legit, but a scam in the sense that it targets average people by selling them a dream. While there are average people who rise to the top of the business model, you are better off starting your own business.
There are people that make it in MLM, but their tactics are very unscrupulous at times, and there are many outright lies. I joined one, and I kick myself every single day. I am in deep financial shit because I believed in their bullshit.
They are not necessarily scams though, but just like the rap game and NBA, most people are not going to make it, regardless of their drive. Most people that try to make it in MLM are better off getting a “real job” if they can and investing their money on the side for better returns and less bullshit.
For the first few months I worked long hours for little return. I finally started to see some success.
I got lucky and found several guys who had decent sized networks. That was what gave my organization a bump.
You are right when you say to invest your money/time into better things. There is a lot of BS in MLM. Much better to work on your own idea.
Let me know if there are any topics you would like me to write about. Either comment here or email me.
I wish you the best. You are doing it right.
Never knew you were involved with MLM. I suppose you’re right about the fact that it can help you develop certain business skills and that it is a business. My issue with them is the lack of control one has over how they operate. It’s one step above working at a call center and tends to be very pyramid schem-ish. I’ve never done it though so I could be off by a lot with my outside perception.
Anyways, I agree 100%. If you have the drive and you just won’t accept anything less. Making money by creating something online is the way to go. Like MLM, you get started without paying much out of pocket- just your time and commitment to your craft. But here’s the catch- it takes months and years to make decent money, but when you do it’s fully under your control. If you just do the math it still makes perfect sense to take this path, difficult as it may be.
I met a lot of great people through MLM, but for where I wanted to take my life MLM wasn’t the vehicle.
With drive you can make most things successful. With me, I value my time so I looked for better things.
When I decide to release a product on Way Of The Olympian I will have a much better ROI than most MLM salespeople.
If you create something and control it you are always in a better position.
Great comment Cici.