Being Aware Of Multi-Level Marketing

Have you heard of companies such as Amway, HerbaLife or even Primerica? If you have, you may or may not be aware of multi-level marketing!

What Is Multi-level Marketing?

Multi-level marketing or MLM is a business model that uses a network of independent distributors or representatives to sell a product or service.

The main idea behind the multi-level marketing model is to promote a maximum number of distributors to sell products and services. The distributors themselves are pushed by a promoter to recruit more distributors.

It has been called network marketing or even pyramid selling. As a result, multi-level marketing has been compared to a pyramid scheme.

Pyramid Scheme vs. Multi-level Marketing

A pyramid scheme is an illegal financial scam that's disguised as a real business.

A promoter makes money by recruiting an ever increasing number of "investors". These "investors"are pushed by the promoter to recruit their own "investors".

Being an "investor" may require you to pay a fee to the promoter.

Pyramid schemes are illegal because no product or service is being sold. Instead most of the money made by "investors" goes to the promoter at the top of the pyramid.

Is Multi-Level Marketing A Glorified Pyramid Scheme?

There's a chance that you may know someone who've been involved in a multi-level marketing company. Maybe you've been involved with one yourself.

Maybe you had a friend who was a distributor and you were recruited. Perhaps you sat in on a seminar hosted by a promoter making unrealistic claims about unlimited earning potential.

The promoter might have use buzzwords and pitches such as financial independence or be your own boss. They might even use a pitch that's overused by politicians, "Achieve and live the American Dream"!

As a result, you may have been sucked in by what was being promoted. Before you know it, you're investing your own money to become a distributor for that company.

It's not long after you become a distributor, the promoter starts pushing you to recruit family and friends to become distributors who would work under you.

Overtime, the pressure from trying to meet unrealistic expectations starts to wear you down. Before you know it, you're realizing that you've either made no money, made minimum wage or broke even after investing your own money.

When you confront the promoter, you'll start asking them if he's promoting a glorified pyramid scheme.

The promoter might get defensive and claim that it's not a pyramid scheme, it's really a trapezoid.

Some promoters might even use passive-aggressive tactics if you either ask questions or want out.

For example, tactics used by cults such as guilt, shame, slander as well as discrediting you for speaking up or trying to leave.

How To Leave?

It can be hard to leave from a multi-level marketing company, especially if you have too much invested into it already.

However you might finally get fed up when most of what you earn goes to the promoter at the top of pyramid. Also, you might finally get fed up with the creepy cult-like environment the multi-level marketing company created.

Start by cutting off contact with not only the promoter, but the other distributors. This can be done by removing yourself from social accounts as well as ignoring texts. By doing this, you'll avoid the guilt, blame or pressure from those who benefit from you staying.

Let as many people know as possible that you're unloading the products you meant to distribute.

Investing so much time and money into a multi-level marketing company probably resulted in you pushing away friends and family. You're going to need their support as you pull away from your MLM.

Maybe it helps to be honest with the promoter you're trying to pull away from. However, if they're still using the same cult-like tactics, don't even bother.

Finally take a deep breath and forgive yourself for not making the money you wanted. Most importantly, forgive yourself for making the decision for becoming part of multi-level marketing.

Have You Ever Been Involved With Multi-Level Marketing?

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Sources:

www.citadelbanking.com

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