May 8 2014
Truth About MLM Marketing, Business and Money

money-tree2If you’re reading this article, chances are you’re considering starting your own business. Perhaps, you feel a bit apprehensive or unsure as to which route to take. On one hand, starting your own company sounds wonderful. You get to be your own boss. You get to make your own hours, work from home, take vacations when you please, and enjoy many other benefits. However, as you have begun to research starting up this process, you recognize the expense associated with your own business. There are hidden fees all over the place and it’s beginning to sort of take on the snowball effect. Thus, you find yourself here, looking for information about MLM business, the money and marketing behind it, researching MLM’s and the benefits behind this type of small business opportunity.

The Pros

Start-Up Costs

Lets start there. The direct network marketing industry offers a plethora of opportunities and bonuses. As you have seen from your research, it doesn’t take much to get started in any of these companies. Most offer a start-up kit for less than $100, with the higher end ones costing about $450-$500. That’s pretty reasonable, compared to thousands of dollars for your own small business.


Most MLM companies offer initial, as well as regular and on-going, training. Some of these include conferences and seminars; others are weekly meetings at a local hotel. In addition, you have access to the distributor or manager over you. All of these things together help feed your motivation and carry you over to your next sale.


In the past, many direct network marketing opportunities required individuals to carry heavy loads of inventory with minimal buy-backs. Today, you will find that most of these companies provide everything you need. Once you have an order, you can place it online or via phone. Most companies provide same-day shipping to the customer’s door, and the company takes care of all shipping and returning. You just focus on selling products and growing your little piece of the business. This is definitely an improvement from the past.


Again, in the past, mlm companies had peddlers that went from door to door. They traveled the country. They did much of their business via parties and what not. Today, some parties still occur; however, most of the business happens online. Companies recognize the value in the internet. Almost all network marketing companies provide representatives with a webpage via the company’s domain to set up sales. Some provide several web pages; it just depends on which business you choose. Again, this is an improvement from the past and a bonus, if you choose this industry over starting your own company.


graphBecause of the structure of the multi-level marketing compensation plan, a person could potentially earn millions and even billions of dollars. That does not mean that they will. However, the pay structure is such that it is plausible with some hard work. The idea is that you recruit a few individuals. Then, they recruit a few individuals, and eventually, you have tripled and quadrupled all efforts. Then, each recruit adds on more salespeople. You earn bonuses for each of your recruits, and you also earn a percentage of their sales.

The top earners in this industry are earning over $600,000 in one month. Some are earning over $400,000 and so on. That means that several distributors earn in the millions each year. The potential exists.

The Cons

The “Downline” Concept

It’s no secret that when you begin working with an mlm company, you are going to be the bottom feeder. However, there is no feeding for you. All of your efforts in the beginning feed the bigger fish on top. You will make pennies for the many hours you put into your business. Of course, you will start to make more, as you build your own “downline” and encourage others to work under you. Be aware.

Not Everyone Is a Millionaire

People’s eyes often turn green when they think about these types of opportunities. They just know that they are going to make millions of dollars and they’re going to do it quickly. The truth is that not everyone and actually, only a small percentage make that much from these types of businesses. This is a very difficult way to make your millions. How did the millionaires of this industry make their money? They depended and continue to depend on those below them. That is why they are where they are. This is another thing to consider.

Pyramid Schemes

This is something you have to be aware of in this industry. I think individuals have greater chances of earning big bucks with newer, fresher companies in this industry. I say that because not everyone has heard of them and it’s easier to sell; however, we all sort of roll our eyes when an Avon catalog appears on our porch. That being said, you have to be careful about the new companies. Many direct network marketing companies do not make it past the 5-year mark, because they are pyramid schemes.

What is a pyramid scheme? We’re talking about the companies who only want the start-up fees and then, they’re moving on to the next recruit. We’re talking about the companies who do not focus on selling and distributing or developing new products. We’re talking about the companies that sell cheap, unwanted, unneeded, unreliable products. These companies get shut down by the FTC and if you’re not careful, you can get sucked into one.

Same Song & Dance

This industry has been around since the late 1800’s. Many consumers, when they hear of mlm companies, turn around and run. They don’t want to host parties or hear your “get rich quick” schpeel. Because of all of the schemes out there, many individuals have been turned off to this type of business. You will combat this on a daily basis in your business. As a result, you will have to leverage the internet to your advantage. This means you will need to generate leads on your own and seek out recruits and customers that way.

Starting an mlm business can prove a lucrative and fulfilling opportunity; however, you need to know what you are getting into. As far as which company to join, I would say that depends entirely on your personality and interest. Each network marketing company has a very similar pay structure, so what it boils down to is which opportunity you believe you would be most successful selling. Good luck and happy mlm hunting!>

About Ryan Nelson

Anyone and everyone who markets and sells anything at all online should listen up: If Ryan Nelson is talking, you should be taking notes. The reason is simple. He will help you to make more money, in less time. It’s his mission in life, and he happens to be good at it.

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