# Multi Level Marketing, should I? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [April 13, 2014, 12:21pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012 "2014-04-13T12:21:08Z")\ **Posts on this page:** 20\ **Page:** 2
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [April 13, 2014, 2:38pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/21 "2014-04-13T14:38:20Z")
Merged two similar threads into IMHO. **samclem** , moderator ---
**Author:** ![msmith537](https://avatars.discourse-cdn.com/v4/letter/m/d9b06d/32.png) [@msmith537](https://boards.straightdope.com/u/msmith537)\ **Post date:** [April 13, 2014, 3:17pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/22 "2014-04-13T15:17:47Z")
[It’s not HerbaLife is it?](http://money.cnn.com/2014/04/11/investing/herbalife-shares/index.html) All I know about these MLM companies is that every once and awhile, some acquaintance of mine contacts me or my wife about one of these things. Usually it’s someone we have a fairly tenuous relationship with. A fraternity brother or high school alumni I haven’t seen in 15 years. I had also gone to a couple of recruiting meetings when I was right out of school, not knowing what they were at the time. It’s not a complex business model. You purchase some amount of their product (usually crap like diet supplements, makeup, kitchenware, water filters and other stuff people can get anywhere). You sell that stuff for more than you purchased it for. It’s a pretty simple calculation to figure out how much of that crap you need to sell every week, month or year to earn your target income. Then think about how many sales calls you need to make to hit those numbers. As other people pointed out, you don’t make the big money until you convince people under you to start selling. And you’ll probably need to spend full time doing that as you churn through sales reps who run out of family and acquaintances to sell to. My problem with them is that they are deliberately misleading and you need to take everything they tell you with a grain of salt. They act like they discovered the cure for cancer and they will try and impress you with how much money it looks like they are making. They will use terms like “entrepreneurial”, but being an entrepreneur doesn’t mean being a sales rep in someone else’s business. I say go ahead and try it. If you don’t succeed, it’s probably because you had a bad attitude and didn’t want it badly enough.😃 ---
**Author:** ![filmore](https://avatars.discourse-cdn.com/v4/letter/f/7993a0/32.png) [@filmore](https://boards.straightdope.com/u/filmore)\ **Post date:** [April 13, 2014, 3:58pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/23 "2014-04-13T15:58:33Z")
From what I’ve seen around here, a great way to sign up your downstream is by approaching them in front of a Redbox or magazine stand. Lead off with some lie like, “Don’t I know you from somewhere? Where do you work?” Then quickly get into how you are part of a great business opportunity and you’re looking for a few select people to join you. ---
**Author:** ![Czarcasm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/czarcasm/32/4050_2.png) [@Czarcasm](https://boards.straightdope.com/u/Czarcasm)\ **Post date:** [April 13, 2014, 4:02pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/24 "2014-04-13T16:02:12Z")
Ask if there is a list of dealers already in your area, to see how saturated the market is. ---
**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\ **Post date:** [April 13, 2014, 4:31pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/25 "2014-04-13T16:31:53Z")
You can make money with MLM but with a few caveats. 1: You cannot care what people think about you. You will alienate a good portion of people whom you currently consider friends and acquaintances with the things you have to do to be successful. People generally know when they are being worked and will go along a little for politeness sake but there will come a time when you are no longer their friend when they get tired of your pushing and expectations. If you care more about these relationships than money don’t even get started. If money is the main thing go for it. 2: It has to be your 24/7 job. Making real money in MLM means you have to work it like a real job. It’s a lot of work if you expect to be successful. 3: Get it out of your head that it’s about the product. It’s about the downlines and they only way you are going to make money is if your area is not saturated with sellers. You will be lied to by those trying to recruit you as to how much saturation and potential the market has. 4: Per # 3 you have to have a lot of charisma and ace presentation skills if you expect to recruit people to work under you. You have to be polished and sharp. ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [April 13, 2014, 4:32pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/26 "2014-04-13T16:32:08Z")
