People with different level of income can achieve financial freedom as long as they know how to manage their money properly. But a matter of fact is that people with higher income can be financial free and achieve their financial goals faster. In fact, high income is a must for those who want to achieve financial freedom and retire earlier, like me.

I want to achieve financial freedom by the age of 30. So I must boost my cash flow speed to achieve this goal. First of all my income must be high and I must know how to manage the income to build more passive income assets. There are many options I can choose to generate high income but I never include MLMs in my plan even though they always promote the theory of financial freedom in their programs.

Multi-level Marketing

MLM is multi-level marketing and here is the definition from wikipedia:

Multi-level marketing (MLM), also known as Network Marketing, is a marketing strategy that compensates promoters of direct selling companies not only for product sales they personally generate, but also for the sales of others they introduced to the company. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.

The Reasons Why MLM is Not For Me

As you can see, the plan of MLM actually quite match the requirement of financial freedom. We can leverage on MLM to generate more passive income by introducing more “downline” or members. This is why many MLM companies use the terms of financial freedom to promote their programs to people because they are being promoted as a system to generate passive income.

However, no matter how good a MLM system or products are, I never have any interest in MLM. I even never think that I want to achieve my financial freedom through them. Anyway, more and more people are not feeling good with the words MLM.

Here are the reasons why I think in this way:

• MLM System is too money oriented. I found that many MLM companies are too concentrating on making money. They are too promoting the concept of “money making” to people until they forget what is the real meaning of running a business. This let me feel that MLM is not selling any products but money making opportunity to people. MLM system is only a marketing system and the most important part is their products and contributions to the society. This is the main mission for a true business. However, what I found is they are just promoting their MLM system and carry out the message how much money we can make from their system. They should pay more attention on their products and services and not how much money their memebers can make.
• MLM products are too highly promoted. Well, everyone who joined MLM company is trying to make money and be a good sales person. Guess what, they are too highly promote their MLM system and products to people. They always claim their products are so different and rank no 1 in the market. I even met with some friends of mine promoting their MLM products exaggeratedly. After doing my research, I found that their products are having problems and some of them are being banned in different countries due to the side effects to consumers.
• The markup margin is too high. How people can make money from MLM company? Commission from different level! As the name indicated, mlm company has to pay commission to multiple level of people. Some of them even pay up to 5 level of people. So Can you imagine how much margin they have to markup on their products so that they can pay out so much of commissions so many levels of people? This make me doubt about their products… and I don’t wish people around me use this kind of “expensive” products because I want to make my commission.
• The Relationship for prospecting. How a new MLM marketer get started to promote their products and systems? Yes, through their relationship. They will introduce their companies to their relatives and families. they will hard selling to their friends and anyone who within their networks. Yes, we can leverage our network and relationship but I won’t leverage on them to make money especially by selling so called “business opportunity” and expensive products and services to them. I have been approached by several friends who are MLM marketers. For me, I really tired and lazy to answer their phone calls or meet with them because they always leverage on our relation to make money. I hate this process so I will never join any MLM companies for this purpose.
• Not Everyone can really Make “Big” Money. Yes, there are many people who is making money from MLM and in fact, some of them are even making big money from the MLM system. But not everyone can do this. Based on my observation, people who can make money, especially big money, are those consider as the pioneer of the MLM system. They are the first group of people who joined the system. I think I have no luck to get into a system at the early stage and MLM is not suitable for me.

Conclusion

MLM always emphasize that it is a business and everybody who joined the MLM system are business owners. I have different view on this. For me, the MLM companies are running the business and not the members. Everyone who joined their system are sales persons who are trying to recruit even more sales person.

Above are some of my points about MLM and I meant no offense by the remarks.

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