MLM has a number of pros and cons and it also has a lot of controversy surrounding it.

The Concept of MLM

MLM, (Multi level marketing) and network marketing are used interchangeably.  MLM is quite possibly one of the most simple to grasp business models in the world.

If you have ever told a friend about a movie that lead them to see it or referred your co-worker to a chiropractor, than you have participated network marketing.

Network marketing at it’s core is informing your peers about products and services that you endorse.  We do it all the time without realizing it.  However, the difference between your regular conversations and the industry of MLM is that you can be compensated with the latter.

How MLM Works

You come to the table with products and services that you believe in and make some sales.  Some of your satisfied customers will want to cash in on the sales opportunity too .

Your objective will be to find people whom you can build a sales organization with.  When sales occur within your group you can earn a residual income from the sales activities.

Of all the MLM pros and cons, most of those in the industry consider multi level marketing as the most viable means to generate wealth within community.  Just realizing that each person that you sale products and services to could eventually represent 10 or 20 other sales can make your heart skip a beat. Network marketers subscribe to the idea that the larger your network, the greater potential of your net worth.

The Industry of MLM

MLM is part of a larger conglomerate, namely, direct selling.  You’ve heard of direct sales companies like Mary Kay and Avon.  Direct selling cuts out the middle man and provide individuals with an opportunity to deliver goods and services to the marketplace directly.  In other words, people are the franchises instead of buildings. It’s a novel idea and big business too.

According to the Direct Sales Association, direct sales reached over $179 billion in 2020.

Everything from health and wellness products to legal services and more are part of the direct sales industry.

MLM Pros and Cons: Legitimate Criticisms

While there are people who have done very well financially in the industry, there is also a lot of hype associated with financial success stories.

When considering MLM pros and cons, one of them is outside perception.  Many people think that MLM is for people with a limited education.  Others say that MLM is for people who don’t have a clear career agenda. Neither is factual.  The industry has people from all types of backgrounds and lifestyle statuses.

MLM is usually considered a scam or, pyramid scheme, in which people at “the top” make a ton of cash, while those at “the bottom” don’t make much at all.  By this description, jobs are also pyramids when you look at the salary of a CEO vs an entry-level worker.

Nevertheless, in MLM, the purported idea is to start every entry-level person at the top of their own pyramid, thus creating a continuous chain of owners in the aim of eliminating a bottom.

MLM Pros and Cons: Why The Long Face?

Most MLM stories don’t turn out well.

The majority of network marketers are not business professionals. Many network marketers are also not dedicated to the process of operating a business.  Meanwhile, a lot of network marketers think that they can just transfer their skills of being successful from a previous industry and automatically win big in MLM.

Furthermore, another consideration within MLM pros and cons is the importance of evaluating whether or not a company has poor sales systems, recruiting systems and business practices.  MLM business system should be ethical and duplicatable just like in a traditional business franchise.

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MLM Pros and Cons: An Experience All Too Common

A major con of MLM is getting introduced to the industry by people who simply have selfish agendas.

Let me give you a common example.

A former co-worker calls you pumped up about a new business opportunity. You are interested in learning more, so a couple of days later, they stop by your house to give you some details.

Everything sounds good, but you still want more confirmation about this opportunity.  You go to a hotel meeting and meet some nice people.  During the meeting, people share testimonials about how their life and income has improved with the business opportunity.  Then you listen to a presentation that answers more of your questions.  During this meeting, you start dreaming and the prospect of getting out of credit card debt, buying a new car and taking vacations makes you enthusiastic.

You are still a bit reluctant, but you see great potential and you trust your former co-worker.  You fill out some paperwork, pay a nominal fee to register within the business and viola!  You’re in business!  But wait! Over the next few weeks, you co -worker has become less accessible.

Your former co-worker was more interested in making a quick sign up bonus off of you instead of assisting you in launching your business.  Now your investment has turned into a waste of money.  You have a bitter taste in your mouth towards these types of operations.

Choosing an MLM Company Wisely

If you are considering getting started in network marketing, choosing the right opportunity is critical.  When you learn the details of a product or service, it can make all the sense in the world, but if you don’t have a true belief that it will work, you will fail.

When evaluating companies give careful consideration to their reputations.

MLM Pros and Cons: Relationships

A popular saying from the late personal development guru Jim Rohn is: “If you help enough people get what they want, you’ll get everything that you want.”

Those in MLM who do selfish business experience a lot of resentment in business.  Some have ruined once meaningful relationships for good.

If you are introduced to an MLM opportunity by someone you know but don’t feel the most comfortable with, do not feel obligated to lock arms with that person.

Get exposure to multiple people that are doing well within the opportunity.  An appropriate mentor relationship is critical in your network marketing success.

The Culture of MLM

The prospect of money and time freedom are largely what keep network marketers around.  However, the bonds built through the industry is one of the biggest retention magnets.  Network marketing can be a very fulfilling industry to be in socially.

There are meetings and events that most companies have that are meant to motivate and educate representatives to keep striving to meet their goals.

Events are where people gain their belief and develop their business “mindset.” Speaking of the term mindset, as a network marketer, it’s one of the terms you will fondly grow sick of as it is used exhaustively.

The idea is to change from an employee mindset, into an entrepreneurial mindset. From saying, “I can’t,” to “I can.” From saying, “I wish I could,” to “I know I will.”

Knowing What To Expect from MLM

One major mistake made by those in multi level marketing is associating the price of enrollment with the value of the business.  In network marketing, you can start a business for a couple of hundred dollars or even less. Because of this, some people do not take the business that seriously.  Working an MLM business is a commitment.

Finding Balance in MLM

One of the MLM pros and cons to consider is how the culture can influence your outside relationships. Avoid becoming so consumed with your business that conversations with your friends and family are now dominated with MLM talk.  If people feel you can’t talk about everyday topics anymore, they will be turned off. Understand that multi level marketing is largely an attraction based business. Trying to constantly deliver a sales pitch can make you a nuisance.

MLM Pros and Cons: Having The Right Perspective

Sometimes the best measuring stick to gauge the value of something, is to examine the overall benefits that you receive from it.  There are some MLM pros that don’t always show up in dollars and cents.

Many people have also been able to overcome shyness and combat negative emotions through network marketing training.  Others have learned time management skills and improved interpersonal communication.

You may determine that the industry has something to offer you.  For those already involved, you can reevaluate the importance that the industry has in your life and future goals.

For more business tips see: PITFALLS TO AVOID IN BUSINESS

Written By: Waymon Brown. Creator of theesquireproject.com. Email info@theesquireproject.com