Chris Malta Video Review: Don’t Fall for Multi-Level Marketing

Here is a video I found on YouTube by Chris Malta.

In the video he talks about his views toward network marketing.

While I respect the guy’s opinion, I have to disagree with a few things he says.

In the paragraphs below I want to share a few of my thoughts toward what he says about network marketing.

1. The only way to the top is if the company owners personally invited you to the top levelsMLM negatives

My Take: I disagree.

Everyone starts at the bottom in network marketing, with no one in their organization and they have to earn their way to the top by sponsoring distributors, getting customers and building a team.

Even if you know the company’s owners and get in early, you still have to do the work to rise to the top levels based upon your own individual efforts.

That’s the beauty of network marketing.

It’s a level playing field.

Anyone can work their way to the top.

There’s no office politics or favoritism like there is in corporate America.

To succeed, you must do the work.

2. Only the people at the top make any real money

My Take: I agree that the people at the top make the most money.

In fact, the top 10% of all distributors probably earn 90% or more of the company’s total bonuses paid.

The same holds true in just about any sales organization outside of network marketing, too.

A small percentage of realtors, insurance agents, car salesmen and other sales professionals earn most of the commissions paid by their respective companies.

I also know that the people at the top of any organization make the most money.

For example, the CEO always earns more than the Vice Presidents, the Vice Presidents more than the middle manager, and the middle manager more than the hourly worker.

I also know that many network marketing companies have thousands of distributors earning $300 to a few thousand dollars per month.

Individual results will always vary, as they do in any business or sales profession.

For example, millions of people have blogs and only a real small percentage of those bloggers earn a full time income.

Most earn nothing.

Simply put, network marketing is commissioned based pay.

Make a lot of sales and build and team and you can earn a fortune.

Do nothing and you will earn nothing.

3. You get a piece of your downline’s profit

My Take: Yes, you get paid a percentage of your group’s total sales volume.

That is true.

However, your downline never pays you directly from their own pockets.

Their profits are their profits.

It could also be argued that every entrepreneur, and even sales managers, earn their wages based off their employees/teams/independent contractor’s efforts.

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4. Your upline gets a percentage of your profits

My Take: Same as my response above.

Never during my time in MLM did I pay my upline anything out of my own pocket for helping me.

Instead, my sales volume was included in their sales volume, in which their commission was determined.

It’s also important to know that my uplines and mentors never charged me even one penny for the hundreds of hours they spent helping me.

5. All companies want you to buy their training materials; that’s where the real money is made by the people at the top

My Take: I agree that this does happen in some network marketing companies.

Amway in particular, has a huge problem with the tools business.

Most of their top distributors earn a large portion of their profits from the tools business.

I also know that many network marketing companies PROHIBIT their distributors from selling you any kind of training materials to their group: only company materials are approved.

And yes, many network marketing companies sell training materials.

Those materials are optional to purchase.

The same holds true in traditional businesses.

Franchisees pay a fee for their training and materials.

Traditional businesses pay money to hire a trainer or consultant to help them.

It’s a normal business expense.

6. The people at the top get rich selling the training materials

My Take: Some distributors do.

Once again, not all companies allow their distributors to sell training materials to their downline.

I do know some distributors that make money selling training materials; lots of money.

I also know some people who leave the industry as a distributor to focus on selling training materials instead of building a downline.

And there are many, many successful distributors who only have one income stream: their MLM check.

7. Only the top dogs get to sell the training materials

My Take: Not true.

I’ve never been a top dog in the industry and I sell my own training materials that I created myself.

Anyone, and I mean anyone, can take their knowledge and create information products to sell to other network marketers.

Most people don’t, but that doesn’t mean they can’t.

And any network marketer can join any affiliate program they want (for free) and get paid a commission for selling that product to other people.

Final Thoughts

Chris Malta’s “Don’t Fall for Multi-Level Marketing” video has more than 100k views on YouTube.

Even though I disagree with what he says about MLM, I have a lot of respect for the guy.

After all, everyone is entitled to their own opinion.

The last thing I want to do is force my opinion on someone else.

The views in this article are my own response to what he says in the video.

Whether you agree or disagree with any of the statements is up to you.

On a side note, I would love to hear what you think about the video or my response to what he said about network marketing.

Please leave a comment to share your thoughts.

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25 thoughts on “Chris Malta Video Review: Don’t Fall for Multi-Level Marketing

  1. Diamond Grant

    I think that the discrepencies that exist between what Chris had to say and what you have to say are based upon experience, and ultimately that is what shapes our view of MLM. There were several things I agreed with you about in this post such as the fact that people who aren’t at the top still having the potential to make quite a bit of money. At the same time I could see where Malta was coming from at times having heard from people in other MLM businesses whose experiences matched what he said. So I guess it just depends on what you’ve walked through.

