However, just because pyramid schemes are illegal, doesn’t mean that some MLM companies are not still operating as pyramid schemes in disguise. MLMs are not illegal because you can earn an income from selling products and not just recruiting. Read more – 6 reasons why mlm companies are the absolute worstīecause of the impossibility for most people to make money in a pyramid scheme, pyramid schemes are illegal. This is in stark contrast to the people in an MLM, where 99% of participants actually lose money. However, the difference between a regular business and an MLM is that in a regular business, the people below the CEO are guaranteed benefits and salaries and do not depend on infinitely recruiting new members to the company. It is true that many business are triangle-shaped. The ultimate aim of somebody in an MLM scheme therefore, is to have as many people in their ‘downline’ as possible, enabling them to make large amounts of passive income for little work.Īt first, this may seem no different to a typical corporation in which the CEO makes the most money. Of course, you can always make money from selling shampoo or makeup in addition to recruiting, but most people in MLM companies prefer to recruit others because they stand to make a lifelong passive income from that person, rather than selling a bottle of shampoo for a one-off amount.Īs there is a lot of money trickling up to the top of the structure, the person at the top is making a lot of money, while the people at the bottom make the least amount of money. If the person at the very top of the triangle recruits 10 people, and each of those 10 people recruit another 10 people, and each one of those people recruit another 10 people, you will be making commissions from EVERYBODY in the triangle because they are all in your direct downline.Īll you had to do was recruit 10 people and you make money from 1100. The people underneath you in an MLM are known as your ‘downline,’ and you are their ‘upline.’ This continues down in multiple levels (hence multi-level). When you recruit a new person and that person begins earning money, you will earn commission from the sales and recruits generated from THAT person. You do not receive a salary in an MLM, but instead earn money from selling products to people you know and recruiting others into the company. MLM schemes have been around for years, and popular MLMs include Amway, Avon, It Works!, Herbalife and even Tupperware! MLM stands for multi-level marketing, and MLM companies are also known as network marketing or direct sales companies. To put it bluntly, is Monat a pyramid scheme or a legitimate business opportunity? I soon realised that, contrary to empowering women and providing them with ‘financial freedom,’ Monat and other MLM schemes are actually leaving thousands of women in debt.ĭid these women simply ’not work their biz’ hard enough, or were they just sucked into a business that is designed to make them fail? Until, that is, I kept seeing distributors of Monat and other MLM companies such as Arbonne and Beachbodypopping up all over my newsfeed, and decided that I wanted to know more about these companies and how they really operate. Something just didn’t sit right with me, and so I never got involved.įor a while, Monat never entered my mind again. Why did she continue to message me after I’d politely declined? Why did she want me to spend over $300 to be on her team? How could this person be so sure that I’d make a great Monat rep when she didn’t know me? Despite not knowing anything about Monat, or about MLM companies in general (multi-level marketing schemes), something seemed a little off about the whole thing. I was approached myself, about 12 months ago, by a young women who insisted that I’d make a great Monat Market Partner. Is Monat a Pyramid Scheme? A Deep Dive Into the Monat Business Opportunity Is Monat a pyramid scheme? Well, let’s see. You’ve heard people throwing around phrases like ‘pyramid schemes’ and ’scams’ and you’re concerned. I mean, who wouldn’t want to own their own business, work from anywhere in the world and never have to worry about money? They’ve probably told you that you can make money just by recommending products you love to your friends and family, and introducing others to the ‘lifestyle.’ If you’re reading this article then chances are you’ve been approached by a Monat Market Partner who has offered you an incredible ‘ business opportunity.’
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