MLM And “Direct Sales” Truths

Recently I have been approached by an unusually high number of friends and acquaintances giving me “the pitch” on a new MLM scam… uh I mean Scheme (Freudian Slip). This is to be expected I supposed in our current economic state. Unemployment is at recent highs and even those who are gainfully employed are facing financial difficulties as a spouse may be unemployed or at the least haven’t seen an increase in income in many years.

I try to be a good steward of the resources I feel that God has given me. In my core value system, I feel the need to take great steps in research, and prayer prior to making a significant decision that will impact the finances of my family. I must admit, that I always have been HIGHLY skeptical of all pyramid schemes and MLM “opportunities”. With the recent influx of solicitations, I decided to share some great resources with the few who will read this blog.

My first gut check reaction comes from the very basic laws of the universe that I learned very early in university studying Mechanical Engineering. The law is the Conservation of Energy. It basically states you cannot get more “stuff” out of a “system” than that what is put in. This has and always will apply to MLMs. This in itself is enough to steer me away. One look at how much money those top level recruiters are making and I am running in the opposite direction. Others may look at that as a motivation to sign up, but I see it in a different light.

If top level recruiters (or distributors as they are called in many cases) are making that much money, then logic dictates that they are consuming a large amount of resources in the “system” and GREATLY reducing the chance for you to have a nibble of the pie. At the very fundamental level, making money in a MLM is highly unlikely.

Beyond, my gut instincts, I have found a wealth of knowledge reinforcing my opinions on MLMs and how little of a chance there is to make money with them. The website MLM-TheTruth.com stood out. There are many articles and statistics on this website to help you understand the reality of MLM. One particular article that stood out is, “How do the odds of profiting in MLM compare to gambling?“. Here’s a hint, go to Vegas and have fun rather than signing up with that MLM. Your chances of walking away with more cash rather than less cash are GREATER!