MLM is Multi Level Marketing, it can also be described as:
- Direct Selling
- Social Selling
- Network Marketing
- Referral Marketing
- Team Marketing
If you breathe you will have come across one of these in your life, your social feed will probably include a couple of your friends that have started reaching out for financial freedom through this route. No doubt they have told you of the amazing wonders that bees wax will fix your eczema or drinking cactus plant will make you loose weight.
If you truly haven’t then you are one lucky individual.
In my previous role before I blogged for a living I would have monthly board meetings (I actually miss them at times) one of the woman was a Herbalife groupie and would have a volcanic drink they hissed and fizzed away and looked horrible.
I would say that she lost a lot of weight, however, she didn’t eat bread or potatoes and she started to run mini marathons. The Herbalife gang are quite a social crew and so she did meet many friends along the way which is great – we all need friends.
I can’t help think that she is actually doing the Atkins diet, exercising and so the extra nutrients are doing what? She is loosing weight as she is carb free and exercising. I don’t really get it but sure as shit I ain’t wasting £100 a month on shakes, pills and drinking that look like they should hold an explosive license.
Everyday, people get sucked into the lure of MLMs (“multi-level marketing” or “network marketing”).
Having said that it’s what everyday sales people do for a living, you work for a company, you add half a mill in sales and you are rewarded through your salary. You may hate your boss and detest going to work but you are successful.
The difference between sales self employed sales compared to internally is that you don’t bounce of a team member continuously right there in your sights chasing the bugger. In MLM some will share a leader board to increase your competitive nature but the adrenalin doesn’t kick in like the real office environment. You also don’t have the standard basic salary to fall back on if you haven’t met it in sales metrics.
How Does A MLM Work
Some not all mean that you have a buy-in fee or you at least have to buy stock up front. The training is epic though and makes you believe you can fly! You get to laugh and joke on social media about how great your life is so that you can then get chance to recruit people in your own team, off your team goes and they start earning for you.
Smoke and mirrors!
Sounds like a pyramid? No of course it’s not as they are frowned upon.
Once you’ve completely gone through your friends list and alienated some of them with your constant need to pitch – you’re trying to earn a living and it’s great that you are putting yourself out there but people are wising up to the whole recruitment process and so after a few good friends buy as they feel they should you are scuppered.
Off you go to social media and start to try and recruit in Mum groups, you post pictures of your product, you do FB live and yet you’re only making the odd £10 here and there.
Most MLM agents target Mum groups or entrepreneur wannabes as they are easy targets sadly.
According to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money.Wiki
There are a huge selections of companies out there, here are a few that you probably have heard about:
These days many MLM companies portray it to be easy to be cashing in on big bucks quickly with many people struggling to make money falling for the buy in products and spending hours trying to build a brand in an already saturated market.
I tried Herbalife 15 years ago, the most adorable and sweetest girl I knew sold it to me. She was like a goddess of goodness so she could have sold me shit and I would have bought it.
After a week of drinking Aloe Vera gel, I was still fat, didn’t feel any better in fact I felt sick and had to hold my nose like a child as the taste and lumpy effect was similar to well you know lol.
You may wonder WTF has this got to do with blogging – quite a bit.
Why are MLM’s like blogging
Blogger A knows her shit and creates a course about blogging – she holds a few things back though.
Viewers B,C,D,E buy the course and are amazed at knowing something they had no clue about, blogger A says create a course or sell mine and you’ll earn 30%. Out of B,C,D,E some do their own course and some affiliate to blogger A.
B,C,D,E have already subscribed to all the software that Blogger A suggests so have bought a course and also given affiliate sales to Blogger A – she’s seriously cashing in!
Blogger A is clever she not only makes affiliate sales and course sales she recruits people to sell her course.
B & C are creating their own content – but missing the secret recipe that Blogger A kept to themselves.
D & E sell affiliate links to blogger A, they make a bit of income and use ads and Amazon affiliates for the rest.
B & C don’t tell the whole story as they don’t want to get caught out on plagiarism so they skip some info plus they don’t really know the big picture. They do well and follow the blueprint that Blogger A taught them though and they do quite well.
This is how blog teaching becomes diluted, vague and many new bloggers wonder around the net not making the income they were sold.
I’ve done many courses purely for research purposes and some are horrendous and no-where near the money they are marketed for as most of the info can be found for free through YouTube, FB groups or blog posts.
Many bloggers that are creating courses have literally been on a tour of a factory, a factory that pumps toxic waste into it’s water supply that brain washes people that they will earn millions.
See where I am coming from?
Blogger A did very well out of the scenario – they have a team now, they have money to
prey introduce people to the blogging world and how lucrative it can be. They use FB, Adwords and pay thousands for exposure knowing they will get 10 thousand more wanting to know the secret.