Multi Level Marketing

I never got sucked into the monstrosity called "Multi-Level Marketing" or MLM.

Maybe because I am asking too many questions?

Here is a list of questions that I always asks whenever I meet an MLM marketer:

1) Can you tell me more about this product? Give me time to research this awesome product of yours!

MLM is selling MEMBERSHIP, not product. Focus on the product to see them crumble. For example, if the product is vitamin supplement, asked for the ingredients. No, even better, asked for a sample OF THE PACKAGING. You know, the box where it states its ingredients, with a piece of paper with more details about that product. Bring those stuffs to your local vitamin sellers. Asked those sellers about SIMILAR products. Compare the ingredients and the prices. Or better, bring that box asked your nutritionist. Etc. Usually they crumble, since they only want to sell the membership, not the product. Even if they are ready with the product, usually it is not that special. You can get similar products with cheaper price in Wal-Mart.

2) If it is all about passive income ... why you aren't enjoying life in your house now?

One of the mantra keep repeated by MLM marketers is, MLM will create a "passive income," that means you can get money even though you don't do any work. Great, but isn't try to convince me to join is also a kind of work? Oh, you also spend hours for convincing other people to join your scheme? How high is your success rate? Do you feel your energy DRAINED by those efforts? Yup, in the end this "passive income" needs tons of active salesmanship!

3) So you suggest me to compete with my own friends?

One thing that many people forget about MLM is, you compete with your own friends. For example, "A" recruits "B" and "C". So far so good. But here comes the kicker: when B & C want to recruit their friends, they have to compete with each other ... and with "A" too! Please remember, all three of them have lots of common friends. Everytime we recruit new people, we also shrunk our recruiting pool ... and theirs. Before long, those 3 already dried up the pool.

4) Interesting success stories about those rich "Diamond Distributors". How long did they need to achieve that? When did they achieve that? Where did they live? How many are they? How long they keep their "Diamond Distributor" status?

There are success stories, MLM marketers who became "Diamond Distributor," who became millionaires. Let's put them under scrutiny. Let's talk about how many people are able to reach that level ... in comparison with the TOTAL amount of people who become a member in that scheme. My guess it won't be higher than 1%. So, that means roughly you have ONE PERCENT chance of success ... oh sorry it is even worse. Your chance to be an MLM millionaire is FAR LOWER than that 1%. Definitely those millionaires are the first participants of the scheme. When it's already 2 years after the first day this MLM opened their business, forget about it. You are just a small goldfish compete with existing sharks ... and many other goldfishes. (See #3 above.)

5) I think you read too many Robert Kiyosaki. Do you know that he has gone bankrupt?

I save the best for the last. Kiyosaki is a prophet for many MLM marketers. "Passive income" is a phrase created by him, repeated ad nauseam by MLM marketers.  He wrote a bogus book that convinced his followers that he gave good advice ... although in essence he gave them CLICHES about money. In 2012, his company has gone bankrupt. His fanatic followers still try to spin it, saying "It's only his company, not himself". Ha! What's next, they try to sell the moon via MLM?

So, does that means that MLM is always a big no-no ? Not really. If an MLM scheme tried to sell a unique product that you have checked RIGOROUSLY, that you can't find anywhere else, that you can afford, you can be their member to be able to get the distributor discount for that product. I think that is the only condition where you can benefit from joining an MLM scheme. Good luck finding that kind of MLM.

Further readings:
Don't Answer Calls from Old Friends, They Could be MLM Agents

John T Reed analysis on "Rich Dad Poor Dad"

Amway: The Wrong Way