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Are MLM Opportunities a Good Way to Earn Money?

One question that a lot of people who want to work from home ask is: are MLM opportunities a good way to earn some money on the internet, or are they just overhyped scams? There is no definite answer to this, as some people have built a good income from them, while others hate this form of marketing.

 

MLM, or multi level marketing, is involves independent distributors reselling products of another company. However, a large aspect of MLM is not simply the sale of products, but recruiting others to be part of the business opportunity. But there are a few issues with the industry that some people may not like. This doesn’t mean that the entire industry is a scam or that it is a bad business model. But there are some issues that you should be aware of before you join any such business opportunity. Here are some of the most common problems that you will face in a lot of MLM businesses.

 

  • Low quality, overpriced, or “fad” products

 

Ask yourself this: if the products are so great, how come they aren’t being sold through traditional e-commerce, or at retail stores? You don’t see Coca Cola or Apple running MLM programs now, do you? In a lot of cases, the majority of the money comes from recruiting new participants in the business opportunity. The products are simply there so that the whole thing would not be called a pyramid scheme.

 

A lot of the time, you will see products that are overpriced and can be found for much less than what you need to sell them for to make a profit. Or they are simply “fad” products, such as the latest hype in weight loss or beauty. Of course, it is possible to make money from a fad (think Acai Berry, merchants and affiliates made MILLIONS from it), but if your entire business is based on that, know that you are running a “temporary business” and not something that will be sustainable for years to come.

 

  • Reliance on recruiting friends and family into the business

 

While it is definitely possible to market MLM opportunities online, a lot of companies make people rely on people marketing their offers to friends and family members, telling you that they will be the easiest prospects.

 

But quite honestly, this is really not the case. Most of them will just not be interested in having a business and if they listen to your speeches or presentations, it is only out of politeness or because they don’t want to get into an argument with you if they say no. Now if you push this kind of marketing too far, you will soon be joining the NFL (no, not the National Football League… but rather the No Friends Left club) and will have people avoid talking to you. After all, if you invite someone for dinner, would you really like them to start handing out marketing materials to your family? Probably not.

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