Like some of you, I recently found myself unemployed. Instead of taking on a job search in the current market, I have been trying out several different types of “work from home” scenarios. One of them is writing, which I enjoy and plan to continue. Another is Multi Level Marketing (MLM), which I do not enjoy. In fact, I have decided to abandon my MLM business and look for other ways to earn income from home. Here are some of the reasons why.
The main reason, and the most obvious I believe, is the money. Like many others, I fell prey to the expert marketing strategies of the MLM business that I undertook. Everything sounded so easy, and the money would just come pouring in. I paid several hundred dollars to sign up. Soon I found out that I would make a lot more money if I went straight to a higher earning level position. Since I believed that it would be so easy and the money would just come pouring in, I immediately accepted the “challenge” to achieve the best starting position for my new business. I did this by investing several thousand dollars more. I noticed that there were several monthly fees that I would have to pay that were related to my business, but I was not concerned because it was such a sure thing.
I next found out about the advertising expenses. To be effective, I would have to spend several thousand dollars each month on advertising, paid to the MLM company of course. They would then provide me with hot leads, who would sign up just like I did, and the money would just come pouring in. I would put the money I earned back into more advertising, get more leads, and keep building a team. The sad truth turned out to be that most of these “hot leads” were just people looking for a way to get rich without actually doing any work. I worked tirelessly making phone calls day and night, using the scripted sales pitches. Most people were skeptical at best, rude or unpleasant at worst, and most did not sign up.
I actually did sign two people up. Both of them asked for a refund shortly after signing up, and both for the same reason. They learned that they would be expected to pay several monthly fees in order to operate their businesses as expected. The services were optional, but the initial information was misleading because while it did not deny extra fees, it made no mention of them either. I ended up losing money on both of these prospects.
Then there was the issue of my ethics. I felt guilty letting the prospects hear the initial scripted sales pitch and knowing that while I was not lying, I was leaving out important information that would probably influence their decisions. The fact is that if I had known about the extra monthly fees before I signed up, I would not have signed up. It seemed like most of the people I talked to were trying to hold on to every dime and looking for an opportunity to make money. I found myself disclosing the additional fees, which was not part of the script. Of course, I didn’t make any sales this way either.
So, as I said, I have decided to abandon my MLM business and take advantage of the tax benefits of owning a business that goes under. Don’t get me wrong. I believe that there are a lot of people who work in MLM’s that are very successful. I believe it can be done if one has the money to invest in the required advertising. But for someone like me, an honest person who was just trying to find a way to make money from home, it was a bad decision. It cost me thousands of dollars and a lot of inconvenience to figure out that MLM is not the career for me.