All MLMs are considered a scam

Network Marketing (MLM): Scam Or Work At Home Opportunity?

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  • How can I join a Network Marketing Company (MLM)?
  • How to Choose a Good Network Marketing Company?
  • How does network marketing succeed on the Internet?
  • Comment…

In short, all of these are questions that most people ask themselves who see this activity as a real opportunity to make money and eventually gain financial freedom.

Unfortunately, things are not always that simple. Behind the potential for income and the opportunity to work from home, there is a reality that you are sure to ignore. You do not believe me ?

Tell me, have you ever heard any of these sentences?

  • Network Marketing is the best business model in the world, it is the most profitable
  • If you are positive nothing and no one will stop you
  • You need a large list of contacts to be successful in network marketing
  • You have to keep hiring to be successful
  • It is not sold, it is shared, it is recommended
  • The product sells itself so you don't have much to do
  • You have to have a big "why" to be successful
  • If you do what I tell you, you will get the same results as I did
  • This is not a pyramid sale as there is a product for sale
  • You will receive free and complete training that will ensure your success
  • We are family and we will take care of you
  • All you have to do is recommend the product to your friends and the rest will be done by yourself
  • You don't have to work long hours, 2 hours a day is more than enough
  • This is the best opportunity to become financially independent
  • Our godfather revolutionized the network marketing industry
  • Our products are new and exclusive
  • We have the best compensation plan out there right now
  • Etc.

You know, there are many myths about network marketing.The truth is there, but to find it one has to seek it and especially accept to face it. For the most part, these are lies made up by "Pseudo leader" unscrupulous to recruit, cheat, and ruin people who would have the misfortune to believe.

The goal here is to seduce without offering anything concrete and then create a blur around three main variables: Cost, Risk and Value. Still, let's try to end some of these myths (lies):

This myth can also come in the form of:

  • Earn € 5000 a week without moving a finger
  • Discover the opportunity to never work again
  • Find out how I made $ 10,000 in one month ...

If it really was then why do over 98% of people who join MLM give up?

Usually we should have the opposite, i.e. a 98% success rate, right? How can anyone claim that this is an opportunity to make big bucks when the failure and dropout rate exceeds 98%?

To earn a sustainable income regardless of the company or compensation plan, you need to build a network of around 30 employees 1000 active people. To duplicate your success, these 1000 people need to build a network of 1 million people. Which leads you to a network of1001.000 People, so that more income and even more work for their sponsored children who dream of duplicating this success again. At this point you will need 1002.001.000.000 (A thousand two billion one million people).

Oops! I think the world population is only 7 billion people. Something is wrong, isn't it?

in fact The money of the few winners comes from the constant enrollment of an army of future losers. It isn't the lack of restrictions on the number of distributors that remedies this. If network marketing can guarantee you one thing at least 98% of the time, that's fine To fail.

The network marketing system itself is simply inherently unstable. As a matter of fact, All MLM systems are designed so that few people can make a lot of money. Even if I say it has nothing to do with MLM, my reasoning is a bit limited. The system itself, like any other, is flawed.

Rest assured, the people you hire will suffer from what I call "Voluntary Amnesia"that is, they become easy "Voluntarily omit" to emphasize this detail. Don't blame them for becoming a part of "System"you won't do better. Unless you live with the urge to change things. I wish you a lot of courage, because a big building site and many wars await you.

The goal is here underestimate Risk and cost. Don't pay attention to all of the deceptive testimonies that are supposed to influence a positive decision on your part. The testimonial should show you that the system is tried and tested and works.

After you:

  • What are your chances of recruiting as many people as your sponsor?
  • How long it will take?
  • How much does it cost you
  • What are you going to have to give up?

It will take you all of the time to answer, for now we need to move forward.

  • If network marketing is such a great and lasting opportunity, why are you being asked to sign up so quickly?
  • What is the difference between signing up and signing up as people always have to be ordered?

I will let those who give you this type of speech respond.

So I didn't know that we were clones and that we had the same skills.

This myth can also take the following forms:

  • It's so simple that even a child can do it
  • I know a lady of 82 who has been so successful that it's easy
  • We already have more than a million members around the world who live off this opportunity.
  • If I could, so could you

Yes, there are some who are sure to make money in MLM, but they are just the tip of the iceberg that I will remind you of 2% Distributors. The rest give after a couple of weeks.

