This post is based purely on my personal experiences, but I wanted to share with you my own top 5 reasons for leaving MLM. I’m not going to go into a ton of detail about all my experiences with MLMs, but just give you an overview of my conclusions I’ve developed over the years.
I’ve been part of five MLMs in the past 12 years and during those years, I was desperately searching for the “right” fit in the online money-making world. I wanted to earn passive income and didn’t understand, for the most part, what MLM was all about. I never earned very much from MLMs either – probably less than $500. I’m fine with this because I never “felt” like an MLM person. By that I mean, someone who wants or needs to be part of a community or people. Being raised in a cult-like region growing up, I soon sniffed out the same type of behavior in MLM companies.
There are Benefits…
There are plenty of benefits of MLMs, like the ability for virtually anyone to join and make money, many are available worldwide, and they can have decent exclusive products not found in stores. They are also great for networking and meeting new people who may have some things in common with you.
I also want to say that MLMs are NOT all scams and I do believe you can be successful in MLM and make a lot of money. However, I also think it takes a certain type of person to be successful in MLM. You have to be very dedicated to the company you choose to represent and really believe in the product or service to stay motivated.
I certainly am nowhere close to being an MLM expert, by any means, but here are my own reasons why MLM never felt right to me.
Complicated Compensation Plans
I know there are people who may say “well they’re not that difficult to learn”, but most MLM compensation plans are a total maze to me. Most of their comp plans like look a map or something with all this fine print about volume and requirements, etc. Don’t even get me started on binaries, balancing legs, and all that crap – no thanks.
I prefer simple compensation plans like regular affiliate programs or direct member-to-member resell opportunities. I would rather get paid recurring monthly income on just my direct referrals’ membership to a service they are actually using… which by the way, can be very lucrative without having to necessarily invest any money. Most affiliate programs are free to join and earn with!
Maintaing Volume & Autoships
You have to usually maintain a certain amount of volume and your team has to maintain a certain level of volume for you to earn a certain amount. So the companies are always trying to keep their distributers hyped up about the products so people keep buying them.
If your team volume goes down, you can lose your rank. You have to keep buying products to keep earning money, in most cases. So most people are obligated to keep ordering products they really don’t need or care about just to main their ranks. Most companies require members to be on an autoship to ensure volume is maintained, as well.
Over-Priced & Over-Hyped Products
Everyone in an MLM is gonna say their products are the best. Well, because they want to believe it because they really want it to work out. However, most MLM products are just ordinary products priced WAYY above retail so that members (and corporate) can earn profits. Look at the ingredients. There are a few MLMs that have exceptional products, but most of them are just average products priced 4 times as high as in the store. And most people in these companies know it, but will never admit it. This is something I could never get on board with.
Too many catches , loopholes, and fine print
This is the main reason I left MLM. I got sick of the catches, loopholes and fine print they use to KEEP members from earning money. This is why I hate complex compensation plans – more room to rip off members and take money from them. I’ve missed out on commissions just because of dump loopholes that infuriated me in the past. I left and never looked back.
A LOT of shady stuff goes on in MLMs. Corporate can steal volume and referrals from members and basically screw members over because they’ll never find out… the comp plans are too complicated with tiny percentages on tons of levels. Most people never notice small amounts of money here and there… but it adds up. And it’s wrong.
Most people never last in MLM long. They get hyped up for a few weeks and then quit. So you always have to be recruiting new people to continue adding to your team volume and replace the volume lost by people who quit ordering. Now the retention with some companies with better products is higher than companies with generic or average products people don’t really care about. And almost everyone you bring on board claims they’ll be a superstar and then most fizzle out. Sorry, but I’ll pass.
Anyhow, I thought I would just share my personal experiences and observations with anyone who is wondering if an MLM will be a good fit. The truth is, it depends on you! It’s possible to earn six or seven figures with MLM if you are dedicated and totally devoted to one company. I could never do that. If you prefer simplicity and none of the MLM drama, consider affiliate marketing, which is where companies pay you to recommend their products or services to others. No kits or recruiting!