Last Updated on February 29, 2024 by Eric Cantu
Is Network marketing worth it? This may be a question you’ve asked yourself after seeing countless “pyramid scheme” type home businesses from friends and acquaintances on social media. But is network marketing legit?
Let’s break down the difference between pyramid schemes and MLM (multilevel marketing) and decide whether network marketing is worth your time.
Is Network Marketing Worth It?
Success with network marketing (also known as multilevel marketing) for the most part simply isn’t sustainable. Network marketing has EXTREMLY high fail rates convoluted compensation plans, and dwindling returns.
The Difference Between Network Marketing and Pyramid Schemes
“So is that new home business you’re doing one of those pyramid schemes?” Make no mistake about it. Network marketing opportunities are not the same as illegal pyramid schemes.
So what’s the difference? In a pyramid scheme, money is exchanged without any service being rendered or product being sold. Have you ever heard the story of the man who gathers 10 people together and charges them $100 each so that he can show them his secrets on how to make a quick $1000?
The 10 people each give him $100 and wait with anticipation. Now with $1000 in his pocket, he tells them to each go find 10 people just as gullible as they were and repeat what he did. He walks away $1000 richer and ten people stand there with empty pockets.
Unlike pyramid schemes where no product or service is given in exchange for money, network marketing is completely legal. So don’t worry. Your friends and family who are involved in MLMs aren’t scam artists.
Related Article at WorkFromYourLaptop.com!
Check out “Is Affiliate Marketing a Pyramid Scheme?” and see the huge difference between affiliate marketing and network marketing!
Home businesses like Herbalife, Amway, ItWorks, Scentsy, and World Ventures all use MLM business models and are 100% legal because network marketing involves the buying and selling of a central product or service.
You will not only buy the product yourself, but you’ll also gather customers who buy the product as well. Additionally, you’ll be recruiting other representatives who will follow suit doing the exact same thing you’re doing.
But when it comes to actually making money with a network marketing business, is this sustainable for the long run?
Because of convoluted compensation plans that are filled with bonuses that so few actually achieve and because so much of your success depends on your downline, it is increasingly difficult to maintain any kind of sustainable success with network marketing.
So then how have so many network marketing companies stayed in business for so long? Why are so many people drawn to their appeal?
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What are the Most Profitable MLM Companies?
One of the main reasons for its popularity of MLM & network marketing businesses is the idea of getting paid on the efforts of others. You’ll earn commissions by recruiting representatives into your team and also from the amount of product you and your team sell.
There are many successful network marketing companies who have been in business for a number of years. However, this doesn’t necessarily mean their distributors are all making money with the business.
A true measure of profitability within a network marketing company is the annual income disclosure statement. We’ll take a look at a couple of examples further down in this article that may shock you.
There are literally thousands of network marketing companies to be found online. Some have been around for decades, while others are new up and comers. Some popular network marketing businesses you may have seen on your social media feeds are:
- Avon
- Herbalife
- World Ventures
- Amway
- It Works
- Thrive
- doTerra
- Scentsy and many, many more.
The vast majority of all network marking companies follow versions of the same compensation plan. These involve downlines and growing “legs”.
The Truth About Network Marketing and MLMs
Every single network marketing pitch ever shown talks about the incredible benefits of working with a team and getting paid on not only your own efforts, but theirs as well. Become a customer of the product or service yourself, gather a few more, and then recruit 2-3 people who you’ll teach to do the same.
As they gather customers and, in turn, recruit 2-3 more who will also gather customers and recruit, your team will have sustained growth and your commissions will get bigger and bigger as your team grows deeper and deeper.
I’m here to tell you that no one sits back after recruiting 2-3 people and watches their team explode. The business of network marketing is built on never ending recruitment. You will be recruiting all day every day.
This is the truth.
And it’s because of often confusing compensation plans filled with dollar signs and bonuses that so many get hooked. Let’s take a look at the most popular network marketing compensation plans.
How Do MLM Compensation Plans Work?
