MLM million dollar opportunity or a Scam ? Documentary [style] in Nepali
Transcript
00:00 Dream 02:09 Chapter-1 what is MLM ? 05:33 Chapter-2 Trap 10:32 Chapter-3 Fundamental of MLM 16:15 Chapter-4 Myth
Multi-level marketing (MLM), also known as direct marketing or network marketing, is a method of selling products directly to consumers using independent sales representatives.
MLM companies tend to appeal to new recruits with promises of wealth and independence. While not illegal by definition, many MLMs have become infamous for their controversial business practices—and others have been revealed to be little more than illegal pyramid schemes.
What Is Multi-Level Marketing? Multi-level marketing companies use people instead of retail outlets to sell their products to customers. This puts the responsibility for selling into the hands of independent distributor networks.
Under the MLM model, distributors are not employees of the company. Instead, they’re individual business owners who recruit their own distributor networks to help them sell products. Multi-level marketing firms rely upon this extended network of independent distributors to generate revenue.
Should You Join An MLM? On the surface, multi-level marketing companies may appear to be a great way for individuals to become “captains of their own ship” as business owners, creating revenue from products they believe in.
But the truth is that 99% of people who participate in MLMs lose money, according to the Consumer Awareness Institute, as they struggle to resell products and recruit members for network marketing companies that often tiptoe the edges of illegality and hide the true costs of participation from participants.
What’s more, the tactics used by some MLMs can take a psychological—as well as financial—toll on distributors.
“Dr. Steve Hassan, a leading cult expert, has addressed how MLMs use manipulation and blame to ensure any failures to earn large sums of cash through the business model are placed on distributors for their lack of competence or hard work,” says Rusin.
Rather than turning to an MLM, Rusin, a former distributor for two different MLMs, advises you to think about why you think an MLM sounds exciting and explore other opportunities to fulfill those values.
Whether it’s money, wanting to quit your day job or work from home or seeking a sense of community, there are plenty of opportunities that offer those exact experiences without the hefty financial investment and psychological cost an MLM can have.
“Start your own business by exploring what your strengths are and how you can provide a needed service to others,” Rusin says. “There are inexpensive ways to get started and you’ll have created a much more sustainable and ethical avenue of income.” - Forbes
