As someone who runs a successful online business and has tried many different types of businesses in the past, MLMs are honestly “that kind” of business I stay away from and in this article I’ll explain why but at the same time be as objective as possible to help you decide if MLM is right for you and if not, what I recommend instead.
Before I get into the details, let me quickly explain who I am:
My name’s Vitaliy and for the past 10+ years I’ve been running an online business that generates me a full time income and allows me to live life comfortably, debt free and by my own rules. I also help others do the same and avoid the many mistakes I made before I succeeded.
I got this point thanks to the training in a program called Wealthy Affiliate which teaches people how to build profitable websites on any topics they love in life which get many visitors and earn money through things like promoting products, ads and more.
This program has the most success stories out of any other that I’ve ever tried and what they teach works, is beginner friendly, way better than MLM in my opinion and you can even start for free.
Here’s a short review of Wealthy Affiliate which explains how it all works, the many success stories this program has and how to even get started today!
MLMs explained (the 30,000 foot overview):
Multi-Level Marketing (MLM) is a business model where you join to become an individual seller of a company’s products or services. Most MLM companies create products based on wellness.
There are 2 ways to make money with most MLM programs:
- Selling their products (you are required to buy them first)
- Recruitment (you refer people into the MLM, they refer others and you build what is known as a downline)
Just about every single MLM program out there has what are known as “compensation plans” which explain how much you can earn from the above 2 methods, but at the end of the day it comes down to this: The more products you’re able to sell and/or the more recruits you are able to bring in (and they bring in others), the more you can make but in my experience the reality of this happening is easier said than done.
Are all MLMs pyramid schemes?
Not all and I’ll explain how to tell the difference but ot’s almost impossible to research the topic of MLM without seeing the words “pyramid scheme” come out. This is unfortunately because many MLMs have developed that reputation, including some of the biggest names in history (and that’s one of the reasons I don’t even bother promoting them).
But the key difference between pyramid schemes and MLMs is this:
- Pyramid schemes are just recruitment traps where you can only make money gettings others into it.
- Legit MLMs however have the option to do more than just recruit others, you can also promote their products (there’s actually something you can sell like a product.
Pros:
- Legit MLMs do exist out there (some have been in business for decades)
- Starting an MLM business costs way less than traditional businesses
- Some MLM programs have decent/good products you can sell/believe in
- You can succeed in starting an MLM business and some of the most popular MLM programs out there have quite a few success stories
Cons (there are quite a few):
- The MLM “stigma” makes it very tough to recruit people (when people hear MLM, they often run the other way)
- Many friendships/relationships have been ended by people trying to recruit their inner circle into these things
- MOST people do NOT succeed with building an MLM business
- Most MLM businesses REQUIRE you to buy their products if you are to sell them
- Many places have restrictions on selling MLM products (some MLMs also limit where/how you can sell their stuff too)
- Selling MLM products is extremely difficult because there are cheaper/similar alternatives on the market
- Massive competition/saturation in the market makes it tougher to succeed
- The “cult” aspect of MLMs cannot be overlooked. There’s many people who are brainwashed into believing the MLM they are in is “changing the world” and they are a part of something big when in reality it’s just emotional manipulation used to get you to join.
Is MLM the way to do or is there a better alternative?
While I did say that I would try to be as unbiased as possible when talking about MLMs, it is very difficult to ignore that their reputation precedes them and starting an MLM business, while cheap is still VERY DIFFICULT to succeed with due to the overwhelming cons I listed above, among which these stand out the most:
- The MLM stigma (people are naturally skeptical when they hear this word and it’s tougher to sell them into it)
- MLM products are too expensive and have cheaper/possible better alternatives (people love to save money)
- Lost relationships due to the brainwashing crap are also a huge red flag in my opinion.
I personally stay far away from these programs, even the legit ones because of the above risks. Building a legitimate business itself takes time and work, but adding the extra layer of MLM and the reputation that it has on top of that makes it even harder and there’s far better business models out there in my opinion.
My top alternative to MLM:
Since 2007 I have been running an online business, first part time and then full time (till today in 2024). I learned how to succeed thanks to one program and that is the Wealthy Affiliate program which people can actually join for free.
Their main specialty is helping people create a profitable websites on any passions you have in life, getting visitors to them and then make money through them via methods like:
- Affiliate marketing: promoting other companies products (Not MLM)
- Putting ads on the site: More visitors = more earnings
- There are other options but these 2 are the most common
For example: If you love mountain biking for example, they’ll show you how to create a profitable website on mountain bikes (promoting them, putting ads on the site, selling it, etc…). Any passion you have in life can be turned into a thriving online business and this is exactly what they show you how to do.
I showed you some of my income reports above and have personally built sites on topics like: Drones, weight loss, mud runs and more. And I’m not the only one. Here’s a bunch of their success stories (you can see more inside the program):
Why building a business with Wealthy Affiliate is better than MLM:
- It’s free to get started
- No need to recruit people (friends/family)
- No downline/pyramid scheme crap
- You can promote products without buying them (MLMs require you to buy them)
- No confusing compensation plans to figure out
- You can build a legitimate business on any passion you have
- The Wealthy Affiliate program has tons of success stories (4.9 out of 5 rating on Trustpilot)
- No MLM cult nonesense
Bottom line: There’s better ways to build a legitimate business than with MLM and Wealthy Affiliate will show you how.
How to get started with Wealthy Affiliate:
- Join here (it’s free)
- Go through the 5 step set up (you’ll choose a topic you love and get your first website)
- Start the 8 lesson course
- Bonus: Get my personal 1 on 1 expert help when you join today
The value of the Wealthy Affiliate (WA) speaks for itself. It’s free to try and only $49/month (or for the best membership, $99/month) if you decide to stick around. The upgraded memberships provide you with more tools, training and more to further help build your online business and if you have any doubts (which is totally normal), check them out for free first and then decide if you want to stick around or not.
Wealthy Affiliate works, but it is also not a get rich quick scheme. It will teach you how to build a REAL online business of your dreams and if you apply the training they have and work hard, you will become one of it’s MANY success stories.
And frankly speaking, I want to see you do just that. As your coach, one of my goals is to see just hat and I’ll help you along your journey there too).