The Fallacy of MLM (Multi-Level Marketing)

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If you have no idea about MLM, read this.

In this story, I will share my experience with the MLM and try to portray the effect of wrong motivation. I am biased that a normal person can’t make constant earnings from this business. So, read this story with that in mind.

Unexpected Phone Call

It was a calm Sunday. I was sitting on my study table reading a book. All of a sudden, my phone rang. An old friend of mine was calling. Reluctantly, i tapped on green button.

To my surprise, after asking for my personal well-being, he offered to present a business idea which was really amazing acc. to him. I didn’t believe. Actually, he was no-way that type of guy. Still, I accepted the proposal and we decided to meet.

He had given me no clue what that business is about. So, I searched about him on social media and got to know that he is engaged in something related to multi-level marketing. It was a red flag.

I shared all this with my flatmate and we decided to meet him together. Honestly, we were directly against the concept of this business but to get his perspective, we went on.

Office

The meeting location was his local office. After searching for a while, we reached there. Actually, the banner on the display was of a photography firm but an MLM business was being run on the second floor.

We had reached on time. It was a spacious place with a big seminar hall and a private cabin. My friend made us sit and we started talking. After almost 10 mins, a young lady joined us.

Till that time, I had made him utter the name of MLM company and also a few more details. Now, after she came, we were four people sitting around a small round table.

Presentation


She opened her laptop and started the presentation. In the starting slides, we were made aware that a normal job can’t solve our financial problems.

We can never achieve our dreams like owning luxury cars or shopping in expensive showrooms, just by working at 9 am – 5 pm. They ridiculed normal salaried job like anything.

Then, in the middle slides of the presentation, they showed how pollution is bad. The extent to which it’s spread is causing health problems.  They also made an effort to prove that brands like Verka (India) are selling adulterated milk.

The presentation was seeming quite easy digest till this point but then they started explaining how their products can magically cure all the health problems.

I tried to understand the logic but it was just too insane to agree. They were making a claim that regular usage of their product can treat diabetes, cancer, joint pain, skin allergy, digestion problems and what not.

“Do you have any evidence to support whatever your claims?” I questioned.

“Yes, we have hundreds of testimonials from our happy customers.” my friend replied.

“Bro, I am asking for evidence. Testimonials can be easily manipulated.”

“Sir, you will either leave this place with suspicion or vision. Its your choice.” that lady interrupted us.


Actually, they were making us believe that in today’s world, adulteration and pollution is present everywhere. Nothing is pure. This is the reason of all the health problems like diabetes, cancer etc.

Then, they have got a product which can do wonders. We just need to refer it to our friends and family members. That’s all, we will be rich and people buying that product will be happy & healthy.

They spent over three hours to explain this simple thing or say brainwash us.

Big Guy


Then, my friend guided us to the private cabin of that office. We were again made to wait for 10-15 mins. Then the big guy (their boss) came. His tone was just enough to fool/convince anybody.

He was wearing branded clothes and displaying us that $1000 iPhone. The commonality between that young lady and this guy was their Pressure Words.

“Either you will leave my cabin with suspicion or vision. Its your choice.”

To make his case strong, he also displayed us some screenshots of paychecks being earned by various people working in that business.

After 20 mins, some more people entered the cabin. They all were part of the newly recruited moat.

The big guy was a fantastic motivator. People were really getting swayed away by his talk. Actually, he was simplifying the concept of MLM.

The matter of his speech was same. But he was calling for some action now. He asked us to buy some products and start using on our own. One of the new entrant was preparing for a Government Job.

Big Guy asked him to leave the preparation and just focus on this business.

His motivation dose was so strong that even my flatmate was somewhat convinced that he can earn money in this business. My own mind also had started to dwindle between the positives and negatives.

Fallacy Broker

Maybe i was smart or foolish enough to understand the trap. So, we talked to my friend about how much he is earning. His earning were just $10 for the past one year. I was shocked. Then we asked about the paycheck of his colleague. The answer was almost same.

This was enough to open our eyes. We came back home.

I was still restless. Their brain wash was showing effect. MLM was the only thing I could think of.

I had my final organic chemistry semester exam one day later. Still, the curiosity was very strong to find out the real truth behind this.

So, I took my research lenses and started calling known people who had ever go engaged in this MLM field. I extensively talked to one of my school friend because his father was once working with an MLM company.

He made it all very clear to me. Actually, these companies represent a Ponzi format in one way or other. Even after reading their policies in detail, we found out that a partner (fancy name!) is forced to keep buying their products to stay active and what not.

MLM businesses actually need a continuous stream of new recruits because dropout rates are very in this industry. Their products are no-way magical and their testimonials are mostly bluffs. The big guys open recruitment centers and motivate new people to buy products and regularly use them. So, they can keep earning commissions.

Thanks

If you want to read in detail about the MLM fallacy, visit this website. I open for healthy discussion in the comments section. Share your views.

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