4 Myths In The MLM Industry And How To Counter Them

Despite being one of the most thriving industries in the developing and developed economies, the MLM industry is not as lucky as its counterpart industries are.

Why is it so?

The MLM industry is crippled because of some baseless misconceptions that surround it. Every year, the MLM industry bears an opportunity loss when some of the talented and smart people decide not to join the industry because of these sheer myths.

Why is the MLM industry the only victim of such misunderstandings?

It is well said that the shadows of the past hide the brightness of the present.

This is the same thing the MLM industry is facing. Because of some illegal pyramid schemes a few decades back where some cunning minds deceived innocent people and booked a massive volume of profits, the image and definition of MLM industry got tarnished.

But now, with Model Guidelines on Direct Selling by The Government of India in place, the MLM industry acquires a reputed status of a legitimate business. There are legal regulations that MLM companies need to follow, and that differentiates them from fraudsters.

However, this is not the only myth that surrounds the MLM industry; other delusions need to be cleared to ensure the growth of this industry. Let's discuss.

1. Myth: MLM is an illegal pyramid.

A pyramid scheme that floated decades ago did not involve any products and services; instead, the people were paid on the number of recruitments one can make. It was like stealing money from your friend or family!

Reality: However, the fact is different. An MLM company sells products and services in various sectors that are well researched and are of the utmost quality. The MLM follows a tree structure where a distributor recruits directs who are engaged in selling these products. So, the base of income generation is the sales of products and not recruitment. And, the MLM compensation plans are intelligent enough to pay everyone according to their performances.

With the arrival of companies like Amway, Avon and Tupperware, one can understand how the MLM industry has generated employment opportunities for a vast number of people.

2. Myth: MLM company asks you to attack your friends and family. People are under the impression that they will have to lure their friends and family members to earn as a result of which their relationship will be affected.

Reality: However, the truth is not what we think. Yes, MLM means selling your products by increasing your network. But that simply doesn’t imply to take advantage of near and dear ones. You can begin by including them as your warm prospects if they show any interest. This will act as your support in building confidence. But there is a long way to go. Today, the real opportunity lies across the boundaries. With the arrival of the digital revolution, it is easy to connect with strangers and grab their attention towards your products and business.

3. Myth: MLM is the only business that can make you rich overnight.

People think that MLM business is the way of earning quick money.

Reality: Just like any other business, MLM is not a money-spinning wheel. You will have to follow certain principles to achieve your goals. Yes, some people and companies make good money quickly. But it’s not luck. It is hard work, discipline, perseverance, dedication, and strategy. When you follow a schedule, engage in relationship building, learn new things, recruit deserving people, train them effectively, lead them with the right direction, respect your customers and put endless efforts in generating leads; no one can stop you from getting success. But again, this doesn’t happen overnight.

4. Myth: Only the people at the top make huge money.

This is a common excuse given by people for not joining MLM. Why do we work hard to make someone else rich?

Reality: Well, think again! What are you doing when you are working as an R&D Manager with a reputed MNC? DO you get the right of selling the product individually if you come up with an innovative product through research? Of course not! It belongs to your company. You will get your fair share in the form of salary, incentives, and rewards. But the product will be sold under the company’s name. It is the company who will earn the profit and share it with you in multiple forms. A similar thing is happening in the MLM industry. You can earn handsomely if you perform. Follow the business model and reap the rewards. Undoubtedly, the members of the upline will be benefitted with your performance.

Takeaway: Believe in your dreams. Think rationally. Engage in research about the company and products. Learn about their business model. Now, check if you are still compelled to believe these myths.

If not, then move forward and enter the MLM industry with a positive approach.

Read Also: Dos and Don’ts in Multilevel Marketing Business!

As a Business Development Manager having 6.5 years of experience in the area of business development, client acquisition, and relationship management, I am a success driven, enthusiastic, highly-motivated