Are All Multi Level Marketing Ventures Scams?

We are all looking for better ways to earn a living, and for many parents, the interest in an avenue of work that allows you to set your own hours or work from home is certainly great.  One of the most common ventures in this area of business is MLM, or multi-level marketing.  There are certainly many companies offering multi-level marketing, but knowing whether or not the program is too good to be true is difficult.  Today, we will look at the pros and cons of multi-level marketing and whether or not it is a good strategy for you to help make money.

There are certainly several pros to the idea of multi-level marketing.  For starters, it can often be done from home.  You purchase certain products at a low wholesale price and then work to sell them to others at a profit.  The other level of marketing is in recruiting others to sell the products as well, with you taking a cut of their profits and a cut of the profits of people that they recruit.  Marketers claim that you can make thousands of dollars a month with little to no work using these programs.

Unfortunately, there are down sides to multi-level marketing.  In most cases, these “affiliate programs” are little more than pyramid schemes that are barely legal.  Studies show that most people do not make any money at all, while the baseline annual income is less than $2,500.  Any time your pay is based on how many people you recruit, it is advised to be wary.

In general, multi-level marketing is typically best avoided.  Even when a company is operating legitimately, the profit ratio is incredibly low compared to the amount of work that must be put in for you to make any money at all.