There are several compensation plans widely used within the network marketing industry. They tend to be filled with bizarre amounts of bonuses and “Quick Start” commissions all aimed at getting the representative his buy-in back.
It’s always very important to research and understand the compensation plan before beginning a network marketing venture. While each specific opportunity can add it’s own nuances to a compensation plan, the majority use the core elements of the UNILEVEL, BINARY, and MATRIX compensation plans.
Unilevel Compensation Plan
With the UNILEVEL compensation plan you can personally sponsor as many representatives into your team as you like. The representatives you recruit are then free to do the same. It is the simplest of the 3 main MLM compensation plans.
You will get the most compensation for the members you personally sponsor. You then get decreasing percentages of your team’s commissions as they get further away from you. In this basic compensation plan there are no ranks and everyone is an equal distributor. No one can surpass someone who’s above them.
There are hybrids of this compensation plan like the Breakaway compensation plan. The Breakaway plan allows for a member of your downline to be able to “break away” when he or she meets certain requirements.
Matrix Compensation Plan
With the MATRIX compensation plan you have a set number of spots open in your team. It is your job to fill them. For example, in a 3×5 Matrix compensation plan, each distributor can sponsor 3 people into the team. They will get compensated up to 5 levels deep.
When it comes time to sponsor that 4th new distributor, instead of being able to place him directly to yourself, you have to find an open spot in another level below. This is called “spillover”. This “spillover” feature is one of the selling points of the Matrix compensation plan. If you find yourself directly under someone who is exploding the business, you may be the recipient of distributors being placed in your team.
Binary Compensation Plan
The BINARY compensation plan or Dual Team compensation plan allows you to build two teams, or legs. It is unique in that it only allows you to personally sponsor 2 people into your team. This allows for a good amount of spillover, thereby helping your downline.
If you’ve checked out my World Ventures review, World Ventures is an example of an MLM using a binary plan.
The Binary compensation plan has one major downside: You only get paid for the lesser of the two teams.
So to fully max out this compensation plan you’d need your team to grow out symetrically which is very rare. In other words, if your team on your left leg has 100+ members while your team on your right leg has only 3 distributors total, you only get paid on those 3 distributors on the right.
Related Article at WorkFromYourLaptop.com!
Check out “How Does Wealthy Affiliate Pay You?” for an inside look at the pay structure of the platform I owe all my success to. No convoluted mess!
Reality Check! Network Marketing Income Statistics (MUST SEE!)
The real way to answer “Is network marketing worth it?” is by looking at annual network marketing income statistics. This is an objective way to determine how the majority of people fare with a business opportunity.
Income disclosure statements are public record, and should be easy to look up and easy to understand. They will show the revenue breakdown for distributors of a company. Unfortunately, network marketing income statistics show that most distributors do not make their money back with network marketing MLMs. A staggering amount make no money at all.
Obviously, it would be impossible to cover every single annual income disclosure statement from every single MLM or network marketing company. However, let’s take a look at two different income disclosure statements for network marketing opportunities I’ve written reviews on.
The first is for a coffee based network marketing company called Organo Gold.
As you can see at the very top of that annual income disclosure, the vast majority (86.34%) of distributors with Organo Gold made an annual revenue of $0-$599. When you take into account the expenses and membership fees involved for this particular coffee based MLM, the earnings is far less than the expenses.
This means zero profit.
Additionally, as with most MLMs it is only the top 1% who make the lofty six figure incomes you see in the business presentations. Now, I am by no means picking on Organo Gold. This is simply one example of a popular MLM. I’m using their own annual income disclosure that they provide and is public record.
Let’s take a look at a second very popular network marketing company that I myself was a customer of is World Ventures. Their income disclosure statement actually fares even worse.
In the example shown above, 0.63% of distributors earned what I would call full time income ($50k+ per year). A whopping 85.4% didn’t earn a single dollar of commission.
Does this mean World Ventures or Organo Gold, or any of the popular MLMs you see out there are scams? No. If you don’t mind the constant recruiting, you can make some extra income in the very short term with these opportunities.
