Reasons Multi-Level Marketing MLM Companies Are a Bad Idea

In today's economy, many people are looking for a fast buck. With so many people out of work and using their credit cards to survive, it seems as if everyone and their nearest cousin are looking to make an additional buck. As a result, many people are flocking towards multi-level marketing (mlm) opportunities. Unfortunately, these same people try multi-level companies and fail. In the process of trying mlm companies, they lose money. These same people who need additional income often lose a significant amount of money trying to sell multi-level marketing company products.

I have made decent money on-line, yet I always seem to fail at multi-level marketing products. I wondered, "Why?" Why is it I have made (and seen others make) money on-line by selling my (their) own products and yet time and time again I fail miserably at selling multi-level products? After a long analysis, I have come to some conclusions I would like to share with you.

1. Your friends shy away from you.

If you have ever sold Multi-level marketing products before, you know your friends shy away from you the moment you "join" the company. All of a sudden you have something to gain besides their friendship. This makes you another salesman who is likely to come knocking at their door. Friends want you to choose to be their friends because you care about them not because you have something to sell to them. Joining a multi-level marketing company can alienate your friends and this is a price I am unwilling to pay.

Are you their friend because you care about them or because they have money that you want?

2. Multi-level marketing products are not unique.

Multi-level marketing companies are asking you to advertise something to a market which is often over-saturated. Many people have already heard of the product a thousand times. They know what you are selling and they are already purchasing it from someone if they want it. They don't need you to tell them that they need a product that they know they don't want.

If you become a multi-level marketing representative, your job will be to market to people and convince them they need a product. If you know they probably don't, it is difficult to maintain your integrity as you attempt to convince them they do.

In contrast, your own uniquely made product is something which does not have a saturated market. You can create a unique product with a niche market.

3. Multi-level marketing companies are often trying to sell to you not your customer.

MLM companies know you are truly their loyal customer. You believe in the product enough to want to share it with your friends. As a result, the set-up to join and stay in the company is often dependent upon you purchasing product. Especially with products whose market is saturated, the company will have requirements and incentives ensuring they receive sales from their consultants. You may find you spend more on the product than you make from your customer. If you are planning to purchase this product regularly anyway you may not mind, however if your plan was to make money you may find the required purchases discouraging.

4. Those successful in multi-level marketing companies usually stick with it long term.

It seems more often than not within the first few months of joining a mlm company a new representative will often fail. If a representative does sell for a longer period of time, they will find they sell more. Friends will begin to think of them as an established representative and purchase more from them as a result.

I had some multi-level companies I joined and quit within 2 years. Years later I would have friends ask me, "Are you still selling x product?" I would have to say no as I had quit many years before.

I have never tried it, however, I believe you may find yourself more successful if you stick with a multi-level marketing company for the long haul. In other words, do not expect to work yourself out of a job within 2 or 3 years. Succeeding as a multi-level company representative is no different than any other career. You must be in it for the long haul in order to achieve success.

5. When you join a multi-level marketing company you become a salesman (or sales-woman).

If you are not a gifted sales person by nature, joining a multi-level marketing company may not be right for you. As with any career decision, you will want to consider whether you are suited for the position. Multi-level marketing is no different. It is not a one-size fits all career choice.

6. Successful products sell due to established trust. MLM companies often request you betray this trust.

MLM companies often attempt to "trick" representatives into regularly buying their product with the promise these representatives will be able to sell their product as a result. If you or your friends underneath you do not sell the product, trust is distorted. Good companies successfully sell product because they establish and maintain trust with their customers. Multi-level marketing companies often ask you to request your friends to buy product they otherwise would not purchase by asking them to make a monthly commitment to purchase or become a representative. No established business does well if the initial trust is betrayed with their customers.

In conclusion, I wrote this article to inform readers to think carefully before joining a multi-level marketing company. You need to understand marketing a multi-level product will put you at a disadvantage. Although it can be more difficult to create your own products, you will make more money in the long run, benefit society better, and are unlikely to lose friends in the process. Your friends do not want to be encouraged to join your company no matter what the higher ups in your multi-level company might try to persuade you to believe. Be cautious! Attempting a multi-level marketing opportunity could cost you friends and money!