Personal MLM Scams Observation & Opinion

are mlms pyramidsI know there are a lot of people searching for more info on MLM scams on the Internet and that’s what pushed me to write this article. You might agree with me, you might strongly disagree (especially if you are in mlm right now lol). All I’m going to do is tell you my honest opinion and observation of the industry. There are definitely a few good MLM companies out there, but most are set up to raise the hopes of unsuspecting prospects, only to be slapped in the face with the reality that it is 100x’s harder than it seems. 

What is MLM?

MLM is short for “multi-level marketing”. There are companies out there that push products through distributors or reps. These are average people who are looking to make more money, so these companies will pay you if you join and sell their products. You will make even more money if you recruit friends, family, and strangers and have them become reps under you. They sell the products and recruit their family and friends, and now there are multiple levels or reps, marketing product. Hence the term “multi level marketing”.

Alot of people refer to these things as “pyramid schemes” or “mlm scams”. You are very likely to have heard of this or maybe been involved somehow. It’s a very controversial business, and has only been around for about 60 years or so.

Here are a list of some well-known mlm companies

  • Amway
  • Herbalife
  • Doterra Essential Oils
  • Mary Kay
  • World Financial Group
  • Empower Network
  • Primerica
  • Various other companies 

And there are literally thousands more.

I Was In MLM At One Time

Not only was I in mlm at one point, I was quite more successful than the average person who joined. I had a personal downline of about 20+ members, attended the meetings, went to the conventions, bought the products, and everything else I was supposed to.

I do know exactly how the industry works. Trust me. I don’t regret being involved. I actually learned a lot. But more so, I learned about myself and what really is the best for me. Hopefully you will realize what is best for you too.

Most MLM Systems Sell The Dream

“Get rich! Reach financial freedom! Live your dreams! Drive expensive cars! Buy huge homes! Look at me! Sign up!” It’s all pretty much a sales-y setup. It’s not the MLM products that sell the dream. It’s usually the “system” or training group you are recruited to, that sells the dream.

More than likely you are invited to a meeting where one of the very, very few big-wigs show you the “opportunity” that got them rich and now they are living the dream, going on vacations, buying expensive cars and how you can do it too if you just join.

I realized that the way these groups operate is more about selling the dream of great riches more than anything else. This is how you get people to sign up. And people do sign up…quick. The reality is, most people want to get rich. And they want to do it easily and fast.

It’s Pretty Much a Cult

Many members of MLM companies become extremely loyal and brainwashed. I was definitely one of them. I remember going to conventions, weekly meetings, rallies, and seminars. I used to stand up, chant, and cheer. The whole nine yards. I would ruthlessly defend the company and opportunity I was representing. Even though deep down inside, I was hardly making any money. Sometimes people will even get quite hostile in conversation. But this is how it works. This is how you develop a loyal following and make residual income.

You Learn How to Become A Hustler

It really depends on how you interpret what you do. Many members say you are helping people, many people will say you are just hustling people so they will be part of your downline.

What I do know is, you are likely to be trained much like a hustler, approaching friends, family and random people, selling them to join something that you are involved in, basically pitching the idea of purely making more money.

Your prospects aren’t looking for you, but rather you are going out looking for them with an agenda. This is unlike Internet marketing where people are actually looking for you because there is a need so they search the Internet and find YOU, not the other way around.

It’s Going to Cost You Time & Money

It costs lots of money to do mlm. That’s just the reality. Most companies charge a fee to join usually a few hundred dollars. Then you have buy products to get credits.

Usually the products are really expensive and you could get the same thing elsewhere for way less. 

Then you need to invest in the motivational tools such as CD’s, books, seminars, conventions, tools, and gas money. This gets really expensive if you are not growing your business. Most people don’t have hundreds to spend every month. You will essentially be throwing money down the drain if you are not actively recruiting people.

Anyone Can Do MLM, But It’s Not For Everyone

Anyone can join an mlm company and become a distributor. I don’t believe this business model is for everyone though. You have to really become a people-person and learn how to speak and sell people. Eventually you are to host your own meetings and teach your team how to recruit others and use other sales techniques. I know a lot of people who don’t feel comfortable doing that. It’s just not in their desire or personality. Bottom line.

Are MLM’s Illegal Pyramid Schemes?

You can’t say that multi-level marketing is an illegal pyramid scheme. However, there have been some that have been ruled Ponzi Schemes. One example is the company called Zeek Rewards and a few others. But other than that, it is considered “direct sales” or “network marketing”. Some people refer to it as “private franchising” although that is an unofficial term.  

There Are Some Great MLM Companies

Not all MLM companies and training systems sell the dream. Most do, but there are a rare few that don’t. Instead, they emphasis learning business skills and following a set plan, with low expectations and hard work. Also the mlm company distributes a product or service that really benefits people, not some overpriced consumable good you can buy at the grocery store for 5x’s cheaper.

[note note_color=”#ffffe5″]I Make 10x’s More Money Than I Ever Did in MLM

Basically, I learned how to do Internet marketing and make 10x’s more money than I ever did in MLM. That’s not to say mlm doesn’t work, it’s just that the world has changed. You no longer need to recruit people, call and bug your friends and family, go to rallies and slave your life to weekly meetings. It comes down to just setting up a website (1o minutes) and marketing to a specific niche and providing value to people within that niche. It’s not rocket science. It’s not complicated. You can truly be your own boss. You can truly make lots of money on autopilot if you are just consistent. If you’ve ever wondered how people can make money on the Internet working from home, then I recommend checking out Wealthy Affiliate to teach you how.

Thanks For Reading,