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A friend of mine got involved with an organization that utilizes network/multi level marketing. I was curious and tried to do some homework about that particular business paradigm and my research has more or less concluded that it's a mixed bag.

Any of you more business savvy individuals have some insights? I'd hate to see my buddy shackle himself to something financially tenuous or illegal.

I can't speak for results, but it's not illegal... generally, though some are just pyramid schemes. I think it depends a whole lot on where one is doing it, definitely recommend checking the specific company's rep.

Not something I'd get involved with.

I used to be employed by one of the bigger MLM corps in my country. That is where I made most of my money. Yes, it is a pyramid scheme, for the most part. But it's not a scam. You have to work your ass off in order to recruit and form a good network. Basically, it's the easiest way to earn money. You just need to find people (downlines/leads) who are convincing with good sales rep. I still earn residual income, despite not working a day in my life for almost 2 years.

If you plan to commit to this kind of business, you'll have to work from the ground up. Remember that the person above you (upline) who recruited you also earns a small commission from your recruitment efforts. The only chance for you to earn higher than your upline is if he/she stops recruiting, or if you availed of multiple heads.

Most importantly, not everyone can become successful in this business. Some actually lost more than they earned. These are the people bad-mouthing MLM. You can't build a successful network in a fortnight. It takes years upon years of experience and hard work to become a successful network marketer.

I was briefly a part of an MLM company, but it wasn't a pyramid scheme in the technical sense. It's possible to make money with them, but unlikely for all but a lucky few.

I do know a couple individuals who are making decent money in networking organizations like this, so it's possible. But again, it's a dicey proposition for most. What Abestos says above me is true, but I'd amend one statement: where he says "Some actually lost more than they earned" I would change 'some' to 'most' or 'many.' While those who are successful with it can say that it's just the losers bad-mouthing it, if there are a LOT of people bad-mouthing it, what does that say about the business model? Is it that so many aren't cut out for it, or is it that the model is flawed to the extent that it limits the number of people who can succeed, regardless of talent or effort?

My time with a MLM company was too brief to say much. And it was horribly run, so I'm not sure it was indicative of other opportunities out there. The company went under shortly after I left for another job, and I was there for so short a time I don't even bother listing it on my resume. What I can say, though, is that there are a ton of MLM positions out there that are direct sales jobs with low pay and limited earning potential (despite promises of the opposite).

TL;DR OP's friend is likely going to be on the job market in under 6 months. I hope I'm wrong, but I don't think I will be.

Unless you're doing your own thing, working for an MLM is waste of your time. You want to learn marketing? Read up on google adwords/facebook, join some cpa (affiliate networks), and slowly start running campaigns.

Originally posted by Digi
I was briefly a part of an MLM company, but it wasn't a pyramid scheme in the technical sense. It's possible to make money with them, but unlikely for all but a lucky few.

I do know a couple individuals who are making decent money in networking organizations like this, so it's possible. But again, it's a dicey proposition for most. What Abestos says above me is true, but I'd amend one statement: where he says "Some actually lost more than they earned" I would change 'some' to 'most' or 'many.' While those who are successful with it can say that it's just the losers bad-mouthing it, if there are a LOT of people bad-mouthing it, what does that say about the business model? Is it that so many aren't cut out for it, or is it that the model is flawed to the extent that it limits the number of people who can succeed, regardless of talent or effort?

You are right that it is a flawed system. The only surefire way for you to earn big is if you were one of the first members to join the company. It's one of the reasons why I left MLM; I was earning millions, but my upline was earning TENS of millions. It's not right that I have most of the work cut out for him (I was one of his "strong side" downlines, before I quit.) The money I earned from MLM, I invested on the stock market. Much lower risk, and potentially higher rewards.

Sorry guys, I thought this thread wasn't getting any love and didn't check back in.

My buddy is involved with a certain network marketing company based on a certain energy/fitness/health platform. He tells me it's legit because it's got an A+ rating with the BBB and Forbes did a spread on it and so forth. I've tried the product and it appears to work pretty well, but I'm not familiar enough with the business model.

What's the name of the company? That will clear things up a lot.

Originally posted by The_Tempest
Sorry guys, I thought this thread wasn't getting any love and didn't check back in.

My buddy is involved with a certain network marketing company based on a certain energy/fitness/health platform. He tells me it's legit because it's got an A+ rating with the BBB and Forbes did a spread on it and so forth. I've tried the product and it appears to work pretty well, but I'm not familiar enough with the business model.

BBB ratings can be, and often are, purchased. That A+ rating likely means nothing. They may have also bought the Forbes spread. Most publications sell ad space of this nature.

Not knowing the company, your buddy may be in trouble. Best to do some in depth Google searching on them.

Intriguing. The company's name is Zija.

As regards research, do you have any suggestions for credible sources?

I read up the biography of the founder in a wiki. The guy seems legit. He's been doing this thing before it even boomed. Probably one of the pioneers, even. The products, the marketing scheme... it all makes sense. This company is likely a legit networking company. I wish you/your friend good luck. And lots of it.

