Is Multilevel Marketing a Scam?

    Many critics of the multilevel business model see it as a pyramid scam, where those who got in earlier are paid at the expense of the new entrants. They claim that no mathematical equation can support a pyramid, because it would mean that at a point, there would be no one left on earth to join if everyone were to join.

Other critics also claim there is a high failure rate for multilevel marketing and network marketing, sometimes as high as 97%, and majority lose more money than they make.

I am going to show readers why these arguments are flawed, and how they can overcome the limitations to their own advantage.

     To address the first question, I would use the words of Donald Trump, a world renowned entrepreneur and real estate guru, who said and I quote, “I am often asked if Network Marketing is a Pyramid Scheme. My reply is that corporations really are pyramid schemes. A corporation has only one person at the top, generally the CEO, and everyone else below.” MLM is really a small business franchise, where a larger company gives opportunity to individuals to do business and make profit, eliminating middle men. The advantages of network marketing are enormous:

·         You don’t have to quit your day job.

·         You spend less hours and work at your own pace

·         You leverage on the efforts of others.

·         You start with a relatively small capital compared with a traditional business.

·         You can earn as high as you want, depending on your own efforts.

·         It is a relationship business, where in order to succeed, you have to help others succeed.

      Of course, there are many scams out there, but at the same time, there’s so much information on the internet on how to locate the right opportunity. And Multilevel marketing is 100% legal.

         In answer to the second question, I would point out that it is on record that 95% of small business start-ups fail in the first year. Multilevel marketing is just like any other business, and the 2% failure rate greater than other traditional businesses is because most people do not realize it is actually a business they need to work at like any other business at the time if signing up. They are also deceived into thinking that riches come instantly. They get discouraged when they see it is not as easy as they thought and fail out. But MLM is actually easier to run than other business models and takes less of your time.

So, the solution to all these is the right education. Know what is involved to run a successful business and what is expected of you. Do your part, be consistent at it, help others, and watch success show up on your doorstep.

For more information on the right company to join, contact me on +2348035087631 or subscribe to our newsletters on this blog.