You’ve probably heard of it. Multi-level marketing. MLM. According to those trying to push this “product”, it’s just about the greatest thing since sliced bread.
My recommendation: RUN AWAY AS FAST AS YOU CAN!!!
What Is Multi-Level Marketing, Really?
Well, as the name suggests, it’s marketing on multiple levels. To look at, that seems like a great idea. After all, if marketing is good, marketing on multiple levels must be great, right?
Because the “levels” in this particular case do not refer to platforms or strategies. Levels here refers to layers. Layers through which this marketing strategy has been marketed.
Ooh! You’re catching on now! It’s a marketing strategy specifically designed to market the marketing strategy!
Hold on… What?!
I know. That makes no real sense, does it? How can that possibly work?
To make this a little easier, we’ll look at it like a pyramid (and remember that I mentioned pyramids, because I’m coming back to them later).
At the top of the pyramid, you have a person. We’ll call him John.
Well, John sells two of his friends this MLM product. We’ll call these friend Mary and Bob. So Mary and Bob both paid John $50 for this MLM training package.
John just made $100.
Now Bob and Mary get to work.
Bob sells the MLM product to 2 friends. We’ll call them Joe and Sue. So Joe and Sue both pay Bob $50. So Bob made $100, right?
Not quite. Because, as part of the MLM system, the person who recruited him gets 10% of every sale he makes. So Bob has to give John $10.
And that’s where the “Multi-Level” part of the MLM comes in. For every sale made, the commission gets broken down and sent up several levels.
“So I Have To Pay Someone Else For The Work I Do?”
Yep! If you’re involved in multi-level marketing, you sure do. That’s the whole premise of the strategy.
As the MLM training package gets sold DOWN through the levels, the profits move UP through the levels.
Now, that’s great if you’re the guy on the top level. If you’re up there and have ten people selling under you, giving you 10% of all of their sales, you’re doing pretty well.
But it doesn’t really even stop there. A lot of these go three, four, five levels deep. Some deeper.
That means that when you make a sale, you give the guy above you 10% of that sale. He gives the guy above him 10% of what he just got from you. So on and so forth.
Yes, the further separated the top person is from the sale, the less his “commission” on that sale. But who cares. He didn’t have to do anything!
Hold On Again. Are They Even Selling Anything?
That’s a great question!
And the answer is…
NOT A THING!
Okay, truth be told they may send you a “report” or a “short book” to make these seem on the up-and-up. However, these so-called reports and books are really just a bunch of filler surrounding the finer point of “Send me money for nothing”.
They call it a marketing strategy. Really all it boils down to is one person telling another person to give him ten dollars that he’s going to pay a dollar from to the person who told him about it.
That’s not really a marketing strategy, now is it? Sounds more like a scheme to me.
Speaking of schemes, remember I mentioned pyramids?
Maybe You’ve Heard The Term “Pyramid Scheme” Before
I’m sure you have. Most of us have at one point or another. Well, this is it! This is the perfect example of the pyramid scheme.
There’s no product to be sold.
There’s no strategy to be taught.
There’s really nothing more than money passing hands and moving up the levels for no good reason.
Stay Away From MLM. Far, Far Away.
MLM is a pyramid scheme.
It’s a scam.
Truth be told, if it could be tracked to its origin, someone would likely go to jail because it’s nothing short of theft.
Don’t let yourself get sucked into the empty promise of MLM.
You might make a few dollars off it, or you might not.
You might be the one who ends up in jail, or you might not.
You might lose all of your friends that you try to talk into it, or… No, you will most likely lose all your friends that you try to talk into it.
That being said, there is MLM for the sake of MLM (as we’ve just discussed), and there are certain systems (for lack of a better word) that pay out on an MLM style commission basis. These systems actually sell products. A variety of products. It works similar to what we discussed earlier. Person A recruits Person B. Person B sells a product and gets a commission. Person A gets a commission based on a percentage of Person B’s commission. The commissions work their way up the levels of the pyramid. The difference here is that a real, tangible product is being sold. These are real opportunities, but the person above you still gets paid for your work.
There are better ways.
There are plenty of real, HONEST ways to make money online, from the comfort of your home. You could take paid surveys. You could get into data entry. You could sell your own handmade products.
There are reviews here to help steer you toward the legitimate opportunities and away from the frauds. Take a look around and see what you find. Something will probably appeal to you.
I suggest you take a look at my Wealthy Affiliate Review. It is a real opportunity to learn how to make money online. There is real training, and help available every step of the way.
If you ever come across a program somewhere else that you would like a review on, leave a comment below and let me know what it is. I’ll take a look at it, and write a review as soon as I can.
It would be great if you could rate this article, and let me know what you thought in the comments below. Ask questions. Tell me what you would like to see added to the site!
As always, thanks for reading, and the best of luck in your journey to financial independence,
If you ever have any questions, you can contact me here.
P.S. If you would like a real, HONEST training platform that you can start to use today to learn how to build your own online business, check out my Wealthy Affiliate Review here. It’s the training platform I used to learn everything I know, and to build this very website. It’s constantly growing, evolving, and adding new features and training. I’m still learning today, and don’t plan to stop. I really hope you decide to check it out. It truly can change you life. Get the review here, and take the first step on your journey to financial independence.