Multi-Level Marketing Or Network Marketing (And Why We Do Not Recommend It)
Introduction To Multi-Level Marketing Or Network Marketing (And Why We Do Not Recommend It)
We have done a lot of research into Multi-Level Marketing (MLM) or Network Marketing (NM) schemes and will share our reviews and experience in this post and elsewhere on our website.
We will explain in this post how MLM or NM schemes work and who they benefit the most.
We will explain why they should, in general, be avoided, in our opinion.
We do not recommend MLM or NM schemes and suggest that before you get involved in any such scheme, especially before you invest money in any such schemes, that you thoroughly research the company involved and check them out on some of the websites which we refer you to in this post, or through your own lines of enquiry.
What is a Multi-Level Marketing Scheme?
A Multi-Level Marketing scheme involves you selling to your friends and family and acquaintances whatever product or service it may be that you undertake to sell.
You receive a commission for the sale and your mentor or introducer to the MLM scheme also benefits from that sale because you are part of their downline.
There is pressure for you to introduce as many friends and acquaintances as possible to the scheme, as they will become your downline, and they will earn commissions for you whenever they make a sale.
The sales process acts like a pyramid, and to start with, you are at the base of the pyramid. As you gain more sales, then you progress up the pyramid. Another name for MLM or NM is Pyramid Selling.
Here is an explanation from Chris Holdheide at SideHustleAcademy.com.
Here is another explainer video which shows a typical compensation scheme for a worldwide sales organisation BeachBody brand.
What Is Wrong With MLM?
You will very soon run out of family friends and acquaintances who might be interested in buying into your MLM scheme. You will become feared as a stalker in the name of your business.
You only get paid on sales commissions, irrespective of what time you may put into the business.
You will become driven to make more and more sales, to a level of obsession. If you don’t make any sales, you will be paid nothing. You will be driven to meet more and more people with a view to getting them to buy into your scheme, and become part of your downline.
Here is a video which explains the dangers of MLM from Rachel Oates.
Here is Some Useful Reading About MLM and NM which you may wish to review.
This website is for the Anti-MLM Coalition, which is a worldwide movement and coalition against MLM and NM.
Here is another organisation which is FOR MLM and NM:
This is also a worldwide organisation in support of MLM and NM companies.
We urge you to take great caution and thoroughly research any opportunities before you get involved with any of the companies listed therein. Projected income figures may be very seductive but the reality of actually being able to achieve such high figures may be incredibly difficult or impossible.
Reddit also has a lot of information about MLM´s, both FOR and Against.
This is a book by Lou Abbott, who is a 15 year veteran of the MLM industry, who gives a different perspective on the MLM and NM scene. He claims to tell you the whole truth about MLM and NM.
This website lists many MLM and NM companies.
This website enables you to check out legal aspects related to MLM and NM companies.
OMS Conclusion And Recommendation For Multi-Level Marketing Or Network Marketing (And Why We Do Not Recommend It)
OMS does not ever recommend that you get involved in an MLM or NM scheme.
We believe that it is morally questionable.
Our preference is for the Affiliate Marketing model of business, which we believe is ethical and is risk-free and potentially profitable.
You will find many examples of Affiliate Marketing business models and products and resources on our website, but very few MLM or NM products.