I’ve been involved in several MLM business and I tried to accomplish my dreams in the MLM Industry.
I then learned that a lot of those “high earning” MLM leaders were broke. There are other reasons why MLM is not for me and I will tell you why.
- Never Gonna Happen Downline
- Dreaded List Of Family And Friends
- Auto-ship Bankruptcy Plan
- Meeting And Presentation Hype
- The McDonald’s Theory
Never Gonna Happen Downline
When I was presented with the never gonna happen downline or the more familiar term pyramid scheme on one of the MLM businesses I joined, I was told if I got two people to join, I would make $500 a month.
That sounded easy to me.
I thought, if I got three people, I would be making $1,000 a month, that sounded like some nice extra cash.
Then I was told, when my downline started to get people to join, I would start making $10,000 a month. I got that I won the lottery feeling.
My mind was in a daze and I was thinking about that nice car, that nice house, and vacations I would be taking.
I thought, that’s some nice residual income for doing hardly anything, All I have to do is just get people to join!
I like those odds, my friends and family would join easily, but in reality, they didn’t.
In a perfect world those pyramid type structures works.
In reality, we all can attest that the world isn’t perfect.
It sounds good, but when I started asking questions about the downline and pay, my sponsors really didn’t know and I really don’t think the people who make those comp plans knows.
It’s complicated and people should know what they are getting paid.
I still don’t understand the downline because someone on the bottom of the pyramid is going to quit because they can’t get anyone to join or make a dime.
Then the people above them has to find more people and if they don’t, they become broke and quit.
If you’re selling a great amount of products, I can see the value, but if you’re building a business in hopes that other’s will get other’s in, then you’re looking at the never gonna happen downline.
Family And Friends
The dreaded list of family and friends:
I was told to make a list of 100 people I know. My sponsor told me for every 100 nos, you’ll eventually get a yes, so keep calling and get everyone you know to come to the presentation.
I got some people to come to the presentation, but they weren’t interested.
My friends and family, thank God! Had the no excuses, Excuses like, I have to talk to my spouse about it or let me think about it.
When I would follow up regarding the business opportunity, they eventually said they weren’t interested.
In my opinion calling friends and family is not a good idea.
The last thing you want to do is put your friends and family into debt.
Why stir up the pot and make family gatherings more complicated.
Most family and friends are supportive, but it doesn’t mean they want to do business with you.
This is another reasons why MLM is not for me.
The Auto-ship Payment
The auto-ship bankruptcy plan:
If you’re unfamiliar with those auto-ship fees, it works like this.
If you want to get paid from your downline, you have to pay your monthly auto-ship fee.
More or less, you have to buy a certain amount of products on a monthly basis.
You can sell the products you have to your friends and family or to whomever wants to buy it.
You can also give out the products you buy as samples and hope someone will want to buy those products through you.
If no one wants to purchase any products, you’re pretty much stuck with it.
The problem with auto-ship fees is this, if you don’t have a downline in your first, second, or third month it gets pretty expensive.
If no one want to buy your products you’re pretty much stuck with it.
This is how the MLM industry makes their money.
For me my wallet was getting pretty thin while everyone above me was getting that lottery feeling.
I’m not hating because people were making money, but shoot!
How broke do I have to get; this is another reason why MLM is not for me.
The Presentation And Meeting Hype
Meetings and presentation hype:
Some MLM companies have weekly meetings and presentations.
They urge you to bring a guest so they can hype them up into joining the business.
They play music, get the I won the lottery feeling through your veins in hopes of getting your family and friends to join.
Those presentations are to get people to join on their emotions.
When people are emotional, they tend to join the business right away.
Don’t let that hype fool you.
There are a lot of people at those presentation who are broke and stressed out.
Don’t have buyers remorse later on.
Emotions are great, but when it comes to business, always think about it and do your research before you decide to join a business.
The McDonald’s theory:
Your sponsor or someone at a presentation says something like this,
If you start a McDonald’s business it’s gonna cost you thousands of dollars.
If you join this business it will only cost you hundreds to to get started.
McDonald’s is a house hold name period. An average McDonald franchise makes around $500,000 a year.
Yes it is pricey to start a McDonald’s franchise, however in due time you will make your money back.
Is It Possible To Be Successful In The MLM Industry?
Studies show that 95% to 99% of people in the MLM industry won’t make a dime.
- Is it because the whole structure is a mess?
- Is it because I didn’t try hard enough?
I can speak for myself and say that I did try, but I was more focused on the money rather than building a business.
I wasn’t passionate about the products they wanted me to sell or the way the MLM industry have you build a business.
How motivating is it to call people on a daily basis to get them to join something that they really don’t want to?
For the 5% it’s probably a piece of cake, but for the remaining 95% of the people it’s irritating.
Why do people join MLM businesses?
Most of us come across a friend or family member and they somehow convinced us one way or another to join a business.
Sometimes we just want to support our friends or family or it was hard to say no.
It could be the potential money we will never make.
Whatever the reason maybe, I think that the 95% join the MLM industry for the wrong reasons.
My suggestion is that if your friends or family members ask you to come to a presentation by saying I can’t tell you what it’s about, but just come.
The best thing to do is say you’re not interest.
The more you get sucked into the black hole of money and time wasted, the more likely you will join.
The sooner you stop the madness the better.
In all fairness, I’ve read in reputable magazines that people do make a great living building a MLM business, but these people sell products along with building their downline.
Their main focus is not just getting people to join a pyramid scheme.
All In All
Today I don’t have to worry about harassing my family and friends or worry about monthly auto-ship payments.
I know some of you out there may find MLM as a way to build a business.
When I was approached, it seemed like MLM was the only way to build a business from home.
When I started to research, I realized there are other avenues I could take where I don’t need my own product to sell or sell a particular product that these MLM businesses want you to sell.
I’m building my OWN business and not someone else’s.
If that is what you’re looking for, then I highly suggest you check out Wealthy Affiliate.
What’s your MLM story? You’re not alone, please feel free to let me know below, thanks!
I was tired of all the unusable auto-ship products. When I learned that affiliate marketing doesn’t have auto-ship payments nor bothering my friend and family and I can work completely from home, I decided to check it out. As of today, I’m still doing affiliate marketing. This service taught me everything I know.