MLM Fantastic or Fraud?
By Charles Hopkins
Published 04/20/2006 | Entrepreneur
Be your own boss! Set your own schedule. Retire Early! Who doesnt want that, right? Multi-level Marketing has been praised for allowing financial freedom; and its been criticized for being a big scam. As with any business venture, its buyer beware. Do your homework first. Both sides agree; it takes work. If anyone tries to tell you that its easy money, theres so such thing. Also as with any new endeavor, you will need to make an initial investment. It takes money to make money. Below outlines the two schools of thought. You be the judge.
Some of the comments in favor of MLM include: Donald Trump was asked on the Tonight Show, if he had to start all over from scratch what he would do - His answer...MLM". And yet another satisfied participant, It is a wonderful combination of being your own boss and being mentored. It has a support system built right in and usually pretty neat products! I was involved with company for a while and the people were fabulous, products were great and the system of support was wonderful to have. I hear the same is true for many network marketing direct sales companies! I think MLM companies are great!
Conversely, those who didnt speak as highly include: You only make money when you have lots of people under you. You spend a lot to stay in each month. I was required to spend more than I needed or could afford each month, so I had to quit. Seems to me the ones who do well are ones who can afford to really spend and have contacts already who have money they can spend as well. Then they in turn have contacts of their own that are the same. A lot of MLMs out there say you can make X each month, but honestly there are few and far between who are really doing it. They hook those who want to work at home and need the money-only to lose them after theyre more broke than they started. Continued another disgruntled former MLMer, Unfortunately too many try to convince you that it is so easy. If it were so easy, everyone would be doing it. I have been in several different MLM companies and have experienced constant changes in the compensation plan. As we all know, the compensation plan is what gets our attention.
So there you have it, both sides of the coin. All would concur that Multi-Level Marketing is not for everyone. But thats why there are so many different flavors of ice cream. There truly is something for everyone. All in all, the bottom line is there needs to be passion and drive to make your business work, regardless if it is MLM or more traditional sole proprietorship or corporation. If money is your only motivator it will likely fail. You need to believe in your product or service or you can simply plan on failing.
Do your due diligence when researching various opportunities.