7 Poor reasons to get involved in MLM
MLMs, or multi-level marketing, are networks of companies that recruit people to sell their products. Most people involved in MLMs do not actually earn money from the sale of these products; rather, they make money by recruiting new sellers and selling a share of their profit from every recruited seller.
Some common justifications for joining an MLM company include "giving back to society," "working from home," and "making a better world." However, many traders who have tried MLM themselves will say that some poor reasons exist as reasons to join an MLM company. Here are some of the most common poor reasons to join an MLM company.
1) "To give back to society." This is probably the most common "justification" used by people joining MLMs. However, this is not a true reason to get involved in an MLM. It's not like you're volunteering at a homeless shelter or doing charity work when you're selling products for an MLM company. You're just trying to make money by selling products, and if you're successful, you'll be able to donate some money in the future. However, it's important that if you do donate money, it should not come from your profits – it should come from your own pocket as much as possible.
2) "To be my own boss." This is another common justification for joining an MLM company, but it's also not a good reason. It's true that you will be your own boss, but it's important to remember that the person above you in the MLM hierarchy is your boss too. In many MLMs, there are thousands of people above you who are also trying to make money by selling products and recruiting more people. If you do well and try hard, you might get to sit at the top of this pyramid, but this isn't any guarantee. You could end up running around doing all of the work for no reward and being treated as a slave instead (see #4 for more details).