Multi-level Marketing: the Recruiting Lie

Multi-level marketing is a sucker's bet, and it's time this sort of confidence game go the way of the Dodo bird. Good people, looking to build a sustainable financial future are lulled into phony opportunities every day. If you are considering joining a multi-level marketing scheme please consider just one point before handing over your money, and investing your irreplaceable time: The numbers needed to make a multi-level marketing business opportunity work are impossible.

It would be great if the so-called business model really did work, but it doesn't. Forget about everything your recruiter tells you about the wonderful future awaiting your signature and a major credit card, and do your own thinking.

Projected numbers in Multi-level marketing are not feasible.
Those of us who have fallen for the work from home scams ourselves know how it works. A company offers the chance to make money as an independent contractor for a company. The gross profit margins for the salesperson (aka consultant, distributor, etc.,) are small. This is often explained as the company's way of allowing room in the price structure to pay over-rides and bonuses on the sales of anyone the salesperson recruits within their "downline." Each "level" or "generation" of the downline consists of the people each agent recruits personally, thus the term multi-level.

The salesperson is painted a lovely picture in words of a tremendous financial opportunity by doing nothing more than finding others to do the same thing they do, which is, to sell products at an incredibly small commission percentage. Anyone who has ever heard the pitch instantly recognizes the clarion call of "you recruit others, who recruit others, who recruit others, and blah-blah-blah..." Ultimately, the only people making money from the salesperson's efforts are the people operating the multi-level marketing business.

How are the promises of multi-level marketing impossible?
The problem is that, within the scope of reality, the numbers are not realistic. In situations where all a body needs to do is find a small number of recruits, who do the same, within only a few "levels" of this process the numbers would be staggering. If the company has an expectation of a multi-level team consisting of only six recruits per level per salesperson, within just thirteen levels you have reached nearly double the number of every man, woman, and child on the face of the planet. Even if the "opportunity" were so incredibly wonderful that every single human alive were to sign up...twice, those last few million of recruits are out of prospects. Any idiot can see multi-level marketing numbers are not sustainable.

But some network marketing businesses don't have that many levels.
In cases where there are only a few levels of over-ride involved, the profit potential is merely limited. But remember, the same number of levels of recruits, are for each generation of referrals. So, even if someone very early on does make money, those who come along later, won't. Again, this sort of phony business model is unsustainable.

Just because multi-level marketing is a sham, don't call me anti-business.
Business is a good thing. Free trade is the secret to world peace. But pyramid schemes designed to cheat people out of their money and precious time, are no more "business" than protection rackets are "protective." I am anti-cheater, though, having been cheated myself a few times. These sorts of ventures all claim "Our system works if you work it," and few things are further from the truth. No matter the product, company, or payment plan, these types of network marketing schematics are built to fail, and the salesperson gets little to nothing for their efforts. If any reader of mine is involved with one of these outfits, you would do good to cut your losses and start a legitimate business of your own. Those individuals running a multi-level marketing business ought to either change to legitimate strategies, or turn themselves over to authorities for prosecution.

Sources:

Personal experiences, and
mlmwatch.org