As always, I’m sharing my own opinions and perspective. I am not attempting to represent every MLM in the world, nor am I suggesting that every MLM has an amazing product line or a fair compensation plan for distributors. I welcome dissenting opinions, as long as they are constructive, and not destructive in spirit!
photo credit: TrevorLowe via photopin cc
I joined a multi-level marketing company (Young Living Essential Oils) at the beginning of February. It was probably the eighth MLM company I’d been asked to consider joining (haven’t we all been asked to join at least one???) and it was the first one I said yes to. I don’t know what the future holds, but I highly suspect it will be the only one I join, not because I think these aren’t viable business opportunities, but because just like everyone else out there, my time is limited, so I have to make careful choices about how I’m spending it.
I have had some really good conversations with several different friends of mine about the fact that I joined an MLM and their impressions of MLM companies. And I can tell you now, the only people who seemed genuinely pro-MLM were people who were already involved in one, either as business people, or as regular customers. Every other person I have talked with about the business model maintains some degree of negative sentiments, ranging from slight suspicion all the way to extreme loathing.
After having these conversations, I took a step back and thought back to my own thoughts about MLM companies. And you know what? I also didn’t have positive feelings about them! I felt absolutely GREAT about my choice to work with Young Living, but I felt as though I needed to somewhat apologize to my customers that in order to obtain these incredible products, you had to go through a distributor and do the whole “MLM thing.”
So I thought we should just unpack some of the reasons why MLMs give us the creeps together, and then talk about some reasons why you might not want to be so scared of them, after all.
Why We Hate Multi-Level Marketing Companies
1. It is “difficult” to purchase a product. It is rare to be able to go to an MLM company website and just place items in your cart for purchase. Even if you do that, you will often be assigned to a sponsor and receive follow-up communication with them. Otherwise, you’ve got to connect with a distributor to get the information you need on how to get signed up. This is very frustrating for people who just want to get the stuff they want to try and move on without any hassle. We are an Amazon Prime loving world, so having to go through someone to get access to a product seems really outdated.
2. You feel pressure to buy. Perhaps you are being introduced to a distributor by way of a party. I have only been to 1 MLM party in my entire life where I genuinely didn’t feel pressure to make a purchase on the spot. Most of the parties I have attended end by having each guest meet one on one with the distributor to place an order. It is REALLY an awkward meeting when you don’t want to order anything. I have ordered products out of sheer guilt in this exact situation more than once.
3. You feel pressure to sell. This is one of the most unnerving points about MLM companies. All you want is to try that cookware/face wash/nail wrap that your friends have recommended to you, and somehow your request to order has been turned into an attempt by the distributor to give you a new career. What the what?!?!?!
4. The products seem more expensive than is reasonable. And once you start hearing about the fabulous “business” opportunity, you start to put two and two together. It feels like you are paying one heck of a premium so that an upline can passively rake in the dough.
These are all legitimate concerns, and ones that I until very recently shared, myself. So what caused me to feel differently? Let’s unpack what happened to cause my fears to subside.
Why You Should Reconsider
1. I fell in love with a superior product. My opinions first shifted when I started using a product line that was SO extremely impressive. Young Living oils have made a very significant difference in the overall health and wellness of my own family, and that made me not only willing, but also really excited, to share my experience with others. And seeing and hearing stories from my friends about all the ways YL oils are helping them, in addition to the amazing seed to seal guarantee that Young Living has, have made me feel more than certain that YL oils are worth far more than their cost. I cannot speak for any MLM company beside my own, but I know there are many instances where distributors can tell you from their own experience that the products they have to offer are unmatched.
2. I realized that I was paying for much more than just a product, in a good way. Young Living has made the decision not to be available at mass market retailers, but instead, through a network of distributors. They could be pouring millions upon millions of dollars into a humongous corporate structure the same way, for example, Revlon does. And they do pour millions upon millions into a structure; it just looks different. It is, instead, a network of women and men all over the world who are passionate advocates and loyal users of the products, who are available to be resources to customers and help them with their questions and concerns, every step of the way in their oil journey. They are creating meaningful work for so many people. The Revlons of the world do that, too, it just looks different. I can assure you that any time you purchase a Revlon product, you are paying for WAY more than just the product. You are paying for the thousands of employees that company has, as well as for the employees at the store where the product is being sold. By supporting an MLM, you are supporting someone you personally know (or have gotten to know), and I think that’s just incredible.
Furthermore, you should be getting MUCH more than a product when you make an MLM purchase. If you aren’t, your distributor isn’t doing his or her job, plain and simple. Your distributor is there for you as a resource, which is more than can be said for the resources you have at your disposal after buying a product through more traditional means (have you ever tried to call Amazon? OMG, it is a gray hair-inducing experience). Young Living, for example, knows that its customers are going to have questions and seek advice, and they want distributors in place to help in any way possible so that the customer doesn’t feel lost. The relationship is NOT over after the purchase has been made!
