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Should You Join an MLM? A Detailed Guide

Often when you ask about joining an MLM (Multi Level Marketing), people have a strong, highly opinionated reaction. You may have heard MLMs are out to scam you, put you in debt, waste your time, and destroy friendships. All are true. Yet people are still signing up to join MLMs and you can still hear stories about people making a solid living 100% on an MLM income. So what information is the truth and what is a lie?

If you’re still wondering whether you should join an MLM (or network marketing), you’ll find answers here. This article will break down the pros and cons of joining an MLM, based on actual personal experience. For some, joining an MLM is the right choice, while for others, it isn’t. Let’s see which option best suits your situation.

The Cons of Joining an MLM

We’ll start with the cons of joining an MLM. If these negatives don’t deter you, then the positives may be the extra income option you’ve been looking for.

It’s a saturated market. If you’re considering an MLM company that has been in business for a long time, many of your prospects will already have been approached by at least one person from that company. In one case, someone I spoke to had already been approached by two others in the same company over the years. However, if your company is new, chances are, there is competition in the same niche. For example, there are a lot of supplement and skin care companies.
The initial and ongoing investment. The cost to start your own MLM business is a lot less then the cost of starting a traditional (non MLM) business. But each month, you will need to order products, maybe products you don’t use yourself or can’t sell, just to keep your business open. You’ll also be expected to spend hundreds or thousands of dollars to attend annual and occasional company training events.
The stories about getting rich and leaving your 9 to 5 job are exaggerated. Most associates who join an MLM barely make a commission that covers the cost of their minimum monthly order. You will hear stories about a handful of people who went from zero to a six-figure income in a year or two. Success stories like these are the exception, not the norm.
They say you are self-employed if you join an MLM but technically you are more like an employee (without the salary). The commission structure, price for products, and regulations for advertising your business are all already determined by your company. A true self-employed person decides how much to charge customers, what products to sell, and how to advertise.
You potentially alienate friends and family. The MLM company encourages you to start by prospecting people you know, which would be friends and family. People who know and trust you could be the easiest to convert into customers. Some people press their friends too hard, however, and cause friendships to end. A friend of mine said his friend gave him an ultimatum: join his MLM team if he really was a true friend or end the friendship. My friend was hurt and haunted by the choice he was forced to make.
Introverted people with a small social network will struggle. As stated above, you’ll probably start by prospecting friends and family. If you’re an introvert with few friends, you will struggle to find prospects. An MLM doesn’t provide you with leads, so it’s up to you to network and attend social events to meet new people. You can expect to spend a lot of time and money going to lunches, dinners, parties, sports activities, and all kinds of social activities to build these connections.
Biased information about company products. The company will give you statistics and proof from scientists, medical experts, and industry influencers about why their products are the best or one of the best in that niche. They will explain why direct sales products are not found in stores and are more expensive but high in quality. But they will not tell you if there is a product on the market that is better suited to your specific situation. In my case, they told me I was using the skin cream incorrectly and six months was not enough time to get results. (Later, I tried a product from another company and got the results I wanted in two weeks.)
Training that depends on the strength of your team and upline. When you join an MLM, you join a team. Your upline (the people who joined before you and brought you onto their team) are responsible for training you on the products and how to get leads. The quality of their presentations and ability to help you with prospects directly affects how quickly you will learn the business.
MLM is advertised as a source of passive income, but that is a myth. MLM associates look for people who want to start a side business or who are interested in making a passive income. They will tell you that when you recruit your own associates and build your own team, you will make commissions from their sales. In theory, this sounds great, but in practice, you will constantly be working to recruit new members to replace the ones who drop out. You will also need to train and support your recruits. Your income will not be passive – you will work to earn your commissions.

If these cons don’t deter you from joining an MLM, then take a look at these pros. There are success stories about people who do join an MLM and stay on their team because they like the benefits of being an MLM associate.

