Make Money Fast? Not With MLM!

As you may have discerned from the title, you will not make money fast if you plan to engage in Multi-Level Marketing also known as MLM. In this article, I am going to look discuss some of the peculiar aspects of multi level marketing ,(MLM) and the reasons why hardly anyone is going to make more than a couple of hundred pounds per month. MLM in some cases has some excellent products but unfortunately there are some inherent flaws in the business model that are never suspected by the participants. But these flaws are very cleverly used to profit a certain individuals while the majority of the participants in the programme are merely left dreaming of the riches. I am dividing this article in four parts that would help you understand the fallacies of MLM.  The flawed business model of MLM and reasons of failure  Advertising and ROI  Who are the ones that profit from MLM?  Is MLM actually legal and moral or just another pyramid scheme?

The business model of MLM, as you know, is to sell as much of a product as possible to earn profit. It creates an endless number of online retailers. So if the product can sell itself so easily, why do you need such huge number of marketers? Why are the people who have resale rights to this product not keeping them to themselves and distributing the resell rights of the product to others for a fee? If the product is so great, why are they not selling it on the street shops or supermarkets? The simple answer to these questions is that the product itself is not profitable but the resell rights that are sold to the aspiring entrepreneurs definitely are! So the objective is to not to sell the product but to sell the resale rights to have as many retailers as possible under your line. So the obvious inherent flaw is that you are having more retailers than consumers. Actually this strategy is only going to degrade the value of the product by flooding the market.

A simple example would be if Gucci where going to continually make a certain type of sunglasses knowing that last year they only sold 5000 pairs of that brand. When they hit 20000 in production the next year, but they have not sold anymore that 5000 what is going to happen to that extra 15000? Unless they sell them cheaper they are going to run over into next year's brand hence making the previous year's stock invaluable and almost unsalable. Also the customer will realise that they can get the same product at a cheaper price at a later time in the year hence making optimum launch sales obsolete. Because of the very clever marketing strategies used in MLM these very basic points of business are overlooked.

Online advertising can be expensive especially when there is stiff competition in the same field. If you know about keyword research then you would also know that pay per click advertising can be effective as well as expensive. If you have to advertise an MLM business on Google and want to rank high on sponsored search, you have to pay anything around 1-3.00 per click. So that means it will cost you a lot just to reach out the customer whether they sign up or not. Web marketing is a pure numbers game. It is all about traffic!  For example if you drive 100 prospects to your website and 1 of them signs up for a fee of 100, you would still be spending 150 to get that prospect assuming an average cost of 1.5 per click. So you are actually losing a part of your investment and this can hardly be called good business. Of course there are free methods like articles, videos, press releases and forum signatures, but after a point you will realize that these methods can only give you limited success if you have an obsolete product to deal in with a number of people above your having done the same thing.

So who actually benefits from MLM? It has already been explained that the profit is not delivered by the product but by the exploitation of the affiliates lower down the order. Those who are higher up on the hierarchy make profits from the losses of those who register under them. They simply sell improbable dreams of earning millions overnight to the recruit the affiliates. Such MLM marketers have been imprisoned in the past, but nowadays their highly paid lawyers manage to save them from going behind the bars.

So can you do the same? Can you hold meetings in posh hotels with people knowing that they are all going to suffer losses by promoting your product and making you rich? Can you really do that to your friends and family? Have you promised hefty returns to some of them while you have to do so yourself? I am leaving it for you to decide. Compare MLM to any illegal pyramid scheme advertised on the net and decide yourself. Don't they look similar? There is only one honest way to make money fast from the internet. That is with a guaranteed compensation plan along with ongoing support and of course a real and viable product.

Zero Cost. Zero Obligation.

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