It was a very enlightening conversation I had with Alex, one of my mentors in investmenting. What he shared is precisely my experience with many MLMers who burnt out, which is why I prefer to invest in investment MLMs rather than product MLMs.
WHY I GET SUSPICIOUS WHEN MLM’ERS WON’T GIVE ME STRAIGHT ANSWERS
I find it very interesting that practically most MLM’ers will not give me a straight answer to the question: “How long have you been at your MLM business and how much are you making now?”
Usually they will divert to talk about how much their upline is making. I am not interested in how much your upline is making. I am more interested in what you have made after all the years you are in if you say the business you represent is really that good and lucrative.
If a business proposition or investment is that good, I will be prepared to divulge the exact details as to how it is that good and will even open my accounts to show “where is the money”!
Also, when I state some industry statistics about only 2% of the industry being successful and the 98% being unsuccessful, they tend to justify. However, I am adamant about the fact, that I cannot be comfortable with me being successful and most of the friends I bring in being unsuccessful. To me, any friends I bring into any scheme MUST somehow benefit one degree or another and be happy about it.
I am inclined to believe they are lying; or making a show; or not willing to tell or face the truth. For example: A jaded junior MLM’er told me how her upline keep calling her to keep at the business by approaching more and more prospects without qualifying them as to whether they are suitable for the business proposition. She has spent RM14,000 and after speaking to 100 prospects using brochures at her own cost, she enrolled one and got back RM7,000. To me, that’s highly inefficient and very, very tiring. Now, she wants to get back the other RM7,000. And I can see that, the obsession to get back that money is debilitating her: tired, not focused, no brightness of eyes; not managing her life as well as she should.
She keep harping about her her indirect uplines are always on stage to receive their prizes and driving big luxury cars, trips, fine dining, etc. etc. I advised her to get to know them closely, visit their houses, see their families to see what the real situation is. When I said that, she realizes that one of the higher upline’s marriage is on the rocks – probably spending too much time away from his new spouse.
I am also inclined to believe that most of their income are spent on flashy cars and houses to give an impression that they are “successful”; racking up high debts. I am also inclined to believe their families are neglected while they run up and down the country to support their downlines to recruit new “victims”.
I did, however, managed to elicit some information from a close friend as to how much a product/service based MLM makes. The answer is usually about RM15,000 to RM20,000 after a few years (usually 3 to 4 years). Do you consider that successful? Personally, I don’t think so. There are a number of more ethical business that can give better returns in a shorter time without creating so many “victims”.
In the end, my advice to that lady MLM’er? “Give up the RM7,000 and move on. I have personally given up RM100,000 and moved on when I find out that the company and uplines are turning the MLM into a money game and front loading the new comers!”
If you are looking for a way to make your USD 1300 give 8 percent returns every month, feel free to contact me.