3. My team focuses on helping people, not on recruiting business people. In my MLM company, 92% of customers are not actively selling, and that’s totally fine. Furthermore, a large chunk of those who are selling are doing so very casually, which is also fine! MLM companies can be really great business opportunities for the right people. But they aren’t for everyone, nor do they need to be! They also don’t need to be the MAIN source of income for everyone who decides to go for it. That’s really up to the individual, entirely. I personally have an upline that supports, encourages, and educates. I do NOT have an upline that pushes, gives quotas, asks you to do parties, or any of that nonsense. The amount of time and effort that I choose to put into my business will be directly reflected in how I grow. And that’s up to me. I have amazing resources at my disposal, but not a soul breathing down my neck. The focus is solely on sharing our own personal experiences. And that is something I can feel really proud of; I’m never going to beg anybody to join my team. That’s just not gonna happen, and I think that more laid-back approach is becoming more commonplace, though of course, I’m sure we all have examples to the contrary!
I’d love to hear some of your thoughts about MLMs and why you might be nervous about them, or perhaps even why you have come to appreciate them and their place in the market! And if you have any questions about my own experience (again, I can only speak from the perspective of someone involved with Young Living), feel free to ask! I know many of my readers are interested in ways to earn an income from home, but there are so many scams out there that it can be really scary to know which direction to take or where to begin! You will NOT be asked to join my team by asking a question, PROMISE! 🙂
Visiting from Turn it Up Tuesday! Great article! I am with NYR Organic and they are my second MLM company. One thing I must say about any MLM is people tend to get into them for the wrong reasons (which I believe the people in my first MLM experience were). I sensed it and got out. I ended up not being as passionate about the products as I first thought I would and removed myself. I then found NYR Organic and my passion was rekindled (and it still is). I think making money should be a nice to do, but the first priority should be the products and how great you think they are – regardless of the MLM itself. MLMs will always mean different things to different people and I think the customers need to understand that as well. Everyone does what they do for a reason, but hopefully it’s a positive one. Overall I think MLMs can be a very good thing.
I have been a consultant with four different companies to date. One point many don’t realize is that there is a benefit to becoming a consultant even if you don’t want to sell, discounts. I became a consultant with Usborne books and Story Time because I homeschooled and was able to get products at a discount. With my boys teens I no longer benefit from those products so I am no longer a consultant. I’m into natural living which includes fitness so I became a consultant for Beachbody and Nature’s Sunshine for the discounts. I do have information on my blog if someone wants it. Personally I love YL, there are cheaper oils out there, but I have found you get what you pay for. I would rather pay the price for YL and get a quality product than pay less and get an only so so product. Great post followed you here from Wine’d Down Wednesdays following on blogger.
I’m with YL to learn to care for my own family better. I’m happy to pass along that knowledge to others, organically, but I’m not out to sell anything. I’m also a consultant for Lilla Rose, (http://www.lillarose.biz/Grtlyblesd) but again, mostly because I have long hair and I like their clips. I buy way more than I sell, lol.
Okay, I had to laugh. It just dawned on me that as I’m typing my windy comments here, in the next tab over is my shopping cart for Jamberry Nail Wraps party that my cousin is hosting. HA!
Thank you, Tiffany! This is very well written. Other than the product that I truly wouldn’t want to live without, my favorite thing about YL is the *community.* The friendships. The teamwork. The “getting this SAHM/WAHM into a community without hardly ever leaving home” aspect.
I think personality has something to do with it, too. I have NO problem telling people that either 1) no, I can’t/won’t go to your jewelry party, or 2) sure, I’ll go and eat your food and enjoy myself, but jewelry (or whatever) isn’t in my budget right now.
Admittedly, it is hard for me when someone says (in words or not), “I’ll never buy that because it’s an MLM product.” If the best product for me is at Walmart, that’s where I’m buying. If the best product is an MLM, that’s what I’m buying.
One more disjointed thought: I do totally and completely understand how even just a few MLM sharks can put a bad taste in the mouth for all MLM experiences, and well, phooey on them!
Thanks for sharing, Amy! I do think a lot of the distaste for MLMs traces back to people somehow feeling used by their friends as a means to a sale. More often than not, I don’t think people intend to make others feel that way, at all. I think we, as a culture, just put a bit of a hard line between friendships and business. I think that line can be blurred a bit more, but not everyone feels that way!
The only problem I have had with MLM’s is people not taking “no” for an answer. More often than not, I am happy to buy if I can, and if I feel like the product will benefit me. It is a little bit of a bummer when I’ve had to be forceful with a “no” when it comes to selling.
