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Oh… you’re in Network Marketing? Isn’t that some sort of Ponzi Scheme?

Yes…. we’ve all heard it before. When someone mentions “MLM” what is your first thought? Perhaps a word like… ponzi scheme, scam, pyramid scheme? Yeah, that was me too! And there was very good reason for that.

So let’s start at the beginning. Where did this MLM concept even begin? According to MSG, it owes it’s origin to ‘Nurtralite’ or formerly known as California Vitamin Company back in the early 1940’s. It seems to have emerged accidentally when the distributors discovered that they were generating more sales for the company by referring their friends and family to the business opportunity available. And so it began. Today it is not only easier to generate more sales for a company, but it is also more cost-effective as the owners do not have to jump through all of the hoops and logistics to get their products on the shelves of stores, not to mention the amount of advertising it would take to get the word out.  

Word of mouth worked back in the 1940’s… but now marry that with the social media platform that we have today and you have a concept that anyone can do from anywhere. You don’t need a huge investment, college degree… or even high school degree for that matter. But you do need entrepreneurial DNA and that includes a strong work ethic.

So where did it all go wrong? Back in the 1970’s and 80’s there were some pretty bad players running pyramid schemes dressed up as legitimate MLM opportunities. These people were focusing on the “business opportunity” (not the products) and charging lots of money for people to join, all while promising them fortune and fame. That money was then taken to pay the people at the top, leaving little to nothing for the new distributor. Then there were the companies that wanted to you save money by signing up to have products automatically sent to you every month. Well that was all well and good… until you wanted to cancel. That’s when you couldn’t reach anyone and the shipments and charges kept coming and coming! Frustrating to say the least! In today’s environment, there are still dollars to be saved by choosing to have your order processed and shipped to you on a monthly basis. The difference today is that most companies offer you access to your account online where you are in charge and it is a simple process to enroll, change or cancel your autoship orders at any given time. Thank you technology!

Even though todays network marketing model is very different, the stigma of those days long past still haunt the industry. There are a few remaining companies out there that promote all the bling of fortune and fame. A house here, a house there, new cars, blah, blah, blah. Sure, maybe that happens for some in the industry, but not for the majority. I recently learned that these companies claiming you can “earn a new car”… ummm… well, it’s not really earning a new car. It’s earning a monthly bonus to make a new car payment! And to keep getting that bonus, you have to hit a certain number in sales. Every. Single. Month. I have heard from a Lexus car dealer that those cars are repossessed all the time! Sad, but true.

Today’s network marketing model is very much the same as the corporate world structure. But there are advantages. In network marketing, you can jump over someone currently above you and make more money, depending on your efforts, of course. In the corporate world, that really isn’t the case. You can bust your butt and possibly never get promoted up the ladder, much less make what the CEO is bringing in.


But all is not lost! There is hope! There ARE legitimate companies out there, you just have to do your homework. I was fortunate enough to find one of those companies. A brand new company with a refreshing and different mission! The founders words spoke to me when he said “the industry is hurting and I want to start the healing process”. That was music to my ears. Not only did he want to operate differently, but to focus on the relationships and start building trust between the consumer and the company. That is just what this industry has needed for years! And this happens to be a publicly-traded company, which is unusual for network marketing companies and something that I personally prefer. There are less than a handful out there today!

So yes, I was one of those people that thought negatively of network marketing companies. But I have been converted. Why? Because I found the right company, with the right product, at the right time. But I would be doing you a terrible disservice if I told you you were going to make millions of dollars with little to no effort. Simply sign up, get your link and let the money start rolling in! Making bank! Nope, it doesn’t work like that. I work all of the time! But it is such a passion of mine that it doesn’t feel like work. I love it! I found a product that has changed my families life and the community that I have with the people in my company has been beyond a blessing. So will you make money? Yes. If you do what needs to be done and do it on a consistent basis. How much will you make? That, my friend, is totally up to you. And it does take time. This really is a “reap what you sow” industry. The main thing is to have integrity and develop sincere relationships.  

In closing, just remember that once you have success, there is no need to beat your chest and scream it to the world for affirmation. “A lion doesn’t need to roar to prove that it is a lion.” Stay humble my friends and always have an attitude of gratitude. I wish you much success in your network marketing endeavors and if you are interested in the company I am with, simply send me a message and I would be more than happy to share! Here’s to your success!

This article was published on 19.07.2019 by Sherry Rust
Author's business opportunity:

Elepreneurs - Health and Wellness, 99 USD to join
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Member comments:

Bryan Borg Nice review of the challenges in MLM  4 years ago

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