MLM is NOT a Scam
I am so sick and tired of hearing people talk about MLM being scam businesses. Multi-Level marketing is the same exact thing as Direct Sales, yet no one ever questions direct sales companies.
That is right. Your company may call it direct sales, party plans, mlm, network marketing, or even consumer direct marketing. No matter how you word it, they all do the same thing! Sell products or services and all bring new people into the business to gain bonuses and additional commissions.
ANY time you earn money from a downline you are paid on MULTI levels! Which is the exact same concept behind Multi Level Marketing. You make money from different levels.
Any company can be a scam! I have saw many many direct sales businesses come and go just as quick as mlm companies. Anyone remember, Scrap In A Snap, the scrapbooking party plan/direct sales company? What happened to them? They were billing reps and never sending products! They were paying reps with bad checks! I mean the list goes on. That company was classified as a direct sales business and they did scam many people, not just the reps, but the companies manufacturing their products!
People have the misconception that mlm is a scam. MLM is not a pyramid, it is nothing more than a company who has Distributors, Independent Business Owners, Franchise Owners, Consultants, Independent Agents, etc. to sell products or services and earn additional sales commissions based on the sales of people enrolled into their downline.
That is the same exact thing people do in direct sales, network marketing, consumer direct marketing, ect. They are paid based on their sales and others in their downlines!
I even see people who join mlm companies who are not successful turn around and call that company a scam. Just because you did not have success with a business opportunity, does not make it a scam. As with any business, success does not come over night.
Multi-level marketing has an image issue due to the fact that it is often difficult to distinguish MLM’s from illegal schemes.
From The BBB Website….
Multi-level marketing, a direct sales system, is a well-established, legitimate form of business. Many people have successfully sold the products of reputable companies to their neighbors and co-workers. These people are independent distributors who sell popular products and also recruit other distributors to join them.
That is from the BBB website! Now, a scam can happen in any kind of company, regardless of what they are classified as. A business is only as good as the people around it, but MLM is not a scam!!!!!!!!! Perhaps some people in MLM businesses are not honest, but that do not make every MLM company a scam. Hell I have known people from different types of businesses be liars to gain a new downline member, but that does not make the entire industry a scam.
That is like saying all car dealerships are a scam. Come on now, how many people do you know who have in some way been burned from car salesmen and car dealerships? I personally know many! That does not make all car salesmen scammers.
This is a subject that really pushes my buttons bad! I have been with direct sales companies and companies that are labeled multi level marketing and they all are set up the same commission wise. You make your money from what you sell and what your group sells!
Therefore, there is nothing about mlm that is a scam! Sure some mlm companies may have been scams, but there have beem direct sales business scams as well. A few bad seeds can not ruin it for the legit ones!
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November 27th, 2007 at 5:41 pm
I can feel your energy around this subject.
Network marketing definitely has a bad rep, which is unfortunate. It really is one of the best ways for people to earn a long term residual income. People fail to realize it is a business. They expect to go in, make millions in a month and then call “scam” when that doesn’t happen. When people start with a network marketing company they should be planning for the long haul, come up with a 5 year plan. It works if you work it!! Great post, keep ‘em coming!
November 27th, 2007 at 10:47 pm
The cyber world is full of people wanted to take advantage of others and because of our current economic climate there are many who fall prey to such schemes. So good for you for providing information so people can make more informed choices :o)
November 28th, 2007 at 2:52 pm
I agree, and think you have a great blog here with useful posts!
http://www.MomsCashBlog.com
November 29th, 2007 at 12:37 am
I agree Completely!!
It’s a shame that so many Scammers have been involved over the Years + as your Reader pointed out have given MLM a Bad Bad Rap*
One thing with the Power of Social Networking + Widget Apps on Facebook Exploding with tremendous Growth ie adding 5 Million Users in a couple of Months it shows the Real Benefits of Referral or Network Marketing!
Thanks for adding me Safewell!
Cheers! Billy ;))
Peace*
December 12th, 2007 at 7:35 pm
You made some valid points. I guess so sick and tired of explaining why MLM is not a scam or a pyramid scheme. You did a great job!
Visit my Blog at Gail’s Travels
December 20th, 2007 at 10:44 pm
Great blog! It’s so true that people have given these businesses a bad name. There are so many terrific MLM businesses with fantastic products.
October 8th, 2008 at 3:09 pm
I am just amazed at how many people will carry over prejudices about network marketing. I finally wrote a satire, tongue in cheek about it at my blog that shows how ridiculous some of the negative stance actually are.
Thanks for the BBB quote, very credible.
Here is the MLM spoof post… http://amalakifreedomteamblog.com
Great work!