When you hear the word ‘MLM’ it gives out an eerie vibe as doing MLM business is often frowned upon. Don’t get us wrong, doing an MLM business is actually sustainable and doable. But it is not easy. In this article, we will explain to you why MLM business is frowned upon.
How does MLM business work?
How does MLM business work? MLM business is where person A has to find a ‘downline’ in order to start earning money. Person A has the recruit, someone, to do the direct selling. Then, the new recruit has to find someone to do his direct selling, then that’s where the first person can start earning money. It is never-ending of finding a downline to continue your cash flow.
And, it is not easy to do MLM business especially if you just started out. The reason for this is that you have to have a lot of contacts in order to make things work. Not just that, you are also required to do a lot of promotions to bring people in to do it with you. Many people like it if you are constantly promoting it non stop.
Why is it frowned upon?
The reason why MLM is frowned upon is because of the method on how it is being promoted. If you happen to see someone you know promoting products that you never heard of before, and they promote it as being a life changer. The chances of that person doing an MLM business is high. To add on, not many people are interested in doing MLM business. The feeling of annoyance is there when you suddenly got a text message from someone that you have not spoken to in a long time, where the person is trying to bring you into their MLM business.
MLM are pyramid schemes
MLM is essentially a pyramid scheme. Although there are some MLM companies that are legal, there are some which are illegal. If a business requires a person to sell products to their friends and family, and they have to recruit people to do the same thing, it is called multi-level marketing, direct selling or network marketing. In a pyramid scheme, the person at the very top will earn the most money, whereas else the person at the bottom will earn the least or no money at all (if they can’t find new recruits).
However, it is to note that in an illegal pyramid scheme, the person does not have actual products or they are recruited to sell worthless products for a marked up price. So, the good thing about legal MLM businesses is where they sell things that are essential for people to use.
To sum it up, these are the reason why MLM businesses are frowned upon and not many people are willing to do it. But, if you are able to make it right, it will definitely be sustainable and successful.
There are many ways to manage your MLM business. With technology, you have mlm business software to help you manage and keep track of your business.
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