Many representatives absolutely love the social aspect to network marketing business and the “pep rally” feel to the business presentations.
However, when you need your team to thrive, and the vast majority of your downline aren’t profiting, this leads to dead legs and profits that come to a screeching halt.
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Final Thoughts
If you’re looking for sustainable success, network marketing simply isn’t worth it. Convoluted and often confusing compensation plans are filled with bonuses that vast majority of network marketers never achieve. In fact, a staggering amount of network marketings never earn a single dollar.
The fact of the matter is that only a very, very, VERY small percentage of representatives will make full time income. The vast majority who get involved with network marketing opportunities do not make their money back.
If you’re looking to create a new revenue stream online, there are better, more straightforward ways to build an online business. Affiliate marketing is one of them.
Have you had a network marketing experience you’d like to share? Have any questions? Feel free to leave your comments and questions in the comments section below. I look forward to hearing from you!
Nice write up. However Network marketing is not for everyone because it has come with a lot of backlash in the past. There are tons of people who have made it in the industry and very few good companies still existing have amazing compensation plans. The only way mlmers can be successful is to following some guiding principles on how to run a successful business online, which includes having a landing page, using video, more research on the products and company, being extremely patient before they see revenue and creating quality content providing solutions. Good job though.
I think I’d be hesitant to say that tons of people have made it when even the top rated MLMs have numbers showing that the vast majority are failing. Those annual income disclosure statements are shocking. But if you do have an income disclosure statement from a successful MLM showing their reps fairing otherwise I’d love to see it! Thanks for the comment!
I have seen way too many MLM businesses on Facebook but the one I’ve been seeing the most is youngevity, which I’ve personally been – somehow – involved with way back in 2014. I wasn’t clearly aware of the difference of a pyramid scheme and what an MLM was and after reading this post I now have a clearer a wider vision towards those topics!
Very glad this helped! I hadn’t heard of that one personally. I’ll have to research it and look into reviewing it. Thanks for the comment!
While Network Marketing has a similar Pay Plan to MLM they don’t have the same cost of doing business. A true network marketing program has an affiliate program structure with no cost to become a seller like a forced auto-ship or a distributor fee. Still, I love the way you break down different types of MLM or Multi-Level-Marketing pay plans as they often require a CPA and a lawyer to decipher. When choosing a program the best rule of thumb is if you can’t tell how you get paid you shouldn’t join.
I think you may be confusing some terms here. Network marketing *is* multi-level marketing. The two are one and the same. Network marketing doesn’t use an affiliate marketing structure, as network marketing and affiliate marketing are completely different. Thanks for the comment!
Thank you so much for this helpful article about whether you can make money from network marketing. I had a friend recommend selling Amway to make additional money and although I am interested I didn’t really know what it was about and my friend told me I could make a lot of money but he is rather pushy and he has been doing it for years. So I found your website, and what a wealth of info you have here. You pretty much clarified all of my questions and I think that the idea of selling and creating additional legs is not for me, I am not very good at” sales” although I like the idea of looking into the Amway annual disclosure statement, the way you did for WorldVentures, and see what reps have been earning.
The numbers don’t lie! While it may be fun for your friend, sometimes we have to be honest with ourselves when we know we’re not cut out for something. And while your friend means well, sometimes the pressure to recruit creates exaggerations of success. Best of luck to you and thanks for the comment!
Very informative article Eric. Answers a lot of questions on network marketing and pyramid schemes. Personally, the idea of constant recruitment of downlines in network marketing is what has always left me sour. Add to this the near certainty of not making a viable income (per the helpful statistics you shared) and network marketing almost seems dangerous territory. I have friends that say they love it who approached me knowing I’ve been looking for a new source of income, but it’s just not for me.
I would love to know more about the affiliate marketing model. Will see you for the training soon.
