Sunday, 12 May 2019

The Low-Down On Multi-Level Marketing


Turns out those direct messages you get on Instagram inviting you to join an 'exciting business opportunity' and promising that you'll be able to 'make easy money from home' are in fact too good to be true. I get tonnes of messages like these and, even though I've never agreed to any of them due to feeling like there must be a catch, I've always been interested in finding out more about them.

Maria (check out her blog here) recommended the BBC documentary Secrets of the Multi-Level Millionaires: Ellie Undercover and it opened my eyes to what's really going on with 'multi-level marketing'. Often the direct messages I get are very vague to begin with - telling me that I can earn a significant amount of money but not telling me how. I usually reject these messages as soon as I get them but a couple of times I've asked for more information. This is when they'll tell me that the opportunity involves selling products and getting commission from these sales. However, the documentary reveals that the main way to earn money through these businesses is by recruiting more people to join - which explains why I'm always getting so many messages inviting me to join! The person who recruits you then earns a percentage of your sales, hence, if you join one of these businesses and want to be successful, you also have to focus on recruiting more people rather than selling the products. Unfortunately, not many people know this before signing up to these schemes - I had no idea they were so heavily focused on recruitment until watching the documentary.

Another aspect of these schemes is that they 'encourage' you to replace your current beauty products with their own brand's products so you can promote these. However, this costs hundreds of pounds and, maybe I'm being a bit of a beauty snob here but, I personally would much rather use a well-known product than an unknown one for the sake of increasing my commission (and the commission of the person who's above me). It was heartbreaking to see in the documentary how many people had fallen into this trap - one woman had only made £20 in 6 months (very different to what you're promised before you join!). What I found even more shocking is how you're treating if you try to leave one of these businesses. They effectively brainwash you - either by telling you to cut out of your life anyone who's not supporting your business venture or by calling you a failure if you say you're going to leave - so you feel like you have to stay with them. It seems very cult-like...

These 'business opportunities' are essentially pyramid schemes (which are illegal) since members are told that the main way to earn an income is by recruiting more people onto the scheme. Obviously, this isn't a sustainable business model because if every single person on the scheme is recruiting, then they'll quickly run out of people to recruit. Furthermore, the documentary found that only 0.02% of people on the schemes earn the top figures. There's absolutely no way as many people would sign up to these 'multi-level marketing' schemes if they knew the truth about earning potential.

The lack of transparency in these schemes is worrying, which is why I'm trying to encourage all bloggers and influencers to watch the documentary so you can find out the truth for yourselves. What do you think of these schemes? Have you ever considered joining one?
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12 comments

  1. Ahhh this was so interesting babe! Well done!

    x Lisa | lisaautumn.com

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  2. Super interesting! Great read!

    Lots of love from Mollie, blogger at theperksofmolliequirk.blogspot.com xxxx

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    1. Thank you! The documentary's really interesting too x

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  3. I will definitely watch the documentary, I receive lots of similar messages too and I always ignore them!

    Yiota
    https://pinkdaisyloves.blogspot.com/

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  4. I've been hearing more and more about MLM and while I am still totally confused on the subject it has peaked my interest so I definitely need to check out the documentary. x

    www.themakeupaficionado.com

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    1. I didn't know much about it before watching the documentary - it opened my eyes to what's going on in the industry! x

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  5. I've gotten these before and rejected them because they just seemed so shady!

    www.sundaydahlias.com

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  6. I watched the documentary too and to be fair, I always had a feeling MLM wouldn't work for most people and really put them in pretty bad situations. I hope people will realize how bad they are.
    ❤︎

    www.elenaisabelle.com

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