Reason Multi Level Marketing is a failure

This post might sounds harsh but the truth must be revealed. I believe everyone had heard about Multi Level Marketing (MLM). It is a business where the companies urge you to sell their products by giving you some incentives. The ugly truth is that this system is going to ruin your life if you fell for it. Usually, they will try to convince you by demonstrating how a 'successful one' live their millionaire or even billionaire lives. This is to trigger your greediness. Next, they will show you how things generate your income. Basically, you'll have to sacrifice a sum just to gain a possibility. Come to think of it. If this system really works, everyone would be millionaire already. But why not? Below exhibits MLM general system. No matter how the strategy alter, the problems remain.

Seems attracting huh? Imagine that if you are the top leader, you can be retiree yet billionaire already. However you are not but the lowest rank at all time. In this system, only the founder of MLM and the few levels after him can be successful. Why? After a series of referring, the lower ranks ought to compete with each other and we are in fact the LOWER rank! This pyramid is just deceiving you, making you think that you are the above one.
Please imagine again. Now you are one in the red circle and you are trying to get some down-lines. The blue and the green is your competitors doing the same thing. What more can you gain? In fact, the referees of the blue and the green will again become your competitors and thus your competitors increases tremendously. Are you going to be success then? One in the million. The top level will just sit in carefree when you fight your ways just to help him increase his personal income.

Everyone wants to be rich, thus everyone who came across this pyramid will eventually think that they are the natural leader of the pyramid. Some companies had even state the word 'You!' at the top to deceive you. Trust me. An MLM could never work even if the persuaders seriously claimed that they will help you to preach the market! Think about it...


Eldy said...

If the product is an expandable product why can't it be spread to the whole world?

leo7_lion said...

In MLM system, there is always a misleading offer. First they will show you the best that you can earn. Once you participate the plan, it will only then revealed that you have to sacrifice certain amount. This is how all sales doing.

In addition, if you refer this plan to a downline where he/she is not a person who can leads others, he/she might choose to stop the plan, and you might again need to do the searching task.

It is impossible to spread through the whole world. People will eventually know their disadvantage when they experience it and hence stop before losing more. It is where lower levels would no longer afford to survive anymore and thus fail.

One more thing, if MLM really works. Everyone would had encouraged it and do it without doubts or worries already like a common job, but why not? Fear? Why fear then?

leo7_lion said...

And you cant deny the fact that your referrer is also your competitor.

Anonymous said...

Root of the problems is from the distributors themselve: over-do sales pitch, blindly recruit everyone and lack of proper training system for downlines.

MLM works but not for everyone, it's only for someone who is independent, having positive mindset, willing and ready to change and take challenge. Leadership can be trained somehow.

If you're the right person, you'll be damn rich and wealthy. If you're not, you'll be one condemn the MLM system not works.

Anonymous said...

One more important thing is before you even think of venturing into MLM, choose the right company that having good marketing plan, and most importantly the products really works on YOURSELF.

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