Multi-level Marketing: The Pros and Cons

Know the pros and cons of MLM.

I am not an expert in multi-level marketing, network marketing or MLM as it is commonly referred to.Not being an expert is exactly what makes me the best candidate to write this article. I am, the average Joe, the common folk, who join these companies and try my hand at making some money in them.

Yes, I have joined MLM companies in the past. In those past companies, I have failed and earned nothing, and I have also earned tens of thousands of dollars each month becoming extremely successful in building massive teams nationwide.

One day, when I finally came down from the excitement of it all or should I say, knocked down by the economy, humbled and smacked back into reality, I learned some things that were good and not so good about MLM.

In a positive way, not trying to sound negative, I want to share what I have learned about this unique business model we call multi-level marketing and list some of the pros and cons.

The Cons

Having been very successful in the past at MLM, I have since been approached a dozen times by ex-teammates wanting me to join this and that company. Each time that I listened to their spiel, explaining how this new berry and tree bark is going to be Hugh, or this new weight loss pill is the answer to it all and this new cream is the fountain of youth, I always had one question in mind, "can the average person, the common folk, make money"?

The biggest con in multi-level marketing is the average person will not make moneyand that a few $100,000.00 dollar a month earners, excite everyone with a false unreachable dream that they can earn the same when in reality, 98% of the people in MLM will make very little, if any, income, or they will spend more money to belong to the company then they will ever make.

Another negative is that MLM can become cult like, when a person will "eat, drink and sleep" the business and do anything to try and recruit everyone to the company. Every family member, friend, co-worker and stranger will be approached and hounded to death until you hear them out. Give an excited MLM'er an inch and they will certainly take a mile, and then some. For the few at the top making all the money, this is the best person to have on their team because out of each enthusiastic person they can get a few customers out of them.

Actual success in sales may be hard to come by. The product has to be a marketable product. If the product does not meet the needs of people then it is too hard to sell to anyone and you will not have a good experience or make any income.

You are spending more money to belong to the company then you are making. Some MLM companies require that you sell so many products each month to maintain a certain level within the company so, in reality, if you do not meet the sales quota you end up buying the product yourself and ending up with a garage full of product.

It also may cost you way more then you expected because you feel you have to attend conventions, meetings out of town and training courses.

Rejection is also very high and most peopledo not like rejection and end up quitting too soon. This is also a factor as to why many do not make any income.

The Pros

The biggest pro of MLM is that it works. Like I stated in the beginning, MLM has produced more millionaires than any other business model in the world. A person can make a lot of money if they want to work hard, motivate others and build, build, build a team.

MLM has a very positive high energy status. Likeminded people come together and feed off of each other's positive attitudes. It is the key to success to be on fire with enthusiasm and to have vision because without vision, you will fail.

The pay off for such a small investment can be very profitable. As long as the start up fees are low and you are not required to pay large amounts of money up front to buy things or get started then it can be very lucrative.

You can build your own business and be your own boss. This is the dream of most people to be their own boss and work whenever they feel like working. You have the option to work full time or part time and earn as much money as you want to put in the effort.

There is usually a business and marketing plan to follow and presentation is already set up for you. Also, there is an up-line of support that will usually help you build your team.

Tax write offs are available because most MLM's are considered owning your own business. Ask your taxman before joining what the tax rules are.

MLM can be a great second stream of income. In today's economy, everyone is looking forways to make extra income.Stay at home Moms, baby boomers and people who are just sick and tired of being broke do extremely well in MLM.

Conclusion

It is very necessary that before you join any MLM you conduct a complete research of the company and know exactly what you are getting into. Do not join any company under pressure.

I finally just joined a great company that I took three months to research. I made sure of its legitimacy and that the "average Joe or common folk" can make money.

What I like about this new company is there is nothing to sell, no inventory to buy and everyone from the top down, makes the same amount of income. Interested? Let me know and I'll send you the link. (This would not be a true article about MLM without a recruiting blurb).

Article also posted on Triond by Scott Hallock