10 Shocking Facts about MLM Opportunities

10 Shocking Facts about MLM Opportunities

Multi-level-marketing, or MLM, is a type of marketing structure which is designed not only to help sell a product through the use of the MLM’s distributors, but is also designed to help bring in additional distributors to increase the marketing potential. Here, then, are a few facts about MLM opportunities that may shock some.

1. There Is Money In MLM Marketing

Many of the doubters and critics of MLM marketing will tell you that there is no money to be made in MLM marketing. This is incorrect, there is definitely money that can be made by being a member of an MLM marketing. That is, if you do it properly.

The main reason some people don’t make as much money with MLM opportunities as others has to do not with the MLM, but rather when they get involved with the MLM. The key to making money with an MLM is to get in on it early on in the distribution chain. This allows you to not only market when the area has not been saturated with those selling your particular product, but also allows you to build a decent downline. The better your downline, the more money you can make from those who are in the downline.

2. Setting Up Your MLM Business Is Easy

Lots of people think that setting up yourself with one of the MLM opportunities is difficult. Contrary to this opinion, setting up an MLM business is often quite easy. The MLM for which a distributor works is often quite willing to help a new distributor set up his or her business.

3. MLMs Have an Excellent Support Structure

Because the success of a downline distributor in MLM opportunities is tied directly to the upline distributor, any successful MLM will have an excellent support structure or else it will begin to fall apart after a few tiers. Distributors are very willing to help and mentor their downline distributors as a result.

4. MLMs Are “Real Jobs.”

Unless you have dozens or hundreds of downline distributors, MLM marketers cannot afford to just sit back and let the money roll in. Like any other selling or marketing job, MLM distributors must actually work to make their company profitable. Unlike many jobs, there is no salary associated with most MLM distributorships. Instead, the marketers must make their money from sales, and this can often be more work than a job with a salary.

5. MLMs Are Not Get Rich Quick Schemes

Many people consider MLMs to be “get rich quick schemes.” Nobody that works for legitimate MLM opportunities has ever gotten rich over night. It takes hard work, dedication and a knowledge of the product you are selling to make the job profitable. While there is great potential for income in many MLM marketing situations, that money doesn’t just magically appear. Like any other business, MLM marketers have to advertise and work hard to make the sales and satisfy their customers so that they will continue to purchase from the distributor.

6. Once You Are In, It’s Not Difficult to Get Out

Sometimes, MLM opportunities may not work for you. A legitimate MLM company will recognize this, and it will be easy to quit the business if you need to do so. While you might not get your initial investment in the company back as this is most often not refundable, most legitimate MLM companies will be willing to buy back any inventory that you might have left over, often at 90% or greater of the amount you paid for it. Make sure to check out all of the details before joining up with an MLM to make sure it is easy to get out of it if need be!

7. You Don’t Have to Sell To Your Friends and Family

While many MLM opportunities encourage selling to friends and family, it’s not strictly necessary. Nobody wants to be “that guy” in his or her circle of friends. It is not only possible, but perhaps a better idea, to keep business and friendship separate. There are plenty of other fish in the sea, and you stand a much better chance of not alienating friends and family if you don’t constantly pester them about buying your product.

8. MLM Companies are “Real” Companies

Many people don’t consider MLM opportunities to be “real” companies, unless they have a strong and well-known name, such as Avon or Scentsy. The truth is, many MLM companies are registered just like other corporations, and most are members of the Better Business Bureau or other business watchdog groups. Again, a little research can go a long way towards verifying the claims of an MLM company and making sure it is a legitimate business of which you wish to become a part.

9. Do Research

Like joining up with any business opportunity, joining up with one of the MLM opportunities is not something you should go into blindly. Unfortunately, there are companies and organizations that disguise themselves under the aegis of an MLM company, but are less than honest and forthcoming. Before making any business venture, one should make sure to research the venture for it’s legitimacy. A legitimate MLM company will not only allow you to do this, but will in fact encourage it. Never just sign up with something that sounds too good to be true.

10. MLMs Are Not Just Another Name For Pyramid Schemes

Unfortunately for MLMs, many people see them as just another name for a pyramid scheme. There are, however, several differences between a pyramid scheme and multi-level marketing. The most obvious difference is that MLM opportunities are legal and pyramid schemes are not.

Also, unlike pyramid schemes, the focus of an MLM business is the sale of products and not the recruitment of new members. Furthermore, MLMs have a generally low or no start up cost, whereas most pyramid schemes have a more expensive start up cost.



I am Finance Content Writer . I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. Linkedin

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