MLM Business Opportunities – Think Before Joining

Almost everyday, I hear about a new product or service that is the next big thing to make a lot of money.  It is obviously quite possible to make money with a new product or service, and quite often people sell this idea, through MLM, which stands for Multilevel Marketing.  A majority of opinion is that MLM is simply a legalized pyramid scheme and at times, it is truly a pyramid scheme (I do not have the stats but my accusation is true).  These products range from Ariix, to Vacuum Cleaners, to Herbalife, and many many others.

Are they scams or not? 

My personal bet is that it is better off to just start your own business then use an MLM, as quite often, the company is simply trying to sell you a dream and they make money off of selling you the startup costs, which are usually quite high.

A lot of them work similar to how pimps work, which is that they sell a dream to a girl and then turn her out in the streets, which is what a lot of MLM salesman do.

It’s better to start your own business, figure out your “Just In Time” costs, the time of creating and delivering the product, the overhead costs, and then purchase when necessary and then sell the products for a profit.

It really is not necessary to get into an MLM to start a business and make a profit.

You have just as much of a chance of making money, probably much higher and better, on your own, then with an MLM.

The very basics of business are stated by Warren Buffet, one of the richest men in the world – you buy low, and you sell high, then you figure out how to automate that process, to multiply your profits at a rapid rate.

It is also hard work to sell and have your own business and usually the business owner works way more than the employees, no matter the business.

Business in simple terms…

The most important part of any business, is the product, no matter what it is that you want to sell.  You figure out a product, whether it is a service or a material product such as a CD, you figure out the value in the market.  You figure out the value and your aim with your product and then you sell it as such.  A good example is that Benz is a high end car, which is why they are so expensive and they retain their value quite well, despite age.  Benz backs up their product claims because if you check out the cars, they are actually very well built and are awesome vehicles to own, if you have the funds.  Benz also has an affordable C-class vehicle which is about the same price as a new Honda Civic but gives you way more than the Honda Civic.  However, Benz does eat up a lot of 91 Supreme gas.  Hyundai on the other hand is the super affordable range for people who need a vehicle and they try to give as much as they can for the price but does not have the perks of a Benz.

Considering the above, it is one of the reasons that MLMs fail miserably most of the time…

MLM is simple terms…

MLM, generally does not put value into the product and more value on the “business opportunity”, which you can just as more easily start yourself with any product of your choosing or choosing a more established brand to sell.  Their whole process runs by a pyramid scheme of people trying to convince other people to pay a monthly fee to sell the products with a sales pitch of intimate wealth if they do.  It fails to explain that, the end part of any business is an actual sale of the product, otherwise, no money is made, whatsoever.  Any sales force you generate, will not stick to the monthly plan of payment for goods that they can not sell.  Most MLM products are overpriced crap that has no true value.  The system relies more on generating a sales force and making money off the sales force, rather than helping the sales force make money.

A prime example is Ariix…

The sales force of this MLM company try to claim an insurmountable amount of a wealth opportunity and that the brand sells itself.  The brand is not well established and even well established brands repeatedly market and advertise to sell their products, so that statement in itself is a complete falsehood.  If they convince you, you pay about $150 a month, to sell their products, and keep receiving products, even if you have not sold what you already have.

In this example, the only person benefiting from the transaction is the person that convinced you to join and sell Ariix.  So on top of making a piece of the $150 a month from you, they still have not “sold” the products on the weight of the product’s value.  Rather than work like normal brands where you purchase as much as you need, and then sell what you can for a profit, you are on a contract to use $150 worth of product a month, whether you sell it or not, for a profit.  When no one has the ability to pawn off the actual products to a customer, the only person who made money is the person who sold you the opportunity to make money, and the brand itself, leaving you hanging, whether you like the products or not.

This is why I mentioned earlier in this post, why the actual product is important to any business.

You need actual customers to make money.

You can only hustle so many people of an opportunity before it proves to be a stagnant opportunity or waste.

On top of that, the person who sold you the opportunity, even if you are able to reel in another “prospect” or sell the actual product to a customer, the person above you takes a cut from your profit and a cut from any person you reel in as a “prospect”.

