I'm sure you've seen them on social media – people trying to sell their latest business venture to you. Whether it is make up, products designed to help you lose weight or nail wraps, there's a new multi level marketing scheme popping up all the time. Can you really make money from multi-level marketing these days, or is it only the people at the top who make money?
First, a disclaimer. I want to preface this blog post by saying that I know some of my readers are successful at MLM (multi-level marketing) and it suits their lifestyle. This blog post is just my thoughts on MLM and why I won't use them to make money. All thoughts and opinions are my own. In the past I have accepted guest posts about Younique and It Works, however, I have never promoted them myself.
What is multi level marketing?
Multi-level marketing, or network marketing, is where a company get un-salaried workers to sell their products/services on a commission basis. Not only do MLMers earn money from selling the products or services, but they are also encouraged to refer other people to the business in order to make more income.
Multi level marketing is often called a pyramid scheme, because of the reliance on recruiting other people to the business; however they get around this technical loophole by providing a product or service.
Who really makes money from MLM?
A few people do make a decent income from MLM. They are usually people who have got in there first, and who are able to recruit a lot of team members. Sometimes the way that these team members are recruited isn't exactly honest. MLMers post about their massive pay days, how much money they are earning and how much better their lives are since starting with whatever MLM they are pimping out. However, this isn't always the case.
In fact, MLMers are often encouraged to “fake it until they make it”, posting things that aren't exactly the truth. Perhaps they've been emphasised, or they're outright lies.
Having been crowded the UK's Best Money Making Blog for two years in a row, I know that I would make a killing from MLM if I decided to promote any products. I would be one of those people who are able to recruit a big team and make some good down lines.
That is because I have worked hard to build up trust with you, my readers. You know that I only write about money making things that I have tried out myself. It means that I have delivered BT phone books, sold my smelly shoes on eBay and I do mystery shopping.
MLM products are expensive
One of my biggest gripes with MLM is that the items are really expensive compared to what you can find elsewhere.
Have you seen the cost of those Jamberry nail wraps? They cost £15 or more, for something you can get from Amazon for under £2. By participating in MLM you are forcing your friends to purchase items at a much higher cost than they should be.
Products with false claims
Another massive issue with lots of people within the MLM industry is that they put false claims on their products. Whether it is someone from the company itself, or one of the distributors, my Facebook feed is full of people talking about how a Juice Plus capsule can sure everything ever.
A lot of these times these claims are either unfounded, or the research has been so tightly controlled to give one set of results.
False claims about income
If you are friends with any MLMer online then I am sure you have seen their various posts about pay days, being a #girlboss and much more. Some MLMers are told to “fake it until they make it”, so the photos of the big orders you might see, or the multiple pay days per week might be fake.
If you have some time spare then I urge you to have a read through The Not Quite Fairy-Tales of Elle Beau to read about her experience with Younique. It is a real eye opener.
How do you really make extra money?
Over the years I have turned my side hustles into a full time career, and I am fortunate enough to work from home and employ my husband. If you are interested in finding genuine ways to make extra money then check out my 100 legitimate ways to make extra money post.