    Reply
  2. Brian

    I’ve been following Chris for many years now. He is a great guy and and genuine person. If he’s saying this negative stuff about MLM, it’s probably for good reason.

    Brian

    Reply
  3. Luke

    What a great video. I hate the MLM Industry and think it is one of the biggest scams out there. Chris hit the nail on the head.

    Luke

    Reply
  4. christian

    I did some research on Chris Malta online. He has made millions of dollars online since the 1990s. He specialized in eBay and information products and had a drop shipping business. From what I can tell, he is a legit guy. He just happens to hate MLM.

    Reply
  5. Derek

    Here is the bio I found on Chris Malta.

    Chris Malta is an Internet marketer who is an expert in e-commerce marketing and eBay. He is the founder of the huge product sourcing company, World Widebrands, and continues to help people sell on the Internet. He is the host of the EBiz Radio show and is an editor for eBay Radio.

    I thought you might want it.

    Derek

    Reply
  6. Susan

    I really hate this video. As someone who loves the MLM Industry, I’m not sure why anyone would make a video with so many misleading facts. It really makes me upset. I have no issue with people expressing their opinion, but at least get your information right.

    Reply
    1. Diamond Grant

      Susan I agree with you. It seems to me like Malta may have just reported information that supported the point he was trying to make without thoroughly analyzing both sides of the issue. Otherwise he wouldn’t have presented such a one-sided and very misleading view of MLM. This could very easily deter someone who was looking into MLM and didn’t take it upon themselves to do their own research.

      Reply
  7. Jerry

    Chuck,

    This is a great rebuttal to Chris Malta’s video. I like you explained things and shared your thoughts on everything he said. I think a lot of his information is misleading, especially to people who don’t know anything about our industry. Thanks for posting this.

    Jerry

    Reply
  8. Matthew

    Chris Malta is a great guy. I’ve known him for a few years now and used some of the services he recommends for eBay sellers. If he thinks MLM is a scam, I’m sure it is. Great video. You make some good arguments here, Chuck, but I’m going to have to take Chris’s side this time.

    Reply
  9. Jeannette

    There are some good points in this Chris Malta video, but I can see how some things are considered misleading. While he might not like MLM, and I’m fine with that, he should be a little more “to the point” with his comments and back them up with data.

    Reply
    1. chuckholmes Post author

      I agree. He’s just expressing his thoughts on MLM and I’m just sharing my response to his thoughts. A nice healthy debate is good, as long as people can stay professional.

      Reply
  10. Stephen

    I could not agree with you more Chuck. Sure some of the MLM’s are scams, but you cannot group everyone under the same umbrella. The problem is that with most MLM the prospects get all excited, due to the marketing hype. Then when things do not happen as fast as expected they throw in the towel. They usually walk away saying network marketing is a scam.

    Reply
    1. chuckholmes Post author

      So true Stephen.

      I’ve never met anyone who actually put in the work who called the network marketing industry a scam. Normally it’s people who tried it for 60-90 days, were excited, but didn’t do anything productive to grow their business.

      Chuck

      Reply
    2. Greg Boudonck

      Out of all the comments I have read here, this one has the most pull for me. No matter the type of business, be it mechanics, heating repair, book store, or an Amway dealer, we will find some who are crooks and some who are completely legit. I could probably dig deep into Chris Malta’s business tactics and find a few questionable items. Someone said he sells on Ebay. Does he have 100% positive feedback? I doubt it. The United States was built on free speech. Chris had his, and now I am using mine.

      Great post Chuck.

      Reply
  11. Amy Skalicky

    I like the way your post, Chuck, tackles some myths about MLM head-on. I particularly agree with the discussion on paying up lines and down lines, who are paid from the company’s profits, not an individual’s. This is a great incentive idea for supporting those under you, especially because once someone does have a down line, there are added responsibilities. How many other jobs are there where responsibilities are added, but there is no increase in reward? I’ve been in a few such positions myself.

    The first two points about only the people at the top make any real money, and you only make it to the top if you are invited caught my interest as well. I am a firm believer in the philosophy that you reap what you sow. You will get to the top if you make the choice to get there and are willing to do the work. Period.

    Reply
    1. chuckholmes Post author

      There are many myths about our industry. It is very mis-understood. You can go on the internet and read all these negative stories about how our industry is a scam and how people failed. But when you only read those stories, you don’t get the full picture. You see, there are always two sides to a coin. Plenty of people have done very well in the industry, too.

      I’m so sick of all the videos and articles that only talk about the negative aspects of network marketing. I understand we all have the freedom of speech, but I wish more people would tell you “the whole story.” For example, when they tell you they failed, they never talk about WHY they failed. They don’t tell you that they (1) never sponsored anyone, (2) never got on auto-ship, (3) never showed a presentation to anyone, etc.

      Sure, our industry isn’t for everyone, but you can make some serious money in network marketing if you stick with it. Just my thoughts.

      Chuck

      Reply

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