Marion Witte

December 9, 2018

Multi-Level Marketing (MML) on the Internet

Filed under: MLM Blogs — Marion Witte @ 9:04 pm
How Most Multi-Level Marketing Plans Work

I remember the good old days, when you bought your multi-level marketing products from the Tupperware “lady,” from your Avon or Mary Kay neighbor, or from the Amway distributor. Those interactions involved face-to-face communication with the sales representative, and you were able to see the product and test its quality before you purchased it.  In addition, there was little or no pressure for you to become a distributor, or to be asked to hit up your family, friends and business associates to purchase products from you.

We are in the new age of internet Multi-Level Marketing (MLM).

Everything about MLM has changed during the last 15 years, as a plethora of internet companies have entered the picture. Too often they appeal to well-intentioned folks who are told they are going to get rich by becoming a sales representative, and then a distributor, as they work towards the top of the ladder.  They are also advised they are getting in on an exciting new product, they can work at home on their computer, sell to everybody they know on social media, and they will be rich enough to retire in a few years.

The sad reality is that too many of these organizations either go out of business after a few years of operating, or their sales activity declines significantly and commission pay-outs start to be reduced or not paid at all. It is easy to understand why that happens, since under these types of schemes, at some point in time people run out of people to bring in under them, and the market becomes saturated. The program works if everybody who buys the products also sells the product.  And it only works if you have a solid, sustainable product.

Investigators who research various MLM companies have discovered that the founders of these companies, the executives, and the original distributors make a lot of money, especially in the early years of these companies.  Unfortunately, the other 99% of folks who are the sales representatives and customers (especially those that get in at the end of the run), either make a little money, break even, or for the most part, lose money.  You can do your own research on this industry if you are interested in learning more.

Therefore, although I am not a personal fan of this type of organizational structure, I would not discourage anyone from getting involved in an endeavor they consider worthwhile and honest. This includes doing your homework about the background of people who started the company and who are running it now, researching the quality of the product being sold, and obtaining an honest understanding of how much money can actually be earned.  If that all pans out, and you have a comfort level with everything, then I say go for it.

Please do your research first, so you don’t wind up losing money on these programs – and also the friends who you brought into it.

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