What is a Multi-Level Marketing Company? – Scam or Real Opportunity?

Multi-Level Marketing
What is a Multi-Level Marketing Company?

One of the most enticing money-making schemes that people looking for a way to become financially free fall victim to is Multi-Level Marketing. Multi-Level Marketing companies promise the unlimited potential for wealth and financial freedom for those that join and have millions of new members every year.

What is a Multi-Level Marketing company? Are there any real opportunities? Or are they all just scams intended to make the people at the top rich at the expense of the people at the bottom?

What is a Multi-Level Marketing Company?

Multi-Level Marketing, or MLM, is a type of sales system that requires you to purchase a product in order to gain the ability to become a distributor, or seller, of that same product. Once you’ve joined the MLM company you can then make commissions off of any sales that you make from that product.

But the real money comes from recruiting others to also sell the product.

The more people you are able to recruit underneath of you to sell the product can eventually earn you an automatic paycheck, sometimes hundreds of thousands of dollars, just from the sales of those you recruited without having to do much work yourself at all.

Sound a little too good to be true?

That’s because it is.

I’m not saying that people who join Multi-Level Marketing companies can’t make a ton of money doing so. There are many people in MLM companies that have earned vast fortunes for themselves and will tell you the same thing is possible, but at what cost?

In order to become successful enough within a MLM company to become financially free you must first recruit a certain amount of people underneath of you and keep them selling the product and recruiting more people underneath of them each and every month.

The only problem is, if you are a brand new recruit then the people who recruited your recruiter, and those that recruited them, and them, and so on have already recruited hundreds, if not thousands of people of their own.

Pyramid Scheme

Less than 20% of the people who purchase the products offered by the top MLM companies aren’t also distributors of the product themselves. That means about 80% of the people who buy the product are only buying it so they can also sell and recruit more people to sell the product.

Those that are high up in the MLM companies and making millions of dollars each year will claim that the product they are selling is the most revolutionary product that anyone has ever offered and is changing the lives of millions of people.

In reality, once someone stops selling the product they also stop using the product, leaving fewer and fewer people to recruit into the company as time goes on. Eventually the only people actually benefiting from new recruits are the people who are already at the top of the pyramid.

As long as the bottom keeps getting replaced, the top will continue to make money.

By the time you have joined the company there could be millions of people that have already been recruited above you. Your chances of success in trying to find enough people to recruit into the company at this point in order to become financially free yourself are slim.

You might convince a few friends or family members to join, but eventually about 60% of new MLM distributors quit within the first year leaving all the money that you spent on the product in that year going to the people above you.

Only those that who were able to get in at the top will be able to make any money in a MLM company, and it all depends on new people just like you to join each day with the false hope of getting rich.

Are Online Multi-Level Marketing Companies a scam?

Because of the way Multi-Level Marketing companies operate they have been extremely popular in the online world. Thousands of MLM companies pop up online each year with grand claims of making you rich by buying and selling their product to as many people as you know.

Online MLM
Online MLM companies want you to get as many people to sign up as possible before they hit the tipping point.

Once again, the people who get in on the ground level (the people at the top of the pyramid) will probably make a ton of money from all of the new recruits when the company first launches.

However, as more and more people begin to try and sell the product the market will become saturated and eventually the bottom will fall out, making it impossible for new recruits to earn any money.

It is at this point when the owners of the online MLM company close up shop, take their earnings, start another online MLM company, and repeat the process as many times as they can.

Is there a legitimate way to Earn a Living Working Online that isn’t a MLM scam?

The owners of Multi-Level Marketing companies have gotten one thing right – in order to become financially free you need to own your own company.

The people near the top of the pyramid in a MLM company who are making millions of dollars each year might be financially free, but it could come crumbling down at any moment. Their success rests solely on their ability to convince enough people to continue buying into the company underneath of them.

When you build your own online business from the ground up you are the owner and the future success of your company depends solely on you and not on anyone else.

You might be thinking that starting your own online business would be great, and you’d love to not have to worry about how many people you can recruit to join someone else’s company, but how?

How can you start an online business if you don’t have any experience, let alone a product to sell?

The answer to that question is Online Affiliate Marketing.

By creating your own website around whatever interest or niche that you can think of you will have access to the vast number of people who are using the internet to purchase products and services online everyday.

But just as you would suspect, starting an online business and making it successful enough to earn you a full-time income is not going to be easy. All of the MLM companies claiming to be able to make you rich quick appeal to your brain’s desire for instant gratification and cause you to throw tons of money away to a false hope.

If you want real success in the online world then it is going to take a lot of hard work in order to build an online business that will last. You don’t have to join someone else’s company and sell someone else’s product in order to build a successful business, but you will need some training and guidance along the way.

That is why my #1 recommendation for starting an online business is Wealthy Affiliate.

Within Wealthy Affiliate you will learn everything that you need to know in order to build your own Online Affiliate Marketing website from scratch. You will also have access to all of the tools and support you’ll need in order to grow your website into a successful online business that is making you a full-time income.

How is Wealthy Affiliate different from MLM companies?

What you’ll be learning and have access to within Wealthy Affiliate will teach you exactly what you need to build a self-sustaining business on your own with no prior experience.

If you decide to leave Wealthy Affiliate at any point, everything that you have created is yours and your future success does not depend on staying part of Wealthy Affiliate. You are actually learning and building your own online business that you can grow to as big or as small as you want.

Once your website is established in the online world and you are getting consistent traffic you can take your business in any direction that you want. The possibilities of making money with a website that you own are virtually endless – and can be achieved without ever needing to sell anything to a friend or family member in order to become successful.

Join Wealthy Affiliate

What can you do today to escape the grasp of greedy MLM companies?

To your success,

-Nate

comments

4 Comments

    • I couldn’t agree more! Everyone starts as a beginner – only those that continue to persist day after day towards their goals will succeed with their online business or anywhere else in life.

  • For I know this sort of business is great opportunity for those who wants to start a business. But what is the bad side is the people who take advantage these people. Better choose the appropriate company you want top be part of.

    • Starting an online business from scratch and building it to a full-time income is a lot of work and isn’t for everyone. Some people need that security of a 9-5 job at a good company in order to feel good in their lives – others might want something more. The great thing about the internet is anyone can be successful if they are willing to put in enough work.

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