If you bring up the terms “Pyramid Scheme” or “MLM business” at a party, people scatter faster than if someone yelled SHARK on a beach.. Am I right? I have literally seen fear in some
If you bring up the terms “Pyramid Scheme” or “MLM business” at a party, people scatter faster than if someone yelled SHARK on a beach.. Am I right? I have literally seen fear in some people’s eyes when I mention that I sell a product as a sideline business. Some people are afraid that I am going to break out my elevator speech immediately and force them through a quick presentation of Monat’s hair care line. I won’t. Especially if we are talking about something completely unrelated to my business like, say, butterflies or peanut butter.. Can you just imagine…? “ And you know what else about Peanut butter.. You can put it in your hair.. And what else is good for your hair? Monat!!” Umm. No. BUUUUUUT if you do want more info you can click the link here to my website or check out my facebook page here. (Shameless plugs are my thang)
In any case, because of THAT typical reaction.. I am writing this blog to (hopefully) help change the stigma on these terms. So for the friend, sister, neighbour, co-worker, cousin or friend of a friend that you know, who is involved with such a business, please read on! (You KNOW you know SOMEBODY that sells something!!) And if you know someone who shudders at the idea of an MLM then please pass it on to them too.. Let’s work on stopping that unnecessary shuddering together. It can be your good deed for the day!
Before I get into the “why”, I and others are behind this type of business, let me quickly explain what these terms actually mean. Many people use these two terms interchangeably, however it’s super important to note that they mean two different approaches.. One of which is illegal.
It is legitimate product distribution plans that disclose earnings, time and effort required by investors.
Although similar to a pyramid scheme in that sellers are encouraged to bring in others who work under them, the key difference is that MLM companies offer a concrete product that is sold to consumers. The investor doesn’t have to rely on recruiting others to make money.
As an example, I spent about $300 for the initial product pack from Monat, which included my Market Partner Subscription fee and 10 products at 38% off the retail price. This was my choice, I was not obligated to buy anything. Wanting to try some, I kept 2 of the 10 products for my own use. I was then able to make more than double of that initial spend back, as I sold the products for a higher price (Suggested retail price). Although it is advantageous to build a team, I don’t have to.
According to the Federal Trade Commission in the US, pyramid schemes “promise consumers or investors large profits based primarily on recruiting others to join their program, not based on profits from any real investment or real sale of goods to the public.” This is illegal.
If you are curious, like I was, on which companies have been fined for this type of scheme, you can see the list here.
So why do we do it, and why is it a GOOD thing?
Think about it this way. These companies offer individuals a chance to be their own bosses, and run their own business. Sorta like a franchise, but without the bricks and mortar as an added cost to your overhead. Also, a traditional business would cost you tens of thousands of dollars to acquire, not to mention the hours needed to get it up and running.
With an MLM type of business, not only do you make a commission from direct sales, but if you’re able to grow your team, then you can make residual income from what they sell too! Tell me this, If you leave your current day job..whatever it is.. will they still pay you a portion of you salary based on all the work you did while you were there? NO? With an MLM business, you can get paid, even if you aren’t actively selling. This year, with my new baby, my Monat business was put on the back burner, but because I DID put some time into it before being pregnant, I am still seeing some funds come in every month. It’s not a whole lot.. But I can treat my husband and I to a Sushi dinner twice a month without it touching my budget! #WIN
Not convinced yet? Here are some added bonuses to an MLM business model:
- You do not need to be a seasoned salesperson to be successful. Most companies offer all the documents, marketing strategies and suggested retail prices, so all you have to do it tell people about it. If it’s a product you love – you are probably doing that anyway!
- You can work from anywhere.. No need to go into an office or sit in traffic. EVER!
- Clothing is optional while you work! Just kidding.. Diane.. Your neighbour called me.. Please put on a robe***. But at least you won’t have to spend money on additional clothes and you can wear your comfies as you work from your couch..or bed.. Or beside your pool.
- Most of the MLM type companies offer you a free website where you can promote and market your products. Like mine.. hehe HERE
- YOU decide how many hours you want to put in.. and with social media being the primary medium to reach potential new sellers or buyers, it’s so easy to get in a few hours per day. Your gonna scroll through Facebook and Instagram anyway.. Why not make some money with it?
- You can win prizes and free trips! Imagine travelling to a ridiculously beautiful destination on someone else’s dime!!
- You will meet like minded people along the way, and will most likely become great friends with them. Or at the very least, you will create and/or help build a community of support, for yourself and your team, which is so rewarding.
***Pls note Diane is a fictional character used to make that funny.. No actual Dianes were injured during this comment..unless your name is Diane.. in that case.. my apologies.
Still not convinced to jump online and find an MLM business you can conquer? No problem..maybe this is not your cup of tea.–But if it was, you could get one of those “BOSS BABE” mugs you see everyone else posting as they sit by the fireplace/pool/window- in front of their laptop/ipad- For sure it’s not for everyone.. But hopefully now you can understand why your friend, sister, neighbour..etc DO take part in this type of business.
And if I may suggest ONE thing before I sign off.. If you DO know someone selling a product that you would typically buy anyway.. Why not go through them? That mama/entrepreneur is just trying to make some extra cash for her family while promoting something she loves. And let’s face it, it’s the way of the future! There are so many options out there; leggings, jewelry, essential oils, candles, makeup, Naturally based shampoo product line that mimics our own oils to strengthen your hair follicles to reduce hair loss (ahem..Monat)..Ooops Another shameless Plug.. my bad.. kids educational toys, spices, clothing, cookwear, cleaning products, etc.
You name it.. Guaranteed you know SOMEONE selling it.. So maybe try to buy through them first. And yes, it might not be the same price as something you’d buy from Amazon or Walmart. But you are supporting someone local, and that my friend, is PRICELESS.
PS: I will update my blog website with a list of local MLM mompreneurs so you can check it out and start on your christmas list!!