Multi Level Marketing Vs Business Concept

Before we persuade ourselves to join any MLM company we need to at least understand that its concept is opposite to what a business concept is.

You see, if we are to venture into business, one of the factor that we need to consider is the location where, as much as possible the location we choose have less competitor.

Where in MLM, assuming that the product is consumable such as supplement, beauty product, foods or whatever. Instead of mainstream advertising, the company use the method of direct selling to those who become a member or join the company. The problem sometimes is that, the product that you need to buy or consume regularly to be an active member exceeds your personal usage. So now, you have the option to either sell or give it to whoever might need it. But, if you sell it, you might as well persuade that person to join as you will gain more via points/commission or whatever they call it. So, instead of having a potential customer or buyer you are encouraging the person to become your competitor of the business. So next time, if that person join, he/she doesn't need to buy from you anymore, instead that person becomes like you and he/she will likely do the same as what you did and so on.

This type of system allows you to earn commission from those person you recruited and even earn more if those recruited under you also do the same and so on, but the products requirement to be bought in a regular basis so as to be an active member is as good as only for personal usage. Unless otherwise you only want to become a consumer, the driving force for you to earn actually becomes the recruitment which pose a problem sometime because, for you to persuade other people to join you tend to exaggerate the product result. Well, I guess it will not become a problem if you join because you need the product and need to maintain it in a regular basis, in this case, joining will be to your advantage.  But, I think many who were persuaded to join MLM are not because of the company product rather because of the potential to earn as quick as possible. 

I'm not saying that MLM is not good in general but, I guess it depends on the type of product the company is selling. With all honesty, I also am into MLM marketing type of company, though the difference is that the product they offer are different type of financial products available in Philippines such as mutual funds, insurances, real state and other similar products. Obviously, these type of product are not consumable so, even if I avail one of these investment services in a regularly basis, say mutual funds, it will not diminished every time I buy or subscribe in it rather the value of it will increase further plus the possibility to earn interest beating the inflation. Besides, I don't think its possible to exaggerate the result of these products as it is publicly available. I can only inform the fact based on the company disclosure.

The bottom line I guess is that before we join with this type of company, ask ourselves whether we really need the product regularly and are we satisfied with it? The potential earning via recruiting should only be secondary. 

Disclaimer: This is just my own opinion based on how I understand MLM. I maybe wrong to some extent.