Why do they never say that you have to master the best sales principles as well as the best marketing strategies? You cannot be successful in this business if you are neither a good seller nor a good marketer.

if more 98% Those who do are doomed. I think that's proof that not everyone can. We are not clones, so we do not have the same skills, gifts, and even less the same capacities. Everyone can be successful, but not everyone can be successful in a particular area.

Everyone has their experiences and skills, their advantages and disadvantages. Let's say we can only make it in areas that are compatible with our potential. Even if it is true, whoever will, I am telling you that belief is not enough.

Several factors play a role:

  • The competence
  • Availability
  • money
  • the will
  • Passion
  • the determination
  • and much more ...

Every citizen can become president of his country and yet there is only one free place. If network marketing (mlm) is that simple, why isn't the earth filled with billionaires? And sometimes you have to be with bad faith to be successful in this area ...

This lie is closely related to the first and many others. Lots of sponsors will tell you "Don't try to reinvent the wheel because someone has already done it for you. Just work with the system we put in place and you will get the same results as we did.".

I have nothing against this way of thinking because I know that at some point we all need examples in order not to make the same mistakes as those who started network marketing before us. I wonder, however, whether we owe a blind trust to his godfather and the system that has been set up ...

Well, I think, If the bike I'm using is slow, rusty, or not working properly, I'll either look for a new one or get one that works faster, more efficiently, and properly.

The argument is:"These people have been successful with their methods and when I listen to them and put into practice what they arethey say, then I too will have the same success as they ". That is true, but only in part.

No success can be perfectly duplicated!Whether in network marketing or outdoors.

For the replication to be perfect, you need to meet the same people at the same time, with people with the same attitudes and budgets at the same time. You have to relive the course of what has been successful, immerse yourself in its time, in the same socio-economic context, etc.If you find it impossible to relive your own past, imagine how difficult it will be to relive the ...

Dwell a little on the background if you will.

This is another problem of perfect pseudo-replication. We're talking about US best practices and we forget to specify (by importing the method) that the contexts are different. You just can't get the same results.

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For example, not all network marketing companies sell directly. There are some that only exist on the internet. So if you cannot do direct sales in addition to internet sales, How do you expect the same results as the American distributor who can do both?

So why should you apply the same principles when the data is skewed to begin with? So you understand that legislation can be an obstacle to your success in MLM as well.

What needs to be duplicated in network marketing is not real. And here I am talking about:

  • Improve the quality of relationships
  • A better understanding of the needs of the prospect
  • altruism
  • The ability
  • respect
  • Better knowledge of the company and the products it sells

This lie is not far from the myth of perfect reproduction and very often takes the following form: "Our system is proven".

In fact, the only thing the system has been proven to do is it is said to cause massive failure. You will be thrown into the lion's den as you carefully ask to tell everyone about your product, including people hostile to network marketing as well as people who have no interest in purchasing your product.

Here's one that we hear every day. The perfect excuse for all these millions of godparents who have been fortunate enough to be above their godchildren but unfortunately cannot turn them into real leaders. They refuse to acknowledge their shortcomings and try to trick you into believing that it is your fault if you are unsuccessful in your mlm business.

The worst part is that deep down inside you, you feel like something is wrong. But you're telling yourself like they told you, it's only a matter of time, everything will work out, just one big deal " Why " and enough motivation and everything will get better. But the more time goes by, the more disgusted, helpless and frustrated you are ... and here is the task, which is the deadline ...

Listen, you can have:

  • the strongest belief in the world
  • outermost " Why " we can imagine that
  • the greatest motivation in the world

But none of this will help if you use the wrong techniques, if you have the wrong approach. Indeed, all at once " WHY " What you need most is one "HOW" and above all a FOR WHO ".

The value of a product depends mainly on how it is marketed. You can sell anything with a good marketing strategy. Coca-Cola made a fortune selling tinted fresh water.

McDonald is not the best hamburgers and yet it is the biggest seller in the world.

The novelty or exclusivity of a product does not guarantee its success. If we advance this theory further, it will be assumed that once he is "old" his success with him disappears. Ah, I would forget WITH YOU TOO!

Believe me, If these products were this good, these companies wouldn't be doing network marketing to promote them. Indeed most of them "New" Network marketing products are just improved and renowned versions of existing products. The worst part is that some of these new products are not being sold at all.

As we often say: "They need it, but they don't know yet."... I always wonder who it is who could invent such stupidity ... It is different!