Cheers
Joahi
I hear you man. Network marketing opportunities often begin to sound like joining a cult with all the pressured sales and recruiting that goes on. For me, affiliate marketing suited me much better and was much more my speed. Create your account with the training community I link to in the article above, and you’ll get me as your personal support coach. I’ll be happy to help you in every way I can. See you on the inside!
I just want to share that you’re bang on with those companies. For sure, the potential to make money is there, but the truth is that the majority of people fail in network marketing. I used to be with Avon and the commission percentage was so low that I didn’t make anything! You’re pressured to provide free delivery and shipping, when you have to cover the shipping that just goes up and up with each passing year. With Avon at that time, it was an unlimited downline so that’s the only MLM model that I knew.
I actually got here after researching affiliate marketing. I’m happy to start my journey. I’ll be following you!
Thanks for a great article!
Great story and comment! I’m very glad this helped you out. Thanks for the comment!
This article really answered my questions about MLM and network marketing. In Malaysia, a few years ago, there was a well known MLM about stem cell products called Phytoscience. They showed their members making 5 to 6 figures SALE, not profit. During that time, my friend invite me to listen to his upline’s close sale pitch. But just as you showed here, the numbers just didn’t add up. Now, that company almost disappear. I don’t know what happen to them and my friend quit from Phytoscience. Fortunately, I not buy in the sales pitch before so I’m not losing anything now.
Great article. Hope this article give clear views about MLM and network marketing to others.
Thanks so much for sharing your experience. There are much better ways to make money online than through MLM. Affiliate marketing is definitely a more sustainable business model. No downlines! No recruiting! Thanks for the comment!
In the past I tried with Amyway and a new MLM company called BE international. I am their member only because I wanted to buy their products (with cheaper price). I didn’t 100% understand how the model worked before reading your post! Thanks so much for the explanation here. My eyes are opened!
Thanks for the comment! While there can be some short term money made through MLM, a much more sustainable model for making money online is affiliate marketing. The training platform I recommend in the article is hands down the best I’ve found online. The commissions with network marketing always plateau and end, with most representatives jumping ship and moving on to the next new thing. Thanks so much for chiming in!
I completely agree with your article. I’ve tried a couple of different opportunities and failed because I couldn’t recruit anyone. Probably because I hated to befriend someone just to sell products to them, it was uncomfortable. I’m very, very interested in affiliate marketing. Is it free to partner up with merchants or do they charge a fee?
It’s absolutely free to make those affiliate partnerships. And when you have the right training so you know how to get the most eyes on your content, you have the best chance at getting those affiliate commissions over and over and over again. It’s a great industry to be a part of.
Hi Eric – Excellent breakdown of network marketing. I do belong to a network marketing company (Young Living Essential Oils) and you’re right. It’s absolutely not a pyramid scheme.
But you’re also right that it’s not easy to make money with it. People generally don’t trust network marketing companies. I do like the products, so I hang in there. That’s what it’s really all about. If you can educate people on what the products can do without seeming scammy, then you’re golden. It’s not the easiest of tasks.
Have you ever personally been involved with a network marketing company? If so, what did you think of it?
Yeah, my introduction into online business was through network marketing years ago. I had success, but with as much success as I had, I found the business model to be an unsustainable one. If someone is looking to have a project they can make a little side money on for awhile, sure, network marketing can be that for them. But as far as full time revenue, the numbers are telling. Thanks so much for your honest insight and comment!
Hey Eric,
I have been exposed to both the pyramid schemes and network marketing. Though at first it sounded pretty interesting and enticing, I didn’t like the fact of feeling u have persuade someone to join something that u personally don’t have much experience with. Or even selling products that are over price that are not a households basic necessities. I’m really glad you made this post. I’m glad I went with my gut feeling back then.
Thanks for the facts Eric.
Thanks for the comment! The unsustainability of network marketing compensation plans is the main concern. Anytime you need to build a team for sustainability, you’d obviously need the majority of that team to be successful. Unfortunately in network marketing, this is not the trend. Thanks so much for your insight!
