Sunday, November 8, 2015

Why Multi-level Marketing or MLMs End Up in Failure.

Blogspot Money Maker is about making money blogging and the ways you can honestly do so.  In this post I am going to discuss Multi-level Marketing, better known as MLM's and tell you why, in my opinion, they usually end up in a lot of wasted time with no money to show for it.

First, a little bit of background on myself and why I believe MLM's are no good and blogging is a much better choice to make money over the long term.  The date today is November 8, 2015.  In 2005, I started my search for the best way to make money online.  I did not want a get rich quick scheme because I believe that to get rich quick, you have to take advantage of other people.  That is now my outlook with MLM's.

Let me explain.  My very first attempt at making money online was by joining an individual who supposedly got rich and started a online search website, I forgot his name but it was something like Tessanara, where you could get paid a lot of money when people searched for data on other people.

It cost a fortune to advertise his program and I was not successful at all.  I was out about $400 dollars or so.  My second attempt at making money was an online domain registrar "Global Domains."  Have you ever heard the saying that you better love what you are selling?  Well, these websites were cheap and you could hardly do anything with them.  I think you had to pay $10 a month for your cheap website with hosting.  Now, they wanted you to sell their websites to other people in a MLM scam like this:  I tell someone to buy a cheap website and they buy it and I get $1.00 a month as long as they keep the website.  I also get $1.00 a month from people that buy the website from them.  So eventually, I just get to kick back while the money rolls in without me having to do much, if any, work.  The lure of big money for doing nothing is very appealing to a lot of people.  And, that is what the people on top of the MLM know.  They know that people will work hard to try to secure big paychecks without much effort later.

Here is the big problem with that premise:  When I am a few people down the ladder, why should I bust my butt to sell the product and make the people above me wealthy when they are just sitting on their duffs?

If you are not near the top of an MLM this is what you will find.  The people below you will lose interest very fast and move on to something that they think they can do to make money.

To make legitimate money, you need your own business where you can offer your own products or other people's products (affiliate products) that you honestly believe in.  Forget about the scams where your only concern is how much money you will make.  In my opinion, you will be disappointed in the end.

MLM alert 

The way that you can see right through any product or service and see if they are what I call a scam is by testing it by the following sentence.

How do you make your money?  


  • Do you make your money by selling a product or
  • Do you make your money by recruiting people to sell your service or products?
For example, let's say that you are supposedly selling a Mortgage Acceleration Program where people can join and reduce the number of years that they pay on their home mortgage.  You buy stuff from the company to help you sell the system to other people.  You buy a website, business cards, and educational cd's to help you recruit more people to sell the program.  

In actuality, the Mortgage Acceleration Company is making a ton of money on you when you buy all this stuff to help you recruit more people to buy more stuff.  Your focus for making money shifts from selling the product to recruiting others to sell the product.  Now, you want them to buy more stuff that is not even related to the product but instead the emphasis becomes how much money you can make selling all of this fluff which is unrelated to the product.

This, in my opinion, is a very unethical business practice.  Why not just create your own product or sell someone else's product or products that you, yourself, benefited from?

MLM's have given legitimate ways to make money online a bad name.  Many people think it is all a scam.  However, making money running your own blog with a niche of your choosing is not a scam. It is 100% your own business.  Sure, you can sell affiliate products if you want to.  But, these products are one's that you have used and can honestly recommend.  Or, they are good add-on products for your product line.  The business model for a blog is the same business model as in the outside world.  You make a product and sell it.  Or, you sell products that you personally endorse or are good products to sell alongside yours.  You may want other's to help you sell your products but when you do this, you toss them a bone for doing so.  

If I work for a big box store like Wal-mart and I work in the electronics department, I make an hourly or salary wage selling electronics.  If, on the other hand, I am a blogger or website owner who sells
Wal-Mart electronics on my site, I make a commission on the sale.  You will not pay any more for the item if you buy it from my blog or website.  Wal-Mart is happy that I sold it for them and they are happy to give me a commission on the sale.  For them, it is like having more employees that they don't have to pay hourly.  

I am an affiliate marketer, as well as, a blogger and in this blog I will show you the ins and outs of affiliate marketing because it goes hand in hand with blogging.  If you want to make money with your blog you should incorporate some kind of affiliate marketing protocol.  If you want to check out my Santa website and see how I sell products alongside me, as Santa Claus, you can check it out by clicking this link ===> Hear Santa   It is a brand new website of mine for Christmas 2015.

This post is getting a little long but I just wanted to tell you a story from a couple days ago concerning a friend.  My friend asked me this question.  Why would anybody buy a product off of your blog or website when they can just go to that store and buy it?  Here is the beauty of the answer; it is because you can be an affiliate of multiple stores at the same time and create your own store full of other store's products.  You can have a toy from Target, a watch from Dale's Watch Emporium, cookies and candy from Choco's Delicious Goodies at the same website.  Wal-Mart sells 500,000 items in their store.  Do you know every toy they sell?  My point is this.  Start a blog with a very narrow niche and exploit that niche and it will be successful.  You can blog about ants and termites and then sell ant killer from Lowes, a different ant killer from a Hardware store, and a different one from the company direct.  You can have 100 bug killer products from a variety of different stores across the country or even the world.

If you take the time to go to Hear Santa, you will find that I am just brushing the surface as to what I can sell on my website.  In 2016, I plan to do a lot more work on the website and offer many more products, even my own.  But, you can sell affiliate products only if you want to and not have to ever worry about having inventory.  Have fun blogging and subscribe to this blog to learn about affiliate marketing, blogging for cash, and other important things related to blogging.  I will end here with a few words of caution.

Caution:  Do not pay for any program that says something like, you can be an affiliate and sell our products for only $39.99 a month.  A legitimate affiliate program makes money for the company and they are more than happy to offer their products to be sold for free once your blog or website is approved.  I will cover blog and website approval in a later post.  


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