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.
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 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.
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.