I am Øystein, and welcome to my homepage!

On this website, we're going have a business trip. Understand how money works, building your own business and self-motivation. A system to success!

Is Multi-Level Marketing Scam? – The Truth People NEVER Talk About!

Is Multi-Level Marketing Scam? – The Truth People NEVER Talk About!

Is Multi-Level Marketing Scam? – The Truth People NEVER Talk About!

 

Multi-level marketing (MLM) is a business model based on members selling a product, where the income get shared through the network.

The idea is to reduce the number of intermediaries which takes a portion of the income. In this case, the company will be able to sell the product for a lower price with increased sales.

MLM works like this

Someone, you know calls or send you a message, and asks if you are open to business opportunities. If you say yes, then the marketer will book a meeting to show you the business. After the meeting, he or she will have the choice to become a customer and buy the product or possibly a marketer to sell/treat others.

If you decide to become a marketer, it’s at the expense that you must buy a package of products. These products will be used to sell and display at any meeting. These are the relatively expensive package. In this context, people will see multi-level marketing as a scam or a pyramid.

 

 

 

The bad reputation of MLM / Pyramid-scheme

When they introduced me to Multi-level marketing, I thought it was one of these pyramid things I’ve heard. Anyway, I decided to stay in touch and learn more about the company. After spending time learning about the system and the product, I learn the difference between MLM and a pyramid scheme.

 

A pyramid-scheme is about recruiting. The primary income from a pyramid-scheme is when you register a new prospect, and you have to pay a relatively high fee to join.

 

The ”product” that the company sells is either overpriced or doesn’t exist. For a pyramid to stay, new people have to recruit, or else it will fall apart.

It will most likely fall because a pyramid isn’t viable. This business model is of course illegal

A lot of companies hides behind the idea it is an MLM. Therefore many think the business model for MLM is a pyramid. In this case, people choose to be safe, then taking risks.

A big problem is when people are aggressively marketing; then its a sign where they want to sell and not recommend it. Your red lights should flash and warn you there′s something suspicious.

 

 

 

 

 

Network Marketing

Network marketing is one of the oldest forms for marketing in MLM business. To succeed, you have to talk with a lot, and I mean a lot of people.

In most cases when you’ve started your own business, your upline (upline is the one recommended you to the company) will tell you to do the following:

  • Make a list of 100 names
  • Read a couple of books of successful people
  • Take the online courses
  • Buy a ticket for the next event

The steps I listed are almost standard in most MLM companies.

 

That is how successful people became successful in the first place in this business. An old-school system!

It may work for them, but it won’t work in this century.

Over the years, people have become more enclosed and have less need to start their own business.

Therefore, network marketing can be difficult unless you are very good at selling.

 

The world is changing faster than ever, and recruiting more people, we need to change strategy.

 

Which leads us to Attraction marketing

 

 

 

 

Attraction Marketing

Attraction marketing has become more stable marketing model. A good example is Eric Worre, one of the most prominent entrepreneurs in MLM. He has a facebook fan page, youtube channel, twitter, LinkedIn, google plus.

It is just social media, and he sells course, books, hosts events and is an artist on Spotify. All these methods are attraction marketing. He is not coming for us; we have to go for him.

Let’s say a marketer make a facebook fan page about himself and the product. Make a professional profile picture, cover photo and copying the strategies such as Eric does. You provide value to the reader, and people are most likely to be following you. It builds a real relationship between you and the reader.

 

If they see the value in your page or product, then you can recruit him or her to your business!

 

Then it would be best if you were doing the following:

  • Invite the prospect for a presentation
  • Present the product or opportunity
  • Following up the prospects
  • Closing
  • Getting people started
  • Promote events

These steps are a part of the Go Pro: 7 steps to becoming a network marketing professional by Eric Worre

 

There is many another way to do attraction marketing, but anyway it is much better than old-school network marketing.

If you want to know more about the Go Pro: 7 Steps to Become a Network Marketing Professional by Eric Worre, you should visit my review:

                                                                                                                  ⇓ Here is my review of the Go Pro!⇓

 

 

 

 

 

 

Should you start with MLM?

