The Multi-Level Marketing industry has had a bad rep for many years…
Type in “MLM” in your favorite search engine, and you’ll be flooded with negative content about MLM. There is so much negative press about MLM that most people wouldn’t want to touch any MLM opportunity with a stick.
One aspect of MLM that those who are anti MLM point at as bad thing about MLM is the fact that one has to “Recruit” other people in order to make money.
Well, Let’s take a look at why recruiting in MLM is viewed in such a bad light…
Multi-Level Marketing is All About Recruiting.
The first thing you need to understand about Multi-Level Marketing is that MLM Is All About Recruiting. In fact, the MLM business model can be summed up in the words of Jean-Paul Getty when he said:
“I would rather earn 1% of 100 people’s efforts, than 100% of my own efforts.”
That is the true essence of MLM.
In Multi-Level Marketing, instead of earnings that are based solely on your own efforts, your earnings are based on the efforts of an entire organization of people. You get a percentage of the sales generated by all the people you recruit as well as on people they recruit. Therefore, in order to make money in MLM, you need to recruit people into your business.
Most people who are anti-MLM think this is bad. However, these people are overlooking the fact that most (if not all) business models use some form recruiting to grow business.
- Employees (Directors; Managers; factory workers; etc.) are recruited by their Employers.
- Affiliate Marketers are recruited by the companies whose products they’re marketing.
- Franchisees are recruited by the Franchise Owner (eg. George Sombonos, Dick Enthoven, Mike Illion, etc.)
So, as you can see from the examples above, “Recruitment” in itself is not the issue…Everyone recruits.
So, Why Is Recruiting In MLM such a Bad Thing?
The problem in MLM is not the “Recruitment” itself, but the people who use the business model for nefarious purposes.
Oftentimes people will join a “Ponzi” or “Pyramid Scheme” that looks like a legit MLM opportunity. These scams don’t usually last for long. After a while, they inevitably collapse or get shut down by the authorities.
When this happens, those who were involved tend to blame the person who “recruited” them into the scam. Unfortunately, a lot of those who are scammed will go on to “try” a few other “Ponzis”, hoping to get lucky.
…And that’s the problem. Because when they fail to find success in these scams, they no longer blame the recruiters, but MLM itself. Then you get people going around saying “MLM doesn’t work!” …”All MLMs are scams!” …”That’s a Pyramid!”
There are many people out there who are achieving success in MLM. You just need to find the right MLM Business Opportunity and apply ethical business practices. You don’t only owe it to yourself to make the choices, but also to the people you will be recruiting into your business origination.
…So, when deciding to get involved in MLM, make sure you chose a proven and legit Opportunity.