I've met many people who are considering multi-level marketing schemes for their self-employment idea at business startup and self-employment seminars. I can understand the attraction although it's not something for me. And I come from Malaysia, the 7th largest multi-level marketing country in the world (a very high rank, considering it's not a big population). When I was living there, I was often pestered to sign up as a 'downline' or to buy their products.
Multi-level marketing schemes are attractive because it gives people a structured, easy-entry, no skills required, self-employment format, with support from a shiny big, usually American, company. After little training, you start selling. The product itself is immaterial, it could be skincare/cosmetics (Nu Skin, Avon), health supplements, etc. An example of a very successful multi-level marketing scheme company is Amway, which sells everything from chewing gum to the kitchen sink.
We all know how it works. But ask yourself the question, why this route to self-employment?
Some multi-level marketing schemes are genuine self-employment opportunities, but some are ponzi schemes, so, beware. Irregardless of whether they are ethical, multi-level marketing schemes only provide a short term solution to the problem of wanting to be self-employed. It offers a quick fix. No imagination or research required. Most of all, to be avoided at all cost - it will dent your integrity if you attempt to push sales on your friends and family.
I also don't see working on multi-level marketing schemes as self-employment. You actually work on commission for the big corporation who supplies you with the products and dictates your quotas and commission. The company of course tries to disguise this by reinforcing that you are empowered and successfully self-employed through the many training seminars offered.
Ask yourself these questions before you decide to make multi-level marketing schemes your self-employment idea:
1) Do I want to just escape the usual 9 to 5 or do I really want to be doing something that's uniquely me, I'm passionate about and fulfill a need?
2) Do I want to be associated with a corporation and working under it's umbrella?
3) Do I know when people are just saying what I want to hear? Am I easily persuaded into thinking great rewards can be achieved without any entry barriers or competition?
4) Is financial reward the most important aspect of self-employment?
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