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The pros and cons of MLM: what they won’t tell you at the presentation

The pros and cons of MLM side by side: honest, without rose-tinted glasses. What they won't tell you at the presentation and who network marketing is and isn't for.

21. 10. 20267 min readTom Tomčo

A spade stuck in the ground while digging foundations: the pros and cons of MLM side by side, honestly

When I was digging the foundations for the seating area Lenka wanted so much, one thing occurred to me with every spadeful. Everybody likes to talk about the finished terrace. Hardly anybody talks about how heavy the soil is and what it does to your back.

Presentations in network marketing are the same. You know the advantages, the disadvantages somehow get lost.

So here we will go through the advantages and disadvantages of MLM. Plainly, as one friend to another.

The advantages and disadvantages of MLM can’t be counted up in one sentence, because it depends on what kind of company it is and above all what kind of person goes into it. I’m an introvert, so I know that what suits one person drains another.

In short

  • The advantages and disadvantages of MLM can be summed up like this: a small entry cost, flexibility and learning people skills versus slow results, no guaranteed results and the reputation of the field.
  • The biggest advantage and the biggest disadvantage are one and the same thing: the result depends only on your work.
  • MLM suits people who enjoy working with people and don’t mind starting slowly. It doesn’t suit those looking for a quick fix.
  • Before you decide, ask about the rules in writing and consider how much time and energy you can really give.

What are the main advantages and disadvantages of MLM?

The main advantages of MLM are a low entry cost, flexible time, the support of a team and skills you will use elsewhere. The main disadvantages are a slow start, no guarantee of results, pressure from those around you and differences between companies.

The table below is my honest summary. Without rose-tinted glasses and without scaremongering.

The advantages and disadvantages of MLM side by side
Area Advantage Disadvantage
Start Low start-up costs, you don’t need an office or a warehouse. Nothing is free. You pay with time and energy.
Time You can start alongside a job and manage your time yourself. Nobody watches over you, so you have to watch yourself.
Learning You learn to talk to people, to lead and to persevere. Learning is sometimes uncomfortable and the first attempts can be awkward.
Team You aren’t alone, you have people with the same goal around you. The quality of support differs from person to person.
Results They depend on you, not on a boss. They aren’t guaranteed and come slowly.
Surroundings You meet new people. The field has a battered reputation and you sometimes take the flak.
Company Ready-made products and a system, you don’t start from zero. You depend on the company’s rules, which can change.

What do they usually not tell you at an MLM presentation?

At a presentation they usually don’t tell you that the first months are mainly about learning and that results are not guaranteed. You hear the stories of the most successful, but not how many people tried and gave up.

I understand that nobody wants to open with “you might not manage it”. But that is exactly what is honest.

What a decent person should tell you of their own accord:

  • It is work and nobody will do it for you.
  • It will go slowly and there will be weeks when nothing happens.
  • You will hear no. Often.
  • It doesn’t suit everybody and that is fine.

If you don’t hear this, slow down. And read how to tell whether a company is a pyramid.

What are the biggest advantages of MLM?

The biggest advantage of MLM is that you can try out a business with a small entry cost, without employees and without your own warehouses. The company gives you a ready-made system, you bring time and work with people.

For me personally the biggest advantage is learning. As a newcomer I was convinced I didn’t have what it takes, because I’m an introvert. Today I know that talking to people can be trained like anything else.

The other thing is that you aren’t alone. A good team works like the foundations of a terrace. You don’t see them, but everything stands on them.

What are the biggest disadvantages of MLM?

The biggest disadvantage of MLM is that results are not guaranteed and usually come slowly. Others are the reputation of the field, pressure on personal contacts and big differences between companies and between the people inside them.

One more thing that nobody talks about: you can spoil relationships if you do it badly. In my beginnings I overwhelmed people with information and sold instead of giving value. I wrote about it in the article 5 beginner mistakes in MLM.

And also: for a long time you may see no result at all. Only someone who knows why they are doing it can bear that.

Who is MLM for and who is it not for?

MLM is for people who enjoy working with people, are willing to learn and can stand starting slowly. It is not for those who expect a quick and easy fix or who can’t stand contact with people.

Who network marketing is and isn’t for
It suits you if… It doesn’t suit you if…
You enjoy talking to people and helping them. You are looking for a way to avoid work.
You can hear “no” and move on. You take every rejection as a personal defeat.
You want to learn and you have patience. You need results right away.
You can manage your own time. You need a boss to tell you what to do.
You are willing to read the company’s rules properly. You just want to sign and not think.

You don’t have to be an extrovert. I’m the proof. You will find a few tips for introverts in the article MLM for introverts.

How do you decide whether to go into MLM?

It pays to go into MLM only if you know the company’s rules in writing, know how much time you can give and don’t take it as a guaranteed path. Make the decision calmly and without pressure.

  1. Tell yourself why you want it. Not “to make things better”, but specifically: what you want to try and what to learn.
  2. Count your time. How many hours a week can you give without harm to your family and your job?
  3. Ask to see everything in writing. The compensation rules, the entry costs, the conditions for ending.
  4. Find out who will lead you. They should teach you, not just register you.
  5. Give yourself time to think. Don’t trust anyone who pushes for a quick decision.

You will find how to choose a company in the article How to choose an MLM company. The basic explanation is in the article What is MLM.

Frequently asked questions

Is MLM worth it?

Whether MLM is worth it can’t be said in general. It depends on the company, the rules, the time you put in and above all on your work. For some it brings experience and new people, some finish saying it didn’t suit them. An honest person guarantees you nothing.

What is the biggest disadvantage of MLM?

The biggest disadvantage of MLM is that results are not guaranteed and come slowly. On top of that comes the reputation of the field, because of which you may meet distrust from people you know. Whoever knows this in advance is better prepared and lasts longer.

Is MLM suitable for an introvert?

MLM can be suitable for an introvert too, if they don’t mind one-to-one conversations and learning new things. It is important not to use introversion as an excuse. I’m an introvert and for a long time I told myself that as an excuse. What counts is honest and calm conversations.

Can I do MLM alongside a job?

You can do MLM alongside a job, and that is how most people start. But expect to miss time in the evenings and at weekends. It is good to set a few hours a week and keep to them, so that it doesn’t come at the expense of family or work.

How do I know MLM doesn’t suit me?

You can tell by the work draining you over the long term, by not enjoying conversations with people and by doing it only because of pressure from those around you. That is fine. It doesn’t suit you, which doesn’t mean you failed. Leaving in time is a mature decision.

So, dig or not?

A terrace is a lovely thing. But before you build it, you have to know how much soil is waiting for you.

It’s the same with MLM. I’m not telling you yes or no. I’m telling you to decide with your eyes open.

If you want to discuss how I do it and whether it might suit you too, arrange a private presentation. Calmly, with no obligation and no pressure.

Tom

I write from my own experience. This is not legal or financial advice. Results in network marketing depend on your own work and are not guaranteed.

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