What is MLM and Why don't most people get it?

What is MLM? Why do people think it's a scam? What is the distinction between Good or Bad MLM operations?

There is a whole lot of attention all over the Internet regarding Affiliate Marketing. Thousands of companies now have an affiliate program. So, you pick a niche, find a product, advertise the product, if it sells, you get a referral check. You are representing the company/product and for "spreading the word" you get rewarded. You don't have to mess with inventory, processing orders, handling complaints or returns. Instead of traditional advertising, the company will gladly pay you to do it instead. That's a simplified overview, but that pretty well sums it up. 

The downside is scale, once the sale is made, that's it, unless you have a system to continue marketing other stuff to the customer. 

Now we look at another alternative. You represent a company or maybe it's your own and you have some really good widgets to sell. So, you build a sales team, pay salary plus commission, or get lucky and they'll work for commission only. Now you have employee issues, not to mention all the logistics, the paperwork, the costs associated with offices, warehouse, R&D, marketing materials and the list keeps going. Not sure how that sounds to you, but it's out of reach for most people and time freedom...forget it.

But, what if we take the Affiliate Marketing Model, and build a network of independent reps. just like yourself, and all anyone has to do is spread the word about their widgets, or what have you. No employee issues, offices, warehouse, electric bill, none of all that mind numbing stuff. And, it's scalable, you can duplicate yourself, and your tribe can get pretty darn big. Well, that's MLM. And reputable companies around the World have chosen the MLM model over traditional advertising and employing a sales force. Avon, Mary Kay, thousands of household names have successfully used the MLM model and a lot of people have done exceedingly well for themselves.

So, what's all this talk about pyramids and scams?

First, let's get the pyramid out of the way. Every business is a pyramid. So where does the scam part come in? 

Now things get a little murky, so first the basics. 

No product, No service and recruiting new blood is the only way money changes hands equals Scam.

Now you can dress it up, call it gifting or crowdfunding, or "investments" but no product, no service equals Scam.

Now for the fun part, and that's where due diligence comes in. We have all sorts of programs that offer educational or training materials, courses, and we have other "shall we say gimmicks" that the members fork over money for. The catch usually  is you can't get paid for the deluxe widget until you have purchased the widget. 

Here's my humble take on this approach. If what you are selling is NOT something any living soul would buy outside the membership, you might want to think twice, make that three times. The feds are shutting a good number of these down and rightly so because they tarnish an industry that's always struggling against being bad-mouthed. 

Enter the scam alert people, God bless em. 

We have the folks who buy a kit, go to a meeting, or check out a webinar, and fizzle out. They can't believe they actually have to do something. They jump from deal to deal and call everything a scam.

Then you have the people who mean well, but can't follow instructions, or their mentor...they're going to do it their way cause by golly they've got this thing dialed in. And... it fizzles, and gosh darn it, it's a scam.

And my new favorite, I call it a scam scam. This is the big thing online. You claim to do a review on (you name the company) with the hook "is XYZ company a scam"? Oh, boy, better look into what this yahoo has to say. 

We read or watch his Youtube video just waiting for "the proof", and we get to the end, and he says...no, it's not a scam, but he recommends his deal! Awesome, you are such a poor marketer that you have to act like you've got the dirt, only to try the bait and switch ploy.

So is there any wonder why some think all MLM is scammy? We have morons pooping in their own nest, and it's stinking up the whole tree.

More folks are making fabulous incomes and living life on their own terms with the MLM model than any other model in existence, and it's available, accessible and doable for the average person.