How to Earn in Multi-level Marketing: Is it Worth the Risk?

Have you ever heard these lines before?

  • “Wanna grab a coffee? Let’s have a talk.”
  • “Hey, would you be interested to listen to my business proposal?”
  •  “I’m earning more on my part-time job right now, would you like to join?”
  •  “I’m having dinner later in the evening along with some friends, would you like to join?”

 Yeah! We’ve all heard these lines before. According to the research done by AARP Foundation, one in thirteen adults (ages above 18 years old) have participated or joined in at least one multi-level marketing company.

In this article, I will be talking about how to earn in multi-level marketing, and the myths and facts in this industry. I hope to answer your question in mind, that if you join the industry, will you really be able to earn money?

First, let’s talk about the ways on how you can earn in MLM.

Cory Haasnoot


Make Real Money Online! I Can Show You How With Affiliate Marketing.


How To Earn in MLM

There are usually two ways on how you can earn money in the MLM industry. First, you can sell the product and second, you can recruit other people to join you.

Although this may sound easy, a lot of people who joined the industry typically fail in their first 5 years and do not join any of it in the future.

So, let’s talk about the two ways on how you can earn.

 Product Selling

 Almost all multi-level marketing companies have products to sell. If they don’t have products at all or have a bogus one, then you should probably think twice about joining the company.

Canned and bottled products on shelves.

If you notice, almost all MLM products are more expensive compared to the actual products available in the market. Why? It’s because each profit from a product, the seller, and all the uplines will have a share of the profit.

 Here are just some of the niches you’ll find in this kind of industry:

  • Health and Wellness

  • Fitness and Weight Management

  • Essential Oils

  • Cosmetics and Skin Care

  • Clothing and Accessories

  • Coffee Products


 All compensation plans of multi-level marketing companies include how you can earn through recruitment. Recruiting means building the people under you to sell and recruit as well. Your end pay will be based on your commission and the commission of the people under you.

MLM business plan.

 Here are just some of the compensation schemes that you’ll encounter in MLM companies:

  • Unilevel Compensation Plan – A distributor can have as many recruits as they want

  • Board  Plan – A top-level distributor is only allowed to have two distributors and they can also have only two distributors.

  • Party Compensation Plan – Distributors can organize events and they can sell their products during these events.

Myths About Becoming a Product Distributor

In most pitches that you hear, recruiters will tell you how satisfied and happy they are with the network marketing that they are working in. False promises are being given to people who would like to become a product distributor.

Get Rich green enter button on computer keyboard.

So, I’ve gathered up some of the biggest myths in multi-level marketing to show you what’s really happening.

Having Your Own Business

Joining a network marketing does not mean that you’ll have your own business. Yes, there’s no clocking in and out while you’re working and no one will be watching how you work. But you still need to follow the companies guidelines and can't make up your own rules.

Plus, you’ll be selling the existing products that the company promotes. Although you’re required to meet a certain quota (depending on the company) in order for you to stay active. This is extremely different from being an entrepreneur.

In this article, you’ll find a list of the differences between being an entrepreneur and working for an MLM company.

Work On The Side

This is where most people are being hooked in. Imagine if you can still have your full-time corporate job and earn more money selling and recruiting on the side. Interesting, right?

Well, don’t fall for it. Most people who sell and recruit for their MLM company on a part-time basis tend to lose more money and quit for a couple of years.

If you want to succeed in the MLM industry as a distributor, you should spend most of your time, energy, effort, and even money on it just like it’s your own business. And even if you do this, there’s no assurance to succeed at all!

You’ll get rich on MLM

You’ll hear a lot of this on almost all the pitches on MLM. False promises of financial freedom and reaching your dreams in an instant are the typical lines you’ll notice on the presentations. Yes, you might earn a couple of bucks, but most of the distributors are only at break-even. Worst, a lot of people go broke!

Business man holding drawn money bags

Research of AARP Foundation shows that 25% of the people (from the survey) who joined MLM made a profit, there’s 27% that got break even, and almost half of all the people just lost their money.

In the conclusion of the said research, 997 people from 1,000 who joined MLM lost their money and this does not include the time they have invested.

Anyone can do it

Many recruiters will tell you that everyone can succeed in MLM. But research shows that most extroverts have the ability to be successful in the industry with their ability to be approachable, outgoing, personable, and driven.

Introverts can also join the industry, but their ability to interact and engage with other people will not be the same as extroverts.

Profit all the way

If you think that after your first investment you’ll be able to just continuously earn a profit, then you need to think otherwise. Many MLM companies will require you to purchase their products on a monthly basis in order for you to be tagged as active.

What can you do with those products? Either sell it or use it yourself because most of these companies do not allow return merchandise.

Affiliate Marketing Recommendation

Anyone can join the MLM industry, but not everyone can succeed in it. Not only will you have to exert much of your time and money, but you would also need to do personal selling and recruitment.

If you’re thinking about ways on how you can earn money online, then you should probably look at affiliate marketing and Wealthy Affiliate. Here are some of the benefits you’ll find if you start your own affiliate marketing:

  • Lucrative industry

  • Low-cost business industry

  • You don’t have to be an expert

  • Flexibility, Convenience, and Independence

  • Strategies and techniques are limitless

Leave a Comment