How Ignorance Fuels Multi-Level Marketing
The multi-level marketing train (MLM) is longer than Snowpiercer, with a new scheme dropping almost every day. If you haven’t heard about MLMs, you might be one of the few people in existence who haven’t. According to Investopedia, a multi-level marketing scheme relies on encouraging people to bring in more recruits so that they can get a percentage of those recruits’ sales. This pitch direction prevents red flags from showing up immediately. However, when you look at the kind of outlandish promises of riches, most people who get sucked into MLMs do so because they hope to retire young and retire rich. The issue isn’t with MLMs themselves. They aren’t strictly illegal, as a Ponzi scheme, but they prey on the gullibility of their sellers.
The Success Rates of MLMs
It would be biased to state that no one gets rich off of MLMs. There have been several well-documented cases of individuals leveraging an MLM and its payment structure to make a bit of extra money. However, in the MLM marketing scheme, the companies use these outliers as examples of what anyone could become. Sure, they usually tell you that the average person in their organization makes like $15 a year total, but it’s generally at the footnote of a page in really small text, so they hope you don’t notice it. The Balance SMB notes that as many as 44% of people dropped out…
