MLM's

Multiple Level Marketing is providing sales commissions to more levels of "affiliates". Each level below you will provide more money in your pocket even though you have done no work for their sales. When you have several successful levels beneath you, you theoretically don't need to work anymore.

It's a pyramid scheme. I don't like them. I realize some people do use them and make money with them. Some promote high-pressure sales, over the phone and in person. Be careful what you get yourself into.

Herbalife is one of the major MLM product lines available for online marketing today. I have received several emails and phone calls from different Herbalife distributors. They go something like this:

  • "Would you like to start your own Internet business?"
  • They expect a "yes' because they got your name from a list of people interested in starting a home business.
  • "I would like to send you information about how you can use my system to make money with just a few hours of work per day. Would you be interested?"
  • If you ask what their business sells, they avoid telling you.
  • He or she tries to convince you to accept a fully-refundable kit with all the information you need to get started for some small fee, which they will gladly refund. Then they will make an appointment to call and discuss it more after you have time to review the materials.

    I did once and I did return it. The next time I had a similar call, I asked directly if the products were vitamins or medical related. She admitted they were, and I told her I had decided that I wasn't interested in that product area at all.

    If you visit their websites, they are cookie-cutter pages with testimonials and promises to make you rich, but no information is provided on how or what the products are. Everytime I see that approach, I cringe.

    BEWARE! There are too many people in this scheme to move up to a high level quickly. You still have to do all your own marketing to build your traffic and hope your website (from them for additional costs) will convince people to buy your products, or start a business of their own becoming a level underneath you. And, this scheme HAS literally been "done to death".

    How many people tried selling you Amway products in the 70's and then to become an Amway distributor too - if you are old enough? Lots! My girlfriend even had a mantra and nightly motivation materials she read.

    New MLM's spring up all the time and there are others out there, even with very reputable companies like insurance and mortgage providers. Some may be disguised as complete systems with websites and products that you don't even have to buy and ship yourself.

    Some other MLM's in this category include:

  • Success University
  • Vemma Juice
  • PhotoMax
  • NuSkin
    There are LOTS of these MLM's. Many top level people might have made good money in the beginning. The real problem is they all fall apart. Their is a HUGE drop-out rate. It usually costs you an initial $100 or more and a recurring monthly charge of another $50 or so. People may stay in it for a few months and see that it is all hype, or that it entails pushy phone sales, and they drop out. Then your "downline" needs rebuilding and you give up, plus you may have lost all your friends!

    Don't be fooled! These MLM websites may be ready immediately, but they all look the same (cookie-cutter) and you can't usually even customize them yourself. Your "only" job is to get traffic and make phone calls to potential new levels of salespeople to work underneath you, and raise your level, of course. These people can be good sales people. Their incentive is high and they may be well-trained to persuade you to try their system.

    While this is not really fraud, I consider MLM's a type of scam - because they don't deliver as promised and they make it sound easy, when it's not.

    I recommend that you always know what your products are and what your work will entail before you consider any business opportunity. Read How to Research Business Offers here.

    Of course, if you want to become an Herbalife distributor, or an Amway distributor, be my guest.

    If you want to know how to benefit from learning from a credible group of experts and business people, you might want to join a credible Network and take advantage of the relationships of others in the business world, online or off. Please read my Recommendation for Network Marketing.