MLM Business Opportunities
This newsletter is dedicated to those who are looking for business opportunities such as joining a multi-level marketing scheme. So before you waste your time calling up these "opportunities" from the classified ads, read this newsletter and be warned.
Let us begin.
Times are tough. A lot of people are currently unemployed or are not happy with their job and salary. This creates a vulnerable situation, making people easy prey to get rich quick schemes or business opportunities promising crazy incomes by simply working at home.
Do Not Fall for the Trap!
I was looking at an issue of Buy & Sell, and I saw some advertisements that caught my attention…
"Earn P30T/wk, no gimmick, no selling" and… "MLM Work from home" and… "MLM Earn your 1rst million."
I admit, I was curious and tempted to join. So I asked my wife, Ges, to "inquire" about these exciting opportunities. So she called them up, and surprise, almost all of them have the same modus operandi which is…
Wait, before I tell you, let me share with you the ads, and what they were really about (the phone numbers, company, and name are edited out).
Enough. Hopeful by now you realize that these "opportunities" are not as attractive as the ads would have you believe.
Let me tell you why.
Notice that most of these business opportunities use a multi-level marketing scheme and... to join the scam… sorry, scheme, you need to pay a "fee" for membership, insurance, or whatever reason. Does this make sense… you have to "pay" the company for the privilege to work for them? No thank you.
Second, their sales talk is centered around how much money you can make by "recruiting" people to join the opportunity, rather than focusing on selling the product. By the way… the products are not easy to sell, so the business opportunity lies in "recruiting" people, wherein you get a commission per recruit. What commission? The commission on the "fee" that new recruits have to pay for the privilege of working for the company, selling their hard to sell products.
Third, multi-level marketing or MLM is flawed. Let me explain. Assuming that the company has an excellent product, no matter how good, there is a limited market for this product. Now, MLM allows the sales force to grow to exponential proportions because of the "downlines." And unlike franchising, MLM does not offer you "territorial" protection. That means there may be hundreds of you selling the same product, in the same area, to the same market.
Eventually you will have too many people selling a product to a limited market. So the poor people who are down the line, or at the bottom of the "downlines" are stuck. They would have paid their "joining fee," they would have paid to buy the products which they will sell, and they will find out that there is no market for the product.
If you do not believe me, let me tell you a real story. I have a friend who works as a gym instructor. He is a smart guy, and has won the Mr. Philippines bodybuilding contest due to hard work and dedication. He is a natural bodybuilder.
Now the story goes like this. My friend is "recruited" by his friend to join a MLM company to sell supplements (e.g. vitamins, herbal stuff, etc.). The sales pitch is that other members are making thousands and millions of pesos by visualizing their goals and working hard.
The pitch also goes… the more you recruit… the more income you will generate.
So my friend joins, and he must buy a box of these herbal supplements, costing around P9,000. He then has to pay to get marketing materials that will help him sell these supplements. Fine… excited, my friend goes around selling this stuff. Anyways, how hard could it be? He is a former bodybuilder champion, and he is endorsing the supplement. So how much has he sold in one week? Thousands… hundreds… no, the grand total is…
3 Bottles Sold For a Whopping P1,500 Profit
What's that you say, not too bad? Well consider this, he approached about 50 people to make the 3 sales. To make P15,000 a month, he must approach 500 people. And to make P30,000 he must approach 1000 people. Come on… is this the path to making millions?
Ok, you want to try it. Fine… first you will try to sell this overpriced product to your friends and families. You will also try to recruit them, because the more you recruit, the more money you make. But what happens? Your friends and family will eventually know that they have been had, being stuck with products they are unable to sell. So congratulations… you have managed to destroy your friendship for a mere P1,500.
Ok, you want to sell to people you do not know? Good luck. How are you going to approach the thousands of strangers you need to make any decent amount of money?
MLM is Madness!
Let me repeat… MLM is madness. Do not waste your
time… and find real ways of making money.