The success of multi-level marketing depends on recruiting. Products can’t be retailed to REAL customers in sufficient quantities, so MLMs depend on the recruitment of distributors who buy the products.
We know there is a very low level of actual retailing of the products. So how do recruiters divert attention from the fake business model and the financial failure of nearly all participants? They make misleading, fanciful promises to the recruits.
Some of the most common:
- Unlimited (high) earnings – You can make much more money than you can in your current career. You will recruit and expand your team exponentially as they recruit. You will earn commissions on all of their purchases, and when you figure commissions, bonuses, and prizes, you will earn tons. And no one limits your earnings. You can earn as much or as little as you want, depending on how hard you’re willing to work.
- Anyone can do it – No special skills needed. Not even sales skills.
- Make money when you’re not working – You’re selling a consumable product. People will buy it over and over without you putting forth much work.
- Earn residual income – You can make commissions on an ongoing basis from those you recruit (and their recruits too!). Your earning power is expanded beyond your own personal efforts. You are freed from wage slavery!
- Early retirement – You can “retire” from your career. You can retire your husband from his career. Somehow, all the hours that you’ll put into MLM don’t count as work? You pretend you’re retire?
- Independence – You have no boss. You’re financially independent. You decide how much money you want to make.
- Free time – You’ll have flexibility with your time. You can stay home with your kids while still earning money. You can vacation instead of work.
- Low investment – There is a low sign up fee, so there is no risk. Products you buy can be returned, so there is no risk!
- No selling – You’re not really selling. You’re educating. You’re sharing. The products sell themselves. Why not just share about what you already love and use?
If it’s really so easy, so positive, and such a successful business model, why does nearly everyone lose money and eventually quit? Because none of these things are really true.
What other deceptions have you heard in the recruiting process?