Tell me, when you step into a hypermarket, do you buy all of the products on display or just the ones you need? If you buy only what you need, how can you think everyone needs what you have to offer? Does the product you are promoting through mlm cure all diseases? I do not think so.

So be careful with the novelty!

Oh, that's very cute and very touching. Thank you so much for all this love!

If only this could be true ...

This lie can also take one of the following forms:

  • We have a team of seasoned executives who made a fortune at the mlm
  • Alain Dupont, who is a leader in this field, is part of our team
  • We are a family and we always help each other

To recruit you and extra calm down, there is a good chance your future godfather will one day tell you these things. In most cases, once you've made the final decision to join the company, your descent into hell will also begin.

  • You get less and less attention
  • You get (luckily) some "pseudo" training on tools and resources
  • You are told that you need a big "why" to be successful
  • We explain that in order to achieve this, you need to generate web traffic
  • We ask that you distribute thousands of flyers per week
  • We recommend tools out of order (you only need a blog if you care about getting it published).
  • Your sponsor starts telling you that it is up to you to go to them and not the opposite
  • You feel more and more left to your own devices
  • Etc ...

At the recruitment stage, we will always do everything we can to make you believe that everything is simple and yet the reality is more cruel than it looks.

In this environment, criticism is not always welcome and real value is very often seen as an obstacle. Team spirit is just a facade, in most cases everyone is there for their interests. Once you ask fairly specific questions of any of your network marketing company's group leaders, you will be considered a traitor.

After we hire you, we can move on to another setting. It's up to you to get through as we don't have enough time to devote to you. They're not really bad, they just don't have enough time to lose with you. You have to hire more people. So is the system.

It is still important to realize that they (traders) are not all the same. I've met some who are really knowledgeable, caring, and trustworthy.

Between us,

  • If it's not a sale, why are you promised commissions?
  • Why do you desperately need the skills to make this happen?
  • Why are the products just not being offered?
  • How many retailers focus their presentation on the real value of the product they are promoting?

If you notice, it will always keep you informed of the business plan and all of the money you could be making, rather than meeting your needs by telling you what the product can do for you. Oh, I wanted to forget that it's not always the product that interests you.

Go to Facebook and you will notice: As soon as you greet someone who is already answering you:

"Good morning or good evening. If you want, I offer you the opportunity to earn € 5000 per month for only 30 minutes of work per day. If you want to know more, tell me, I will send you the file here or by e -Send mail. It's an exclusive and revolutionary new concept. See you soon. ".

I don't know about you guys, but I don't see any sharing in this setting. I only see interest and, above all, someone talking about what they don't even control.You are mirrored by an institution that guarantees you will fail at network marketing. It's not a snap, it sells products and services.

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New distributors believe it will be a pleasure, it only has to work 2H a day and the rest will come on its own. Unfortunately, reality has the gift of catching up with those who try to escape it. One of the reasons people tell this lie is because they don't want to scare new perspectives.

Let's get this clear once and for all SELLING IS NOT SHARING, SHARE IS NOT SOLD!

Many people think that MLM is an activity that can be done part-time in addition to their existing job, exhausting your social circle (friends and family).

Name me a job that is (potentially) as lucrative as network marketing, which only takes 30 minutes for daily work ...

Do you have one thing in mind? I can't hear anything what are you saying …………

Ah OK, I thought there weren't any, right? To be successful in this field, you have to work very hard for a long time.

In fact, the freedom we are talking about is illusory. Only leaders are successful, and to become successful you will likely have to work two to three times more work than others. And I can guarantee you that 2 to 3 hours a day is not even enough to get half the work done on time. Unless you are in no rush to succeed. In this case, check your lifespan with your creator. OK?

  • Who will research for you?
  • Who will take care of the writing of your articles?
  • Who takes care of sending emails to your prospects?
  • Who will distribute the brochures for you?
  • Who creates the YouTube videos for you?
  • Who will reply to messages from prospects for you?
  • Will i phone for you
  • Who will manage your network for you?
  • Who will have the experience you need to be successful?

Don't rely on your sponsor to handle your web traffic generation

This is just a preview, there's more work to be done than that. MLM isn't fun. It will never bring you the results you expect when you consider it a hobby.

One last thing: ask your sponsor how long it took to build their own current network, and specifically how many people are making that network. Then compare these results to the time he spent at that company improving his own experience. When you do, you will find that there is more work to be done than it gets you thinking.

