Why online Multi-Level Marketing does not work


One question that most of us ask when it comes to online marketing is, “can multi-level marketing products be sold online?” The short answer is “No.” Multi-level marketing is a hard sell and usually takes an in-person pitch to realize any measure of success. It is very easy for online retailers to get caught up in the hype of multi-level marketing–a scheme where the actual items you sell are of less importance as the “business opportunity” you are selling, as well as getting other people to sign up under you. When it comes to multi-level marketing, there are many precautions that you need to take and many things you need to watch out for. Gaining success in a multi-level marketing scheme is difficult, and it demands a lot more work that what appears in the presentation.

A pyramid scheme
The idea that online multi-level marketing is a pyramid scheme is a misplaced notion. Nothing could be further from the truth. In reality, online multi-level marketing is an ingenious kind of direct selling where an individual is a customer of the MLM program, and unlike other business ventures, he/she has the opportunity to earn owing to the purchases he/she makes. Therefore, online multi-level marketing is a kind of direct selling—and if you’re adept at the direct sell, then you can indeed make good money with the MLM program.

How to identify a fake multi-level marketing scheme from a genuine one:

  • Legitimate multi-level marketing businesses are independent of the parent company, gaining from support from those who benefit from the sale of their products.
  • Reliable multi-level marketing businesses deal with products that are already manufactured along with a sound marketing plan.
  • A fake multi-level marketing scheme will always raise unrealistic expectations of easy and unlimited money that comes with very little or no effort.
  • A genuine multi-level marketing scheme has been around for more than two years with a clean and impressive record.

MLM products with unrealistic claims
Beware of fake multi-marketing business schemes that deal with products such as tropical fruit juices with claims of being a cure-all. There are many such products that come with overblown claims of magically curing diseases. Many multi-level marketing businesses sell products such as aloe vera, acai berry, mangosteen, etc. These products are said to be sold in their pure forms, and said to be a cure for many complaints such as skin disorders, cancer, weight loss, etc. Acai berry is particularly marketed as a magical weight loss cure product, the actual effects of which are highly questionable. So too with mangosteen juice. There is anecdotal evidence of health benefits from Southeast Asia where it originates, but let’s get realistic. Maybe it’ll help your bug bites and bellyaches, but it’s not going to cure terminal illnesses. Most products sold through online multi-level marketing ventures are said to be hundred percent natural, however it is not always the case. One needs to very careful when dealing with health products as the multi-level marketing business owner might claim these products to be all-natural, when in reality they could come with side effects. Some other kinds of MLM health products with overblown claims include: Matol, Intra, Herbalife, Noni, Goji, Mangosteen, Acai, Barley Green, Blue-Green Algae, NuSkin, Calorad, Mannatech, Microhydrin, Metabolife, Omnitrition, and many more. The authenticity and effectiveness of these MLM products are still not confirmed.

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  1. #1 by Ryan Biddulph - August 4th, 2009 at 04:05

    Interesting take on MLM. Thanks for sharing your insight.

  2. #2 by derek nadeau - August 6th, 2009 at 06:44

    internet marketing now a days is very rampant when marketing a products this help in promotion in your business.

  3. #3 by Sara - August 6th, 2009 at 07:18

    I recently came across your blog and have been reading along. I thought I would leave my first comment. I don’t know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.

    Sara

    http://smallbusinessgrant.info

  4. #4 by Elmar Sandyck - September 10th, 2009 at 03:09

    MLM is not a scam in the first place. Network marketing is a type of business model that is fast becoming popular among various companies these days. The reason why distributors are customers as well is for them to have confidence with the product they are promoting.

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