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The Dangers of Network Marketing
By: Michael Press
"I MAKE $5,000.00 A MONTH BY WATCHING TV! LEARN HOW I DO IT BY CALLING....". That's a typical network marketing ad. Network Marketing programs, also called MLM's, allow an average person with little money to start his or her own business, without all the headaches and hassels of a business. Usually by paying a simple membership fee, the person joining the MLM can then sell products or memberships to other people, and make money. MLM's require you to not only sell a product, but also recruit people to sell the same product, and those people should recruit people to sell the same product, etc. Almost all MLM's put more emphasis on recuriting more people, than selling the products.
There's one problem with MLM's, You will NEVER become rich by joining one! The only people who get rich with an MLM, are those who started the MLM. Here's an example: The most famous MLM out there, which doesn't exist any more, is known as Amway. Amway had Millions of people who joined it's MLM, and billions upon billions of dollars in sales. The average person in this MLM earned $700.00 a year, but spent more than $900.00 a year on Amway's products. The only way you can get rich with MLM's, is by starting your own. Now there are a few benifits of being in an MLM. You do get some tax breaks, and you'll also meet some new people, but that's about it. In his books, Robert Kiyosaki usually mentions that MLM's can be very beneficial. Although I usually agree with Mr. Kiyosaki, this is one thing that I don't happen to agree with. MLM's make false promises to many people, but these people continue with the MLM in the hope that one day their "break" will come. MLM seminars are held all the time, with thousands of people attending the meetings, hoping to learn how to increase their $700.00 a year commissions. To Recap: You will never become rich by joining an MLM. You can only become rich by starting your own. |
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