This myth often takes the following forms:

  • You are making so much money that you can finally say goodbye to your boss
  • Money is no longer a problem for you and you no longer even have to work

But if it does,

  • Why is that person who tells you still working at this mlm company?
  • Why does she still need your money?
  • Why does she work for a network marketing company?
  • Usually she would be at his head, right?

Do you smell the same smell of lies
I feel it so much that it is strong.

The truth is that if you leave your current boss, it will be to join someone else. I don't know about you, but I don't see any freedom in it.

Why leave a job that guarantees you a monthly income to join a company that cannot guarantee you at least € 6 a month after 30 months?

Don't be fooled, you will never be your own boss as long as you work for someone else. This is not a fun party. To be your own boss, you need to start your own network marketing business. And whether you work from home, you won't be freer than you are now. Those who tell you that 2H a day will be enough are either liars or ignorant.

"It is impossible to take responsibility for your life if you choose to blindly obey others."

All of this is true, but only partially. You should also consider the following points:
1-The kits - Most dealers will be asked to purchase the larger "starter kit". Depending on the company, this kit costs $ 500, $ 750, $ 1000, and even more. Some companies also recommend training that costs several hundred dollars.

2 PhD. Paid advertising doesn't give you freebies at this level and sometimes you need good training. For example, if you don't know how to use Google AdWords, you're just ruining yourself very quickly.

3-paid training. Most of my students have often spent up to € 2500 on 8 weeks of private coaching ... Sounds like I'm expensive, doesn't it? But as they say, quality has its price. So when you add the paid training that is far better quality than what your company offers, then it's the grade that only adds to it. Chances are, your upline is telling you they're useless.

4 tools

  • Do you know how to blog? What training do you have for blogging?
  • Do you know how to set up an autoresponder?
  • Who takes care of the personalization of your advertising tools?
  • Perhaps the initial investment is small, but there are many other expenses that are simply not mentioned in the process of recruiting.
  • You can also use your earnings to fund the rest of the money you receive, but for how long? With what income?
  • Are you planning to do this with less than € 30 a month that you will earn after 6 months of work without effective training?

Believe me, the further you advance in this industry, the more you will find that the reality of network marketing is completely different from what was introduced to you at the beginning. The expenses are getting more and more astronomical.

Nobody can guarantee you success! Everything depends:

  • context
  • the opportunity
  • Your personal development
  • Your competence
  • Your approach
  • happy
  • of your money, of course

You need to be in the right place at the right time, with the right skills and the right approach. Marketing is not a mechanical process. The one who tells you: "Spend that amount at a certain time and on such things, and you will have such income." is a liar. That's not how it works! Neither is success.

Investing more time, energy and money will never guarantee success. Anyone who talks like this just makes fun of you and tries to take advantage of your naivete. If success were that easy, there would certainly be fewer poor people in the world.

This myth is very often used to make you believe that it is your fault if you are still unsuccessful in the network marketing industry. More, how can we blame you for not investing enough while getting hired? Have you been told the investment is low?

This myth can also take the following form:

  • The product is in high demand so you won't have much to do
  • The orders keep coming, you absolutely have to profit now
  • And if the product is really selling itself, why is that person who tells you still trying to sell it to you?
  • Do you know a product that sells itself?

Google - Microsoft - Apple and many others have very popular products and yet they are promoting them. If you don't market your product, how are people supposed to know it exists?

The other negative aspect of a product's popularity is that Competition. In the history of mlm, dozens of products have emerged from the popularity of others. Your profit per sale can be high, but if you don't do enough, the profit margin loses its value.

You understand that Choosing a market in high demand does not guarantee you the success your sponsor promised ... Several other factors play a role and complicate the equation, but I'm not here to confuse you so I'd better stop here.

Is that so ? And what about:

  • Is there competition from other distributors in your company?
  • The hundred competing companies that sell the same products around the world?

Every distributor who joins your company limits your field of action. The more he recruits, the less likely you are to make a lot of money. If you recruit your downline from among your friends and family, they will end up struggling with each other rather than expanding sales and network beyond their immediate social circle.

A market will always be saturated because its radiation is limited. Your product doesn't solve all of the world's problems and doesn't necessarily appeal to everyone. which severely restricts your target group. Furthermore, you are not the only one offering this type of solution.

While there will always be people who consume products, there will not always be people who consume your products. Network Marketing cannot guarantee you anything!