Hi Eric
I have been involved with a few MLM’s and lost heaps of money with a couple of them. I absolutely agree that the compensation plans they use always plateau and diminish! The teams die down and with it so do the commissions. I feel so fortunate for finding this article because I’m completely intrigued by the affiliate marketing training you mention. I’ve seen “affiliate” tabs on the bottom of sites like Amazon and Best Buy before and never knew what they were for. Going to read your article on affiliate marketing now! Thank you!
Thank you so much for your insight. And yes, affiliate marketing is a much more straightforward way to make consistent and lasting revenue online.
I’ve never really taken the time to figure out the difference between Pyramid schemes and network marketing. Prior to this article I have put both in the same category and never thought I could trust the idea. While Herbalife seems very well put together, I know many have tried to follow in their footsteps and failed. Was it do to ill preparation, or just a scheme in general, I did not know. Seeing the breakdown of the numbers is a huge eye opener and very much appreciated! Thank you for this!
Thank you for the comment! Yes, the main difference between illegal pyramid schemes and legal network marketing schemes is the product or service being offered in exchange for money. While network marketing isn’t illegal or a scam, the annual disclosure statements put out there by each company really put a reality check on what representatives joining these network marketing companies should expect. In my opinion, it’s simply not a sustainable form of income. Thanks for your insight!
Hi Eric. Thank you for your very informative article. I have been a member of a number of MLM companies over the years. I started with Amway many years ago and ended with IT Works. The common theme with all them unfortunately was that you had to flog overpriced products. You could join as many people as you liked, but without sales as well, the whole thing would collapse. I had no issues joining people but I had a hell of a time keeping them, especially with those high prices. I’m really interested in this training option you referred to at the end of the article. Like you I’m done with recruiting. Jim
Yes, Amway and ItWorks are a couple of the most popular network marketing companies out there. And as you said, while you may be able to get off to a good start and hopefully make your money back from your initial investment, sustained revenue can be very difficult to achieve. The training platform I recommend at the end of the article is hands down the best training I’ve found online. If you’re looking for a more straightforward way to build an online business without needing to recruit, then I highly recommend giving it a try. Thanks so much for you comment!
Hi Eric,
I really like the article as it explains MLM plain and simple. It is absolutely great that you are sharing helping others understand it and so we do not fall victims.
Thank you so much.
Very glad this article helped you, Ana! Thanks for the comment!
Hello Eric,
Thanks for clarifying network marketing, more specifically multi-level-marketing. My friend is actually involved in an MLM company selling life insurance. I’m definitely not a huge fan because I can’t see the long-term benefits. From my understanding, MLM is illegal, correct me if I’m wrong.
Cheers,
Eric
Thanks for your comment, Eric. While I’m not a fan of MLMs, they are completely legal as long as there is a service or product being provided. It’s only when there is an exchange of money WITHOUT a service or product that they then become pyramid schemes, like cash gifting, which are illegal. Your friend’s MLM is similar to another one I’ve heard of and it’s definitely on the up and up and legal. 🙂
What a greatly informative article you have here Eric. I have been a member of four (4) network marketing companies previously and I have no good news to share about any of them. I hardly made any money from any of them. Even when I did make money, it was nothing compared to the effort I had put in. After the last one I was involved in I almost swore never to get involved in any again, ever!
Wealthy Affiliate changed my story. now I don’t have to do network marketing. I’m focused on building my own business around my passion, not looking for down lines.
What a great testimonial. Wealthy Affiliate is where I got all my training and I couldn’t agree with you more! Congratulations and continued success!
Great article and good research. I have been involved in MLM for over 40 years and have tried many different ones. When you first start off you tend to make money if you work at it 24/7 which I did, once you slack off then everything stops. Also if your downline decide to quit it can take a big chunk of your business. I know lots of people who are making good money with MLM but they have been doing it for years and years with the same company. It’s one of those things that when it works it is great when it does not then it is very expensive.
I agree. There are some short term opportunities for profit, but in the long run, the plateau and diminishing returns are inevitable. Thanks for the insight!