Downstream, that’s the guys getting pissed on. Upstream, the guys pissing. Anyway **miamihuricanzrgl** , I can teach you the secret to success in MLM for just $500. I guarantee I’ll show you a way to make money. This is a real method for making money in MLM. If you try MLM and aren’t doing well there will be plenty of people who can teach you this secret within the organization, but they’re going to charge you twice as much. So I’m giving you a bargain that saves you $500 and you’re actually breaking even on the deal. ---
**Author:** ![drewtwo99](https://avatars.discourse-cdn.com/v4/letter/d/d07c76/32.png) [@drewtwo99](https://boards.straightdope.com/u/drewtwo99)\ **Post date:** [April 13, 2014, 4:40pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/27 "2014-04-13T16:40:05Z")
I’ll sell you the secret for $400, and then with my permission I’ll let you sell it to others and you’ll only have to share $20 each time with me. ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [April 13, 2014, 4:45pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/28 "2014-04-13T16:45:51Z")
> [@drewtwo99](#): > > I’ll sell you the secret for $400, and then with my permission I’ll let you sell it to others and you’ll only have to share $20 each time with me. You’re not very good at this. You’re only saving her $100, so it still costs her $300. ---
**Author:** ![dracoi](https://avatars.discourse-cdn.com/v4/letter/d/90db22/32.png) [@dracoi](https://boards.straightdope.com/u/dracoi)\ **Post date:** [April 13, 2014, 5:59pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/29 "2014-04-13T17:59:06Z")
> [@miamihuricanzgrl](#): > > My friend just mentioned a chance to start my own business selling skin care products in a direct selling market. She is doing pretty well with her own business. I understand the risks but there’s also potential for gain. > > Anyone with a personal experience in direct selling? Should I take my chances?? You do not own your own business and neither does your friend. She is an unpaid independent sales agent for someone else’s business. There are no risks, to be honest. You will spend all the money you put into the company. For there to be risk means uncertainty, but you decide how much you want to spend. Hence, no risk. There is no real potential for gain. If there was, the company would hire their own salespeople and make a bigger profit. They know they’d lose money doing that, and would prefer that you lose your money on their behalf. Trust me on this: I do the tax returns for more than two dozen of these “business owners” and they are not telling you the truth. If you want to put them to the test, ask for a copy of their tax return. ---
**Author:** ![tellyworth](https://avatars.discourse-cdn.com/v4/letter/t/977dab/32.png) [@tellyworth](https://boards.straightdope.com/u/tellyworth)\ **Post date:** [April 13, 2014, 10:51pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/30 "2014-04-13T22:51:33Z")
> [@dracoi](#): > > Trust me on this: I do the tax returns for more than two dozen of these “business owners” and they are not telling you the truth. If you want to put them to the test, ask for a copy of their tax return. This. I’ll wager the Lexus owner upthread won’t get to keep it. ---
**Author:** ![ftg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ftg/32/2801_2.png) [@ftg](https://boards.straightdope.com/u/ftg)\ **Post date:** [April 13, 2014, 11:30pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/31 "2014-04-13T23:30:14Z")
If you have the skills to succeed at MLM, you have the skills to succeed in a regular sales job. The bonus of the later is that if it turns out you _don’t_ have what it takes, you won’t end up losing $, friends, etc. ---
**Author:** ![astro](https://avatars.discourse-cdn.com/v4/letter/a/9dc877/32.png) [@astro](https://boards.straightdope.com/u/astro)\ **Post date:** [April 14, 2014, 1:16am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/32 "2014-04-14T01:16:10Z")
> [@ftg](#): > > If you have the skills to succeed at MLM, you have the skills to succeed in a regular sales job. The bonus of the later is that if it turns out you _don’t_ have what it takes, you won’t end up losing $, friends, etc. Yeah this. 100% this. ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [April 14, 2014, 1:25am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/33 "2014-04-14T01:25:16Z")
> [@astro](#): > > Yeah this. 100% this. It’s not quite dead on. MLM is a con. The participants are trying to avoid working at a legitimate job, and they look for the same thing in the people they try to recruit. People like that may not have the ability to be successful in a legitimate sales position. ---
