Network Marketing? MLM? Yeah, No.
Those were my feelings years ago.
You could even say I was anti-MLM.
Making money off the work of other people? Recruiting into a scheme? Dishonesty?
Just a handful of the immediate thoughts I had about network marketing companies (and, I suppose, the people who joined them).
… Until I accidentally fell into it.
Someday I’ll share my story of stumbling upon something incredible (that happened to be a MLM product *shudder*), my journey of inadvertently developing into a leader, and the personal growth and internal struggles that took place along the way.
But today is not that day.
Today, I’m going to share all of the reasons I would never join network marketing.
I’ll also share what I learned, behind the scenes, once pigs took flight (and I actually joined).
So let’s begin…
1. The people at the top (who got in first) automatically make the most money while others do all the work
I don’t think I’m alone in this assumption, right?!
Well, as it turns out, downlines can (and often do) surpass uplines in PAY and RANK (title). In all of the MLM career plans I’ve seen, this happens. In fact, it’s normal. In fact, it happens on my team ALL THE TIME. So much so, that we don’t even think anything of it. *shrugs*
I also learnt that many (if not all) MLM companies have personal requirements the top leaders must meet in order to get paid on any team sales at all. In other words, they actually can’t just sit there without doing the work themselves (or having done the work themselves in the past).
Contrary to my original idea of what multi-level marketing was all about, those who “get in first”, more often than not, don’t actually rise to the top. It’s the people who put in the work who rise to the top; regardless of when they joined.
I’ve encountered people who have been in direct sales for 15-20 years. Yet, I have friends that joined in the past couple of years that are out-producing them. Everyone will have a different experience based on their unique abilities, talents and drive. Juuuust like any other business. Fascinating. š
2. People who are involved in network marketing just want to make money off of everyone (they’ve gotta be hurtin’ for cash?)Ā
This one is a hard one to admit. But yup. I thought those in direct sales must have low cash flow and are trying to make extra money by selling crap to their friends. *hides face*
One thing I discovered after being in the profession, is the Reps are typically so passionate about their respective company and products.
They found it. They love it. It enriched their lives. They want to enrich the lives of others.
The company and product varies but this is the narrative across the board. Distributors share about their thing because they want to help others.
In many cases, they pass along their discount and/or commission to their friends. So, literally, they talk about it for free.
In my case, I was very well off when I joined. Extra income was the last thing on my mind (seriously, I only joined to get the perks for myself)… But I found myself telling all of my friends about it. Not to make income. But because I was excited.
When you find a new killer restaurant – wouldn’t you tell your friends? It’s really the same thing.
Companies like Hello Fresh and Revive Superfoods have generous referral programs because they know word of mouth is the best advertisement.
A top earner recently said to me “I got into this profession to make money WITH my friends, not to make money OFF my friends.”. I thought that was powerful.
Perhaps something to keep in mind the next time your friend shares her opportunity with you. š
Oh! And for those who think making money off the sales of others is a strange and unusual concept… Head down to your local car dealership and ask to speak to the Sales Manager or Director of Sales. They’ll likely tell you they make a percentage from what the salespeople sell.
3. Network marketers are required to make fake friends (and engage in awkward robotic coffee dates) with the sole intention of recruiting people into their thing
You can probably guess where this one came from.
I had a “friend”. You know the one. Haven’t spoken in forever. Wants to meet for coffee. Wants to meet for coffee again. And again. Each time bringing up more about her “business”.
I was young. I was naive. I should have realized sooner. But I didn’t. When I did, I felt duped. Mislead. She never actually wanted to be friends.
Needless to say, we don’t talk and haven’t ever since I declined her planned solicitation.
Side Note: Reps with this particular company are widely known to do this exact scripted/planned coffee date scenario. And, they are known to CUT YOU OUT if you decline the offer. Thus, giving the entire industry a bad name (in my humble opinion).
Fun Fact: many of my closest friends are NOT part of my team, nor are they in the network marketing profession. We still hang out. We still talk about life and business. We’re simply not in business together. It’s like if I were a doctor… Would I only hang out with other doctors? Would I force medical school upon all my friends? Would I cut them out if they had no desire to be doctors? No, no I would not. It makes no dang sense. This is no different.
