I’m going to share with you my personal past experience of the Biz-op, Multi-level marketing online business world.
The following blog post is my own experience.
Keep in mind that everyone has different outcomes and yours may be different than mine.
I can only share with you what my experience was like. It’s been quite a few years since I shifted my focus and decided to leave MLM behind.
I look at it now as an opportunity to learn valuable lessons on what I did wrong, how to solve issues and go forward to succeed in a real business online.
So with that said, here are the good, the bad and 10 reasons why I’ll never be a part of an MLM online business again.
First, let me say this…
I’m not going to create a post about trashing the business because,
A) There are actual MLM opportunities out there that are legit and run a fair and honest business model. There are people who are succeeding
B) Being negative here won’t help you in any decision making at all. However, there is a good reason why people view MLM businesses as scams. Or why they refer to them as “pyramid schemes”
You might be someone who is right now thinking about signing up to a business opportunity and you are a little hesitant.
Understandable to say the least.
Maybe you’re already in one of the many MLM deals out there and struggling to not go broke.
Or, you could be one of the few people who are actually doing well with it.
Whatever the case may be, I will share some personal insight on what an MLM business really is and what it takes to succeed in one.
Between 2007 and 2015 I was involved in 3 major multi-level marketing companies. Two were in the health and wellness category and the third was direct sales for make money online courses.
The first two are still in business today but the third went bankrupt a couple of years ago.
I invested about $16,000 (give or take a few hundred) in total, between the 3 companies in an eight year period.
The first 2 , I managed to break even…..barely
I Didn’t make any money but what I spent I pretty much made back. Give or take a couple of hundred bucks.
I was one of the few lucky ones I suppose. Most people lose a lot of money, lose faith and trust in an industry already shadowed by dark clouds.
Here is My No BS Opinion On MLM Business Model and 10 Solid Reasons Why I’ll Never Join Another..
#1 . Too Much Pressure To Spend More To Upgrade Once Signed Up.
Most of these multi-level marketing business opportunities will talk you into joining their team and all you need to do to start making money is join at the basic entry level.
The truth is…
Once you join their entry level, usually called a “silver level” or level 1, your “coach” or up-line as they are called, will start to subtly or aggressively try to talk you into upgrading to the next levels.
A tactic for recruiting that was used by one of these companies was the fear factor.
Fear of failure if you didn’t go “all in” as soon as possible. Fear of being left behind and fear of letting someone down like your sponsor.
This was something I resented and a lot of others who were working hard getting nowhere resented it as well.
It didn’t matter if you were down to your last $20 dollars…
The leaders would tell you to do whatever it takes to find the money to upgrade and buy all their products if you are truly serious about succeeding. The cost was about $5000 to be “all in”.
This was their standard marketing tactic drilled into people every week on training calls, on webinars etc…
My conscience was really getting to me and there was no way around it.
There were stories of people selling their cars or other properties to scrape enough cash so that they would be “part of the team”.
Most of these people who just wanted to be a part of something and succeed at it ended up losing everything in the end.
All MLM business models have these pressure points to get people to spend more in the illusion that this will ensure success.
One of the biggest problems with this industry is t
#2. The Statistical Odds Are Against You.
98% of the people who sign up expecting to make a profit, lose money and very few will make even $5000 per year. If they stick with it, that is.
#3. Personally my Conscience Weighed Heavy.
I won’t say which companies, at the time I was involved in were practicing and encouraging some shady marketing tactics, but I’ll say this…
If you are feeling uneasy about what you are being taught by a company in order to get prospects to sign up under you…
Go with that gut feeling and trust it.
I was recruiting people that I knew for a fact that they couldn’t afford to spend any more money, and that they signed up because they trusted me to do right by them.
I was selling them a false sense of self assured success and it was literally making me feel sick to my stomach.
#4. I got sick of trying to defend my new business to everyone who, for good reason kept saying I was in a pyramid scheme.
#5. Most of these MLM businesses that focus on recruiting and selling training products on how to recruit people to do the same thing are disguised as product driven, but it’s pretty much a lie.
There is one company that now is bankrupt and was based as this style of business model where they sold way overpriced levels of membership all packaged up nice and flashy to lure in people like crazy.
They had events they called “summits” where, for a few thousand dollars you could join their elites and basically partake in a lie that eventually caught up to them.
These businesses focus on recruiting and keeping people paying monthly memberships and disguising the business with half assed garbage training that looks awesome from the outside, but really is crap and useless information on the inside.
#6. It’s really really hard to do.
A very, very few actually are becoming wealthy and the rest of the people out there struggling to even make a first sale. That’s because it is really a difficult business to succeed in.
#7. You are on your own.
Sure, they tell you that you will get all the support you need but the reality is, your sponsor/up-line is pretty much just like you.
Most of the time you are signing up to a person who you think is successful, but that’s not always the case.
Most of the time, your sponsor is barely getting by just like you. Reality is, they can’t help you make $5000 per month because they don’t make even close to that.
#8. Confusing Compensation Rules that Make no sense.
The diagram above is not even one of the confusing comp plans. Some are so confusing, people are likely making someone else a lot of money and can’t understand why they’re not.
#9. The Eventual Downfall of an Empire.
There will always be Amway, probably Herbalife and a few others that sustain through the years. These companies have actual real products they sell.
The companies selling a dream using half-assed training courses as their front line product will generally crash and burn. Empower Network being one of them, Mobe being the other.
#10. There is an uneasy cult like feeling associated with a lot of these companies.
They tend to discourage you from doing your own thing and insist their way is the right way. Most of the time their way causes you to go broke.
The funny part about going through this massive learning curve, failing miserably and sometimes having small successes, I don’t regret it for a second.
It’s all about learning and growing into an entrepreneur and that’s the journey.
If I had one piece of advice to share with anyone who is looking to join a business opportunity of any kind, that would be to take your time and research it thoroughly first.
Ignore the pressure tactics and hype because what they won’t tell you is that the business is like any other business.
You have to make it happen.