This article was first published by Budget Babe.
MLM (Multi-Level Marketing), also known as pyramid selling, is a controversial marketing strategy where the revenue of the MLM company is obtained from the people who join the MLM.
Typically, the idea is that you recruit newcomers, who pay a fee to join in order to gain access or start selling the exclusive MLM products / services. World Ventures, Nuskin and Amway are probably the first few names that come to mind, but that’s not it.
I was quite shocked when some of my friends tried to rope me in:
“If I could show you a way to earn from…(insert description here) that specialises in…(insert super-amazing niche here)…and you can earn potentially UP TO (insert high returns or amount here)… I think this is really a great opportunity for you!”
“I’m looking for a business partner and was wondering if you would be keen to join me? I would like to share with you this fantastic business opportunity to earn UP TO (insert high returns here)…to be part of the pioneer group and make good money while helping others…”
(adapted from my own real-life experiences)
Now, not all MLMs are bad, but many schemes have gotten a really bad name for themselves in recent years. For some, investors have even lodged police reports against them for not fulfilling their high investment returns as promised in the beginning.
And unfortunately, some investors lose a lot of money in such MLMs, potentially even their life savings. For one of the “opportunities” which my friend tried to share with me, it required me to “invest” a 5-digit sum in order to start selling what they purported was the new “cure to cancer”.
I don’t know about you but it sounded odd to me that if there really was such a miracle cure, then why hasn’t it gained massive traction among the public? Why haven’t hospitals, doctors and even governments talked about it yet? Why hasn’t the world gone jubilant that we’ve finally defeated the C-monster?
You get my drift.
Anyway, if you’ve ever wanted to find out how to identify a MLM scheme so you can decide whether to join or stay far, far away, here’s an interesting thread by an insider that you HAVE to read.
Disclaimer: I don’t know who this anonymous source is and cannot verify if what he/she says is entirely true, but this was definitely an eye-opening read for me!
Stay safe and informed.
Budget Babe is an ordinary lady striving to achieve financial freedom in Singapore before the age of 45. She writes in order to empower fellow Singaporeans on taking charge of their own lives and finances, and to eventually break free from the competitive rat race.