Is Multi Level Marketing a Scam?

If you are reading this post, this probably means that you have recently started or are looking to start working on Network Marketing or Marketing Level Marketing / MLM.

This post should be used as a guide that will help you answer some of your questions and also help you make a sound decision if Network Marketing industry is for you.

There are positive and negative points when working on MLM, I shall refer to Network Marketing as MLM from now on.

The MLM industry is one of the fastest growing in the world and can give people the flexibility and income to make you successful without the fear to run your own business or to lose your job. It is all about you and your hunger to be successful.

There are plenty of MLM’s companies to choose for and some of them are very well known. The easiest way to understand a MLM concept is to think like when you join Cosco, Markro or Wallmart. You pay a subscription fee to be able to buy products based on wholesale prices, giving you the opportunity to gain X percentage when selling it direct to customer.

With MLM you should not have to pay any fee to join in or to have to purchase too much stock to start up your business. We will cover it in more details on “All MLM companies are Pyramid Schemes”?

MLM gives you the opportunity to sponsor new people / partners to be part of business. The more people, the greater your business will generate more sales and therefore generate greater income to you and the people working in your business.

You can work with one or more MLM company; it is really up to you, although a piece of advice: the bigger your organisation, you will need to give your sideliners / downliners more time. The key here is researching about the right company and hopefully choose the one that fits your needs and dreams.

I have been working with network marketing for about eight months and I am working hard to generate all the leads and buzz necessary for a successful business. I am not sure about you but most of the reviews, links or videos that you find online are not that helpful at all. They are only trying to get more people to join their business rather than give us newbies any sort of guidance. They are all successful and they all know the secrets that will make your business grow very fast. They will only uncover it, if you enter your email or mobile number so they can bombard you with spams.

The road is long in MLM but again it is you that will make your business successful not your line manager or post like mine. We have to learn to become professionals. These 6 figures salaries stories that you hear and see, although true but not easy to achieve, these people have been in MLM for 5, 10, 15 or even 20 years and have become professionals and  successful.

The cons to join MLM

 Let’s talk about the negative points first so if after going through them you are still interested in joining your sponsor’s or recruiter’s organisation, you will have the tools to make the decision by yourself and nobody else.

First very negative point that you will find out there is the constantly association MLM has with Pyramid schemes, this will undoubtedly be the main barrier for you to climb. The association is very unfortunate as the two things are very different indeed but there are similarities.

Pyramid schemes and MLM have similarities but totally different when you drill deeper. Pyramid schemes are ILLEGAL in most western countries and hopefully the more hard working people joining MLM we shall see less associations to Pyramid schemes.

To identify a pyramid scheme there two areas that you need to be aware of:

First any company changing a new member and pays an amount to the person that has introduced you to the business.

Second a request to purchase a great number of product or service to start your business.

In Pyramid schemes there is a rush to add new members. The scheme always breaks by running out of people, when that happens the fraud is discovered. On pyramid scheme only the people at the top generate great income leaving the people at the bottom to pick up the pieces. Check below a very recently pyramid scheme:

A proper MLM concept should have a sort of upside down pyramid, meaning that everyone that starts at the bottom has the opportunity to reach the top. The more people the better your business, your sideliners / down liners, depending on how your MLM describes your peers. The secret here is to educate the new member on how to be successful. The reason 90% of new members drop out of MLM or have a bad experience is due to the lack of education on how to be successful in MLM.

If you have a line manager or sponsor and you think he or she is not the right person, I can only say bad luck and you should move on. There are two ways to get out it.

1-Learn more about MLM. Buy book covering this topic online. I have purchased some very good books so check them out:

“The 45 seconds presentation by Don Failla”.

Go Pro – 7 steps to becoming a network marketing professional by Eric Worre.

2-Learn even more. It can take up to seven years to become a professional so you have plenty of time to learn.

Other question that you will often be confronted is “Have you made any money yet”?

People generally want to see how successful you are before wanting to listen to your proposal. Word of mouth is still the strongest way to market a product / service.  By using and learn about the products yourself will be in a better place to recommend it. People around you will naturally be curious about your lifestyle. Curiosity is one the most powerful human feelings.

People are looking for reasons to say no. The number one excuse will be that they have no time. If they can watch TV for an hour or go out drinking with friends, they definitely have time. As Robert Kiyosaki once said. There are 4 types of people: Right people; Comfortable people; Likeable people and Winners, which one do you consider yourself to be? And which one would you like work with? Keep it simple, don’t talk too much about your business, let them ask questions. Expose them to the business opportunity ask them to watch a DVD or an MP3 audio talking about the business. Let them try the products, they will talk for you. The more you talk about yourself the more boring you will become and ultimately lose the opportunity to add a new member to your team.

Their products tend to have higher quality and the process to get the products to you is very likely to be cleaner and more eco-friendly. Remember MLM companies do not spend money on traditional marketing campaigns hence the claims of better products.

Lastly leads, you are going to run out of family members, friends, colleagues and even strangers that you may stop in the street. You will need to talk to 50 people on average to get 1 to join your business; these are an awful lot of people to talk to. But I will explain how you can do better using social media channels.

The pros

You can open a business without all the expensive fees, taxes and paper work need for a traditional business. Work from home on a part-time basis. You can generate unlimited income.

Very low start-up costs. Working wit well structure companies. All you need to make your business a success.

Generate income straight away from the retail sales. Sponsor, teach and train new distributors to work in the same way and become successful like you are.

Marketing plan that reward hard work and that gives further incentives and bonus.

MLM concept is based on recommendations, like when you watch a movie, or eat in a nice restaurant, drink a nice wine, visit a nice place and so on. If you do that sales should happen naturally.

As you can see the pros are very straight forward but hard to reach. Motivation and hard work are key….

The reality is, you need to put a lot of work and hours into to learn about MLM. Don’t be demotivated, it is a rewarding business concept and the possibilities are endless.

How to generate more leads

There are lot of people out there claiming that they can help you generate traffic and therefore sales. Some are true but the majority will only take your money and laugh at you every month when your money hit their accounts.

Notice they always say “don’t worry these things are too complicated”; “SEO oh my god, it is too difficult”; “we can do it all for you, simple ££”. The reality is without knowledge and hard work there is no reward. How many billionaires do you hear saying? “Just work 20 hours a week and you will make loads of money”.

With the internet being so easy to access and many different platforms to use, it is easier than ever to get in touch with people that share the same ideas and dreams. Google search, Facebook and Youtube are the best way to reach your audience and the great thing is, mostly free. They are also the most used at the moment.

Create Blog, Twitter, Pinterest, Google+, Stumbeupon and others to reach and create leads to your business.

Link all social media platforms so you can have it all working nice and easy. Keep it fresh and fun with new stories, photos, videos, articles etc….

Facebook has created small scale promotions that are very affordable it can be from as little as £4.00 and you can reach almost four thousand people.

Create promotion within Twitter, Blog, share your business platforms with friends and ask them to share with their friends.

Images and videos are the best way to connect with your potential distributors; the clear and easier for them to understand the better informed they will be to make a sounded decision.

Please have a look at mine social networks and leave your comments.

Forever UK:







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