I′ve has been into MLM for almost two years, and recently I have discovered a new way to do home business. Such as Affiliate marketing. Therefore I won’t recommend MLM unless you′re a good seller and are very well connecting with people.

Here′s some example of MLM companies:

  • Herbalife
  • Forever Living
  • Zinzino
  • Mary Kay
  • Lyconet

Lyconet is the MLM I’ve been working for the last two years, but network marketing is a complicated business.

 

 

Conclusion

Is Multi-level marketing a scam? No, but again I would not recommend it unless you need the product your self and get a massive discount. If you are going to start with MLM, you should begin with attraction marketing and not the old-school network marketing. It is so few that succeed compare the ones that don’t feel they get the value of what they buy.

With attraction marketing, you′re building content for the product makes it much more interesting. Being hunted rather than hunt for others.

Before you start with MLM or any business, ask yourself why you want it and what you want to accomplish with it. It takes a lot of energy, and you have to be willing to work for free and be underpaid for an extended period. Self-study in personal development is one of the most important lessons when starting a business.

Øystein

    9 Comments

    Erik Hoel Posted on5:24 pm - Aug 24, 2018

    These are very valuable information, you should keep going you will eventually reach new heights

    Kit Posted on10:43 am - Oct 7, 2018

    I think multi level marketing is not a scam. But the people that brings you into the group can cause a scam. The systems has some disadvantages which provides the person at the top rewarded more. Sneaky and cheeky members will try to take advantage from the flaws of the system so the new members will not see much result and call it a scam.

      Øystein Posted on1:09 pm - Oct 7, 2018

      Yeah, it really depends how the market the product to the prospects.

      In my opinion, if someone starts a business within MLM or any kind of business, it is their own fault if they don’t manage to grow their network.

      I’ve been involved my self in MLM, but I won’t call it a pyramid or scam either because I didn’t give my best

    Mike Posted on10:45 am - Oct 7, 2018

    I have earlier been into MLM myself. It was without a product I wanted to use myself and then decided to try to earn a little extra at the same time.

    I must same I do not like this method anymore. It is too annoying having to sell to people you know all the time, and people I now meet that are into are often a bit annoying and pushy:-) I can see how it can be an effective way for the company to sell, but definitely not something I want to be involved with anymore.

    But thanks for a couple of alternative suggestions.  

      Øystein Posted on1:12 pm - Oct 7, 2018

      I feel the same about being annoying and pushy. That’s the reason I didn’t give it my best shot, and I understand people don’t want to involved

    Les Posted on10:50 am - Oct 7, 2018

    Thanks for your valuable post on multilevel marketing (MLM). I agree that some of the bigger players in the field, such as Herbalife, are certainly not scams as they are a huge company with a presence in many countries worldwide.

    However, I for one am not a huge fan of MLM for the reasons you set out in your post. I tried it years ago and even tried setting up my own MLM company with a friend. Unfortunately, we vastly underestimated the capital requirement for the business and eventually had to close the doors.

    I prefer the affiliate marketing model theses days. It’s a lot more straightforward and you don’t have to hold meetings to convince people to buy the products you’re promoting!

      Øystein Posted on1:17 pm - Oct 7, 2018

      That’s sad you guys didn’t make it.
      More and more successful entrepreneurs recommend affiliate marketing. Because it is one of the easiest business to start with a low up cost

    John Posted on10:51 am - Oct 7, 2018

    Thanks for this informative article. I have had friends get into MLM and when they have tried to sell their product to me it has changed the friendship. Attraction marketing seems to be the better way to go as you are only selling the product to those who are genuinely interested.

      Øystein Posted on1:27 pm - Oct 7, 2018

      Yeah, it can ruin a friendship, but really. Any business can ruin a friendship.

      When I read the book GoPro he said:
      ”you must accept a temporal loss of socialist steam from ignorant people for a while”.

      This is not just MLM but overall business. I told my family I won’t work for anyone but for myself, they were shocked.
      They were looking at me and thinking, who do you think you are.

      So what I’ve learned the last months is. Friendship or family means nothing. Unless they support you to reach your dream and potential

      I might be cruel, but it’s the truth