Related: How to Make Money in an MLM

The Pros of Joining an MLM

For some, joining an MLM has many perks. If these situations suit you, then definitely consider joining an MLM company. I have friends who have been an MLM associate for years.

Joining an MLM is a lot easier than starting a traditional business or transitioning to self employment. The initial cost of joining an MLM is a lot less than the cost of starting a business. Also, because you are joining a team of people who are part of the same company, you will have people who already know the answers to most of your questions. When you start your own traditional business, you’re on your own as you handle many legal questions such as licensing and collecting GST. You won’t have an upline to teach you about business strategies. You’re the one deciding on what products to develop and what services to sell. If you don’t have a strong business background, all your questions about marketing and sales can be overwhelming.
You are part of a team. Unless you’re going into business with a partner, it can get lonely really fast if you’re self employed. Many sole proprietors join business groups and networks for the support from people in other companies. If you’re in an MLM, your teammates are part of the same company, and your upline works to support your goals. You’ll make friends who have the same interests.
Tax deductions and write offs. If you have a stable job (or source of income), your MLM business can provide you with some enviable perks. First, if the products you are buying, such as supplements and energy drinks, are products you want to buy anyway, you can buy products and write off some costs. Second, your MLM business is a business, so you can write off costs such as attending training events and items needed to run your business, such as a phone. MLM associates have received thousands of dollars back at tax time. Third, if your company training event is at a destination such as Vegas, then your hotel and meals are part of your business expense and write offs. It’s like going on a working vacation!
Learning skills that apply to your personal and professional life. In order to learn to speak to prospects about your business, you need to perfect a few skills.
- The first one is to learn a strong mindset. Many people will say no to you before you get a customer. All those no’s can be hard on you emotionally.
- After mindset, you learn skills such as time management, goal setting, and organization. It’s up to you to decide how often you want to work on your MLM business. Will you work on the weekend or be lazy and watch a movie? It’s up to you. It’s also your responsibility to stay organized and keep track of receipts and other information for when you do your taxes.
- One of the most important skills you will learn is public speaking and giving a presentation. You’ll need to learn how to talk about your MLM business. For many, public speaking is one of their greatest fears. If you can’t overcome this fear, one of the most important aspects of an MLM business will one of your greatest hurdles. If you overcome your fear of speaking to strangers and speaking to groups, you will develop a confidence that will benefit you in your personal and professional life.
Learning business skills that give you a foundation for starting a real business. You will hear that your MLM business is a business. However, you’re not really self-employed in the traditional sense. You have no control over how much you can charge customers, how much you pay yourself, or how you can advertise yourself on social media. As a traditional business owner, you have control over all those aspects. However, as you learn about building an MLM business, you will learn the foundation for entrepreneurship and developing a business mindset and attitude. If you decide to start a business later, you will already have some important business knowledge and acumen.

Related: Cold Market Prospecting

Summary

People may warn you to stay away from joining an MLM because it is a scam. The truth is, joining an MLM may suit the needs of people who are looking for some of the benefits of those who have a side business, without the hassles of a traditional side business. For those who want to get rich, or replace their income with MLM income, their goals may not be realistic. There is no simple answer to whether you should join an MLM, but hopefully this pro and con list will help with your decision.

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Should You Lie on Your Resume?

Would you dare to lie on your resume? What would motivate you to bend the truth? Perhaps you saw an ad for an ideal job but you were missing just one little qualification. You are so close that one small lie won’t hurt. People get away with little white lies all the time. No matter what your reasoning though, you and I have likely wondered if you should lie on your resume.

If you’ve had the situation where you look at an ad you know you have the aptitude or the skills but you don’t have the official work experience, it’s tempting to lie. It’s also tempting to exaggerate.

Lying About Your Accomplishments and Qualifications

Imagine seeing a job for a marketing assistant and you almost fit all the qualifications. They need someone with tech industry experience. You helped out your cousin for two weeks on a product launch. Should you include that project as actual work experience if all you did was give some advice? Should you consider that as an advisor role?

