Couple of week’s back I got a call from a an old friend whose name I will not disclose here. Let us call him S. Mr S is a web designer by profession and apart from his days job he is also trying his hands out with MLM (Multi-Level Marketing) with Amway or I would term it as Mr S is trapped into MLM of Amway.
He knows that I am an entrepreneur and so thought of making me his referrer and there is nothing wrong in it but as I am aware of the fundamental flaws of MLM programs I prefer to avoid it. Let us first see the fundamental flaws of MLM Programs.
1. You recruit competitors
You found a superb product. What would be your next step? No no you are wrong. You would not sell that product but instead the MLM model encourage you to find people who would be under your referral and sell that superb product.
You actually are not selling anything but you are recruiting your competitor to sell that superb product. Don’t you think the model sounds a bit fishy?
2. Costly Products due to commission at many levels
You are not directly selling the product but actually selling the product for your entire hierarchy of people above you and this actually means commission being paid on each level, making the product more costly.
This is one of the main reasons why you would not see any branded product being sold in MLM marketing because as a customer you can soon argue that the price of it is something less than what you are selling at.
3. Un-Ethical Marketing
The products are so costly that at times people are not willing to use those products themselves but you are forced to be buying them to keep their membership alive. If you remain a member you give yourself a chance of getting few referrers under your name. This is where you make the second mistake (First of-course is joining such program) and you start calculating how to recover the joining fees you paid to promote those craps. Ideally you should forget about the fees and move on.
Internet is no difference
At times I find it very funny that internet marketers and bloggers promote products that they hardly use it. I term this as Un-Ethical Internet Marketing and try to avoid such scams to the extent possible.
This does not mean that you should make a rule of not purchasing any products referred by other fellow affiliates. I myself do purchase lot of products under other affiliates but I follow a simple rule of asking myself a question just before committing to it – Is the referral based on personal experience or not?
If you find that the review of the product is based on years of experience and the reviewer is using the same product then I go for it.
I also promote lot of affiliate products (and get paid for the same) but I hardly promote anything that I myself don’t use because I believe in Ethical Internet Marketing and sharing of knowledge.
Share your experiences in comments below.
Further Reading …