You’ve heard the recruiting spiel on ‘how to become a millionaire overnight’ ‘sack the boss’ or even ‘get a free BMW’ Yep you know the posts, normally in a work from home group or on that annoying friends wall who just can’t decide what they are doing this week… those ones! So I thought I’d help you determine the difference between a scam and an opportunity….
So what is it all about? Multi level marketing (MLM) is all about building relationships (and inadvertently a team) or ‘downline’ and from these people you earn an income, generally a % of their sales – companies include Avon, Kleeneze, Betterware, Ann Summers, NYR, Body Shop, Body By Vi, Herbalife, JuicePlus, Bluebella (now Soft Paris) Pampered Chef and Usbourne Books just to name a few! You tend to have an overall manager, often with several lower level managers, who themselves have their own teams of people they manage/coach and help to recruit in new team members.
So it’s a pyramid scheme them? Not at all! Pyramid schemes require you to collect money from people to ‘enrol’ them (or whatever they try to call it!) Purely in return for entering into the scheme, MLM always involves a product, and recruiters are not paid just for recruiting people into the business. They may or may not have a joining fee but these will always be in return for some sort of product, often referred to as a ‘start up kit’ – You can find out more about Pyramid Schemes here – http://money.howstuffworks.com/pyramid-scheme1.htm
There are so many benefits from joining a MLM business, you can generally choose your own hours, have days off when it suits you and even take holidays when you choose! Depending on the company there may be weekly, monthly or annual meetings/conferences in your local area or around the country. Some are optional others compulsory, again this varies for each company. Many companies run incentives including free products, holidays, cars and bonuses for hitting certain targets. Its pretty beneficial to be good with people although not necessarily sales person of the year criteria just yet – being able to talk to people will make your ‘job’ a lot easier – remember people buy people before they buy a product! I think of my job more as networking than selling 🙂
The down sides (and EVERY job has them!) are you need a pretty good level of self motivation, you probably wont have someone telling you where you need to be / doing every day, so if you are easily distracted this could seriously impact on your business! Trust me working from home sounds like a dream but if you plan to do it around the kids prepare to be very underwhelmed with how much work you actually get done! You’re also unlikely to have a basic wage and will rely on commission from what you (and your team if you have one) sell. This can be daunting for some people but if you can take that leap it can also be soooooo rewarding! You might not become a millionaire over night, but with hard work and dedication there certainly isn’t anything stopping you, except you!
Unless you are super lucky you might find friends and family are not the most supportive people, if I had a £1 for every time I’ve heard ‘you’ll never make any money’ I really would be a millionaire! Don’t let this put you off, don’t let their fear of stepping out of their comfort zone of a ‘proper job’ become your obstacle.
If you know me you’ll know I have worked within MLM’s for over 11 years now, within lots of different companies (many of the above list!) They all have different pay structures and not every company works for every person so don’t be afraid to try a few until you find what YOU are passionate about – you won’t sell a product you don’t believe in 100%!
Being within MLM’s has taught me so much, both positive and negative – it also allowed me to go on and run my own business using what I have learnt working for larger companies.
Hope this has helped you better understand the difference. All you need to do now is find a product you love and go for it! Feel free to get in touch if you have any questions – I’d love to help 🙂