Maybe you believe in karma and you believe that one day, someone will expose the truth about you. Lying about where you worked, your education, your job titles, and your skills could result in your losing your job after you are hired. It also shows a lack of professionalism if your employer discovers your lie.

You might be thinking, well, that’s not fair. I would have developed those skills or worked on those types of projects if I had the chance.

I understand your pain. I came second place during a job interview at which I was asked about experience dealing directly with stakeholders. They asked me this question more than once, so I assumed this experience was an important part of the job. I replied I was confident I could handle these situations because I handled similar situations with internal teams. However, that wasn’t good enough.

The tough part was that I didn’t have a chance to work on that work experience, not because I wasn’t qualified, but because in that company, it fell under another employee’s job description. If I wanted to develop those public relations skills, I would have had to take over someone else’s work tasks. I’m sure my teammate would have thought I was trying to steal his job, not work on my professional portfolio.

Lying About Your Skills and Experience

Lying about your education and job titles is not a smart decision. Potential employers can check up on these details during and after the hiring process. You can however, re-word your skills and accomplishments in a more favorable light.

For example, if you see several companies are looking for someone with proficiency at specific software, you can develop that proficiency on your own. You could sign up for a free trial of that software and then complete a few projects with it. Those projects would became part of your portfolio. This extra project would build on your skill set and show that you have initiative.

Similarly, if you lack the official education credentials, you can learn about the skill on your own by reading books or taking free courses on your own time. You won’t have the degree, but you will have the knowledge. For example, if you don’t have a degree or certificate to show your skills in IT, you could design your own project, such as building a website.

You won’t have to lie about your skills and experience. Instead, work on them on your own and add them to your career portfolio and resume.

Summary

It’s tempting but not advisable to lie on your resume. Lies are unprofessional and you could get caught in them. Instead, if you see a pattern of required skills and experience, work on them on your own time if you don’t have the opportunity to develop these as part of your job.

A comforting fact is that most companies don’t require you to have every skill and depth of experience that they list on their ad. They are describing their ideal candidate. It’s your job to convince them that you are the closest they will find to that ideal.

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Skills Insight of the Day #8 Investments

Where do you find the best investment advice? Everyone wants to increase their income, their savings, or their assets… especially if they still worry about their finances. If you look online, there is no shortage of investment experts. Ultimately, the advisor you want to listen to is the one who best understands your situation. But who should that mentor or expert be?

There are so many social media posts advising you to set aside 20 percent of your income for savings. They also say that rich people put the majority of their wealth in investments, assets, and savings, and only a small portion in expenses. However, they aren’t telling you the real investment secret.

When you’re making six figures, you’re able to afford a basic cost of living. In most cases, you can have a decent place to live, food to eat, and money to spare after paying for basic necessities. True, if you’re buying a mansion and a supercar a week, you might be living hand to mouth, but let’s say that you’re wealthy and not living above your means.

For most people, however, setting aside a good chunk of their income for savings or investments is difficult or just not possible. They don’t make enough to pay for housing, food, and a basic living. Or, they do make enough but there isn’t much left to set aside for a rainy day.

When you look at the numbers this way, it makes sense that the rich can afford to set aside a large portion of their wealth to build investments and assets – buy real estate, shares, stocks, etc. It also makes sense that there are people who don’t set aside much money for investments or assets. They spend money on liabilities (items that lose them money and debts) because they are barely surviving.

For those who can’t afford to set aside 20 percent or more of their income for investments and assets, start with building your skills. You can pay for courses or take them for free. You can also learn skills from a mentor.

A lot of education is available online through online courses or YouTube videos, or you can borrow books from the library. When your skills can command you a higher paying salary, you will be in a higher income bracket. When you have that higher income, then you can start following that investment advice that you keep hearing about and grow your wealth even more.

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Should You Become a Freelancer and Start a Freelancing Business?

