Multi-Level Marketing is Expensive:
1. It costs relationships. Multi-level marketing (MLM), by its very design and nature, changes my relationships. People are no longer only my friends or family, but must become—to some degree—prospects for the business. MLM requires by its very nature that you bring others into it. I have not been willing to pay that price.
Furthermore, some of the relationships that are spent are those of my family. MLM works well only if both husband and wife are equally committed to and enthused about “the business.” But even then, the time and attention siphoned away from my family relationships is hard for me to live with. Besides, I’ll miss our golf games on Fridays if that’s part of the cost.
And beyond all that, every successful MLM that I have ever seen (and I’ve seen a lot!) virtually requires my joining their social subculture in order to be “successful.”
2. It costs time. Any business endeavor will require an investment in time. Ten hours a week (such as is often quoted) strikes me as idealistic, but even if it is true, I have other uses for those hours that are more consistent with my long term (eg. ten thousand years and beyond) goals. Ten hours a week usually means ten hours on a quiet week and more on other weeks. But even ten hours a week comes out to 520 hours in a year, or the equivalent of three months of full-time work every year. I’d rather spend that with my family, or with baby believers, or even raking out my lawn!
3. It costs money. Likewise, any business will require a significant financial investment. Even if I don’t buy product to sell (but then what would I show my customers?), I must buy advertising, brochures, gas to attend meetings, costs for meals & conferences, meals for some meetings, bookkeeping paraphernalia, office space, etc. TANSTAAFL, you know.
4. It costs focus. MLM is, by its nature, an opportunistic business. That means that when I find an opportunity, I must seize it and make the presentation. (Rather like evangelism, though it’s an either/or situation. One can’t evangelize for both MLM and
5. It costs reputation. Thanks to Amway, MLM has a really bad name in America: a low-life, get-rich-quick reputation. Of course, people involved in MLM aren’t always “low-life, get-rich-quick” people, but you’d be hard pressed to convince many Americans of that. They hear MLM and they begin to look at you differently.
6. It costs my values. The last thing I need is a values war inside me. Many people have observed a spirit of greed in MLM adherants. In my experience, this is a very (I repeat, very) common problem with MLM. Soon, often before they even sign up, people stop seeing a business and start seeing dollar signs. This is largely related to the way many MLM members promote “the business:” “Look at the potential,” they say. “Think of the things you could do with the money!” I know, this is not a given. It is a serious danger; one that I choose not to expose myself or my family to. I don’t want any of my family flirting with the lust of the eyes or the boastful pride of life.
7. It costs my self-esteem. When I am in MLM, I am associated with values that are opposed to my personal core values. I am part of a group that is considered “low-life, get-rich-quick” by people whose opinions I hope to influence. I get a dozen “No thank you” and a handful of “Hell No’s” for every “I’ll think about it.”
The official figures are that one out of every twelve presentations will be interested in the business and one out of every ten persons who signs up will do anything with it. (These figures come from Amway.) That means one out of every 120 people I take the time to make presentations to will be influenced by “the business.” That’s a lot of work.
The concept of “If you work hard at your business, you can be very successful,” is true for most businesses, most jobs. If I own a drug store and work with as much focus and dedication as is required to make a success of the MLM business, I’ll be a wealthy drug-store owner before long.
Benefits of Multi Level Marketing
Now, lest I be found guilty of one-sidedness, I should present some of the “other side:”
1. If your boss is involved, it may be the “politically correct” thing to do.
2. If you are willing to pay the price(s), MLM can indeed make you rich. My personal opinion is that nobody does it better than Amway, but then Amway has so many people and so much exposure that it’s hard to make it to the big time with them. (A note about startup MLMs: the support services are usually pretty skimpy.)
3. If everything goes exactly as planned (not a regular occurance in our world, but it does happen), you can end up with a sizable residual income, if the MLM company doesn't go bankrupt. (Most do.)
Having said all that, it occurs to me that perhaps I should explain where my opinions come from.
I have studied MLM quite closely. I have a friend who is in an Amway offshoot and is probably going to be rich before he’s my age. He and I have spent probably 100 hours or more discussing Amway and other MLMs (he had studied several before joining his organization). He is a single man who is fanatically devoted to his group. He got a job as a taxi driver simply so he can have contact with more people to “present the business” to. He reads dozens of books, listens to hundreds of tapes and CD’s, hangs out with his “upline”, and attends lots of meetings. He makes several presentations a week and has built a substantial organization. He probably spends (or spent, when I knew him), 15 hours a week actively working on the business, but it consumed him.
I have also studied several MLM companies fairly intentionally. I’ve gone to meetings, read magazines and books, evaluated programs, propaganda, and merchandise. I’ve interviewed both winners and losers in a load of programs: NuSkin, Herbal Life, NSA, Quorum, Amway, Shaklee, Fuller Brush (yes, they went through a MLM stage) and a dozen or more others selling everything from diet plans to insurance and annuities to houses to home security systems to home computers. I’ve named Amway in my concerns above, but every single issue (or “cost”) that I raise above has been found in every single MLM organization I’ve looked at. No exceptions that I’ve yet found.
And last but not least. I have been personally involved in two different MLM programs. My experiences from the inside have confirmed everything I had observed from the outside.
Why did I join? I wanted to invest some of my “spare” time and make some money. It seemed like a good thing at the time. I had been approached by a man I respected. What did it cost? Every thing I’ve mentioned above and more. For years, I carried a sizable debt from the last endeavor. I know whereof I speak.
Multi-level Marketing opportunities are everywhere, and they have a measure of truth in them. If you are willing to give your life to “the business”, you can make a lot of money in some of them. They are naïve (or worse) in their communication of how much work is required. That work is better spent, more cleanly spent, in other places.