That’s great feedback! I’m hoping that I am sensitive to people’s interest (or LACK) of interest when it comes to selling. Frankly, it just doesn’t make any sense for most people to become sellers, so I try to be careful about who I even bring it up to! 🙂
Great post Tiffany! Your points are all right on the money. I am with my second MLM and I will say each of those companies can be different, but they can be great. Right now I’m with Jamberry Nails ( elizabetha.jamberrynails.com ) and we work much the same way as YL. We’re allowed to sell as much or as little as we want. People that use the product a lot can also join as a Hobbyist which allows them to get the consultant discount without haing selling anything to anyone (although they can if they want to). I think a lot of people do have bad views of MLMs, but many of us don’t fit the stereotype.
Here is another concern I have about MLM companies. Many of them can be a big money-loser for their distributors. I have a friend who tried to earn money as a distributor for two different companies. Each of them required her to spend her own money on product samples and demo kits, with no option to return anything. She was not a terrific salesperson, so she ended up losing hundreds of dollars she really didn’t have. She is not the only person I have heard that type of story from. It makes me reluctant to support other friends who try the same thing.
This is an excellent point, Janina! And it is something that anyone who decides to work for an MLM company needs to think carefully about, as most MLMs do require their distributors to place regular orders.
I gave this matter serious thought, myself, before deciding to move forward with Young Living, because the commitment for distributors who want to earn bonuses AND commissions (those are two different things at YL) is $100/month. However, I have never struggled to fulfill this amount because I let my friends and family take advantage of my wholesale member discount by going in on my monthly order. Additionally, I always have at least 2 oils that I am wanting to try, myself!
I think some MLM companies rely on their distributors to be the bulk of their customers, which is not a good thing (I can’t share any stats for other MLM companies, but in YL, only 8 percent of customers ever become distributors, and most are wholesale members or customers, plain and simple). In the case of YL, the focus is simply on making sure that their distributors love and use the products so that they can be true advocates for them. I wouldn’t be a very helpful distributor if I had only purchased oils once and had run out long ago. They are a part of my daily life, just as they should be if I’m wanting to sell them to other people. With that said, I really appreciate how easy it is for me to let other people go in on my order if it is ever financially cumbersome for me to spend that $100, myself.
I also appreciate that in the case of YL, you haven’t signed any contracts that commit you to spending x amount of dollars over the course of 6 months or a year. If the opportunity simply isn’t bearing fruit for you, you can cease to become a distributor without hassle.
Janina, this is something I’ve heard as well from others. Fortunately I haven’t known anyone in this situation, but it’s definitely a hesitancy I’ve heard. I’m involved in an MLM that clearly shows any start up costs (less than $250 all said and done), but also works with people to ensure it’s a wise choice for them. There’s a 100% refund available for 180 days (which gives people time to actually experience things), as well as a 6 month money back guarantee on all products (for both customers or distributors). In addition, my upline doesn’t get a percentage of what I sell. The only increase they may get is an increase in the commission of their own sales. These aspects to me made it much more trustworthy and transparent. I can’t speak for all MLMs since I know there are some with red flags, but there definitely are some who do the right thing and aren’t in it just to rip people off. 🙂 I hope your friend was able to recover financially with no issues!
Hi I am new to your blog, I found you on Pinterest. Thanks for such an honest article. I love MLM;s and find that mostly people have had a bad experience or are uneducated about how you must help others in order to be successful. I have been able to change our income, drive a free car and help 4 others do the same in the last 6 months. I say that to say this, MLM’s work, IF you work them. They are not a get rich quick but they are worth the effort you put it. I wish you much success!!!
Thank you, Sandra! I think they are really great opportunities for people who develop a passion for the products. But like you said, in 99% of cases, they aren’t get rich quick. They take hard work just like anything else! But they really can be pathways to a comfortable income!
Well said!!! I love this! Def putting this in my sharing folder! I was incredibly hesitant at first as well! Beautiful blog too!
Thank you for stopping by, Erica! Please do feel free to send the post to anyone who is feeling hesitant about purchasing from you because of the business structure. It really doesn’t have to be a negative, at all!
I love this! Thank you for writing so honestly about your experience. I was hesitant to join YL at first but the product that I received was like you said far more than just oils. I love sharing about the oils and in the last 3 days I’ve had 2 customers ask me about how to sell them. My goal in doing this MLM is to get the product out there, be a resource for questions and make a little bit of money. I started in order to get my oils paid for and have progressed on to make a bit more. For me, I’m passionate about helping people to learn about how oils can help them and their families.
You are in the right line of business, friend! Passionate advocates for products shine the brightest in an MLM setting, where they have an opportunity to build business off of their love and dedication to a product line, and can make great use of the research that they are already pouring into it, by sharing that research with others. And don’t you just LOVE that in the case of YL, you are building a business that is truly yours? That you can one day sell, will, or otherwise pass down to someone else? I think of my little girls all the time, and the business I am building for their future, either as future distributors, or as something I can sell for their benefit when I’m ready to “retire.” I know not every MLM offers that, but I sure do love that feature of YL!
I love this article! As another YL gal, I totally get it. It’s so nice to see the new energy being spread around about Essential Oils and their amazing benefits but, I see daily the “sharks” out there that can be a real turn off for people not already involved with the company.