I’ve discovered that many top earners in network marketing aren’t in business with their closest friends and family. Nor do they expect those people to join them. It’s just that simple. Those operating to the contrary are truly the sad exception.
And as for engaging in weird coffee dates? Well, I’ve made it this far without any of those. So it’s safe to say it’s not a requirement.
4. Network marketing companies keep the compensation secretive (No one knows how these people actually get paid… Do the Distributors even know?)
Maybe I’m alone in this misconception, it’s kind of silly, but it’s going back to my experience in point 3 above.
The only personal interaction I had, related to multi-level marketing, was with this individual; and she refused to share the pay structure (super shady, right?). I had the distinct impression that she wasn’t even aware of the details.
Well, as it turns out, many companies publish the entire career plan online for the world to see. Those who don’t usually publish a summary and you can read the entire detailed plan by request.
Nothing is hidden.
5. Network marketers are always trying to convince you that you hate your job and should leave itĀ
OK, this one is disheartening, for one important reason: it’s partially true. š
I’ve seen cringe-worthy buzzwords like “financial freedom”, “J.O.B. = just over broke” and references to “leaving corporate America” used in an effort to convince you having a job is lame and to simultaneously promote the network marketing profession.
No. Just No.Ā
This is absurd. Iām sorry (to anyone reading this who has used those phrases) but the world would shut down if everyone quit their job to pursue network marketing.
We need our engineers. We need our teachers. We need all our restaurant employees (because I have no desire to stop eating out!).
The entire tactic makes no sense to me.
Some people LOVE their jobs (or non-MLM businesses) and are PASSIONATE about what they do. Why would we want to take that away from them?!
Network marketing is not for everyone (there, I said it!). But it is for some. End of story.
Thankfully, Iāve learnt this doesnāt typically come from the company itself (not MOST of them). It generally comes from misguided Distributors.
These next two points weren’t actually MY personal misconceptions but I want to address them as well.
1. If you have to spend money to make money, it’s a scamĀ
No, my friend, that’s called a business.
Jobs don’t require an investment (unless you’ve got to buy a uniform, etc.), correct.
However, social commerce isn’t a job. It’s a business.
There aren’t many businesses out there you can start that don’t require an investment (and usually a substantial one).
With many franchises, for example, you aren’t even expected to turn a profit for 3-5 years.
The average cost to start a small business in the USA is $65,000.
- 50% fail within the first 12 months.
- 80% fail within 5 years.
- 94% within 10 years.
Another interesting one: of all the people in the USA who get their real estate license, 90% never sell a home.
These stats came from this video by Eric Worre – give it a watch.
This viewpoint is silly. Most network marketing companies have starter kits that cost less than a date night out. In some cases, even less than a McDonald’s date night out. Enough said.
2. Most people who join multi-level marketing lose money and fail!Ā
On the surface, this is actually true!
But first, let’s reference the general (non-MLM) business stats above for a little context.
And second, I’ve discovered the vast majority of people who join network marketing actually have very little desire or intent to make money.
In fact, most just like to belong to a supportive community. They just like to hang out and have fun. They pretty much just like the stuff and want to buy it at a discount (or get extra perks).
These stats are widely known throughout the entire industry:
- 85% of people who join have zero desire to work it full-time or create any type of significant income.
*70% of those are simply consumers; they just want to purchase the product and get the perks (this was me!) - 20% are considered āSocial Enrollersā; they enroll 1-2 people (ever), love the product, but donāt really want to grow a large business.
- 5% are considered āRetailersā; they enjoy the product and promote it, mostly servicing customers.
- 3% are considered āRecruitersā; they have some level of desire and enroll 6-9 people (over the course of their career).
- 2% are considered āSuper Recruitersā; they enroll 10+ (average 27). They are in it to build a business and develop into leaders.
So, here’s the deal, is it really considered “failing” when someone’s goal wasn’t even to make money in the first place? That’s something to ponder.
And, if the Distributor wanted the products anyway, is it really considered “losing money” when someone simply purchased the product they wanted? Something else to ponder.
Kudos to you for making it this far!
Did you get a different perspective? Drop me a line if you did! I’d love to hear. CLICK HERE to connect with me in Facebook Messenger.