Have you heard of terms like gig economy, freelancing, and side business? It seems to be the trend these days to make a side income if you aren’t making enough income at your regular job. The idea of becoming your own boss and working when you want at the beach does have its dreamy appeal, but is that life for you? Should you become a self-employed freelancer?

If you’re on the fence about starting a freelancing business, ask yourself the following questions. You may surprise yourself with your readiness to take your career in a new direction. Or you may need more time to re-evaluate your options. Either way, these questions will help you decide if freelancing is for you.

Are you aware of the challenges and risks of freelancing?

If you’ve always been an employee, the sudden income instability may be a little frightening. Before you start, make sure that you have three to six month’s savings set aside to pay your bills. You’ll be taking risks that you didn’t take when you had a job.

As a freelancer, it’s your responsibility to find work for yourself, either by networking or creating a profile on a gig platform such as Fiverr. When you first begin working on your own, you’ll need to manage your time and goals wisely. Even if you have a job that lasts three months, you’ll be looking ahead to line up the next gig to start four months from now. Otherwise, when your contract finishes, you could find yourself without an income.

When you first start freelancing, you may have some months with a lot of income, and other months with less. Setting aside savings will help with unforeseen expenses during months of less income. You’ll also need your savings because the holiday pay, sick leave, and medical and dental benefits that you may be accustomed to isn’t provided to freelancers.

The abrupt change in income stability may be too much of a difference in lifestyle for some people. Some people freelance for a side income, working in the evenings and weekends while still working at a full-time job. Others work at a part-time job while supplementing their income with a freelance business before transitioning to freelancing full time years later, when they have a stable client base.

Do you have the skills as a freelancer?

Your success as a freelancer will also depend on your skill set. You can freelance as a writer, social media manager, virtual assistant, or video editor, to name a few jobs. If you’re just starting to build your skill set, you’ll be charging beginner level rates. If you already developed a skill and you’re transitioning to freelancing with that same skill, you’ll be able to charge much higher rates.

Other factors that will determine how much work you get as a freelancer and how much you make include:

Whether your skills are in high demand. If many clients need someone with your skills, then you will find many opportunities.
Whether your skills are general or niche. Writing, for example, is a general skill, and there is an abundance of writers. If you have a niche, such as writing grants or writing for tech companies, you will be higher demand by those clients that need that level of specialization.
Quality of your clients. Your relationship with your client as well as their financial situation will determine how much you can charge for your services. For example, if you are just getting started, you may accept a contract with a small company that hasn’t been in business very long. Their budget would be limited, but you would be able to gain some work experience.

Do you have the mindset to start a freelancing business?

The most important factor to consider about freelancing is your mindset. You’ll be your own boss, setting your own work hours. You can sleep in on a weekday or only work three hours a day if you’re feeling lazy. Those are some of the perks.

It also means you need a lot of self discipline to set your own income goals and work hours, and to get work done by the deadline. People you know may discourage you from freelancing because of the risks. They’ll tell you to stick to the stability of having a traditional 9 to 5 job, and maybe work two jobs if you want to make more money.

As a part-time or full-time freelancer, however, you’ll be able to decide what projects and work you want to take on, and you’ll be able to negotiate your own rates. Yes, you’ll have bad experiences with clients who don’t pay or take advantage of you. It’s a learning process, and as you gain experience, you’ll have the chance to find great clients who appreciate you. When you become highly experienced and in demand, you’ll even be able to turn down jobs to do only the work you enjoy.

Summary

Freelancing, either part-time or full-time, can be a dream come true for those who want to make an extra income, or take on work opportunities they want. Being your own boss and working where and when you please has its appeal. However, freelance work isn’t for everyone. You need mental discipline and a desire to always work on your skills.

Still considering working as a freelancer? What gigs would you like to try?

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Why You Must Leave Your Comfort Zone

You’re standing at the front of the room, aware that every pair of eyes is on you. Palms clenched and sweaty, your heart thuds so hard it will crash out of your rib cage. You open your mouth to begin your presentation, but just a breath of air leaves your lips. You want to die to escape, but then you remember a horrible, universal truth.

