Misadventure Stories on Multi-Level Marketing (MLM)

Multi-Level Marketing (MLM) Mishap

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Multi-level Marketing (MLM) is a legitimate business strategy that some direct-sales companies use to advertise their products. This marketing strategy encourages existing distributors to recruit new distributors in which they will get a percentage of their recruit's sales. These new recruits are called "downlines" and if the new recruits get their own new recruits, they will get a percentage for that too.

With the rise of Multi-level Marketing comes Pyramiding scheme. The only difference between the two is the commission system. Pyramid scheme gives income through recruiting alone and it won't urge their distributors to sell goods. However, this business is considered illegal in most countries.

We all have that dream of being a billionaire and we will do anything we can just to achieve it. Call me desperate but I've been through that stage and the idea caused me to decide irrationally. I have joined a lot of MLM companies and had one major downfall. I will be sharing three of my misadventures on MLM and how devastating it was.

_{DISCLAIMER: I am not trying to recruit anyone and this is not to advertise any companies mentioned. This is also not to discourage anyone from signing up to any of the companies said.}

Multi-Level Marketing # 1

Vmobile

I was just 2nd year college when I first entered this business. My sister is the one who invited me to join, because she wanted to have a downline immediately. The first MLM company I joined is Vmobile.

VMobile focuses on reloading prepaid simcards here in the Philippines. They offer two ways to start business; (1) open a retailer account for 250 PHP which is 4.81 USD or (2) open a dealership account for 4,000 PHP which is 76.92 USD. The retailer account gives 8-12% discount on buying load from them which can be sold to prepaid subscribers of any networks. It also pay for invites or recruits which is 50 PHP (0.96) per head. On the other hand dealership account gives more ways of earning.

It gives 10-14% discount on buying load which can be sold to prepaid subscribers. The package consists of 20 retailer cards so dealers can invite someone to open a retailer account (which was the one discussed earlier), and in return will get 250 PHP from each successful invites. There is a 2% retail override on the load sold by the retailers invited. They also have franchise sales incentive and franchise royalty bonus. Franchise sales incentive is the money received for each referral/recruit which is 500 PHP per head or 9.62 USD. Once each successful referral/recruit invited two matching pairs, another 500 PHP will be earned.

Honestly, all these information discussed to me and my sister sounded very exciting. At that moment when the package was handed over to us I can see how close I am to being a billionaire and I got all hyped (POWER!). He got me at "OPPORTUNITYISNOWHERE" which can be read as either "OPPORTUNITY IS NOWHERE" or "OPPORTUNITY IS NOW HERE," and that we have to start being positive by looking at things positively than highlighting the negative things. Without any hesitations I joined and excitingly shared my new business online.

Unfortunately, things did not go well for me. I was unable to get recruits and everyone that I try to invite declined. I invited them for a chat over coffee and asked them if they're open minded (or in tagalog, "open minded ka ba? Kape tayo), and most did not even bother replying. That is the first failure I had on MLM and I lose heart and stop.

Multi-Level Marketing # 2

Usana

Not for long, I joined other MLM companies but let's fast forward to one of the most expensive membership I joined, Usana.

Usana is a MLM company that produces nutritional products and dietary supplements. There are many packages to buy in order to start your business and as far as my mind can recall, I bought the most expensive package where I automatically have my own downlines. I also have all the products they sell like the essentials, reset program, etc. If I am not wrong this cost me round about 35,000 PHP or 673.08 USD. I was so excited and they got me at the supplements. They explained that their supplements are used by many renowned people (like Manny Pacquiao, everyone knows him for sure).

I went home with my package bringing with me a hope that I will be a billionaire. There is something about the presentation which makes me elated and I think that is the idea of being rich. I tried selling the next day but the supplements are really expensive and most of the reason why they decline my offer is the price. I tried getting recruits too, but there was just one person who agreed to check the presentation. Sadly, after presenting everything to him he declined to join. Due to unsuccessful attempts I lose heart and used some of the supplements myself and gave the others to my parents and relatives for free instead. I felt so down but it is still worth it because we felt good with the supplements.

Multi-Level Marketing # 2

HPI

After the many attempts I am really hard headed and joined yet another MLM company which is HPI.

I got invited by my churchmate and immediately agree to go. I trusted her knowing that she is from the same church I am in and I also like the idea of earning big money (again). HPI promised three ways of earning; Reward System, Recruiting which is optional, and direct selling which is optional too. They promise us that unlike other Networking Companies, we are not required to get recruits and to sell their products to earn. The reward system is enough for the money to grow. It was futhermore explained that we earn because the money we place will be used on other business ventures, where profit will be distributed to us.

Since I had troubles and difficulties with selling and recruiting, the promise of reward system got me. I signed up and placed my 8,000 PHP or 153.85 USD. I was also able to get 3 successful recruits. My money growed within two months to 14,000 PHP without doing anything and it sure was promising. My three recruits were also happy that their money growed too and are thankful to HPI.

However, I experienced one of the worst things ever in the world of MLM. VMobile and Usana are all good companies it's just that my capacity to sell and recruit sucks. I was wondering why after a week of trying to get my payout, they said that there is system glitch and I have to go back the other week. After going back they told me that my account has not matured yet. I showed them all my proof through the online website they provided us to monitor our earnings, but all I get from them are apologies.

After that stressful night of trying to get my 14,000 PHP and my recruits' share too, I asked my chruchmate what happened. She told me that everyone's experiencing the same thing and the coaches are not even replying. I flipped out and it was devastating. I explained everything to my recruits which they understood. We never heard anything from the chairman again and we filed a case against him.

Just last year we received justice and the chairman got arrested in Angeles Pampanga. Even if we didn't get back the money that we invested, justice is enough to relieve us.

Take aways

Multi-level marketing is a great business and many people are already successful in this field. Bad decisions result to misadventures in life and there are things that we easily give in to because of how promising it could be. We are so focused on our dreams that we forget to think rationally and let our emotions do the decision making. What should we do when making a decision?

RESEARCH

It is easy to do reaserch in this day and age due to technology. We have to make sure to do a background check and validate information before we embark on a decision. Make sure to get it on trusted and reliable websites. Gather data based on facts before getting the opinions of others. I trusted the information given to me by HPI without doing research if the company is even registered with Securities and Exchange Commission (a government agency responsible for regulating securities Industry). Do a research before jumping into a decision to ensure legitimacy of a company.

CHECK YOUR SKILLS/PERSONALITY

Are you capable of doing it? If not can you commit on learning how to do it? I am or was an introvert and talking to people cause me stress. It is difficult for me to converse with others and would rather be in my own universe. Honing people skills is not an overnight process. I have been working on it for 3 years and haven't perfected it yet. Recruiting and selling is not my skill back then, hence my failure. Before making a decision, we have to make sure that we know ourselves to see if we can commit on our decision.

ASK OPINION OF OTHERS

It will be best to ask opinions after research has been done. It has to come from someone who has experience on the field to make it more reliable. Also, make sure not to be one-sided and ask those who are successful and unsuccessful. You need to get both opinions before deciding for yourself.

QUESTION YOUR MOTIVES

Why are you investing on the business, is it because it is what you love to do or is it only because of the money? There is nothing wrong with the motive of earning but you have to consider whether it is something that you love to do. Because no matter how we want to be rich, if you are not doing what you love you will never be successful with it.

Those are the things we need to consider before making a huge decision and a decision that would involve your hard earned money. I learned it the hard way and it cost me a lot. Let's not allow our emotions to do the decision making to lessen our misadventures in life.

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