Rather than join an MLM, you can easily just buy any brand or product at wholesale value, and then sell it on your own, through networking, at a profit, and you make the profit you want from your own sales.  You do not have to worry about any reps you sign up and how they represent the products sold.  You have full control of your sales of the product and how it is sold.  You are also not forced into a contract of products you soon find out are unnecessary for your monthly bills.  You are then truly starting your own business with your own choices, and you do not have to peddle people into the pyramid scheme.

After that ordeal, I decided Ariix just isn’t right for me. Not only are the representatives pushy, abrasive, and recruitment oriented, but I just can’t see myself calling up my circles of friends and trying to persuade them to join a company who sells products I don’t believe in. In my humble opinion, their whole idea of “creating your own team” is just a way for them to get more people to peddle their products, while putting them under the illusion that they have their own business.

Ron Lorenzo

The MLM system uses a “pushy” approach, that does not bode well, because in essence, they only make a profit and money, if they push the “business opportunity” to you or sell you a product.

They are desperate for a monthly income and will say anything, due to the circumstances created, that causes such actions.

It causes greed, and friendships and relationships ruined, while the MLM reputation adds onto it’s bad name.

A product and customer based value system of business, is based on a modern approach, whereby the customers come to you and through care and kindness, you build a customer for life, and you make money for life off that person and their network of people.

A product and customer based value system makes something that people want to buy, and not be sold, with snake oil sales pitches.

Ariix for example sells a package that is $1200, but they make it seem lower priced by saying $100 a month.

Do not let their city slicker talk fool you – you can make money in endless amounts of opportunities, so follow your passion, and create something that you want and others would want, and money will come in the end.

Focusing on quality, value, and potential customers, will make you more money than any MLM.

A prime example is the inventor of Facebook – he wanted to create a social network because that is what he loves to do and now he is a billionaire.

Most wealthy people are not MLM marketers but are self made and create their own path.

Businesses are a gamble…

MLMs also fail because they sell you a guarantee of success, and the fact remains, everything in business, is a gamble.  You can undoubtedly fail at any business.  Donald Trump, although now wealthy, has failed miserably quite a few times.  You can minimize the risk by doing research on whatever product you are planning to sell.

Using Ariix as an example, have you tested the products, by objective scientists, that are not associated with Ariix?

If safety tests have been done, do they give out a guarantee on their products so that if customers are unhappy, they can return the product?

Does the company have free samples, so that potential customers can see if they like the product before buying it?

Before you join Ariix or any other MLM and spend $1200, which is quite a huge loss if you fail, you should test out the products and see if it is even viable to sell.  The opportunity does not allow you to buy what you need and sell what you need, as you need it.  Ariix sells a $1200 package and that is it, whether you sell or not, if you take their opportunity.  Ask yourself, is that an amount of money you are willing to lose, if you fail.  Me personally, I do not like how they work, and prefer to buy what I need, when I need it, and then sell it when I can, rather than be contracted to buy so much product, and not be able to sell it.  I give it a big thumbs down there, because I consider it a slave contract.  The only person benefiting from the deal is the person who just sold you $1200 worth of product, that potentially nobody wants or needs, and the other party is the brand is benefiting from milking $1200 from you, while giving nothing of value in the transaction.  What is left over, is an unhappy purchase.

Conclusion

I would say that MLMs have a high risk and low payback value.  Sure it is possible to make money, but there are millions and billions of ways to make a dollar, without resorting to MLM tactics.  MLM tactics are outdated and will not work on a majority of people.  I personally feel companies like Ariix are a scam and a pyramid scheme, but that is my researched and personal opinion and I wrote this as a warning to others before joining any of the MLMs.

If at least one person is helped from losing money from this, I will be happy to have helped you.

Of course, I am all about being fair and objective, so do your research before agreeing with me.

Follow your passion, whether it is to be a doctor, a lawyer, a CSI, a musician or a basketball player, or whatever it is.

Your odds are better at doing that than joining an MLM.

The inventor of Fatburger made hundreds of millions due to his love of the hamburger, and he made a business out of that.

Song Ci was passionate about being a detective and invented Forensics.

Think about others and yourself and what you love, and you will have more success than any MLM.