Good to hear, Abs. I appreciate your diligence. He's been aggressively pursuing me for months now to join as a distributor, but I'm a paranoid skeptic by nature so I've been pretty reluctant lol.

A Google search from my phone didn't take long to turn up horror stories and claims of it being a scam. I'm not sure the founder's wiki is enough to go on.

From what I could find, which admittedly was a cursory search, the product itself is, at best, no better than cheaper health supplements. And, at worst, an incoherent mix of ingredients that just have a bunch of health buzz words attached to them, but with no scientifically researched benefits.

The company itself sounds like any other MLM. The ones at the top make most of the money, and the closer you are to the bottom, the more statistically likely you are to fail, regardless of your skills.

If it were me, I'd go running in the other direction as fast as possible. But if Abs and I are the angel/devil on your opposite shoulders, you're still the one making the decision. He's been in a networking MLM, while i haven't, but remember that he also admitted to being near the top of the pyramid in his as one of the first to get in. So, Do some more digging and make an informed decision.

Remember that this is a business. You'll have to dedicate all your time to it and I stopped, it works, but you have to be on it 24/7.

For clarity, the MLM I was a part of was a more traditional sales model, but still paid a certain percentage upwards from the sales at entry level. I was able to make a living but hated the work. So it was very different than a networking MLM, because I wasn't paying into it at the start. My only experiences with networking MLMs have been second-hand through business contacts, friends, and online research. None of it has given me any confidence in the business model.

I remember all the countless sleepless nights for guestings. It was not easy. My guests would often not pay-in, or simply walk out on me. I even had to lie to some of my former friends about where we're going, just to encourage them to join. It took a huge physical and emotional toll on me. If you're willing to make those sacrifices, then you can probably make a decent living out of it. Maybe even become a top earner (though I doubt it.)

Originally posted by AsbestosFlaygon
I remember all the countless sleepless nights for guestings. It was not easy. My guests would often not pay-in, or simply walk out on me. I even had to lie to some of my former friends about where we're going, just to encourage them to join. It took a huge physical and emotional toll on me. If you're willing to make those sacrifices, then you can probably make a decent living out of it. Maybe even become a top earner (though I doubt it.)

See, this jives with what I've heard. Every now and then you find a networking savant who can do this without all the awkward sacrifice. I've actually met one. Was a fascinating discussion, even though I had no interest in his pitch. He did well, though. But like, I'm a voracious professional networker because of some freelance work that I do, and imho I'm good at it. But even I have no faith I could do something like this. Sounds truly awful.

You see, what most networkers don't understand is it takes more than mindset and hardwork to become successful in this industry. It also takes LUCK. Even if you think you have the skills, the knowledge, and/or the resources to undertake MLM, those qualities do not automatically give you a free pass to become a top earner. You need to work your ass off 24/7, literally claw your way to the top, especially if you're one of the newer recruits. But once you make it to the top, money will keep comin' in for you (until the company goes bankrupt or closes down.)

The MLM business that I was partnered up with was similar to what you guys are talking about. I've gotten into the MLM business because a lot of my actor friends are into it and are successful at it. Some of them are in the millionaire club, some earn 4k a week, some earn 500 a week, and some less than that. I was never successful because like what the others have said.... I just didn't have the energy, time or money to put into this MLM business, so I am no longer active. I kinda miss the lifestyle though, made me feel like a celebrity or something.

Unless you have an in with the owner of the company or are a wizard in online marketing techniques (which means you aren't wasting time promoting MLM), you've got a better chance of making more money at MCDs without all the makings of a pyramid scheme.

I didn't regret it, though.

MLM/Network marketing is just like any other business. You need a good middleman (rather, middlemen) to run the business for you.

For example, you plan to run a restaurant. You need a competent accountant, a good cook/chef, skilled waiters/waitresses, cashiers, utility men/women, etc. It works the same way with network marketing/MLM. You need competent people who can recruit other competent people and/or sell the products. The most important part is the monitoring. You need to know how to properly manage your personnel, like any other business actually. Make sure that everyone is moving and making your network grow as much as possible.

I'd like to call MLM/network marketing "delayed gratification." You'll need to make a lot of sacrifices if you want to become a top earner.

I meant to bump this. I'm curious what Tempest decided to do.

bump

Ha, probably a worthless bump, but it's a shame we never heard the end of this.

I'll admit to pulling my punches a little bit on page 1, at least initially. I wanted him to figure things out for himself with some guidance to the right information. If I were being truly honest, I would have been a lot more brutal from the onset. That Zija has scam written all over it, and we can only hope that OP's "friend" isn't code for OP himself. Either way, whichever it was is undoubtedly no longer with Zija and is out a few thousand dollars or more.

I also shouldn't have said I was in an MLM. Technically they go by that name sometimes, but it's different than what OP is talking about. Mine was just a direct marketing (i.e. sales) position. It was still pretty sh*tty, but it had things like an hourly wage and no "startup" money, hallmarks of the scams like this thread is about.

Tempest is still an active member, he probably doesn't check on the general discussion forum, you can PM him though.