Fear itself kills no one.

Never be afraid to leave your comfort zone.

When I gave my first presentation in front of two hundred people, all strangers, I did an excellent job of bombing it. I could blame it on the fact that I hadn’t been properly informed about the audience. The material I presented wasn’t challenging enough and they complained it was too simple. Throughout the painful, 3600 second duration of my talk, I could feel impatient eyes pushing me off the stage. I wanted to do what they asked, to escape, but their dislike alone couldn’t make me melt under the spotlight and die.

The comments I received on the feedback forms afterward I would never frame on my wall, but I don’t regret the experience. It has become my war story about how I spoke while on hostile territory and survived.

When you get uncomfortable, you grow.

Humans can live through a lot of things, and with each experience, we stretch that elastic band that defines our comfort zone. I redefined the boundaries of mine when I gave that work presentation. I fear bombing a presentation a lot less because I’ve told myself that it’ll never be that bad ever again.

A little bit of anxiety = a little bit of adventure.

If you’re considering leaving your comfort zone, you should start with something small, like changing your routine to or from work. Instead of taking the main road, take a detour down a neighbourhood to check out the types of buildings and people that are there. Instead of keeping to the sidewalk, venture into the corner store to discover what they sell. Don’t let metathesiophobia – fear of change – get the better of you. Get uncomfortable just a bit at a time.

Fear of the unknown, fear of disappointment, and fear of failure are just three phobias that prevent people from trying something new.

Fear of the unknown can be terrifying. If you look down a long, dark tunnel, and cannot see the end of it, you may not venture in. What if there’s a beast living deep inside? What if entering that tunnel causes you to lose ten years of your life for every minute you spend in it?

What if?

But what if I told you that anyone who enters the tunnel will have one of their dreams granted after they reach the other side? Would you enter then?

Take chances and leave that zone of comfort.

Traveling to a new country used to be out of my comfort zone. I was taking a job in a country I’d never been to, in a city where I didn’t speak the language, and the only person I knew would be a friend from my home city. I chose to leave my comfort zone because I needed a job that paid well, but more importantly, my friend was going to leave me to live in a place where I’d never been. I didn’t want to be apart from him, and if he were going with me, I wouldn’t be alone.

The adventure didn’t quite turn out the way I had intended. My papers came through more quickly and I ended up in Tokyo, Japan, before he did. I was in a city of strangers, armed with only a few weeks of Japanese lessons. My assessment of the situation: highly uncomfortable.

Time passed. He joined me eventually, after I was settled in. Then I got homesick and left, and an ocean separated us for many years after that. Long distance phone calls became more sporadic, and ten years later, when we were reunited, we were strangers struggling to complete a conversation.

My fear had come true – our friendship had fizzled away, but I had no regrets. I wasn’t wondering if our friendship would have lasted if only I’d had the courage to follow him on his travels.

The upside of the experience was that I was more comfortable with visiting new places. Focusing on all the positive of what could happen inspired me to keep trying something new.

Leaving your comfort zone is like learning to walk.

Imagine if all babies in the world never leave the crawling stage because walking is scary. You could fall on your bum. You could sprain a finger. “Walking is hard! I give up! I’ll crawl for the rest of my life!” But at some point even babies decide to take one step at a time to leave their comfort zone and try that new way of moving that’s so efficient. It starts with standing up and putting one foot forward at a time.

Everyday, entrepreneurs try to challenge themselves to do something they haven’t done before. It’s easy to feel safe and secure. However, you attain success only when you change, and only when you change do you grow into a new you.

For me, becoming an entrepreneur was not an overnight process. It involved a lot of slow growth mixed with plenty of setbacks (one step forward, two steps back) before I started to enjoy a smooth ride. Each day now, I get closer to my destination.

So how about it? How will you challenge yourself today?

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