Multilevel Marketing Businesses:
Concerns, Risks, Research to make informed decisions
My intention with this post is to offer some clarity and hopefully helpful links so that we can all make more informed decisions with our futures, our money, our time, our dreams and our careers. The referenced articles offered at bottom are based on practical evidence based on what is actually happening in these business models for the majority of participants. The referenced articles also provide insights on how some business models are presented using intentionally misleading information that preys on trusting, beautiful, intelligent, well-meaning humans who just want to make the world a better place and provide better for their families. Because sometimes, in our passionate desires to be better, we can hear what we want to hear and see what we want to see. This post is shared with love, respect and hopes that we all invest ourselves and our resources based on truth, authenticity, ability to see multiple sides and sound decision making ~ ideally with wild successes! Further conversation from myself and my team are offered in the JRF Members Practitioner’s Group Coaching Session #2, prompted by a member, Karin’s question:
“Hi dear Jill, and fellows! As I did my [financial] books for 2019 I saw that even though I’d been well booked [with clients/students] it didn’t make financial sense to keep renting a room in the yoga studio anymore. On the same note it doesn’t make sense to do the last part of the acupressure training to get a piece of paper, as I would never recover the money. I already have a hobby that I love and love to pay for, dancing. When I talk to my fellow acupressure practitioners, basically no one makes money, hardly even the teachers! I’m still glad I did it, for myself and the connections with people, but it feels good to stop now and go back to nursing if I need money. Maybe the school makes money, but I think not even! This is so clear and I feel so free, light and joyous now, but what is the guilt lurking? Much love, Karin”
The answer is available in that event’s archive here. In that recorded event, I also share my own not so pleasant, expensive, surprising, initially innocent lunch invitation experience with an MLM; Do Terra. Individuals often become part of MLMs with goals such as:
- Creating additional income,
- Creating passive income (where money is just coming in, not based on your hours/time)
- Becoming an entrepreneur,
- Working from home,
- Working for yourself/Be your own boss,
- Flexible hours,
- More upside potential than an hourly or salary career.
MLMs experiences often lead to less than stellar financial results, as noted in the referenced articles at bottom. I have noticed similar situations of underwhelming financial success with many in the fields of yoga teacher training, reiki masters or other healing modality certifications, life coaching, and various spirit-based services. It seems apparent that most pursue such training and certifications with the intentions of it becoming a source of income, and even a successful career, not unlike more traditional college/university degrees. Many seek such ventures to reduce financial pressures and stresses. And yet in MLMs, with higher level reps depending on growth of those under them, there can be tremendous, ongoing financial and time obligations expected to succeed in the business venture, thereby actually increasing stress and causing debt levels to increase, vs. decrease… Stress is further increased for those individuals that are led to believe (brainwashed even, in some cases of very slick, almost propaganda-like marketing) that their level success or failure is entirely up to them! Speaking as an MBA, with decades of business experience, along with my undergraduate degree in Economics and Finance, this premise is utterly nonsensical. Consideration for any business’ success or failure must also factor in whether:
- present demand for the service/product (note: not awareness… demand ~ raising awareness to then stimulate demand is a much more cumbersome task which requires very special skills and clear, strategic messaging)
- whether the market for such services/products is actually increasing, stagnant or contracting,
- how well competing (or the same!) offerings serve the needs of target customers,
- how many competing suppliers there are (increasing, stagnant, contracting)
- the economy overall is conducive to purchases in such services/products, among other also uncontrollable factors.
It is common in situations of a less than successful business venture that a loved one points out that the business isn’t doing as well as their loved one expected and often the hopeful entrepreneur takes it personally, potentially even responding with, “so you’re saying I can’t do it?” But, again, a business’ success or failure is often based on multiple factors, most of which are beyond the control of the entrepreneur! In actuality, the concerned loved one may just be pointing out that the initial premise for starting the venture, is turning out differently… and they are legitimately, and perhaps justifiably, concerned. When the hopeful entrepreneur takes the concern personally and becomes hurt and/or defensive, it makes it difficult for authentic conversations, which is what is needed ~ especially when the ongoing flailing business is costing more and more money, and making the financial tension worse, when it was pursued to make things better. Complex problems are often solved by considering many points of view, especially views that are outside of the business structure itself, and wholly impartial and independent. Here are some links to articles that seem related, authentic, and highly relevant for this topic. Of course, we deserve, and can handle the truth, even when it isn’t what we may want to hear.
MLMs Mainly Target Women, Promise Financial Freedom (Huffpost)
Likelihood of MLM Success (data!)
Federal Trade Commission Report on MLMs, Cautions and Concerns
Be Careful: that MLM Side Hustle May Be Illegal (Washington Post)
Huge hugs and love to all here and cheers to high integrity, authentically offered personal growth opportunities, Jill
Other red pill financial perspectives offered here.
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