The Online marketing world is a strange business world of its own.
An entity where slick sales people who appear to live the desired lifestyle everyone wants, selling business opportunities that strangely have a 98.9% failure rate among those who attempt to be a part of it.
The biggest of these businesses being the MLM, or multi-level-marketing world where people join by the boat loads in hopes to make their dreams come true, but not all can do it.
Actually, the numbers are quite dismal in terms of success stories.
99% of MLM participants lose moneyAccording to the FTC
There are a lot of factors involved on why the failure rate is so high in this business type.
You have to consider that, not everyone coming into this business is willing to work hard to get the results they want.
Some think that they should be making money within a day or two and have unreasonable expectations.
The ones who try to stick it out as long as they can tend to think that putting no money into their business will still become successful at it in a short period of time.
Of course, it’s not always the end users fault. The “grey area” advertising that lures and gives false promises of making thousands of dollars within a few weeks becomes the standard at which people are expecting when they are enticed to sign up.
There are a few successful people who actually will tell the truth right away so that you’re not being misled.
An example I found is Frank Kern. Frank Kern is independant and doesn’t promote MLM business. He’s more of a consultant and independent product creator.
Frank will tell you right away, this is not an easy business and you ain’t gettin’ rich quick. It’s hard work to be a success.
There are many who do work extremely hard and yet still fail time and time again.
Here is my take on it all and I’ll just come out and say it…
I’m not a big fan of the Multi-level-marketing business, or (MLM) for short.
Hell, the truth is I really really don’t like anything about them. The crazy thing is that I’ve belonged to a few of them in the past and actually did pretty decent with one in particular.
I can give an honest opinion because I speak from personal experience.
Maybe you’ll be able to relate to this hard truth of the online business opportunity world.
Before I explain why I would no longer promote any type of MLM business, let’s have a little fun first.
Let’s categorize the different types of people who get involved in MLM businesses and what their personalities are like.
(This is just my take on it and is meant to be somewhat a parody)
- The Newbie. The first type is perhaps yourself. You dream of creating a better life and this home based business opportunity is new to you. It’s seductive ads, video testimonials of successful people talking you into joining a team of entrepreneurs. It sounds awesome and exciting.
- The Skeptic. Skeptic are super cautious, believe that everything is a scam. Usually they never sign up but return to the sales page over in over perhaps looking for a sign of legitimacy. They want something better but are always kinda sitting on the fence.
- The Troller. They spend a lot of time engaging in posting disparaging comments based on no real knowledge of it, but just to spite people who are trying to make a go of it.
- Shiny Disco Ball Syndrome Person. These are the majority of all business opportunists. They start one business all gung ho but fail at it and within a month or two they are moving on to the next big deal.( I was once or twice in this category)
- The Refusing to Quit and Going Bankrupt Person. (I’ve been this one at one time as well) Dreamers who retain hope something will work for them. Sometimes it does and sometimes….not so much.
- The Newbie’s Initiated . They have been involved with more than one company and hasn’t had any success. Usually become angry and frustrated as time goes by with same old results.
- The Faker. They pretend they are successful in the hopes they will sign up people who fall for their fraud.
- The Rich Bragger. They post videos of themselves getting on private jets, showing handfuls of cash, drinking champagne from the bottle in a pool IN slow motion.
- The False Humble. They always show or tell you how much they make, then use the line…” I’m not bragging, just showing you what is possible”
- The Leader. These are the ones who are truly trying to help people but can’t get others to duplicate their success. Helluva nice person and well liked but are really not getting through to others.
- The Super Spammer. They buy email lists, mine data and put out links to their offer all over the place not caring if they get called out or banned from YouTube, Facebook or wherever. Some do this because they either don’t know any better, or they do and could care less and think it’ll work.
- The Shadow Identity Marketer. ( Also known as the multiple identity) They usually get banned from everything and have to create fake personas to post their stuff again.
- The Evil Genius. They are ruthless and really great sales people. They promote stuff that they know to be garbage but if it pays well they could care less as long as they can get your money time and time again.
- The BrowBeating Overlord. Their tactic is simple… They convince you to go “all in” otherwise you are not serious about your future and really don’t care about your family’s happiness. Don’t be such a fence sitting wussy!
- The successful, Humble and Honest one. These are the ones that show you how to do it without bravado, without lying to you but will be honest from the start and tell you that it’s really hard work but is willing to help you as best as they can.
There are probably many more but these are the immediate ones that come to mind for me, what I’ve seen anyways.
So, Here is the hard truth of joining any type of work from home online business.
It’s not easy to succeed.
Gee, there’s a big revelation huh? You probably knew this already.
It’s really really hard work. It gets easier as time goes on if you can make any money at all but it is no simple 3 clicks to riches, like the sales page tells you.
Sure, anyone can be a success but most people won’t because most are not willing to do the things necessary to become a success.
My Personal Experience…
I’ve actually been part of 3 different MLM companies in the past and one of them I made some decent money.
So why would I stop promoting something that was actually working for me?
I was talking people into joining my downline knowing full well that most of them could barely afford the $25/month initial price of signing up.
It was all designed to convince people to “upgrade” their status by spending more on whatever the upgrade costs were even though I knew they couldn’t even afford their rent.
Some people believed in their possible success so much that they were selling their personal items, like their car, so that they could buy the next level and learn how to make truck loads of cash fast!
It was my job to convince them that they were doing what was necessary to become a success.
I felt sick to my stomach every day. Literally sick.
My upline coach would call me and praise me daily and it only made me more sick to think about what I was doing. I was signing new people up as fast as they were quitting. That is not a stable business model no matter what anyone tells you.
