Hi guys. It’s me again, and today is one of those days where I discuss topics, all on the subject of internet marketing, making money online, entrepreneurship, and online business. The topic I would like to tackle today is multi-level marketing or MLM versus internet marketing. Even though they are two types of marketing, they are two very different types of businesses. In this blog post, I would like to share with you more about multi-level marketing and show you how it is not a legitimate business venture, and why you should avoid multi-level marketing scams.

What is define as SCAM?

Now, when I say scam, I don’t mean to say that it’s going to actually steal your money or someone is going to take your money and you won’t get anything back. That’s not always true. There are a lot of scams out there, but there are just as many internet marketing scams as there are multi-level marketing scams. The reason I call MLM a scam is because not everyone is able to make money. If you picture a pyramid, like a pyramid scheme, the person on the top makes the most money, and then the last people to enter are unable to make money because there is no one else to sell to. The reason that you can’t make money from is it because you’re not marketing anything. The only thing you’re marketing is more marketing.


In a multi-level marketing set up, you are not actually selling a product that someone wants. What you are essentially selling is entry in the group. You’re selling the ability to participate and to make money in this scheme. For example, in internet marketing, I can maybe sell iPhones, or computers, or gardening equipment, or car parts, and anyone who wants one can buy one, and then I, as the internet marketer, can make money from that. In a multi-level marketing set up, you’re not selling something people want. You are selling the ability to make money. It’s like chasing your own tail. You can’t make money unless you get other people into your group that also want to make money, and they make money. You are very dependent on what the people in your down line, or the people in your group, are doing.


Let’s say that the multi-level marketing thing is you sell a magazine subscription. Now, the money that you make off of the magazine subscription is not something that you could earn income off of. You can’t just walk around meeting new people selling magazine subscriptions or even on the internet selling magazine subscriptions. That’s not how the money is made. The money is made when you get people into your down line and then they get more people into their down line, and they get more people into their down line, like that.


I’m getting a bit off track here. What I mean to say, the point I’m trying to make, is the last person to enter the MLM doesn’t make any money because there is no one left to market to. You are not providing any value to people other than an opportunity to make more money from other people. You don’t make money from the products you sell. You make money from the people who are selling multi-level marketing. There is a lot of pressure to get those people to do more marketing from you because if they don’t, you don’t make money from them.

Success is Uncertain

This is one of the reasons why a lot people don’t meet success with multi-level marketing, and one of the reasons why I dislike it is because you have to promote to other people. You have to convince them to join you. It’s not like internet marketing where I can make a website, and all I do is I present option A, option B, and option C. If someone wants to purchase the product that I’m marketing, they look for me. I’m providing them with a service, and with doing that, I can make a commission. With MLM, you have to actively find people and actively convince them to find more people.


The other thing that people don’t realize is that the thing you are marketing is one company. It’s one product. It’s one service. There is no choice. With internet marketing, I can do anything that interests me. I could write about technology. I could write about health or dieting. I could write about weight lifting. I could write about green living, or I could write about education, or kids. Basically anything at all. With multi-level marketing, again, you are promoting one company and one service. That’s what everyone is doing. The competition is high. Everyone within your multi-level marketing group is marketing the same thing.


Identifying Multi-Level Marketing Scams

The last thing I want to talk about is how to identify a multi-level marketing scam. This also goes for internet marketing too. There are some scammers out there that try to sell you some internet marketing products that are scams, but I see this a lot more with MLM. The thing that I noticed, I’ve been watching some videos on YouTube lately, one is that they promise fast, easy money. Anyone who makes a living on the internet knows that there are some competition, especially in the high profit areas, and in the low profit areas where there is less competition, it’s going to take you longer to make a steady income. There really is no fast and easy income, especially if you have no experience, it is going to take some time to learn it. They suck you in with these ideas that you’re going to be living on a beach in Thailand in the next 2 weeks reaping in a thousand dollars a week. It’s just not going to happen.

The other thing to watch for, which is a bit more clever, is they don’t actually tell you how they make money. A lot of these videos, they’ll say “I have this great idea. It helped me quit my job. It helped me make a thousand dollars a week. It was super easy, and I’ll tell you exactly what it is. All you have to do is click this link.” Now, after watching 5, 10 minutes of this person speaking, I still don’t know what I’m selling or how I make money. I’m interested, but I don’t really know what I’m doing. That’s how they get you in. They get you curious. If you watch a video, and by the end of the video, you don’t understand the broad concept of how you’ll be making money from this business venture, it’s probably a scam.


One more thing to watch out for that’s pretty easy to identify is called a squeeze page. What a squeeze page is it’s basically a website with only one page, and they’ll have something called an opt-in, which is asking for your email address and your name. What these videos will do is they’ll say “Okay, you can make a million dollars in a month doing this one easy thing. All you have to do is click this link, and I’ll tell you how to do it.” You click the link. It takes you to a website. There’s no content on the website. There is nothing to read. All it is is a picture, and then two boxes where one is for your email address and one is for your name. It says “If you want to find out this great money making idea that I have, then give me your email address and I’ll send it to you.” What that does is it gives them your email address, and then in the future, they can send you promotions and things to sell and things like that. That’s their goal. Even if you don’t buy, they still have your email address, and unless you unsubscribe from their list, they can take this email address and use it in other lists they have. For example, if I have a multi-level marketing company or I’m part of a multi-level marketing scheme, and I get your email address, then you unsubscribe from that, I still have your email address, and I can use that in other lists that I have. That’s how you start getting a lot of spam emails when you sign up for these.


What I mean to say is if you’re taken to a website with no content and no explanation or no regular blogging, or no information about what you’ll be doing to make money, it’s a pretty good chance that it’s a scam.


I hope you found this information useful. I really hope that you are able to identify legitimate business opportunities, because there are some on the internet, and I hope you are able to use this information to identify and avoid these scams as well as further your own money making ventures on the internet, because it is possible to make money and it is possible to make honest money on the internet.


As usual, if you have any questions or comments, do so below. I’d particularly like to hear of anyone with experience with MLM. Please don’t add any links or specific names. If you’ve had a bad experience, in that case, I would like to know the name, and you can go ahead and leave the name in the comment box. Again, no links. I want to keep my site clean from scams, and safe for other visitors. Don’t forget to subscribe to my mailing list and let’s connected in Facebook! Till then, have a good day guys. Bye.