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Worst Things in Network Marketing Business (MLM)

Networking marketing businesses (MLM) nowadays are like mushrooms that quickly appear and disappear. I don't know why many people are so crazy when they heard about this kind of business. Is it because for the sake of boosting yourself of having bigtime or "payaman" business. Or is it because you've heard from many business gurus or influential authors who said that network marketing is the trend this days? Well, having a business like a network marketing business (MLM) isn't bad a thing. It's a good way to start (that is if you have no other business ventures you can think and start with). But don't you know that your good start of having this kind business will end-up to nowhere or waste of time or money if you do not know these worst things in network marketing business?
What are these worst things in Network Marketing Business (MLM)?

First, the network marketing company you've joined is not legally established. If that company is not registered in the Securities and Exchange Commission or Department of Trade and Industry (DTI), that company is "colorum" or illegal.

You might say again, "My company don't have problems when it comes to legalities. My company is legit and have complete papers that I can show you". Yes, your company might be legal but what about how about the compensation scheme they use? The company might be using a pyramiding scheme or a non-sustainable business model that involves compensating the distributor/member primarily for recruiting another member rather than selling any real products or services. If that company that uses pyramiding have real products, these products are just frontliners to hide its true identity (pyramid structure).

Network Marketing Business Pyramiding

Where could a pyramiding MLM company lead or end?

The company could eventually lead to a point where the supply of potential distributors/members is exhausted and the pyramid collapses [TOTAL FAILURE]. Only the top levels can enjoy and make significant amounts of money in this type of company. Those at the bottom level who were not able to recruit any members would end up with a deficit.

What else?

Fake testimonies. Lots of people who use products from a network marketing company are claiming that they were relieved in their sickness or disease. They might be cured but most of them lack documents or technical information to prove their claim.

Force a friend or a stranger to attend a seminar/orientation. Your friend will fall into prey from your force invitation. If you are a network marketer, from the 500 people you invited, how many of them really benefit and succeed in this business? 90%, 5% or shall we appropriately say 0%. If you force a friend who is not interested in this business, you're just wasting his/her money and time. And yours too.

Instability or increase of inactive downlines. Just imagine, you have a huge downlines and you are earning a descent income today. Fast forward 5 years from now. Are you still hoping that your downlines will increase and can earn more money? 5 years of operation of network marketing company would saturate the market in your country. Ask those who are pioneers in a network marketing companies. Where did their downlines go? Most of their downlines became inactive and small number transferred to another new network marketing company. If you still didn't know, some originators and top executives of an old network marketing company created a new network marketing company. Why new? Because the old is saturated and people don't like it anymore that's why you can observe that new mlm companies are created by former mlm top executives.

And a lot more negative/worst things in network marketing business (MLM)...

Do you have a negative or bad experience with your network marketing company? Tell us in the comment below.

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"Worst Things in Network Marketing Business (MLM)" was written by under the Business category. It has been read 2620 times and generated 0 comments. The article was created on and updated on 06 July 2012.
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