Many of us dream of earning a huge paycheck to give ourselves and our loved ones a comfortable life. This dream can be achieved with a lot of hard work and patience, but in recent years, companies have claimed that they can help you earn this paycheck in a short span of time. These companies are known as multi-level marketing firms or MLM.

According to these companies, you simply have to direct sales and get others to sign up to earn high commissions and rewards from the company. While it seems easy to do, there is more than meets the eye with these companies, and there are rampant reports about why these companies, despite being legal (depending on each country), must be avoided at all costs.

If you are unconvinced, here are the reasons why MLM companies are detrimental to your life:

You Have No Control Over What You Are Marketing

When doing business, you know exactly what you are selling and how to sell it. However, when you get involved with MLM companies, you don’t have this same level of control.

You have no choice but to sell it using the model the company provides, and you can’t adjust the product in any way.

There Is No Guarantee Or Insurance To Protect You

When you work with legitimate companies, these companies will be liable for any mishaps that may occur and assist you in making things right.

However, when you join an MLM company, the contract will be present, but it will clearly state that the company will not be liable for your actions. You can easily be sued simply by being a distributor of the product.

You Ignore All Criticism

One of the worst facts about MLMs is that you will be told to ignore any criticism from those who “hate” the company and those who failed to succeed with their model.

While every business has its own set of opponents, you will notice that the criticisms by these people are similar, and you can feel the raw emotion in them.

You Would Take The Blame If The Scheme Failed

MLM companies will also blame you if you do not succeed with your targets or respond to the company’s call. These people will degrade you for being a ‘failure’, and if you fail and be stuck in debt, you will be shunned by those who ‘succeeded’ from the scheme and get told you are not meant to succeed.

It Will Alienate You From Your Family And Peers

If you become an MLM recruit, you will start your campaign with your family and friends, and they will get annoyed with your efforts. Some MLM companies even train their recruits to cut ties with those who do not purchase your product and focus on your goals instead.

As a result, you may alienate them entirely and lose their support.

Most People Who Join An MLM Scheme Lose Money

MLM companies are detrimental to your life because you will lose money and even be left destitute. Because these companies follow a “pyramid” model, only those who shell out a lot of money and time can have the hope of being rich.

However, this isn’t a total guarantee depending on the company. If you cannot sustain the quota and the fees these companies will charge you, you will find yourself in debt or bankrupt.

While they may be classified as legal companies, it is undeniable that the business model these companies have will only spell trouble to anyone they lure in their midst. If you find yourself offered an “opportunity” by any company promising great rewards, always do your research and if you see that they use the same scheme as other MLMs, decline the offer.

Be careful not to be scam by companies, as some of you have commented, these companies do prey on those who are desperately looking for a job. It is one thing to be aware of these companies and go in with opened eyes, it is another to blindly follow the dollar sign.

For more MLM articles, here they are:
8 Controversial MLM Schemes to Avoid
10 Signs a Business is an MLM Scheme

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6 replies on “How are MLM Companies Detrimental to You

  1. Kally, this is a much needed post. The other thing I have seen is the rules often get changed in the middle of sales campaigns, which is very poor form. So, someone doing well gets punished. One thing I have observed is it is very short-sighted to make changes to punish people actually selling your product. They will leave. Keith

    Liked by 1 person

  2. “But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs.” 1 Timothy 6:9-10
    ‘Nuff said. 😉

    Liked by 1 person

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