1) First and foremost, before u even start on the business, a lot of money is required to buy necessities such as guide books, tool kits, to attend courses (which are in fact utterly useless), as well as the highly costly membership fee. From this very first step that you take, you have already lost money to the company.
2) Socialising is a need in today’s business context. The money that you pour in into making cold calls, attending meetings, dinner invitations made in the hope to promote your business, all these cold, hard cash comes right out from your own pocket.
3) If your business plan presentation is not up to standard, your friends and relatives may shun you, as they are afraid that they would have to fork out more money to “support” your business schemes. Hence, they would avoid you and keep themselves away from you.
4) Lets ask ourselves a question. Who would like to buy something that cost more than the market price? In fact, the market for expensive product is very small, and no one product is totally unique and irreplaceable. As the saying goes, “There is no greatest product, but only the greatest salesman.”
5) Those higher up the rungs of the MLM ladder often provide the misconception of how easy it would be to obtain success in the MLM industry. In reality, 99% of the people will fail to do so, as they lack the marketing skills and selling expertise required to make it. The research done before joining the company further diminishes chances of success.
6) ‘Residual income’ is a term that implies that one need not work in order to gain profits. Many assumed that MLM is a residual income generator. However, this is not true. Effort is required to earn profits via MLM. On the occasion whereby company shares are bought, the above statement may be true, but not for one that joins the company as a distributor.
7) Working at an MLM is very time consuming. Time is required to look prospective buyers, to persuade the buyers, and also to think of innovative ideas to “trap” the next “silent goat”, all in the hope to keep food on the table.
8) All your efforts put into the MLM career will go down the drain if you decide to leave this career path eventually. This decision will leave you without any future, nor guarantee of living. The disability to control the product price and quality, marketing plan as well as the network, all attributes to the extremely high risk of having an MLM job, while the returns are not that fantastic. Using an analogy, a hawker would have more say as compared to an MLM businessman!
9) To reiterate, an MLM job is an extremely high risk job. If u fails, all you are left with is a pile of unwanted stocks, useless study case and of course a great amount of debit waiting for you to settle. Thus, a failure in the MLM would mean that you will lose more than what you get before joining the MLM.
10) Once one lost one’s own reputation it would be almost impossible to recover it. On the occasion whereby your downlines fail in the business, your own reputation will also be lost as you are the one that first told them how easy it is to make money in the MLM business. Claims that you have cheated them would be made, and it would be difficult for others to believe you again.
Hence it makes one wonder, what is the actual meaning of MLM. Is it truly Multi Level Marketing or is it Money Lost Marketing? I believe you should be smart enough to choose the correct answer!