You are shopping at your local favorite Mary Kay and Avon stores until you are able to make a whole collection of cosmetic galore, but do you know that these brands are among the companies who are rooted from multi level marketing? Multi level marketing, also known in an abbreviation as MLM is defined as a business marketing scheme designed to encourage their distributors to promote their products. Many who are engaged in MLM have fallen into the trap of easy money when it was actually the other way around. Often, this marketing strategy is compared to the network marketing business, which is illegal in the court of law . MLM is at a different level as it is legal and approved under the Federal Trade Commission (FTC).
It may be quite tempting to earn wealth in an instant by doing MLM, but mind you that not everything is sunshines and rainbows. In fact, MLM has low chance of success, with only fruitfuls like Mary Kay and Avon found their jackpot in the business industry.
Here are the reasons why pursuing MLM may not be for you:
MLM Has A Weak Business Model
MLM companies structure a business model where their earnings stem from recruiting new members to sell below them. Logically, such doubtful construction is not sustainable and does not guarantee success. Hence, MLM are often compared to pyramid schemes due to its close similarities, yet not the same. Pyramid schemes leeches off money from new recruits, drawing the comparison game into a short distance margin. Moreover, these MLM companies normally set up a minimum monthly spend amount for their employee to sustain an inventory of the product by making a purchase of a specific amount each month with the intention of maintaining its eligibility as a distributor. Something about MLM is they expect you to spend money to buy these products each month which is a primary reason many former members see their way out after a few months.
Inconsistent Pay Wag
Once you involve yourself as a member of an MLM company, your financial situation will become unpredictable and your lifestyle will be negatively affected as tiresome. This is because, in the network marketing profession, you are only getting paid when your company earns the profit. Unless you are really good at your job and that your promotion and advertisements work like a miracle, you can forget about the easy money bit.
You Have No Control
Basically, you are slaving your life away into an independent business owner – you are setting yourself as your own boss and the person to own the business by yourself and creating your own opportunities. The only merciful thing the MLM companies are kind of are the fixed and strict requirements on the methods you are allowed or not allowed to promote the products.
MLM may be a business opportunity for some, however not everyone can experience the same good thing as the lucky ones.