Welcome to my review of can you make money with MLM without recruiting?
You might have been approached by an MLM representative, and the way presented the business opportunity might also have caught your interest.
Is it possible to achieve financial freedom just by recruiting? Or work any time you want?
If there’s one thing I’ve learned in my Business Finance class, it is that if it’s too good to be true, then it’s probably not true.
The hallmark of MLMs is recruitment. But is it possible to earn any sort of income without them?
In this article, I will provide an analysis of this idea and help you determine whether you should pursue MLMs or not.
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So once again, can you make money with MLM without recruiting?
Let’s begin, and find out…
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What is a Multi-Level Marketing?
Multi-Level Marketing is a business model whereby one representative creates an opportunity to earn income by establishing a series of lower networks or levels.
The network branches and continues to branch out and on and on… You get the point. If you’re familiar with a pyramid scheme, then how the network progresses is similar.
It is for this reason that some might argue that MLMs are essentially a pyramid scheme that disguises themselves as a direct selling company.
Although I agree to some degree, they are technically different because of how the law perceives them.
For example, Multi-Level Marketing is legitimate because you receive something of value upon initial investment.
And these values are in the form of retail merchandise, which you can resell for profits.
On the other hand, you don’t receive anything from a pyramid scheme. What you get instead is a promise of high returns.
Another characteristic of Multi-Level Marketing is its complex and almost incomprehensible compensation plan.
It is so convoluted that it seems like you’d need an expert financial person to decipher the entire thing.
But in dealing with MLMs, you only have to take note of two things—
- Retail Commissions – income from retail sales
- Recruitment – it is where the commissions and bonuses of representatives are based from.
Recruiting new members is a critical function of MLMs because the entire structure would eventually collapse without them.
This was intricately explained in a book published by Jon Taylor; you can check them out here.
Now, let’s continue and determine whether it’s possible to earn income without recruiting in an MLM…
Can you make with MLM without recruiting?
Success in Multi-Level Marketing is extremely rare. Just ask the Federal Trade Commissions.
According to a study conducted by the FTC, they found out that 99% of people who join MLMs are more likely to incur losses than gain any profits as a result of joining their network.
This instance was elaborately discussed in Jon Taylor’s book, “Multi-Level Marketing Unmasked.”
It was further added that most MLMs fail to meet expectations because of two things—
Have you heard of the definition Garage Qualified?
It is a special term used to describe MLM representatives that tend to over-purchase company products for the sake of improving or maintaining their personal volume.
This can become problematic if the individual isn’t earning anything but still have to make regular purchases to keep their status in the company.
Without any income coming in, it may eventually lead to losses.
Yes, this is what this content is all about—it is me discussing the implications of recruitment to an MLM network.
So can you make money with MLM without recruiting?
But before we go to that, allow me to explain first why recruitment is important to this type of business model.
Recruitment is the hallmark of MLM. It is their bread and butter, or to put a more accurate term, the lifeblood of MLMs.
And this is the case because it is where most of their income and bonuses are based.
Also, the entire structure will eventually collapse without any recruitment. It is what’s keeping the network alive, so to speak.
Imagine this for a moment—if the individuals at the very bottom of the network were unable to recruit sufficient people under them, then it means that they wouldn’t earn anything as well.
On top of that, they also have to make monthly expenses from the company in order to at least keep their status.
This will lead to a problematic situation if they continue failing to recruit people.
This is so because, as mentioned, they still are pretty much compelled to maintain their ranks.
Not earning anything plus recurring charges is equivalent to eventual losses.
At this point, continuing with the business would no longer make sense, right?
As a result, it would lead them to become inactive and then quitting the business altogether.
And then, this cycle will continue up to the next lower level, and then to the next up until the business is finally no more.
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Is Multi-Level Marketing a reliable source of income?
Just by referring to my statement in the last section, I believe that it is challenging to make any significant or reliable source of income just by relying on the products alone.
Unless you’re a big company like Herbalife or Amway, then maybe you can primarily depend on direct selling.
They are a widely-recognized health and wellness brand around the globe, so selling their products won’t be a problem.
But if the company is an upstart or obscure, then introducing them to the market possesses a lot of difficulties.
What this means is that they have to spend more on marketing.
And for such companies, and to reduce marketing costs, they may entirely rely on network marketing to help them gain traction.
And it is for this reason that they would push their MLM representatives to recruit aggressively.
And most of the time, this won’t work because the operation is now more focused on recruitment than addressing the quality of the products or services.
Another problem is that the time will come that you will find it hard to sell the business opportunity if the reputation of the products weren’t properly established.
Again, this may not be a problem for big industries like Amway or Herbalife, but it won’t be the case for most MLMs.
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Annoying family and loved ones
Another negative trait of Multi-Level Marketing is aggressive recruitment.
Have you ever been invited by a loved one or acquaintances to their homes or given a flyer by a stranger inviting you to a free opportunities seminar with free foods?
Well, I know I have. I have been approached by many of them, actually. And most of them are close friends treating me dinner or coffee, then out of the blue, they take out their tables and presenting you with an MLM business opportunity.
Some of you can relate, right?
Aggressive recruitment is commonly employed by new members to gain higher commissions and bonuses.
The dilemma with this is that it would create annoyance and even a feeling of resentment, especially if the business failed altogether.
I hope my content has provided you sufficient information about the business model and helped you in answering the question—can you make money with MLM without recruiting?
Although some MLMs are legitimate, I still don’t recommend them in any way.
As you see, the success rate is extremely low. And your chance of losing money is more likely than earning any sort of income.
If you’re looking for a more stable and higher source of income online, and then you have to continue to the next section and discover how you can achieve financial freedom online…
Why Affiliate Marketing is a better choice than Multi-Level Marketing?
Affiliate Marketing is a better alternative than any money-making schemes online or Multi-Level Marketing for few apparent reasons, and includes the following—
Affiliate Marketing Is Better Than MLMs Because...
Cheaper & Way More Profitable!
You Don't Need To Recruit or Harass Your Friends To make Money!
No Start-up Costs or Confusing Compensation Plans!
You Don't need to buy any starter kit or product!
Promote any Product (or multiple products) you are interested in!
No House Parties or Facebook Classrooms!
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Yes, what you’ll basically be doing is to promote a brand using an affiliate link through your online site.
And then, you earn a commission every time someone engages the link you’ve provided and use it to purchase the products or services offered on the landing page of the brand you’re promoting.
Of course, the success of this endeavor relies on the quality of traffic being driven into your website.
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Well, I guess that’s just about it!
Thank you for taking time off and reading my content that talks on can you make money with MLM without recruiting.
I hope to see you next time!