Top 5 Reasons I Don't Like New Generation MLM

Multilevel marketing was always present from a decade or more. Even today, you can find many MLM companies cropping out every day. They have their own strategy and ways of operation. I have been studying the trend of Multi level marketing for years. With a series of peripheral research, I came to dislike the new generation network marketing companies.

The new generation of MLM is basically selling the dreams of passive income to people. Without selling a single product, how can someone get into a pyramid scheme? Some people might feel attracted in the beginning with the false promise of individual dealing with New Generation MLM. But gradually, they will come to know about its flaws.

New Generation MLM

Top 5 Reasons for not Liking New Generation MLM

Creation of own competitors

There are some rules of multi level marketing. Here at the first stage you need to sell things. Along with your selling activity, it is also equally important for you to get in touch with such people who can dedicate effort in selling like yourself. Thus, commission will be earned through the sales they achieve.

But today’s MLM concentrates on only recruiting people under each head. They do not choose people on the basis of talent. Rather they concentrate on the number of heads. If you can think deeply about recruiting people under you from your friends circle or peers, you will soon realize their competitiveness in the market to defeat yourself.

Conflict between Passive and Active income

One of the attractions of MLM is commitment of passive income. Here, many people benefits if they can recruit good and productive people under them. They can form a wonderful company by themselves and even work for making upper level gain. But, there is a contradiction with the primary message of MLM, “Marketing a product”. Thus, I fail to understand whether I should concentrate on marketing or sales in new generation network companies.

Profitability with question

Business concentrates on profit. Since MLM is also all about business, profit is one of the main concerns of this business. Even after deducting marketing and other costs of the business, there must be a profit margin.

But today’s MLM fails to achieve profit of the business. Since, the products over here are redundant and overpriced, very less people wish to get it. Thus, the company does not get appropriate margin to cover . Network marketing with new generation hides the cost of marketing and recruiting. People have to pay this from their pocket.

Pyramid scheme

Most of the present companies concentrates on pyramid scheme. The reputed MLM companies provides a loud disclaimer that, “We are not pyramid schemes.” Most of the MLM marketing companies say that the organization that follows the pyramid schemes are not legal.

The direct selling associates having direct contact with the company convince people through two main tactics. Firstly they give them a clear idea between pyramid schemes and MLM industry. Secondly, they claims that unrelated schemes with MLM are pyramid schemes.

Inculcating like Indoctrination

You will find much new MLM organization speaking about support training for personal growth. But, they results into indoctrination centers. But, this flaw might be denied by many associates working in such organization. But, I have seen the so called team building exercise with the same technique.

These are the flaws I have realized in new generation MLM with research for years. You may also find psychological pressure put on various individuals working under the experienced head of new generation MLM. You must read all terms and condition and profile of such marketing company really well before proceeding.

26 COMMENTS

  1. my dear frnds i have to start MLM company. please suggest me the best MLM plane. i try binary plan but in deaph so much lost r ther.. please dear suggest me good MLM plan.

  2. These companies are all fraud having no credeblity and you can not even check their credential and find out their truth. If you want to really gain anything in life you should not take the easy way.

  3. Priya madam,
    Multi level marketing, is a system for selling goods or services through a wide network of distributors, each of whom is responsible and compensated for recruiting new members to the multi level marketing system.
    Most MLM programs grow through recruitment. Each person recruited becomes part of the “downline” for the person who recruited them. In most MLM marketing arrangements people make money off of the sales efforts of their downline. In some cases, even more money than they sell or distribute the actual products or services themselves.
    If you decide to try a multi-level marketing opportunity, you are urged to do your homework carefully and fully research the business.
    There are probably many times more failures than successes in multi-level marketing and many have learned the hard way – after investing their money.
    You need prospects for your business and customers to purchase products. Without the two, your business will not exist.
    What’s the best way? —————–& —————–what is the answer?
    1.The goal is merely recruiting others to pay investment fees for services or products that are never marketed
    2.No Selling and don’t attempt to encourage the person, only reval your information of MLM will prospects.
    Appears to be the present trend.
    Regards

  4. Dear Priya,
    Your caption for opinion ‘Speak Your Mind’ does not hold water! In my opinion to the above article “Just Say No” I had written a little lengthy opinion but it is nowhere to be seen here. Why? Don’t you like to have educative opinions?

  5. Dear Priya,
    I have been in MLM business since 1995.
    I feel your points are correct. The present MLM are not up to the mark. The speakers are not sure what they can promise to the new persons.
    with kind regards
    Mahendra Prasad

  6. Hi, your views are correct to certain extend.
    All MLM opportunities are not scams.
    When lottery is legitimate though they can create only one crorepati with Rs.100 or 150, how can anyone say that a low cost mlm costing Rs.100 or 150 is not proper…???

  7. What Ms. Priya conveys is TRUE……

    .NEVER accept their temptations…….ultimately ….. …… U R Cheated…..4 …. 2 late 2 know it………….raj.

  8. its a Wonderful way to spoil a wonderful relationship you had with your friends and relatives.
    because first person in your connection is your close relative…

    you look every person who comes in connection with you as source of earning…that’s how you turn your social relationship as monetary one…

    if mlm is joined without having a dream of becoming rich… its somehow OK…but if a person considers it as a real time earning source and puts risk his own personal income
    ….their he fails…

    experience is best teacher…my points are out of experience…

  9. Is the moreniche or twist forum a scam. Because I am planning to work with it through blogging. They even have their agents on Skype almost 24 hours a day to help affiliates. Please do hurry with the reply as my comments/questions elsewhere on your website did not generate a response???

  10. Dear Priya,

    I totally agree with your view points. Thanks for sharing the info.

    with regards,

    ramalingam.

  11. what ever it may be.. i am launching a new mlm business in december 2013. We are planned and it will be a very benefit to all kind of peoples.

  12. Hi,

    The matter discussed here is relevant as in market, lot of confusion prevails on this part. Companies come and do it for a short time. In my personal experience, I have found that, the new generation companies are luring people by showing easy money. They are trying to potrait that, conventional network marketing has lot of work to do, so one can join them and , there the things are easy.
    One must understand, passive income is not bad, rather big investors and businessmen work on the time compounding concept. To reach to that level of passive income, one has to do work and dedicate to the goal.

    Established companies in this space have always promoted that, nothing will be gained without the dedicated hard work and, it is one’s determination which takes to a level after grooming lot of people and inspiring them to go towards their dreams.

    This note is incomplete if I miss to mention IDSA (Indian direct selling association) where all major companies like AMWAY, HERBA LIFE, ORIFLAME etc are the members. Read the terms and conditions of the same and one can clarify the concept of NETWORK MARKETING and PYRAMID schemes.
    with regards, Anurodh

  13. I totally dont agree that MLM is always regarded scams. then where is the start for one to see the new millenium business.
    MLM is a good high earning income business if the MLM company has system, team support and good business mechanism. One have to change thier mindset that MLM is always scam then you will never know the goodness of the MLM business and alsoo losing your opportunity to earn high lucrative income. What I can say is that one can fail in MLM business cos of their attitude itself.

  14. I am not fully agree to this. Yes, most of the MLM are scam but few are still true like Oriflame, tupperware and Amway to name few.
    Actually, these real MLM teach us the quality of how to be an entrepreneur and how to do business. They bring self confidence. Yes, people need to beware from any scams like speakasia, shareguru and there are many such

    • you are right, but catching good companies is the problem thanks best regards rao chennai

    • Yes, Govind, You are Right. Some MLM is very good. and other things…. MLM is very good true… but Other MLM compititors… so loose… so better faith it.

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