If you’re looking for a new way to make money online, you’ve probably considered trying your hand at making money online via a multi-level marketing (MLM) company. But before you dive in, it’s important to understand what they are and why exactly you shouldn’t invest in them.
What Is An MLM Company?
An MLM company is a business that brings in revenue through a network of retail distributors. MLM companies are a fantastic way to make money online because they provide you with an opportunity to become your own boss, work remotely, and generate unlimited income. There are plenty of MLM companies out there, and below we will discuss the two most popular ones with a special focus on why you shouldn’t invest in them:
Nutrition Business Solutions (formerly known as Nature’s Best)
Nutsrtion Business Solutions (formerly known as Nature’s Best) is one of the most popular MLM companies currently offering a free sample box. If you’re not familiar, Nature’s Best is a multi-level marketing company that sells premium, all-natural food products and supplements through a network of independent sales representatives (also known as distributors). The company was originally founded in 1986 and is headquartered in Scottsdale, Arizona. It had about $20 million in sales last year.
Nutsrtion Business Solutions, which is still owned by Nature’s Best, offers a lifestyle all-natural product that promotes weight loss and provides nutrition for dogs and cats. One of the distinguishing features of the company is that it offers a money-back guarantee if you meet the right conditions. To see if you qualify, visit this special link and enter your ZIP code to see if there are any offers available near you.
American Tea Company (formerly known as Celestial Seasonings)
The American Tea Company (formerly known as Celestial Seasonings) is another company that promotes weight loss through diet and supplements. Much like the first company we mentioned, American Tea Company is another multi-level marketing company that sells special blends of tea through a network of independent sales representatives. The company, which is based in Leawood, Kansas, was founded in 1869 and last year its sales were approximately $125 million.
American Tea Company promotes health benefits through tea and also provides an additional benefit to customers by connecting them with health care providers. If you join the company, you’ll have access to a health coach who can help you implement a diet plan and take care of all the nutrition needs of your family.
Why Should You Avoid These MLM Companies?
The opportunity to earn unlimited income through a multi-level marketing company is exciting, but there are a few things you should know about these companies before you get involved. Take a look at these considerations:
1. They Are Not Suitable for Everyone
As we mentioned, there are plenty of MLM companies out there, but not all of them are created equal, and not all suitable for everyone. You must be careful to consider whether or not this is the right business opportunity for you. Some MLM companies are simply designed to make as much revenue as possible through their network of retail distributors, so the amount of money you can make will depend on your individual ability to generate sales.
2. They Are Not Without Risk
Just because an opportunity presents itself to make some quick cash online doesn’t mean it’s without risk. Like any other business venture, there is risk associated with investing in an MLM company. In fact, you should be aware of exactly what that risk is before you make any kind of investment.
Even the most experienced MLM investors have lost a lot of money through these companies. In addition to the risks associated with running a business, investors run the risk of losing their money through bad investment decisions. So, make sure you do your research before getting involved with an MLM company.
3. They Aren’t For The Faint-Hearted
These kinds of businesses require a lot of dedication and effort, and being able to stay motivated is important if you want to make a profit from them. If you’re looking for a quick and easy way to make money, consider investing in a traditional business instead. With traditional businesses, you’ll generally find that there are fewer risks involved and you won’t have to put in as much effort.
4. They Can Be Difficult To Make Money With
As we mentioned, multi-level marketing companies are among the most popular ways to make money online, so it’s not surprising that a lot of people want to get involved in them. The problem is that not all MLM companies are created equal, and not every one of them is suitable for every type of person. If you’re looking for an easy way to make money, you may want to consider an MLM company that is more suited for independent contractors, entrepreneurs, or people with disabilities.
If you fit into one of these groups, consider exploring the Work at Home Mums Network, a community for mothers who want to work remotely, or Learn Technologies, which connects job seekers with employers seeking talent. With these opportunities, you’ll be connected with people who can help you find work and earn a living.
5. They Usually Need Your Input To Make Money
If you’ve ever shopped at a retail store or been to a restaurant that uses frequent flyers, you may have noticed that those businesses often ask you to input your email address or give them your phone number to get the latest deals. That’s because retail stores and restaurants use these marketing techniques to get people to come back for more. It’s the same with MLM companies. Once you join a company, you’ll generally be given a specific number to call, email, or send a tweet to for more information or to get involved in the business.
While it’s great to have someone interested in your product or service, you never know how much revenue they might generate. With MLM companies, you’ll generally be asked to spend a lot of time giving advice or input on a problem that someone else may be having with the product. Consider whether or not this is something you want to do.
6. They Aren’t For The Faint-Hearted
As we mentioned, multi-level marketing companies can be fairly involved and require a lot of effort. If you’re looking for an easy way to make money, you may want to consider investing in a traditional business instead. With traditional businesses, you’ll generally find that there are fewer risks involved and you won’t have to put in as much effort.
7. They Can Be Taxing
Another important thing to consider about multi-level marketing companies is that they are often taxed differently than other types of businesses. Most traditional businesses are considered independent contractors and aren’t taxed at all, whereas MLM companies are generally taxed at a higher rate.
To find out how much your particular business will be taxed, contact the IRS or the Department of Revenue.
8. They Have A Bad Reputation
One of the most important things to consider about multi-level marketing companies is how they are perceived by others. If you’ve ever shopped at a retail store or been to a restaurant that uses frequent flyers, you may have noticed that those businesses often ask you to input your email address or give them your phone number to get the latest deals. That’s because retail stores and restaurants use these marketing techniques to get people to come back for more. It’s the same with MLM companies. Once you join a company, you’ll generally be given a specific number to call, email, or send a tweet to for more information or to get involved in the business.
While it’s great to have someone interested in your product or service, you never know how much revenue they might generate. If you’re worried about whether or not this is a good business opportunity for you, simply call them up and ask. Most companies will be more than happy to tell you everything you need to know about their business and how they can help you make money online. Just remember, if they are telling you to do anything that seems too good to be true, it probably is. You should avoid those companies like the plague.