One time I asked my upline (coach) that maybe I should really warn people about how hard it is to make money in this business, and they said that if I did that, no one would join.
The thing that got to me most was that, most of the people who joined my team were not making a dime.
They were going broke and I had the inbox of emails to prove it.
These people believed in me. That I was there to make sure they succeeded.
I tried very hard to help them but I knew as time went on, I couldn’t duplicate my success with them.
The one thing I am glad that I did before someone actually joined up was I specifically told them that it would not be easy and that getting momentum was the key to this business. I broke the cardinal MLM rule on recruiting.
I gave the real truth to prospects so that they could make a real informed decision before signing up to something that I knew could possibly bankrupt them in a short amount of time.
Believe when I say that, it was difficult to make a decision to step away from it. Especially when I started making some money at it. But I figured that there was something terribly wrong if 98% of my downline was not getting anywhere fast no matter what I did to help them.
This is why I stopped promoting the opportunity in an MLM business model.
Specifically, the MLM types that sell training courses on how to make money online.
What is Multi Level Marketing?
The word Pyramid Scheme is synonymous with multi-level-marketing.
It’s for good reason why this is and why it’s such a huge problem.
People in the business who are successful or not hate the term Pyramid scheme.
They get angry and defensive right away and try to explain to others why their business is not a pyramid.
They will use words like “direct sales” and tell you that everyone has the same opportunity to be successful no matter what level they’re currently at.
This may be somewhat true to a degree but the real underlying problem with MLM is that it doesn’t matter if you’re making money or going broke because the bottom line is that if the company is making the bulk of their income from recruiting, they are a pyramid scheme according to the FTC.
They might have a product line that they sell, but that product is secondary to the recruiting and that is the truth about most MLM opportunities.
Not all of them are this way, but the majority are. Some of the biggest have already been shut down and held accountable.
Digital Altitude, Mobe, Wake Up Now, Global Prosperity Group and many more either were shut down by the FTC and/or went bankrupt.
The sole reason is simply because they made the majority of their profits by recruiting and not selling tangible products.
What If You’re Already Involved In an MLM business?
If you’re currently involved in a business where the bulk of the money you make or try to make comes from new recruits, you’re in a pyramid scheme model.
If the company makes their bulk of profits from actual products and the recruiting is secondary then it’s not a typical pyramid scheme and you should be ok.
The problem is always the same.
Most Multi-level marketing biz-ops run this type of business model and they like to disguise or create half-assed products that they promote as value but really are not.
Once they get their hooks into you, you’re pressured to create a downline. The downline is where people who are successful at recruiting create the bulk of their money.
They walk the thin line that separates legit business and scams.
If 2/3rds of your income is recruiting a downline and 1/3rd is actual selling products then you are in a classic pyramid scheme.
The truth is that pyramid scheme businesses won’t tell you the reality of what is going on behind the facade.
Every email that is sent to a “prospect”, every training video you watch, every phone call you get is designed to extract money from you and believe me when I say, they choose their words carefully to do this.
Here is what to consider if the following applies to your situation.
Now, if you are already in a business that is similar to what I’ve been talking about, you’ll have to decide yourself how to move forward.
If you have been struggling to earn anything and you’ve poured hundreds or thousands into this opportunity and still cannot make any headway despite your best efforts. My advice is to cut your losses and get out before bankruptcy comes.
If you’ve been struggling for months or years now than this is the time to re-think what you’re doing.
If you’re recruiting but selling actual products of value then just keep going at it. If you can make money at it and feel good about what you’re selling then this is a good place to be.
If you feel like there is something not right…
Here are some classic warning signs that the business opportunity is not a good business to be in or join…
- Do you feel like you are constantly defending the business against people who keep yelling pyramid scheme? That’s probably because it is a pyramid scheme.
- Are the actual products they sell just training courses on how to do the exact same thing and recruit people? Those aren’t products of value, they’re simply fluff to make it look like they are real products.
- Is there a lot of pressure to “upgrade” your status in the company by buying the expensive packages? These are usually called things like silver, gold or platinum packages. These always are sold as the essentials for success.
- Another sure sign of problems are the appearance of the successful people you see in the businesses trainings, on stage at events and on social media. You might notice that it’s always the same people over and over. That is because they actually did become successful, but mostly because they were the first ones promoting the opportunity. 98% of the rest are failing and will never make a dime.
- If well known leaders in a particular company suddenly vanish or scale down their business by promoting a lot less, then there is a serious problem no one is telling you. In all probability that company is going to shut down soon.
Yes, some people will succeed and make a great deal of cash and live the internet entrepreneurs dream lifestyle. The majority of them unfortunately will fail to make anything at all.
The best advice that I can give right now is to do your research before jumping into anything. Check the company’s ratings online.
Look at their business model and determine if they are really selling a valued product or mostly recruiting.
If you are already in one of these businesses, don’t listen to people pressuring you to buy upgrade packages for fear of not having any success. They use fear tactics to coerce into spending more money that you may never recoup.
With anything at all that has to do with making an important decision, common sense and trusting your gut feeling will serve you well every time.
What Opportunity is out there that is legit and actually works?
The one business opportunity that I can recommend and even some “scambusters” can say is legit, is the Wealthy Affiliate.
Here is a link to the Wealthy Affiliate. This isn’t my promotion link. Just an ordinary link to their home page.
Pretty much the only business opportunity website that I can say is well worth looking into.
Also, leave a comment, your opinion and tell me what you think. I like to hear anyones take on it and welcome arguments for or against what I’ve said. 🙂