Hi Eric,
Great review about network marketing (MLM)! Absolutely informative and true,
In the recent study, when a MLM had been in the market for 10 years, 90% of the members will likely fail in their business, i.e: making little or negative profits, leaving only 10% doing well.
From my 2 years experience being in one, MLM maybe legitimate but became hard to make money when the members became greedy, all the hard selling & recruiting made people to shun you the moment they found out you are doing one. I can see in future, this will only get worse.
I am seriously considering to start with WA. So far I am enjoying the Free Membership, love the training and helpful community. Thank you very much for introducing this amazing online business to me!
Cheers!
Wilson
Agreed. I myself a few years back got introduced into the world of MLM and while I would never called it a pyramid scheme or think of it as illegitimate business, the hard truth is that many just don’t profit from it. Great points. 🙂
Eric Thank you for this nice post. I have heard of MLM but I never knew there are different MLM. I like how you explain the difference between network marketing and pyramid schemes. Your post is very informative. I have been looking at network marketing for quite a while now but I got burned with some online schemes so I have been very skeptical.. I have to admit that your post is showing me that there is still legit companies around! Is there any particular one you could suggest me?
While I don’t recommend going into any MLM opportunity, I can’t recommend highly enough the online training community I’m a part of where I got all my training on affiliate marketing and online business. It’s the best mentorship I’ve found online. I think you’d like it 🙂
Great post! Thank you for clearly defining what a pyramid scheme is and why it’s illegal. I hear so many people talk about MLMs as if all of them are pyramid schemes. But that simply isn’t true. There are a lot of great MLM companies out there that truly want to help better people’s lives.
But, like you explain, network marketing is not the best way to make money. I appreciate you including the income statistics. This clearly shows how few people actually succeed in network marketing.
I signed up with a network marketing company a couple years ago because the idea of working from home appealed to me, but I quickly found out that recruiting people was not something I wanted to do. I still buy the products, but don’t sell or recruit.
Thank you for your honesty.
Weston
Thanks for the comment, Weston! Yeah the Income Disclosure Statements really do speak volumes when it comes to the realistic expectations you should have with any MLM. I prefer a much more straightforward way to build an online business personally, but just as you said, there are several opportunities out there with MLM that aren’t half bad and can actually be worth it for the short term as opposed to the long term. Thanks for the insight!
Eric; Your article is good. I found it very informative. I never knew the actual difference between a Pyramid Scheme and a MLM before I read your article. It is a fact that there are product and services involved in the MLM but because of how MLM is structured I see it no less than the Pyramid Schemes
I fell victim to a MLM my time was wasted recruiting others as also my $200.00. Keep up the good work enlightening the public
Dorcas
Very happy this helped you, and sorry you didn’t find this in time to save you from losing your $200. You live, you learn, right? I appreciate all the support 🙂
I’ve tried Amway products before and they’re not bad. I wasn’t aware that Thrive is also a network marketing business. Thanks for sharing!
Yes, a lot of the products they offer are decent. And not just from Amway, but from many MLMs. It’s just that the numbers consistently reflect that it’s hard to sustain a profit growing a team when you already know around 80% of them aren’t going to turn a profit with their business. I appreciate your comment and insight! Thank you!
I’ll have to agree with you 100% on this one. Just because thousands of people are making a decent income with some of the “most common” MLM programs, that doesn’t mean everyone will make the same amount. To be completely honest with you, I don’t like Multi Level Marketing one bit. Internet Marketing is hard enough as it is, and it just makes you want to give up when you can’t recruit your friends and family. This makes people give up the whole “work from home” thing altogether, when there is definitely easier options out there. You are doing a great job here. Keep up the good work 🙂
I really appreciate the kind words, Brandon! Thank you!
Hi Eric,
Some companies are worthy to join, but with the stats you show of how very little make it big are so true. It is something I am not going to be a part of again anytime soon.
I think with the majority of distributors making some income, keeps most of them motivated and – “your big success is just round the corner, just keep going” (the inspiring words from the top 2%) – when really it is not.
