Why "the MLM rant". Simply, I've actually found myself defending the industry for the better part of the last 24 hours. Then it hit me, it was not so much about defending the MLM industry, it is more about us opening up and having an honest conversation about MLM and where it figures in the lives of those of us who participate in this business model with the hope of changing our financial circumstances.
First of all for those who are not aware of what MLM is it is the abbreviation for Multi-Level Marketing. It is also referred to as Network Marketing, Relationship Marketing, Distribution Marketing among others. Presently I will stick with MLM even though it is a term I never used over the many years I have been in the industry. I have basically used the term Network Marketing which I prefer and like because networking is something I do in most aspect of my life. I enjoy bringing people and ideas together. If you require more information you can obviously Google MLM. There is a whole range of definitions, critiques, biases and contributions about this subject, of course you are free to take your pick.
Now to answer the question why the MlM rant - I felt compelled to voice my opinion on the industry after commenting numerous times on a post on Facebook where I found myself defending MLM as a business model. Maybe it is time we the common people be told the truth about the industry. What I discovered in my quick "research" is that the sentiments about the industry vary across a broad scale. There are those who hate the MLM business model and those who love it, but the grey area between these two extremes is littered with every other sentiment and emotion one can think of. The few that come to mind are - frustration, anger, hope, love/hate, ignorance, jubilation, tolerance among many others.
I live in the Caribbean and MLM it seem is presently taking the Caribbean by storm particularly on some Islands. Obviously this is due mainly to the growing economic slowdown that has been plaguing the region in recent years. MLM it seems thrives in times of financial hardship. Exactly why some people call it the "recession proof business". Many have lost their jobs or cannot make ends meet with their current incomes. Therefore starting an MLM business as a means of adding to their present earnings or replacing their income seems an attractive prospect. This to me is great especially since the MLM model of business is one I have come to love and have participated in for many years. The big question though is will the new mass of participants in the Caribbean be given the 411 on what it takes to grow an MLM business or will they just be fed the hype then be left to join the throng of the frustrated and disgruntled which cause huge attrition when the promises made weren't fulfilled as quickly as was promised. We are yet to see.
AS the "battle" lines are drawn I take my position and even though I will always defend the MLM business model because it has changed me and opened me up in many positive ways I would also like to be a balanced commentator and contributor so that all sides can benefit from my rantings or whatever else I contribute to the conversation. Sit tight and look out for more from this quarter as I think we here in the Caribbean are just about to let the "sabre rattling" begin.
Nicely and thoughtfully written article Lylette.
ReplyDeleteWell, you know but your readers wouldn't, my position is on the 'dislike' side of MLM - I don't by any stretch 'hate' the business - I know a very few people in the business who do well and who present and manage the business in what I'd consider an ethical manner, so I know it can be good for some...
My dislike of it comes from the basic model - the 'pyramid' structure is such that it is in fact quite to very difficult for those entering to reach a level of substantial net income (not gross sales) - that is, as you noted, not often made clear. I'd say, most often great effort is made to obscure that fact and bury it in the fine print - which is where I start to dislike the ethics of the industry.
Now, also,within that journey, most often there is a lot of the hype you refer to and then pressure to bring in people on your network and to buy product from your upline - which can often become a source of genuine angst for newcomers causing stress and depression as they start to worry about losing money they could ill afford to lose - too often the upline do not give genuinely kind advice and real help - maybe all don't work exactly as that, but of course since the emphasis in MLM is primarily on income that can be earned, you find a lot of people enter with income, not job satisfaction or social good as their goal, so there tends to be what often comes across as an overly money based (don't want to say greed, but that is the feeling) feel to the pressure/aims. Yes, we all need money to live and even somewhat to 'prosper' but money alone does not bring the happiness that is hyped in the MLM system either - and alongside that is usually a 'dissing' of 'the system' of 'normal' jobs etc. When people are failing or finding it really hard to actually do what was sold to them in the hype as 'easy' 'sure money' they are so often written off as just unwilling to put in the work - aka - 'lazy' - and that can be crushing to the spirit. These practices I find unethical and really dislike....continued - my thoughts are too long for 1 comment
The term 'recession proof business' - that I feel is a hype term and not a responsible term - MLM is not recession proof, granted it flourishes in recession but I believe that is partly because the 'marketing machine' is so well planned and powerful, and people, desperate, turn to the system because it is sold so well to them - I don't know the figures for how many survive the recession times out of those that try - but I doubt it is enough to say it's 'recession proof' (I know YOU are not saying it is). Truth is many other types of business boom in recessions too - including ones that people can enter without much money or education - studies over many years have shown women in particular will spend on their appearance, people will invest in education courses (of course yes, you have to have an education to teach!) but also good food sells well in recessions - treats to make people feel better - all of these can be entered into without big investments and can be fulfilling businesses to be in also. With the internet and all sorts of new technologies, all sorts of avenues are now open to people and systems to support their being able to access them are growing, so MLM is one option that might suit some people and can bring in good income with a lot of work and after a 'considerable' time (ie not immediately) - think that's a fairer way for it to be presented.
ReplyDeleteThere are other issues I have with MLM - the consumerist nature of it - that all items are imported into our little island homes adding to the burden of import bills and the burden of waste (not that MLM is alone in that) but I would so much like to see more emphasis on industries that really grow our security as a nation and build our ecological and social quality of life better than MLM and other import to sell businesses do...well, that's my thoughts. No battle lines - I believe your request for open dialogue and more realistic introduction and discussion of the industry is where I'd like to see this go - leave all the hard-sell pro and against aside and look for facts and what really, truly underlies feelings across the spectrum from Love - Hate!
Finola I have to say I agree with most of what you are saying and I share some of your sentiments even as an MLM "insider" but with the state of economise presently and both you and I can speak for the Caribbean because even as casual observers we can discern that the situation is becoming dire. Now the question is what can be done to help people maintain their livelihood. I know that many are venturing into the MLM industry because it is sold as an easy route to changing one's financial circumstances and I have always disagreed with this. I think people need to be educated about the reality of building an MLM business. They need to know first of all that is not "easy peasy" like it is sold to them. Getting all dressed up to attend meetings, seminars and launches will not change the fact that you have no money or have earned no money and that you have an anxious feeling in your stomach about what you are doing but do no want to admit it. The industry is changing all the time and I think attitudes should change with it. We live in a time when finding information about anything is as easy as typing Google so I think that it is time people open up and be brutally honest about MLM and what building an income in the industry entail. Truthfully I think this may in a way attract more of the right people to the industry as against scare them away. So I do understand your frustration with the unethical way the industry is often presented thus deliberately misleading the unsuspecting into believing that they can benefit financially by just participating
ReplyDeleteBecause of this conversation we are having both here and on Facebook I have decided to write this blog. I will try my utmost to be honest about my experience but I know it will have its traces of bias because like I said I love the MLM model as a business concept. I believe it has its merits if represented correctly and if people are educated about what to expect at least this give them the opportunity to make a more educated choice about whether MLM is right for them or not