Why I Hate Multi-level Marketing

Have you ever had someone come up to you and tell you that they had an awesome “business opportunity” for you?

And when you pressed them for further information they gave you some vague, pre-planned pitch?

So, you meet with them and they give you this long drawn-out spiel and try to recruit you into their “business”?

Yeah, I’ve been there too.

It’s annoying isn’t it?

Typically, these salespeople work for organizations such as Amway, Kyani, It Works!, and a ton of other companies.

They practice network marketing. Also, known as multi-level marketing or a pyramid scheme, in layman’s terms.

Most of the time it is very deceptive and uncomfortable. So, I try my best to shut down those “business proposition” conversations as quickly as possible.

Here are some reasons why I hate multi-level marketing.

They are deceptive

As I stated above, most MLM’s are deceptive. Not just the companies, but the people working for them. The companies are deceptive because upper management promises hefty returns for investments but there is never an indication as to what the profit margins are or what the return will actually be. Secondly, if you’ve ever encountered an Amway salesperson before, the initial contact can be pleasant. You shake hands, introduce yourselves, and it’s just like meeting any other business contact. Of course, the salesperson never says straight up that they work for Amway and they wait to drop that bomb until you are at a coffee shop with them and they’re indirectly pressuring you into their business. Why wouldn’t the salesperson say from the outset that they were an Amway salesperson? Because then we wouldn’t want to meet with them. Which means that they would have 0% recruiting people. MLM’s are deceptive by nature.

Emphasis on recruitment, not products

Rarely, have a come across a multi-level marketer who is not interested in recruiting me into their downline. If one isn’t selling products/services, and they are simply recruiting members as their main source of business, then they are just a club. There is no real exchange of value. Also, I don’t consider my personal network (friends, family, etc.) a client base with which to make money off of. That is just a personal conviction that I hold. When an organization’s main focus becomes recruiting and not transmitting value to customers it loses out on the very thing that makes it a business. The emphasis must be on building up the customer. Most MLM’s do not have that emphasis at their core and are therefore backward.

Top-heavy profit

Unfortunately, most people that join MLM’s don’t make a lot of money. Which is a shame, because that is one of the appeals of multi-level marketing. Instead, those at the top of the pyramid make a continuous profit off of those that are underneath them. And if the MLM has been around for awhile, those at the top can make an exceptional living off of the hard-workers beneath them. Approximately 99.7% of ALL participants lose money (after subtracting ALL expenses). Hard work and smart work don’t necessarily pay off if one doesn’t have the seniority in an MLM organization. There is also not a whole lot of room for advancement either. Those at the bottom of an MLM support the few who are at the top. That is another reason why I hate multi-level marketing.

If you’re thinking about joining an MLM DONT!

Start your own business! Use your giftings and skills to make a living for yourself, not someone else!

If you are considering starting your own business, allow me to share some good resources.

 

-Tyler W. Hanna

 

 

 

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