The remaining network marketing income is based on the hard work of your referrals. They still need to stay active (they pay for their monthly subscriptions). You also need to sell products and hire more people to replace those that have already been abandoned.

Your success in MLM only depends on the quality of your recommendations. It is up to you to train them to give them the value they need so that, in turn, they can build and expand their own networks. If you have no value yourself, it is simply impossible for you to give anything to your sponsored children. So it is important to get a good workout.

Unfortunately, the vast majority of training offered by network marketing companies is limited to (sometimes bad) recruiting techniques ... yet you need more than that. At this point, your eternal laziness is being exploited.

These aren't the only myths, but I'm not here to crucify MLM. So I'd better stop here. I hope this has helped you understand network marketing.

Now I'm curious what you think of this article. Please let me know by leaving a comment below.

This article has 137 comments

  1. Hello,

    Part of what you are saying is true because unfortunately, at all costs, recruiters want to convince individuals to work in the network marketing industry. As in any other industry, it is not for everyone as there are many skills to develop.
    To become a doctor you have to study for many years and there are some who change careers after a few years ... will he be a failure?

    I agree that most of the people who start working in the MLM industry are not well educated and it is because of this that 98% of people fail.

    A network marketing professional needs to create a consumer and / or distribution market. The so-called "traditional" companies have to do the same ...
    ***
    Why are franchise companies not seen as so-called “scammers”?
    So you also need to buy a franchise and then sell the product and / or service. Did you know that in addition to the monthly franchise costs, the franchisor has to pay a percentage of their income and / or a fixed percentage?

    I advise anyone who wants to earn a fixed monthly salary to stay with their "boss" as an employee.
    But I have bad news, this "boss" is not guaranteed until you retire. You can know the unemployment rate, which lasts between 1 and 2 years ... and you are also obliged to change companies. If you can't find a company that wants your job, you won't be able to pay your bills. So is it a mistake?

    There is no perfect way!

    Live your life to the fullest the way you want!
    Thanks for reading me.
    Sincerely and be happy!

  2. Good evening, I am Cécile Vigneau, and I am sharing this story with you to make you aware of this type of fairly common fraud for those of you who are less in the know. I want to prevent others from getting caught! I was the subject of a congregation fraud by Jean Bernard who told me at the beginning that he lived in Auxerre in 89. After a few weeks he went to Africa on business, and it was there that my nightmare began. He cheated on me for € 571,000, but luckily a friend accompanied me for it. At the time, I called Interpol de France Lyon to lodge a complaint. I explained the whole problem to Interpol de Lyon and, in direct cooperation with the Interpol police, had a lieutenant general of the Interpol cybercriminal police from France contact me, who helped me. I was reimbursed for all of the money they stole from me, followed by € 50 in compensation offered to me by the Governor of ECOWAS. I was very lucky because I escaped this scam story and therefore I am here to give you this valuable help. This crook was arrested him and his accomplices and I managed to get € 000 in compensation. In the case of scams that you have fallen victim to, I advise you to do the same by contacting Interpol Police Lieutenant Antoine LOUBIER.

  3. This article was published a long time ago but is still very useful and useful. Thank you for your experience with MLM.

  4. Very well summarized article ...

    For my part, I've done MLM, I've been good, and I've done pretty well, and I've stopped everything ... for simple reasons ... MLM is THE way to knock people off.

    IAD, YERS, QSCIENCES, CBD based thing or local eco-participation (to name them all) etc mass recruitment and lots of so called managers, trainers, trainers etc ... a lot of blah about values ​​that are very rarely respected .. . many promises of remuneration ...
    I used the techniques that I know to see that in the end we are trained to show the successes, the number and the mass (of a few) of successful people, but above all by masking reality.

    Ask yourself the question when a leader tells you that they have left an MLM network because they have a fiery opportunity and are at the beginning because these products, concepts etc are super innovative ... how often made this change? How long did he stick with his previous case? that it is this personal production ... or that, for example, 9,000 real estate agents are announced and that in reality only 2,500 to 3,000 can really live for or less ...
    anyway ... watch out

  5. This analysis is partly correct ...

    But it also contains many very questionable points that suggest the issue is out of control.

    But thanks, it opens up an interesting debate about what relationship marketing is and what isn't.

    I will take the time to do a detailed analysis of each point and make the necessary corrections.

    See you soon!