DISTANCE LEARNING | CONTINUING EDUCATION | ONLINE DEGREES

From time to time, we’re all faced with investment decisions. We can put our time and money into school, real estate, a new car, stocks, and the list goes on. What about multi-level marketing opportunities? Are they a good investment?

Let’s say you sit down with your good friend, who has promised to show you a very important video. Up on the TV screen pops Joe Schmoe. He was stuck at a dead-end job, up to his neck in debt, about to be divorced by his wife, yada yada yada. He put his meager savings into becoming a distributor and KAPOWEE! Five years later, Joe doesn’t have to lift a finger. His wife adores him. He just helps his kids with their homework and cruises around in his sailboat all day. All the while, the checks roll in from his downlines. All this by selling a product that will cure any ailment known to man and bring world peace. And he couldn’t have done it without (insert product name here). Cue heart-stirring music and fade out…

Doesn’t that sound great? Wouldn’t you like to be a high-roller like Joe and have all your debt paid off and just have fun for the rest of you life? Sure. If we could make as much money as Joe, any of us would put down the couple hundred bucks right there. I mean, sailboat, free-flowing checks, helping mankind, all good things. So, what’s wrong with MLMs? While many MLM distributors do reach this goal, the unfortunate truth is that the vast majority of MLM distributors, those at the bottom of the downline, end up in worse financial shape when all is said and done. By its very nature, MLMs cannot provide a win-win for everyone and therein is their fundamental flaw.

Fewer than 1 percent of all MLM distributors turn a profit. Fewer still are able to make a sustainable living off of their MLM alone. So, that story you just heard about Joe? It only goes for that small handful of distributors at the top of vast networks. It means that beneath Joe on the MLM food chain someone is not getting paid what they deserve for their efforts. They come into the chain, they fail to sell enough or sign up enough of their friends, and they cycle out. The money they paid to get started goes to Joe’s sailboat. Kind of makes you despise Joe, doesn’t it?

All the while, Joe keeps telling his downlines the same velvet lies about achieving the American dream, getting rich quick, and living large.

So, if you are looking to invest your time and money in a better future, the odds are against you with MLMs. Your odds are better in Vegas or the lottery. Your odds are better still in real estate or mutual funds. Your odds are great with education, where degrees of higher learning can significantly increase your earnings for the rest of your career. Education, real estate, and mutual funds require more patience and discipline, of course. But, historically and statistically, the returns are virtually guaranteed. MLMs can’t and won’t guarantee that.

Tags: career advice, investment, multi-level marketing, network marketing

This entry was posted on Thursday, January 24th, 2008 at 10:46 am and is filed under Careers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.