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MLM -- Miracle Money Maker or Major Mistake?


Be your own boss! Set your own schedule. Make lots of money and retire early!  Who doesn’t want that, right? If you've been exploring small business opportunities, chances are you've run across at least a few Multi-Level Marketing businesses. 

Multi-level Marketing has been praised for allowing financial freedom; and it’s been criticized for being nothing but a big scam. Do you have questions?  As with any business venture, it’s "buyer beware". The truth is, if you're willing to treat the MLM business as a business, and put the time and effort into it that is required, you can make money.  Do your homework first. Check into the company.  some of the things you're going to want to know is:

  1. How long has the company been in business?
  2. How many distributors do they have?
  3. How do they rate with the Better Business Bureau and Chambers of Commerce?
  4. Who are the principals of the company?

If anyone tries to tell you that it's "easy money", and that you can make a fortune with no effort at all, you're right to be suspicious, because there’s so such thing. 

Also, as with any new endeavor, you should expect to make an initial investment. It takes money to make money.  Below you'll find views for and against MLM. You be the judge.

Some of the comments in favor of MLM include:

  • “Donald Trump was asked on the Tonight Show, if he had to start all over from scratch what he would do - His answer...MLM". And yet another satisfied participant, “It is a wonderful combination of being your own boss and being mentored. It has a support system built right in and usually pretty neat products! I was involved with [company] for a while and the people were fabulous, products were great and the system of support was wonderful to have. I hear the same is true for many network marketing direct sales companies! I think MLM companies are great!”

Conversely, those who didn’t speak as highly include:

  • “You only make money when you have lots of people under you. You spend a lot to stay in each month. I was required to spend more than I needed or could afford each month, so I had to quit. Seems to me the ones who do well are ones who can afford to really spend and have contacts already who have money they can spend as well. Then they in turn have contacts of their own that are the same. A lot of MLMs out there say you can make $X each month, but honestly there are few and far between who are really doing it. They hook those who want to work at home and need the money-only to lose them after they’re more broke than they started.”
  • Continued another disgruntled former MLMer, “Unfortunately too many try to convince you that it is so easy. If it were so easy, everyone would be doing it. I have been in several different MLM companies and have experienced constant changes in the compensation plan. As we all know, the compensation plan is what gets our attention.”

    So there you have it, both sides of the coin.  While different people have different thoughts about MLM programs, the one thing everyone seems to agree on is that Multi-Level Marketing is not for everyone.

But that’s why there are as many different types of businesses as there are flavors of ice cream. There truly is something for everyone. All in all, the bottom line is there needs to be passion and drive to make your business work, regardless if it is MLM or more traditional sole proprietorship or corporation. If money is your only motivator it will likely fail. You need to believe in your product or service or you can simply plan on failing. 

So before you jump into anything, do your due diligence when researching various opportunities.


Cheryl Antier is a former VISTA (Volunteers In Service To America) Volunteer, and is the President and CEO of Dream Weaver Enterprises, a business and fundraising consultancy firm that helps nonprofit organizations and small business owners. Her Website offers free articles, information and resources for anyone who needs to find funding so they can "weave their dreams into reality." Sign up for a free newsletter and let us do all the grant research for you each month: http://www.microenterprisesuccess.com

Cheryl Antier




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