The Multi-level Marketing (MLM) Trap

In the search for the quickest way to get rich, many people fall prey with promise of easy money. One example is the idea of multi-level marketing (MLM). Multi-level marketing (MLM) is also known as network marketing and referral marketing. MLM is easy enough to understand. Imagine you have a product to sell. A common MLM product is a vitamin or mineral supplement. You could do what most businesses do: either sell it directly to consumers or find others who will buy your product from you and sell it to other people. MLM schemes require that you recruit people not only to buy and sell your product, but who will also recruit people who will not only buy and sell your product but also recruit people thus perpetuating a never-ending cycle. Only there is an end to the supposed self-sustaining business practice of MLM.

If MLM sounds too good to be true, then maybe it is. Most traditional business people would never consider such a venture. Why would you recruit people to compete with you? Isn't that what you are doing when you recruit people to sell the same products you are selling? The MLM lure will convince you that it is reasonable to recruit competitors because they won't really be competitors since you will get a cut of their profits. This will take your mind off the fact that no matter how big your town or market, your possible recruits will never be exhausted. But the well will go dry soon enough.

Multi-level marketing (MLM) is system of marketing which puts more emphasis upon the recruiting of distributors than on the selling of products. MLM is very attractive, however, because it sells hope and appears to be outside the mainstream of business as usual. It promises wealth and independence to all. Unfortunately, no matter what the product, MLM is doomed to produce more failures than successes. For every MLM distributor who makes a decent living or even a decent supplemental income, there are at least ten who do little more than buy products and promotional materials, costing them much more than they will ever earn as an MLM agent. There will always be some MLM distributors who will make money in an MLM scheme. The majority, however, will fail due to the nature of all pyramid schemes.

A pyramid scheme is a fraudulent system of making money, which requires an endless stream of recruits for success. Recruits (a) give money to recruiters and (b) enlist fresh recruits to give them money. A pyramid scheme is called a pyramid scheme because of the shape of a pyramid: a three dimensional triangle. If a pyramid were started by a human being at the top with just 10 people beneath him, and 100 beneath them, and 1000 beneath them, etc., the pyramid would involve everyone on earth in just ten layers of people with one con man on top. The difference between a pyramid scheme and MLM marketing is that the latter is a legal business practice. A pyramid scheme does not sell any product and only requires a monetary investment from the down line for them to succeed.

MLM only benefits the company because the more recruits they get, the more money they receive from their share of the down line's recruits. Aside from that, the costs that these recruits spend on are not covered by the MLM company. In the end, they lose more money than earn it.

To avoid the MLM trap and find a real home business goto the top rated home business resource guide.

In The News:

Powered by Feedzilla


Ebooks, Scripts, Websites, and more...

Adsense websites

Are You Looking to Get in on the Ground Floor of the Next Amway? Here Are 7 Things to Look For!

Just like a Penny stock market investor wants to Find... Read More

Contextual Ad Networks - The Baby Boom Is Upon Us

No, this baby boom will certainly not swamp the Social... Read More

Network Marketing Companies

Network marketing companies are mushrooming up everywhere these days. It's... Read More

Financially Free with Network Marketing?

Are you also curious, but skeptical, about becoming financially free... Read More

Online MLM Business Is Booming!

The time to start an online MLM business has never... Read More

How to Build Your MLM Business by Not Talking

In my last article entitled "How to succeed in MLM... Read More

How to Get Rich with Network Marketing

Network marketing is a marketing strategy being increasingly put to... Read More

Earn More and be Financially Free through Network Marketing

People have been finding ways to make money to make... Read More

9 Sure Fire Methods to explode your Downline

Everyone dreams of building a Profitable MLM Sales Team. Unfortunately... Read More

Finding The Right Business For You: Sales

Sales are essential for any business to survive. That's no... Read More

Reminisces Of An Aspiring Internet Marketer

I've spent a lot of time and money on trying... Read More

How to Succeed in MLM Without Really Trying

How do you succeed in MLM without really trying?... you... Read More

Nightmares on MLM Street

If you haven't already read the NY Times Best selling... Read More

Network Marketing Training - The FAST Start New Distributor MLM Success Formula

That is how most people want to go in this... Read More

Three Network Marketing Mistakes That Destroy Down-line Growth

I was really shocked to learn...That Network Marketing (NWM) Distributors... Read More

MLM Recruiting - The 5 Types of Network Marketing Recruiters in MLM

It is amazing.Every where I have the honor of speaking,... Read More

4 Unfortunate Myths About Online MLM

Experts and newbies are alike in misunderstanding the way online... Read More

How To Do Effective Keyword Research To Find Good Niches

It is true that with online business, the entire world... Read More

Network Marketing Success - The Psychology Behind the Objection in MLM

The downline group I was honored to help lead was... Read More

MLM Network Marketing

Put simply, MLM Network Marketing is just a way for... Read More

MLM vs. Consumer Direct Marketing Business Opportunities

We've all seen them before ? businesses that promise great... Read More

Wanna See My Daily Plan Of Action?

Here is my FORMULA for success coupled with (DPOA) DAILY... Read More

How Network Marketing Can Help You Build A Second Income Fortune

We live today in an age of inflated money- where... Read More

Do You Really Want To Try Network Marketing?

Make no mistake it takes a unique skill set to... Read More

MLM Network Marketing Training: MLM Success - What is the REAL Secret? Do YOU Know?

After 22 years in this industry, 14 years fulltime in... Read More