Important Considerations Before Deciding to Embark on an MLM Venture!

The insights I share in this article could potentially save you a lot of money, time, and energy so do yourself a favor and read this before getting too serious about starting an MLM business.

Like most things, there are both ups and downs with this business model (some people love it, some don’t), and this article is your invitation to explore the Pros and Cons of MLM so that you can make an informed decision if this is for you or not.

Let’s face it, some MLM opportunities can sound really attractive, especially when you’re eyeing that ever-elusive “time freedom”, but many of them have also faced criticism and controversy for various reasons, including concerns about their business models, recruitment practices, and the financial success rates of participants.

A few years ago when I started to research these different opportunities, I had a strong desire for more freedom in my life. I wanted to work from home and have flexible hours so that I could be more present in my children’s lives and have a better work-life balance, but when I realized that this business model is often focused on recruiting new distributors than it is about selling the company’s products, I started to question this concept.

If you spend more time recruiting and building a team than you do to actually sell the products itself – then what are you really selling? As an introverted person, it didn’t feel appealing either to have regular conversations with people I don’t know, to network and constantly try to recruit new people and build a team.

There are other business models similar to Multi-Level Marketing (MLM) that also give you the ability to work from home with flexible hours, but that doesn’t involve recruiting, and moreover, has the potential to be run on autopilot, and give you more freedom, stability, and long-term success.

Affiliate Marketing (also known as “The Ultimate Lifestyle Business Model”) is one of these business models and I highly recommend you familiarize yourself with it and make a comparison between these two before you decide if MLM is really the best route for you to achieve your goals.

You can learn all about this business model in this article: Affiliate Marketing

If you want to learn more about different business models that you can start from home (including affiliate marketing) and learn how to sell on autopilot, sign up for my free video workshop series here:

Now, before we dive into “the good, the bad, and the ugly” of Multi-Level Marketing, let’s first make a brief summary of what MLM actually is and how it works:

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For starters, MLM, also commonly known as Network Marketing or Direct Selling, offers a seemingly enticing package. At its core, it’s about selling a company’s products or services. But here’s the catch – you’re not just a salesperson. You’re also on a mission to recruit others under you which is typically commission-based.

Now, here’s where it gets tricky. MLMs often get lumped in with those notorious pyramid schemes. Or think of it like a tree branching out. The more branches (or in this case, recruits) you have, the more money you potentially make. 

So, the Pyramid scheme is all about recruitment. You make money from your sales and from sales made by those you recruit. Brands like Amway, Herbalife, Avon, and Mary Kay are examples of this model.

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How does MLM work?

Let’s face it, with MLM, the approach is two-pronged. First, you’re buying products, which you then resell to others. You buy stock, often at “exclusive” discounted prices, and aim to sell it at a profit. But the real money? That’s supposed to come from the second aspect: building your team. 

Every person you recruit gets added to your team, and you earn a commission from their sales as well as the sales of those they recruit.  You get a chance to win bonuses and incentives based on the team’s sales strategy. Sounds simple, right? 

So, you might be wondering when does the table turn? While some swear by the MLM model, many struggle, especially when their list of potential recruits (often friends and family) runs dry.

Moreover, if we’re being transparent (and I always am), not everyone hits the jackpot in the MLM game. The upfront investments can be sky-high, making it challenging for many to see a return. 

And let’s not forget the mindset. Many are lured to MLMs hoping to strike gold overnight. This “get-rich-quick” mentality can sometimes be a roadblock.

Still, it’s not all gloomy. Many entrepreneurs, including Robert Kiyosaki of Rich Dad Poor Dad fame, champion the Network Marketing model. So, it does have its proponents.

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Now, let’s dive into this low-down on the good, the bad, and, well, the not-so-glam side of it:

Pros & Cons of MLM

Pros of MLM

• Flexibility: MLM gives you a chance to be your own boss, set your own hours, and craft a schedule that fits your lifestyle. It’s a dream come true for those seeking work-life balance.

• Low Initial Costs: Not everyone has a ton of cash lying around. Compared to traditional businesses, MLMs like Avon and Forever Living often have lower initial investments.

