MLM & ‘Business Opportunities’ – Avoid Like The Plague!

Let’s talk about MLM for a moment… there are many varieties of MLM – Multi-Level-Marketing … Avon, Amway, Tupperware are some very well known examples. The very first question I ask when I look at an MLM ‘opportunity’ – “What’s the Product?” And in a surprising number of cases, the product is the right to get others to do what you’re going to be doing… in other words, the ‘product’ in many cases is to get others to sell in your downline. It’s not about the product, it’s about getting other people to join under you, and do the same thing.

One of the more recent online MLM ‘opportunities’ is the Empower Network – and the real ‘opportunity’ that you’re getting is the ability to sucker other people into the same ‘opportunity’ to make money.

Does it work?

Certainly! All MLM’s will work if you have natural sales ability, and can talk enough other people into joining under you… but is it a real sustainable business? My opinion? No, it’s not a real sustainable business – you’re not creating your own online property, you’re not creating your own list… what you’re doing in most cases is building a business for the MLM – you’re adding to their online footprint… in many cases, you’re adding to their list, or your ‘upline’ list.

Now, this isn’t a rant about Empower… the same thing can be said about virtually any online MLM business – I merely use their name because they are one of the most well-known of the online MLM’s. In fact, you have to admire Empower for being honest enough to publish some real numbers about earnings – here’s their current numbers:

Active Affiliates
 Income
Levels (Year)
Projected
Hours
% of Average
Yearly Distributors
Monthly
Income
High
Monthly
Income
Low
Average
Monthly
Income
Annualized
Average
Amount
$30,000+ 20 Hours 1% $1,424,575 $25 $18,011 $216,132
$20,000-$29,999 15 Hours <1% $15,000 $25 $2,372 $28,464
$10,000-$19,999 15 Hours 1% $12,500 $25 $1,428 $17,136
$5,000-$9,999 15 Hours 3% $9,275 $25 $765 $9,180
$1,000-$4,999 10 Hours 12% $4,650 $25 $296 $3,552
$500-$999 5 Hours 7% $950 $25 $119 $1,428
$100-$499 5 Hours 31% $425 $25 $50 $600
Less than $100 Unknown 44% $75 $0 $26 $312

 
This table is well worth a little study – you’ll note that 99% of all Empower Network members earn less than an average full time income. More than 97% earn less than $1,000 per month. Only the top 1% of all members earn enough to quit their regular job. And worse of all – they are adding to the Empower Network their unique content that should be for their own website property. Do you see why I don’t like MLM ‘opportunities’?

I do sincerely appreciate that this company, at least, is willing to give hard numbers so that prospective joiners can figure out just what their chances are of success. (you can view the most current updated numbers at: http://www.empowernetwork.com/income-month.php

Now, just like most MLM ‘opportunities – even ‘business opportunities’ that aren’t multi-level can have some of the same faults – always take a close look, and you’ll invariably find that you are adding to someone else’s list, someone else’s website properties… you’re not working for yourself, you’re working for someone else’s benefit. It’s not really that difficult to put up your own website, it’s not that difficult to keep your unique content for yourself – it just takes the understanding of what’s happening – so that you don’t fall into this trap.

Building your own long-term assets is the key to a profitable and successful online business – you must have your own unique content on your own website. You should eventually have your own products that you sell… your own funnel, your own list… this way, you control the business – your finances aren’t at the whim of some other company or person. Work on building your own online business, and not someone else’s… no matter how promising it may sound…

What are your thoughts?

About Ben Holmes

Online since the late '90's, I built my first website in 2001 - coding it on notepad. Times have changed, haven't they? Active on the Warrior's Forum and Facebook - I spend most of my time teaching people how to build their first list - and market to their subscribers. Do you have a list yet?

Leave a Reply

Your email address will not be published. Required fields are marked *