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Now let’s do a little company quiz! Have you heard of any of these companies? ACN Inc, Avon Products, Forever Living Products, Herbalife, Juice Plus, Kleeneze, Mary Kay, Melaleuca, Nu Skin Enterprises and The Pampered Chef. If you have these are actually Multi-Level Marketing (MLM) companies.

If you Google MLM, you tend to get someone harping on about the fact it’s a scam because ‘they had to pay a start up fee’ ‘they got no results’ or the best one ‘it’s a pyramid scheme’ (I will do a post on pyramid schemes in the future) In short “In a pyramid structure, a member pays a fee to join. A portion of the money will then be remitted back to them when they bring a new member into the scheme. No products are involved in this scheme, simply get more people to dump in money for your chance to make more money.” That is a pyramid scheme. Don’t get confused.

To some people, it’s pretty revolutionary. You have no product in your hands to physically sell. You earn by selling products via your reach and marketing techniques, and you can earn money from mentoring people in your downlines which then gives you PASSIVE INCOME when you combine your own sales and their sales.

But why does MLM get such a bad reputation from people? Well, I’m going to try to explain what MLM is in this article and why you should consider giving it a go.

What is MLM?

Multi Level Marketing (MLM) is a business model which the distributors’ income includes their own sales, and a percentage of the sales group they recruit allowing the company to grow, this is known as downline. Customers/users can also sign up as a distributor to sell the company’s product. Usually, the sign-up fee will be the price paid to purchase the product.

Basically, MLM companies build and manage their sales force by recruiting and motivating independent distributors to go out and sell! Like normal companies in retail which you find in the high streets all around the world.

MLM compared to Traditional Marketing?

The obvious difference which you can see in the image below. The levels it goes through is a lot less than traditional marketing such as your normal stores. With MLM it comes straight from the manufacturer (more than likely the name of the company) straight to you, the distributor which you sell to the consumer for a commission.


Difference in marketing or advertising

Traditional companies advertise their products mostly through media outlets or even in-store advertising online or offline. They don’t have the reach of individual people, only one place to sell. On the other hand, MLM companies advertise their product through individuals, creating their own business to sell the product. The majority of the people that attract MLM are people who work at home or choose to leave the rat race behind and set up a low expense business in front of the computer. Fees vary between company. Each one comes with different perks.

To Conclude – Is MLM For Me?

The MLM model of operation is the most cost efficient and easier to run from the top tiers of the company. It does rely on highly motivated individuals to drive sales with the motivation of financial freedom. However. It’s possible. The fee’s and commission rates you are paid by selling the products from your business are set in stone. All you have to do is achieve the targets. A little bit of hard work and investment in training such as traffic driving, social media marketing, and offline selling techniques won’t go a miss. Ultimately the more time and effort you put into it, the bigger the end result.

You will always get people who will fail. You will always get people who make it a success. Look or ask people how they are successful. 9 times out of 10 its because they have done it for a long time and its built up or they know how to drive traffic to a website allowing more people to buy.

The image to the people who see MLM or how people promote it is bad, don’t get me wrong. You only have to check out on Facebook Groups a number of the money making pages is full of people spamming. Spamming is bad. Talking to people is good. You will be more successful in MLM by actually speaking to people, whether it’s selling or recruiting into a team.

That being said enjoy the flexible working hours coupled with the chance to generate a healthy revenue stream. A Little bit of effort. What can go wrong? It’s cost you low fees to start. You have no premises to buy and no stock to buy. Dream a little bigger darling.


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  1. Hello Ash,
    Really enjoyed reading your post on MLM, this is one business model that alot of people spend energy and money trying to build up and so few succeed.
    To succeed in any MLM, one needs to be good in recruiting new members then be ready to teach the recruits how to do it themselves.
    I do feel that im MLM, only the top guys in the ladder make money so it helps to join early and start promoting if the program is legitimate.
    Like many people who want to make money online, I have tried MLM but without success,it`s just difficult referring new members.I feel if we could all promote and get new signups, MLMs can make you some good money.
    Well explained thanks so much.

    • Thank you for the kind words. It is a tough niche but its a good mix of time, audience and getting the right people. I think you need all those ingredients to be successful. I know a lot of successful people in it and I know a lot of people who pack it in within a month.

  2. Hello Ash,
    thank you for posting this article. I am a big fan of Network Marketing and currently I am with an innovative Company which is set to make strides in this category.
    Surely, in this industry is vital to sign up new distributors every month and teach them to do the same.
    I believe it’s difficult to succeed if you start working for a company that has been on the market for many years.
    That section could be saturated, unless you are a superstar.
    Finding a relatively new company with innovative products and a clear vision could be a breakthrough.


    • I agree with you. MLM has changed over the years. Only recently it has actually. MLM is becoming harder to find a chair in the chain. Lots of people don’t get success and jump from each one giving other bad reputations. It’s a time thing and something you are passionate about. Its like a tree. You got to either let it grow or climb it.

  3. Hello Ash, thanks for writing this article on Multi Level Marketing. Most of the articles I’ve read on this topic in the past few years have been negative articles. The way you simplify it in this article makes it look as though it’s less complicated than traditional marketing. Why do you think there are so many people who speak negatively about Multi Level Marketing?

    • It’s pretty simple to be honest with you. People want to ‘jump’ to the ‘NEXT BIG THING’ so what people tend to do is bad mouth other MLM companies. People all rush to get a chair in the system and forget about everyone else. All the leads from the previous MLM company they promoted which now stops the income for them, so they lose money and so do people in their downlines. With MLM you got to have a passion for it and to stick with it.

      Also do not forget about people who don’t understand business. You got to put work in for it to be successful. People forget that too, so a lot of people badmouth it because they are now X amount of money in debt.

  4. This is a good post. Insightful and true. My blog is entirely dedicated to educating people on the honest truth about MLM (the good and the not so good). Thanks for these insights. ~ Tony

  5. I had a short stint with MLM before becoming an affiliate marketer. The company that recruited me is huge and their products are known of high-quality albeit expensive. Their talks about building wealth and legacy totally changed my perspective towards my own money management practice.

    I started to think beyond than just the four walls of my career – which was good. But after all the cold rejection I get from friends and family, I just couldn’t see myself doing MLM for the long term. Affiliate marketing is better suited to what I want to achieve in terms of a passive income lifestyle.

    • Top Tip… Never bring friends or family into it. Like-minded people only tend to work. I understand your point though and affiliate marketing is the same type of thing regarding effort and an audience. More you have the better you will do.


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