Skip the MLM and Start a Business You Love.

I ran across a question on a discussion board that I see often, and it always gets me a little fired up. This time, I decided to answer it, even though I know that answer will probably annoy a lot of people, including some family and friends I love dearly. But I think everyone needs to hear it...there’s so much opportunity out there, but if you don’t have all the information, it can cost you tons of time, your relationships, and potentially thousands of dollars.

Question: How do I pick a company to start my network marketing business?

Here’s the thing.

In almost every case, you can start and grow your own actual business for less initial investment and more opportunity for real profit than joining a network marketing company.

I would at the very least consider that option. Take a look at what MLM companies catch your attention and think about why. Is it the product they offer? The company culture? The branding? The way your work day would go?

Then look at all the ways you could do the same yourself. It can be a bigger learning curve at the beginning, but the odds for success are better (MLMs don’t have the best track record in general). And if you get it to work, it’s a longer term set up. MLMs tend to come and go with fads, just like regular businesses. Even if you find a fabulous one, it’s not likely to be around and profitable in 10–20 years.

I know running your own business can be the same, but YOU’RE in charge of that and can make adjustments as the market shifts. In an MLM you are at their mercy. If they do a bad job adjusting or managing (or do it in a way that only benefits the upper levels of the company), your time, your money, and your business is going down with their ship.

That leads into what you should look at about the potential MLMs though.

• Do they make an actual profit from their products, or just the buy ins? (Some do, and are solid companies. Others don’t, and are nothing but pyramid schemes)
• Do they teach you real networking, marketing, business, and sales skills, or do they expect you to push your friends and family to buy in/purchase over and over?
• Do they support their reps in their marketing efforts and are they expanding at a rate that won’t oversaturate your market?
• Are you aware of them because they are getting great reviews and feedback from their customers? Or is it just their current reps that you’re hearing from all the time?
• Do their reps make a profit? Is it based on product sales (which is good) or downstream income and recruiting (which is a pyramid scheme)?
• Is there a minimum buy in? How much? Is there a required rebuy at a consistent interval?
• Do you actually believe in what they sell? And do you like the branding and company culture?

I think some network marketing companies can be using our connected society to do business in a different way, and do a great job. A lot don’t though, so be careful as you make your choice. Most people who invest in becoming a rep lose money.

And running your own freelancing gig or full blown business can give you as much freedom, more income potential, and a much lower start up cost than many MLMs. And you get to do or sell whatever you want! If you can build up the courage to go for it, I promise it’s worth it.

Some great books to look at in getting started:

• The 4 Hour Work Week
• Crushing It
• You Are a Badass at Making Money
• The $100 Startup
• The Purple Cow
• Big Magic: Creative Living Beyond Fear

Some great podcasts to listen to about getting started:

• Online Marketing Expert with Amy Porterfield
• Entrepreneur on Fire with John Lee Dumas
• Success Smackdown with Katrina Ruth
• Smart Passive Income with Pat Flynn

Good luck! And good for you for finding an opportunity and building something you love to do!

Added note - I’m really passionate about showing people where they can build something meaningful for themselves, and for helping people avoid set ups like some MLM companies that promise opportunity and cause pain instead. I will always take time to talk through what your dreams are and how you could go for them. Please, message me here on Linkedin any time. We’ll talk soon!