I too have drunk the cool-aid
Oh, I’ve been there. Sitting in that Multi Level Marketing party, listening to the sales person rave about how much they love the business and being convinced.
When I was in my early 20’s, long before kids, I sold PartyLite candles. It’s kind of embarrassing to admit it now but my husband and I even went to the National Meeting at the end of our honeymoon. (God, I was so young.)
I didn’t earn much money and hated making calls so I just let the business fizzle out after a while.
Then, two years ago after reading about all the horrible things in shampoo and toothpaste I was convinced by a friend to sell Ava Anderson. About a month into my new “business” the owner decided to sell the company and all hell broke loose.
It ended up that if I wanted to continue I had to buy a whole new kit! Ummm, no!
So that one ended too.
I know that many people are happy with their Multi Level Marketing businesses but I just can’t get on board anymore.
It’s not really owning a business. It’s being part of a corporation. No matter what they tell you, you don’t own anything.
There are so many great products, and some I still buy, but I will never join an MLM business again.
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9 Reasons why an MLM business is not your own business
1) Everything you do is controlled by a corporation.
The products, brand, marketing, sales, everything is controlled by a corporation. You have ownership over nothing.
2) You have no control over the products you sell.
Don’t like a certain product? Think it could be improved? Tough luck, you are stuck with the products they give you.
3) It’s not really about the products anyway, it’s about the recruits.
You will be encouraged to recruit other people to join the company under you. It is painted as a good thing since you will be getting a percentage of their sales. Which leads to…
4) People only want you to join so THEY make more money.
I mean that’s why you recruit, right?
5) You can only advertise in approved ways.
Have a great idea of an online promotion for the company? Tough luck! You can’t do any independent advertising. Plus, your website is what they give you. Some of them look horrible but you can’t change that. You also can’t mention certain keywords in a website or blog you own.
6) They promise you will earn tons of money with no work…
The promise of huge amounts of money seems to be universally pushed in MLM companies. Of all the people that you know who are a part of an MLM business, how many are millionaires? That’s what I thought.
7) …then encourage you to cold call people.
And who likes cold calling??? No one I know!
8) Markets are easily oversaturated.
Did anyone else notice this with Lularoe? I mean those leggings are super soft and desirable but it seemed like one minute they were rare and the next everyone and their cousin was selling them.
9) There are lots of training that are mostly motivational speeches.
I love a good training, where you learn techniques and skills that will help grow your business. But sitting in a room and listening to someone try to encourage everyone to make a certain number of calls each day is not my idea of a good time.
10) YOU HAVE TO PAY TO GET THE JOB!
This is a job. You work for someone else. You have to pay to get the job. That is messed up.
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Did I go too far? I certainly got heated up!
I just hate seeing people put their hard earned money into an MLM business that they will fail at eventually.
I’d so much rather that anyone who wanted to work and work hard, start their own business. A business that they would have ownership over. A business that they are passionate about.
Owning a business is one of the hardest things I have ever done. It is a constant struggle to keep up with products, bookkeeping, employees and hundreds of tiny task that pop up.
But owning a business is also one of the most rewarding things I have ever done!
I love creating something that other people love. I love connecting with the customers and making my product and business even better in response.
So what I’m saying to you is, if you are thinking about making money from an MLM, STOP! Sit down and figure out a business you can start yourself. Take the $100 you were going to invest in the MLM company and start your own thing.
Need help? Take my free course, Find Your Passion, to help you figure out what type of business to start. Then check out Everything You Need to Know About Starting a Small Scale Business to get your business off the ground.
Debbie Gartner says
Oh, I so agree w/ you. I really do HATE MLM businesses. They are so ultra annoying and they do fizzle out. For most that make a little bit of money, it doesn’t even cover the time they’ve spent. Oh, and so sick a the Lularoe stuff. You’re so right about markets becoming over saturated. I see it all the time.
Emma says
If only Lularoe didn’t have such cute patterns! 🙂 They are so over saturated now though.
Patricia says
I totally agree with you. There are some products worth buying, for sure. And if you use those products to complement your business (like using Beachbody workouts with your health coaching clients) that’s totally fine too. But how can you call if “owning a business” when someone else tells you what you can and can’t do when it comes to advertising the product or other business decisions? And I also have an issue with wanting to be more focused on selling the opportunity rather than selling the product. I mean, I guess someone could make similar arguments against franchising as they do against MLMs but at least if I bought into a McDonald’s franchise most of my work would be into selling the food not trying to find other people to buy into the franchise.
Emma says
So true! There seems to be so much more training on how to sell the opportunity than on selling the product!
Michelle says
6) They promise you will earn tons of money with no work…
The promise of huge amounts of money seems to be universally pushed in MLM companies. Of all the people that you know who are a part of an MLM business, how many are millionaires? That’s what I thought.
THAT! I am going to say that to every young person I meet. I only hope I can get to them BEFORE they spend the $100. I was easily duped in my youth, as well! You’re not alone.
Emma says
Thanks Michelle! I know that there are many, many people who buy into the hype.
Lainie says
Most of your list can be applied to those who open a franchise. Also, many MLM companies DO focus on the product and sales rather than recruiting. So if someone joins an MLM and doesn’t recruit and just sells product, would it be the same argument?
And a handful of companies put a cap on how many can sell in an area.
And people who do MLM file their taxes the same as any other business owner as well. It’s a business in the eyes of the government.
Wondering where you did your research?
Cole // Cole Smith Writes says
I did Mary Kay for several years and it was always a struggle due to my introverted nature. My husband showed me a Shoe comic strip about “Mary Kay commandoes” that kind of offended me, haha.
Emma says
Being introverted makes it especially hard!