Is MLM Evil, as Some Say?
See, now I don’t get people sometimes.
There are some people who decry the “evils” of MLM, network marketing and even, in the ultimate ignorance, affiliate marketing (which virtually every company on God’s green earth does).
These people have preconceived ideas about MLM. Some of them have never tried MLM; they’re just so employee minded and take issues (even to the point of HATRED, some do) with MLM, but not owning a business in general.
Some of the people who harshly judge MLM after joining one, try it out for 2 months, expect to be making several thousand dollar per month already then say MLM doesn’t work. Or the more reasonable folks in this group will admit that “it doesn’t work for me”, or “I don’t have the motivation, skills or lists of prospects to make it happen”. Reasonable enough, but still pretty cowardly, non-risk-taking excuses.
Whatever the excuse or judgment, it’s always amazing to me that I STILL encounter people who practically ABHOR MLM…and are in NO way, shape or form an authority on the matter or even SLIGHTLY educated about it themselves! They are merely ignorantly pontificating that MLM is evil and effectively (though not consciously, hopefully) declaring that they are “holier than thou” because they’re “responsibly-pursuing-gainful-employment-after-spending-enormous-amounts-on-education”.
Some of the things naive outsiders say and/or believe about MLM, or what people have a problem with are as follows:
1. They’re afraid they’re going to lose their friends and family by either “hitting them up/selling to them”, or merely, taking their friendships from a casual, fun, personal place to a cold, calculating business relationship (if that’s their viewpoint about business).
2. They’re afraid to take risks, lose money or time. I would say this essentially says that they’re largely employee minded, and are “ok” or maybe even genuinely happy with doing what they enjoy and never making more (save 4 or 5 meager raises over 30 years’ with one company, if they’re faithful) than their 40-hour per week paycheck.
3. They believe a “pyramid”-shaped business model (MLM, NOT affiliate marketing)* is unfair for the people at the bottom and only serves to fill the pockets of the few at the top.
4. Ponzi Schemes that are either passive investments that are not FDIC insured (and are illegal), or rely almost solely on new money (new recruits) to feed the longer-tenured distributors that give the good, honest MLMers a bad name. Kind of like people do to Christians because some are bad…all get judged with the same lens.
2. They’re afraid to take risks, lose money or time. I would say this essentially says that they’re largely employee minded, and are “ok” or maybe even genuinely happy with doing what they enjoy and never making more (save 4 or 5 meager raises over 30 years’ with one company, if they’re faithful) than their 40-hour per week paycheck.
3. They believe a “pyramid”-shaped business model (MLM, NOT affiliate marketing)* is unfair for the people at the bottom and only serves to fill the pockets of the few at the top.
4. Ponzi Schemes that are either passive investments that are not FDIC insured (and are illegal), or rely almost solely on new money (new recruits) to feed the longer-tenured distributors that give the good, honest MLMers a bad name. Kind of like people do to Christians because some are bad…all get judged with the same lens.
I’m sure there are more reasons than these four for why people are naive about MLM, but they seem to be the lion share of the reasons, in my experience.
But I guess what is the most aggravating to me, anyways, is how people will so quickly pass judgment upon something based of the CONCEPT in their MIND instead of actual, REAL EXPERIENCE…or AT LEAST research and study.
Some of the facts they will find, however, upon 5 minutes of research are:
* As recent as 2010, MLM/Direct Sales was a $28.56 BILLION dollar industry
* 15.8 MILLION people, in the US alone, are involved in MLM in whatever form
* 91.1% of those 15.8 million people are doing it part time, (so they ultimately quit their J.O.B. and do it full time and be free)
* The MLM industry, not being the largest in *total* dollar figure numbers, has created the most numbers of millionaires over the past couple decades than any other industry
* 15.8 MILLION people, in the US alone, are involved in MLM in whatever form
* 91.1% of those 15.8 million people are doing it part time, (so they ultimately quit their J.O.B. and do it full time and be free)
* The MLM industry, not being the largest in *total* dollar figure numbers, has created the most numbers of millionaires over the past couple decades than any other industry
Why has MLM done this?
Because John Q. Public now has the ability to remove the ceiling that being an creates, and there is unlimited potential for earning money and John Q. Public only has to invest $50/month.
Traditional business companies win the statistic of “total dollar figure numbers”, and not numbers of millionaires because, in traditional business, the money is all funneled to the owners of the companies who are the only ones who have the “unlimited earning potential” created must stronger millionaires and billionaires, but there are VERY few of them. Probably even to the tune of only 1% of the population!
However, if John Q. Public wants to own a traditional, it is too scary for him because he is employee-minded, and rightly so. The risks and overhead are ENORMOUS!
MLM, on the other hand, helps you become a business owner for $50 per month! From there, you can invest your time (financial cost is free), or you can buy advertising space (save you time, but has costs). Either way, with MLM, any “overhead” costs are taken care of by the company you’re an independent distributor (business owner) for.
But I think the most interesting thing of all about all this is that they really don’t realize that virtually EVERY BUSINESS MODEL in the WORLD is EXACTLY shaped like a pyramid!
Surprised?
Think about it. At the top, you have the President and/or Owner. Then a few Vice Presidents, Directors, Managers, Supervisors, and finally employees. Pyramid shaped, isn’t it?
Hope you enjoyed this. I’ve always found it interesting how it’s all shaped like a pyramid, but few realize it. Unfortunately, currently, only the MLM industry is vilified for it. That is rapidly changing, however. :D
Check out my other blog post that is related to this topic:
CEO/Owners of Adrian Frank Consulting
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eMail: adrianfrank@gmail.com, jocelyntranfrank@gmail.com www.BeEmpoweredHere.com FIND your way to making $1000 PER DAY (I'm not kidding). DISCOVER the WEIRD marketing tricks of the Empower Network. WATCH this FREE Video. *blog post explaining how Affiliate Marketing differs from MLM: /adrianfrank/blog/ignorant-outsiders-errantly-believe-affiliate-marketing-is-multi-level-marketing/
Amazing post. The information of this blog is really very attractive.
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Yes, and thanks for saying so, Richard. Glad you enjoyed reading it! God bless you.
ReplyDelete- Adrian Frank