• Income Potential: Making money online is appealing to many. Not only can you earn from your own sales, but also from the sales of those you recruit. This creates a potentially lucrative income stream without the need for continuous personal investment.

• Growth & Development: You know what’s cool about MLM? They often give you training and help you grow, not just as a seller, but as a businessperson too. So, you’re learning the ropes of marketing, making sales, and running a business, all while you’re at it.

• Social Connections: MLM often fosters a sense of community and camaraderie, as participants build relationships with like-minded individuals who share similar entrepreneurial aspirations. The teamwork and support within MLM networks can provide a strong social support system, offering encouragement and mentorship as participants work towards their business goals.

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Cons of MLM

• Lofty Promises: Have you ever heard the saying, “Talk is cheap…”? Many MLMs promise the moon, but often, you’re left with just a handful of stars. So, most people end up losing cash instead of raking it in. Some might barely see a dime, and if they do, it’s just pocket change.

• Recruitment Overdrive: To actually make any cash in MLMs, you’ve to get your friends to jump in with you and it can get really stressful, always trying to get others on board. And you know what? It can mess with your friendships, too. Plus, when everyone’s so busy trying to recruit instead of actually selling stuff, it doesn’t look too good for the company. Just something to think about.

• Stock Worries: Investing in products that just won’t sell is a common pitfall in MLMs. You might have to buy products before you can sell them. This upfront inventory cost can be a financial strain.

• Lack of Control: Your role as an MLM distributoris largely defined by the company’s terms. The bigwigs decide the products, the ads, and even the price tags. So, if you’ve got your own ideas about running things, it can be a real bummer. You’re kind of stuck with what they give you.

• MLM Stigma: Some MLMs have had dubious pasts because a few of them have pulled some shady moves. This can lead to skepticism from potential customers or recruits. So, it’s common to wonder if they’re all on the up and up.

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The Ugly Side of MLM is “The emotional toll.”

The relentless push to recruit, the drive to meet ever-growing targets, and the constant need to sell, even if it means turning gatherings with friends into sales pitches.

Another big headache in the MLM game is Trying to keep your crew pumped and on board.

People drop like flies, and that’s no joke. Maybe they can’t make sales, maybe they’re tired of always looking for new recruits. So, know that if you wanna make any cash, you’ve gotta keep boosting your team’s spirits and always be on the lookout for new blood.

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Other alternatives you might want to consider

As mentioned earlier in this article, there are other business models similar to MLM that also give you the ability to work from home with flexible hours, but that doesn’t involve recruiting. Moreover, it has the potential to be run on autopilot, and give you more freedom, stability, and long-term success.

Affiliate Marketing is one of these business models which is what I personally choose to go for instead. Just as with MLM, Affiliate Marketing is about selling other companies’ products or services, but the biggest differences are that you don’t have an inventory, you don’t handle payments, and it doesn’t involve recruiting people. Plus, you can work with several companies, promoting several different products and services.

You can learn more about affiliate marketing in this article: Affiliate Marketing

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To tie it all together…

Let’s face it, every moment you spend is a choice. A choice to build a life filled with passion, cherished memories, and genuine connections. The last thing I want for you is to be weighed down by the uncertainties and pressures that MLMs can sometimes bring. MLMs, like Amway or Mary Kay, might seem tempting but often mean chasing leads and pitching to pals. For many people, that is draining, but as I said before – some people love it, some people don’t.

I’m an introvert and I found affiliate marketing was a much better choice for me because I don’t enjoy talking to people all the time, and I don’t like the thought of chasing and trying to convince people. I also value freedom A LOT and today I have an affiliate business that runs pretty much on autopilot, leaving me with much more time to do other stuff that I enjoy, and this literally means the world to me!

But we’re all different and you need to find out what’s the best choice for YOU. That’s why I highly encourage you to familiarize yourself with several business models before you make your final decision so that you can rest assured you have chosen what’s best for YOU and your goals.

You can do that by signing up for my free video workshop series that introduces you to different business models (including affiliate marketing) and teaches you how to sell on autopilot, without chasing or convincing people:

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I really hope this information has been helpful and will guide you to making the right decision for YOU.

If you have any questions I’m more than happy to help you! Just send me an email at anna@anna-jansson.com and I’ll get back to you as soon as possible!

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