Good article and you do keep it real. It must be nice to be part of something that you dont have to recruit people and you are not upsold every corner you turn!
Cheers, Sharon
You’re definitely right about that. Thanks or the comment, Sharon!
Hi Eric
Being an old guy, i have tried a few money making opportunities.
Amway was one, where i tried 3 times, over the space of 20 years, to become successful. Each time my upline failed me, and promises i made to customers, could not be kept. They only had about 5 well priced/quality products anyway, that were my main sellers.
I vowed never to work for companies with these structures like Amway ever again.
Your idea of affiliate marketing/internet marketing is the one i’m trying now, and i am much more confident of success in the long term.
Cheers
Agreed. For the long term, MLMs tend to plateau and you lose the momentum you started with when it comes to your team’s growth. With affiliate marketing, your growth is more sustained and you don’t have to worry about anyone else’s actions for you to succeed. Thanks for the comment!
Hi Eric! Loving the video- I know a lot of people who are doing network marketing. I am happy that I have taken another direction personally and do not have to deal with any products or people in the ways that they have to. I see so many people who get into it completely pumped, only to be fizzled out 6 months later. I really love using a platform that has helped me to create my online business in a way that keeps me true to myself and others. If there is anyone out there reading this, I definitely recommend that they get started with the free trial.. are you able to provide the link?
Thanks, Andrea! Wealthy Affiliate has provided me with nothing but positive results and a great online community to learn from. I’m glad you’re enjoying it 🙂 Here’s my full review of the platform for anyone interested: Wealthy Affiliate Review
Hi
I’ve never heard of MLM until reading your article. It’s a real eye opener, seems like you have to convince others to help you ? if that fails so do you. That’s no way to risk your job thinking your going to make a good living.
Thanks for the advice. I think I will keep well clear of these methods of earning a little more money
Cheers
Paul
You may not have heard the term “multilevel marketing” but I’m sure that once you saw some of the popular once you recognized those companies. It’s such a growing industry because so many buy into the dream of working from home, but there really are better ways to build a successful business online without recruiting.
You’re absolutely right with what you said. Thanks for the comment!
Eric, a very good article. You’re correct a pyramid scheme is just that a scheme or scam. A MLM offers a product therefore, is legal. However, I am noticing pyramid schemes are now “disguising” themselves as being more of a MLM. They are still a scam. I joined one (can’t remember the name) that was offering a “product” (like MLM), but they were still taking from Paul to pay Peter – too late for me after I realized what they were doing, got scammed.
MLM are not much better. They do offer a product(s). But usually the ones that make the money are those who join early. The other thing that’s bad about MLM is that you have to keep recruiting (as you mention in your article) to make up for those who leave under you. I wouldn’t touch MLMs (unless I could get on the ground floor), there are much better ways to make money.
All the best to you,
Don
Agreed. I’m not a subscriber to the “I’d rather get paid on 1% of 100 people’s efforts instead of on 100% of my own” mantra, because I know what I’ll bring to the table and don’t want to depend on 100 other people to have to produce for me to get paid. I’d much rather be in full control of what I’m doing and with a much more straightforward compensation plan.
Some MLMs might be a good investment for a quick profit, but they always tend to plateau in the long run.
Thanks for the comment!
Great information! I have been looking into network marketing for quite some time and I’m glad I came across your article. There’s always been something in the back of mind telling me to find another way because I’m just not a person who wants to recruit and turn all my conversations into my home business like so many of my Facebook friends are doing. It’s so annoying! I’m going to look into your recommendation. How has your experience been with it so far? Do you find that you need to spend 8 hours a day, or would it be safe to say that I could try 4 hours a day and hope to get somewhere with network marketing?
Thanks for the comment! I have nothing but positives with the online community I’m a part of. As with anything, the more time you commit to it the more you’ll get out of it. But I’d definitely say 4 hours a day consistently would get you moving and building really quick. It’s all about consistency! 🙂