What is an MLM Company? The Dark Truth Uncover!

what is an MLM company
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What is an MLM company? You are wondering…

When the opportunity is presented to you, when you’re told your dreams can be achieved faster than you think, that wealth isn’t as worth it as you think it is…

What is an MLM Company: This image shows a bunch of MLM companies such as Xango, Usane, Amway, ACN, BB, and so on
Just a Few MLM companies

Multi-Level Marketing(MLM) Companies have been around for a long while now. And if you are not familiar with what Multi-Level Marketing is, then maybe you are familiar with the companies that follow the MLM model…

Those companies have a lot of money.

It sounds great, right?

On the surface, it seems ordinary, but once you go beyond the surface level and uncover what’s underneath, you’ll discover the untold truth…

Remember this: When an MLM Company or Pyramid Scheme is presented to you, it will not reveal itself as such. It will come in a whole decorated packaging with a pretty bow on the top and bragging to be a million-dollar business opportunity.

When it presents itself to you, it will not come dressed as an unfamiliar character. It will come dressed as your best friend, your neighbour, someone you know, someone you love. Its message will be that of Hope, and that of who you ever wanted.

But, what is an MLM Company about, really? How does it work? Is it actually worth joining an MLM business? This post will cover those questions and more…

If this sounds good to you, get comfy, grab a snack, and pay close attention, because you will find out absolutely All about the MLM Industry.

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What is an MLM company?

An MLM or Multi-Level Marketing is a controversial marketing strategy in which the seller is compensated not only for sales they generate but also for the sales of the other people that they recruit.

These recruited people are said to be the participants downline and can provide multiple levels of compensation.

Other terms used for MLM include pyramid selling, Network Marketing.

Here’s is a video, probably one of the best videos about MLM I’ve watched so far. You should definitely watch it. It’s worth your time. Obviously, you’re here because you want to learn more about MLM right?

Then this video should be perfect for you… Enjoy.

How Do MLM Companies work?

It always starts by purchasing a Package, or a monthly fee. Basically what they tell you is it’s important to make that purchase for your business to thrive. So, you need to invest in it.

You are encouraged to purchase as many as you can and get to the highest level.

The person who led you into that “opportunity” is now labelled as your Upline. Then, you are told that if you want to make good money in this business, you need to start recruiting people.

What is an MLM company: This image shows six prospect shadows, with a dark blackground

Then, you get some training on how to convince people to join and do the exact same thing you did, which is purchasing the product and recruiting more people.

It’s simple, you recruit someone into the company, and once they purchase the product, you get a commission.

Once you’re able to find interested people, you will invite them into webinars, Zoom calls, or share some workshop videos, where they will easily be convinced by experts.

This is the exact MLM formula.

Things To Know About MLM Companies

  • Keep in mind that Many pyramid schemes present themselves as legitimate MLM businesses.
  • Some sources define MLM as pyramid schemes, even if some MLM are legal.
  • Most MLM companies sell to people not only the company’s products, but mostly encourage others to join the company as distributors.
  • Companies that use MLM model for compensation have been a frequent subject of criticism during this 21st century.
  • The sad reality is that MLM companies are now focused on recruitment instead of actual sales.

Many people tend to confuse MLM with Pyramid Schemes. But let’s see what differs them.

Tired of MLM?

Multi-Level Marketing Vs Pyramid Scheme

Multi-Level Marketing(MLM) is a Legal practice. But it’s similar to Pyramid Scheme, that’s why many people always confuse them.

However, there are some key differences between a Legal MLM model and a Pyramid Scheme.

MLM emphasizes sales of goods and services to the consumers. Pyramid Schemes focus on recruitment first.

MLMs Have little or No startup costs. Pyramid Schemes may have expensive membership fees or packages, and sometimes charge you for sales training and materials. The perfect example here should be Legendary Marketer. This online company have memberships and training up to $12,000! Yeah, that’s right, and they only encourage people to recruit.

I have also reviewed other similar companies like Forsage, and Enagic Kangen Water.

As you can see, it can be very difficult to differ an MLM company from a Pyramid Scheme, as nowadays many MLM use the Pyramid scheme formula.

How to Spot a Pyramid Scheme?

Here’s the perfect video to learn the techniques and tricks that pyramid Schemes use to recruit new members.

Common Things in Pyramids Disguise In MLM

  • The recruiter is hyper enthusiastic and knows it all
  • The recruiter thinks that he or she is so successful and you can be the same like them.
  • They always have hope speech.
  • There’s always to package to purchase to be qualified for their business opportunity.
  • Those products are always expensive.
  • You are always encouraged to purchase more to reach the highest position.
  • They target more: Stay at home moms.
  • Require you to go through training on Zoom calls and workshops
  • Sometimes they have incentive programs, where you can earn cars, watches, etc.
  • They have many members around the country and the world
  • They always use this phrase: “You can be your own boss”
  • You can travel around the country or the world.
  • You need to pay to get a license while you don’t need to pass anything
  • You need to pay for background check…

    Here are some typical products they sell:

  • Diet
  • Vitamin
  • Personal Financial programs
  • Insurance
  • Health instrument(Bracelet, water Filter, Air filter)
  • Trips…

And those products are overpriced most of the time!

You must wonder, why do so many people join MLMs in the first place?

Why Do People Join MLM Companies?

The truth is most people get into it because they think that’s the magic pill, they think that if they join that company, they will be financially free. They want shortcuts, they want to get rich quick.

But it’s not.

Yes, some people are very successful in it, but they are either phenomenal speakers or phenomenal salespeople.

It’s not because the company makes them successful, it’s because they are successful people, to begin with.

The reality is people can sign up with you or anyone else. Anyway, they will get the same package, so you are not unique at all. When you are not that unique, it makes it very difficult to build a business, because you don’t have the advantage. And this will make it difficult for you to succeed.

Why would people purchase the package under you?

Think about that…

Who Makes The Most Money in MLM

The truth is that most people make little to no money! Only the people at the top make real money. They make real money because they joined at the right time(early).

If you want to purchase the product that’s totally fine, but if you think that’s an easy way to make money that’s not true.

You’ll have to constantly chase people, messages, calls, etc. Is that the type of business you want?

If so, then you can easily join any MLM opportunity and start your journey.

Final Word

Hey, Congratulations to have made it so far. I really hope you have gained value from this article.

Let’s recap…

Again, one of the biggest facts about MLM programs is there’s No interview to see how qualified you are for the job. The barrier to entry is negligible, as long as you have enough money to buy the startup pack or the membership fee.

Those companies end up with countless inexperienced salespeople making money solely through these commissions with no sense of accountability.

What could one possibly expect for such a scenario? Especially when these people are encouraged to recruit more and more individuals, not based on their qualification, but who they think are vulnerable enough to buy into the dream.

Stop Chasing Shiny Objects!

Making money online is the result of learning from a proven method, and working hard to build your business. Not by joining some MLM Schemes.

==>>If you want to build a long term sustainable online business the right way, and without having to chase people consistently, then have a look at my #1 recommended business model.

Have you been in any sort of MLM Business? Share your experience below. Also, If you like the content, Don’t forget to share it on social media, this could help someone.

Any questions related to MLM? Feel free to leave it in the comment section below, and I’ll get back to you as quick as possible.

Thanks for the support!

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