**Author:** ![Sunspace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/sunspace/32/1250_2.png) [@Sunspace](https://boards.straightdope.com/u/Sunspace)\ **Post date:** [April 14, 2014, 6:24am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/34 "2014-04-14T06:24:04Z")
Don’t do it. ---
**Author:** ![miamihuricanzgrl](https://avatars.discourse-cdn.com/v4/letter/m/ea666f/32.png) [@miamihuricanzgrl](https://boards.straightdope.com/u/miamihuricanzgrl)\ **Post date:** [April 14, 2014, 10:02am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/35 "2014-04-14T10:02:30Z")
Thanks everyone, I had to laugh at the $500-$400 for the MLM secrets. How about I try the secrets for free?? Money back guarantee?? Sales pitch worthy?? Talked to my friend about the compensation plan… Depending on your level in the business, it is 16-25% on retail sales. 10-15% on your downline. THEN, there are incentives for certain levels or achievements. (like the Lexus). It sounds awfully dreamy. ---
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [April 14, 2014, 11:08am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/36 "2014-04-14T11:08:28Z")
> [@miamihuricanzgrl](#): > > It sounds awfully dreamy. It’s not. ---
**Author:** ![Ranger\_Jeff](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ranger_jeff/32/2065_2.png) [@Ranger\_Jeff](https://boards.straightdope.com/u/Ranger_Jeff)\ **Post date:** [April 14, 2014, 11:33am UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/37 "2014-04-14T11:33:21Z")
What you really need to do is to read my report, “The Seven Secrets To Success THEY Don’t Want You To Know About Multi Level Marketing.” It’s a $289.97 value, but since you’re a fellow doper, for today only, I’m prepared to sell you a copy of it for only $74.97. I’m sure it sounds dreamy. Your friend drank the kool-aid and she can make money off of you drinking the kool-aid too. I just think there’s a difference between being someone’s friend and being someone’s mark. [Scroll down for definition 15b.](http://dictionary.reference.com/browse/mark?s=t) ---
**Author:** ![Grumman](https://avatars.discourse-cdn.com/v4/letter/g/43a26b/32.png) [@Grumman](https://boards.straightdope.com/u/Grumman)\ **Post date:** [April 14, 2014, 12:12pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/38 "2014-04-14T12:12:18Z")
> [@miamihuricanzgrl](#): > > Talked to my friend about the compensation plan… Depending on your level in the business, it is 16-25% on retail sales. 10-15% on your downline. THEN, there are incentives for certain levels or achievements. (like the Lexus). It sounds awfully dreamy. Multilevel Marketing is like a poker game. If your friend was trying to talk you into joining them for their weekly poker game, you’d be wise to remember that if you join, there’s more money in the pot for them to win. They want you to think it sounds dreamy, because if you do, they get more money. ---
**Author:** ![Czarcasm](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/czarcasm/32/4050_2.png) [@Czarcasm](https://boards.straightdope.com/u/Czarcasm)\ **Post date:** [April 14, 2014, 12:37pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/39 "2014-04-14T12:37:02Z")
> [@miamihuricanzgrl](#): > > Thanks everyone, I had to laugh at the $500-$400 for the MLM secrets. How about I try the secrets for free?? Money back guarantee?? Sales pitch worthy?? > > Talked to my friend about the compensation plan… Depending on your level in the business, it is 16-25% on retail sales. 10-15% on your downline. THEN, there are incentives for certain levels or achievements. (like the Lexus). It sounds awfully dreamy. How many people will you be able to sell to that doesn’t include your friends and family, all the customers the people under her sell to, and all customers the people over her sell to? _How many customers are left to sell to in your area?_ ---
**Author:** ![Smeghead](https://avatars.discourse-cdn.com/v4/letter/s/f1d935/32.png) [@Smeghead](https://boards.straightdope.com/u/Smeghead)\ **Post date:** [April 14, 2014, 1:39pm UTC](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012/40 "2014-04-14T13:39:44Z")
> [@miamihuricanzgrl](#): > > It sounds awfully dreamy. Of course it does. Because _that’s_ what they’re selling - not the actual product, but the dream. That’s how the sucker in suckers like yourself. And the only way for someone like your “friend” to make any money off of this is to make the dream sound as dreamy as possible. You’re being sold to. You are profit. You are the target. You are the source of money. [Previous page](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012.md?page=1) [Next page](https://boards.straightdope.com/t/multi-level-marketing-should-i/686012.md?page=3)