You have probably heard of multi-level marketing also called MLM or network marketing. A multi-level marketing company is a company that recruits people to sell their products to their network including their friends and family. Network marketers typically buy inventory and then try to sell it. They can also recruit people underneath them and create a triangular shape in which they can collect commissions on the people underneath them who are also making sales.
Casey Bond is a certified personal finance counselor and a lifestyle reporter for Huff Post covering money, home, and living. Her work has also appeared on Business Insider, Yahoo! Finance, MSN, The Motley Fool, U.S. News & World Report, Forbes, TheStreet, and more. Casey has been reporting on MLM's for the past year.
The big question many people wonder is if multi-level marketing is a great business opportunity or an opportunity to lose thousands. On today's episode, Casey shares her expertise to help you make the decision that is right for you and help you beware of possible red flags.
Show Notes:
- [01:13] - A multi-level marketing company is a company that recruits people to sell their products to their friends and family and their network. It is also called network marketing or direct selling.
- [01:29] - They typically buy inventory and then try to sell it. They can also recruit people underneath them and create a triangular shape in which they can collect commissions on the people underneath them who are also making sales.
- [02:14] - You will find a wide range of products offered including everything from kitchen knives to insurance products.
- [02:23] - Most multi-level marketing companies sell products that are traditionally marketed towards women.
- [04:06] - These days the gig economy is huge. One-third of adults are involved in the gig economy somehow.
- [05:02] - It is often presented as a way to make a ton of money in your spare time, and be able to win vacations, cars, and extra products. That is usually the case for a small percentage of people involved in MLM's who usually got in very early and built a huge downline.
- [05:41] - The key for being successful in an MLM is not necessarily making a lot of sales, but instead recruiting a lot of people underneath you.
- [06:37] - A big red flag is having to buy your inventory upfront.
- [08:10] - Another big red flag is when the initial details of this opportunity are vague or coming from someone you don't know very well.
- [09:40] - MLM's really play into the emotional side of people who would really like to have something of their own and who would really like to become more financially independent.
- [10:39] - The FTC watches and keeps an eye on the MLM industry.
- [12:14] - Illegal pyramids schemes do operate legally until they are caught.
- [12:50] - The Direct Selling Association oversees all MLM and direct selling companies.
- [13:48] - Casey is very hesitant to recommend multi-level marketing to anyone because it is so easy to get in a hole with debt or overspending when there are so many other ways to make extra income.
- [14:28] - It's best to go out and create something for yourself instead of relying on an MLM.
- [14:52] - The FTC does have an option on their website to report companies that are operating questionably.
- [15:46] - Working for an MLM can put strains on relationships and friendships.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Ruthie's Table 4
For more than 30 years The River Cafe in London, has been the home-from-home of artists, architects, designers, actors, collectors, writers, activists, and politicians. Michael Caine, Glenn Close, JJ Abrams, Steve McQueen, Victoria and David Beckham, and Lily Allen, are just some of the people who love to call The River Cafe home. On River Cafe Table 4, Rogers sits down with her customers—who have become friends—to talk about food memories. Table 4 explores how food impacts every aspect of our lives. “Foods is politics, food is cultural, food is how you express love, food is about your heritage, it defines who you and who you want to be,” says Rogers. Each week, Rogers invites her guest to reminisce about family suppers and first dates, what they cook, how they eat when performing, the restaurants they choose, and what food they seek when they need comfort. And to punctuate each episode of Table 4, guests such as Ralph Fiennes, Emily Blunt, and Alfonso Cuarón, read their favourite recipe from one of the best-selling River Cafe cookbooks. Table 4 itself, is situated near The River Cafe’s open kitchen, close to the bright pink wood-fired oven and next to the glossy yellow pass, where Ruthie oversees the restaurant. You are invited to take a seat at this intimate table and join the conversation. For more information, recipes, and ingredients, go to https://shoptherivercafe.co.uk/ Web: https://rivercafe.co.uk/ Instagram: www.instagram.com/therivercafelondon/ Facebook: https://en-gb.facebook.com/therivercafelondon/ For more podcasts from iHeartRadio, visit the iheartradio app, apple podcasts, or wherever you listen to your favorite shows. Learn more about your ad-choices at https://www.iheartpodcastnetwork.com
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com