Pro and Cons of Network Marketing

Yes, 10 years ago I left the corporate world and wanted to become become a millionaire by 35.
I was already using some products by NuSin and jumped into working at it full time. The promise was not a QUICK rich plan, but years of hard and consistent work.

Amway, Herbalife, NuSkin, FreeLife, Young Living, etc (the list is long)... Yes, some have great products, but they also come with great prices.

Let me explain why!

MLM makes us believe that direct marketing is the cheapest way to get a product to the consumer.

That is TRUE. Only: in most MLM there are 6 to 10 levels of distributors who each need to earn a commission and make money to buy their own overpriced generic products.

This is also TRUE: Ex. : Shiseido sells a cream for 100$. 70$ is used for advertisement and marketing and to pay the pretty faces you see in Vogue. 20$ goes to the company for revenue and less than 10$ goes to R&D and the actual raw material cost. What do you buy: an expensive, poor quality cream.

Also TRUE: MLM company XWZ, sells their cream for 100$. Pays 70% of it to their multi level distributors (marketing cost) and can still afford with 30$ to invest in good ingredients. What do you buy: an expensive, good quality cream.

NOW: mind you: this is only for products with a high M&A cost, NOT for generic products and household products or consumer products with a low M&A. ESPECIALLY now that many of these products can be purchased directly over the net.

Most MLM pay out anything between 40-75% of their sales price to the level of distributors involved.

Here is some satire on MLM companies: Have a look at these

There is a certain power in network marketing, sharing with family friends, colleagues...do we not want the best for our beloved ones? Of course it is!

I yet to have to encounter a great MLM Company that has great, competitive products with a tech edge, good compensation plan and long term future, making a change in peoples lives.

See the next funny commercial of how a father talks to his young boy about "important things" in life ... I hope he does not end up with a new car and a teenage pregnancy at the same time!!