Earning money online is a dream for people, and the truth is only less than 5% people can make a living with this. There are various ways one can earn in the form of MLM, affiliate marketing, freelancing and creating a product. I am a huge advocate of all of them except MLM.

 

MLM stands for Multi-Level Marketing, and it is one of the old method that has been around for centuries. It is a marketing strategy in which the sales force is rewarded not only for sales they generate, but also for the sales of the downline that they recruit.

 

It is one of the most common questions people asked why more than 95% people fail. This is just because MLM is the most widely accepted business model out there. I have also started with companies that were using this model and after years of hard work with very minimal results I come to know that this is not the business to follow. Honestly speaking if I have put the same effort on any other business then I am earning a full-time income with this, if not a billionaire. I have wasted my four years on this and invested my tons of money.

 

 

 

Most of the products offered by such companies are way too expensive. I am familiar with one of most popular MLM company out there Traffic Authority, which offer one of its package for $8400. I know most of the people find it difficult to spend such amount of money. If you could not afford it so why to assume other can pay such a hefty price.

 

The reason for setting such a high price is that most of them offer lucrative compensation plan to attract new comers so they increase the price of the product and at the same time decrease its quality and use that gap for paying huge affiliate commissions.

 

 

Another major reason why most of the people hesitate to purchase their products. I know most popular brands offers even more costly products, but people are still waiting for their products. The simple reason for this is they provide value for the money. In MLM, the sole purpose is to recruit new people and use that money to pay commission.

 

Let’s suppose if I purchase Traffic Authority costly package then I will get the just crappy product so why not use Google Award, Bing Ads, and Facebook Ads that offer quality traffic for this money. If you want to know more about their product then read this review.

 

 

Recruiting new people is the real essence of this model and the most difficult one. Let’ suppose you have invested a significant sum of money on one of the products. Your next task is to recruit new people to be entitled to earn a commission. How many people are ready to pay for more than $3000 for Empower Network Masters Retreat plan? If no new people join in your downline, then no money would be credited to your account.

 

 

If you are lucky and join one of the most popular programs very early then, there is a chance the hard work from your downline will automatically expand your downline. What happened is all of the hard work of people who join very late rewards individuals who have joined very early.

 

This is very unfair for downline members. In my opinion, everyone should get which he/she struggles. All other most popular business models reward based on your efforts.

 

 

I have laid down drawbacks that I have felt while working on such companies. I think all of these have a significant impact on your failure rate. You can use any other business model that you like as all of them have a high earning potential.

 

If you go for a freelancer, then you can use Fiverr, People per hour, Elance and Odesk to earn a full-time income. If you go for affiliate marketing, then create your own site and promote Amazon, Clickbank, and other affiliate products and receives good commission daily.

 

Everyone knows how much people are earning who have their own products. Take the example of tools, Udemy courses, digital products owners, and serving companies.

 

If you know some MLM companies that have not above characteristics, then please comment below. I am looking for your feedback and please share your experience with such companies.