Hello and welcome to my article about my views on what makes the Worst Multi-Level Marketing Companies on the market today, and what actually makes them worse.
I also will also include why Multi-Level Marketing is so appealing to many people and give you some good examples of what makes a good company in today’s market.
I will discuss different scenarios and theories from various trusted sources that I found online and finally give my personal final thoughts on the subject.
I will also give you my personal red flag guide on what to look out for so that you never get involved with any of the worst Multi-Level Marketing companies.
You will always have some good companies representing the market and you will have your bad ones.
The most empowering practice that one can do is take the time to research any opportunity that you have an interest in investing in, especially before joining a Network Marketing company.
With my Digital Cash Kings website, I cover many companies in the Multi-Level Marketing community so that you can find a reliable source for detailed and thorough information on various company’s backgrounds and compensation plans at your disposal.
Some of the findings from some of the MLM companies we cover might surprise you.
With that said, this article should be an interesting read for most of you.
First, I will dive into some personal thoughts about what makes an MLM company a bad one, and then I will give you an actual list of some of the all-time worst Multi-Level-Marketing companies that we found to be the worst of the worst.
But first…
What is Multi-Level Marketing?
Here is a great video I found online that gives a really great and entertaining take on what Multi-Level Marketing is as far as a company is concerned, and is when marketing is concerned.
The host also gives a lot more information about various products, companies and some history on the subject.
He also explains what a Ponzi scheme is and gives some history on where that phrase originated from.
I enjoyed watching it, he knows what he is talking about, and I hope that you enjoy it as well.
Worst Multi-Level Marketing Companies Thoughts
Part of the problems that make Multi-Level Marketing companies look bad is the distributors that are marketing the opportunity.
I’m not saying that all of the distributors are bad, but there is definitely a handful in every single company that I encounter that can make any company owner want to drop that hammer and get rid of them.
You will have some of them making ridiculous income and health claims on the Internet which sticks around because of how the Internet works, and always seems to be found sooner or later.
Some even go around making claims that the product will cure a certain ailment, or even make a huge amount of money without doing a single thing which some people believe.
This is a big reason why people quit.
They quit because someone said they are going to make all this money without doing anything but fail to do so.
People get frustrated, mad, and eventually quit and because they failed to sell anything, they become very sour at the whole situation and want to bad mouth the companies for their shortcomings.
With that said, you might run into those legitimate bad companies that are flat out Ponzi-schemes, but it’s not so common anymore.
Most people join Multi-Level-Marketing because of the income opportunity, BUT you have to understand that people need to realize that the only thing that is keeping these companies running is product sales.
So, when people lead just with the opportunity and have no intention of spotlighting the product, you will never win.
You need to be the product of the product to make the income part of it work for you.
Another thing that’s pretty bad is MLMers tend to forget it should be the products that should be sold and not just the opportunity, therefore turn the MLM opportunity into a joke, because once you start selling the dream only, you will only have the not so reasonable people join, and then it eventually turns into a not so cool business.
People that get involved with a Network Marketing company that only pushes the idea of how to make extra money and has no excitement and no intention to lead with the product will have a very hard time trying to grow an MLM company.
D.T. even said:
“if you are in business only for the money, you should quit right now”
Not having that belief and excitement for the product is all-around bad for business.
The Worst Multi-Level-Marketing Companies List
Here is a list of the better-known all-time worst MLM companies of all time.
- WCM777 (so bad that the federal government got involved and sued the company and many of the reps that were involved.)
- Zeek Rewards (so bad that the federal government got involved and sued the company and many of the reps that were involved.)
- BitConnect (so bad that the federal government got involved and sued the company and many of the reps that were involved.)
- 2by2.net (Ponzi Scheme that got shut down by the federal government)
What If The MLM Companies Only Care About The Income?
Now when a company only cares about the income opportunity and not so much the products that they sell, then that definitely makes that Multi-Level-Marketing company a bad company.
Many of the companies that I have found to have this bad quality seem to have a matrix compensation plan and at this time, those cryptocurrency MLM Companies.
I am not saying that ALL the companies with the matrix compensation structure are bad, it’s just that I found that some of the worst companies that I’ve encountered to be bad have the matrix compensation plan or a type of hybrid form of it.
Now that you heard about what makes a bad company, and some of the enticements that you will run into with Network Marketing, what are some of the ugly truths?
The Ugly Side To Multi-Level Marketing
With some of the scrupulous marketing techniques that I’ve mentioned before, they are going to make a lot of people mad.
Mad at the company, mad at the concept, and mad at the person who referred them.
This is a big issue why Network Marketing gets a bad rep.
Many of the top guys and earners that host the presentations have that smooth approach that will share all the wonderful stories of how many people they are helping, and how much money that they are making, and how much you can earn can really keep people going for a while.
Does this contribute to making a company a bad one?
It might if the presenter is only pushing the income opportunity, without trying to sell the product AND the company having full knowledge of that person’s actions.
If they are doing everything in compliance with what makes a good Multi-Level Marketing business, then I would say that this does not contribute to ugliness, just a good salesman.
What Similarities Do MLM And Illegal Pyramid Schemes Have?
Now we have to dive into the worse of the worse Multi-Level Marketing companies that should not even be considered a true Network Marketing company called Pyramid schemes.
Many pyramid schemes look from the outside to be legitimate MLM companies.
They look, feel, and have many of the same properties that a true Multi-Level Marketing company has in place.
They seem to all have the similar aspect of needing to invest to become a distributor, and also to recruit others for the product or service.
And they will have the similarity of having the opportunity to make money by signing up referrals and also have similar aspects of compensation plans where when they rise in rank or levels so that you can earn even more money.
Network Marketing companies are legal in Canada and most parts of the US.
Pyramid Schemes are illegal in the US and Canada and punishable by hefty fines and jail time.
One of the main reasons why I started Digital Cash Kings is so that you can get the information you need to figure out what are the legitimate Network Marketing companies from the scams.
How Can You Tell The Difference Between A Legitimate MLM Company And A Pyramid Scheme?
The biggest indicator that you can go by is the way the Multi-Level-Marketing company operates.
The ONLY factor for the Pyramid Scheme structured company is to get your money so that you can recruit others and get their money too.
The entire business model behind an MLM Company is to move and sell products.
The more distributors within a legitimate Network Marketing company model is to gain more distributors so that the company is able to sell more products.
There is no other way around it.
The “Red Flag” Checklist To Determine a Legitimate Multi-Level Marketing Company from a Pyramid Scheme
- If you are required to invest a huge sum of upfront money to become a distributor. Legitimate MLM companies do not require huge investments upfront. Legitimate companies might have incentives to buy “packs” but the “packs” should not be required to become a distributor.
- If the company will NOT buyback any inventory that was not used then that is a red flag. The legitimate companies will buy back any unused inventory for at least 80% of the initial cost of the product not including shipping.
- If there is no marketing mentioning the products or service they are offering by the company is usually a red flag. If there is no interest in any product, don’t sign up.
- If you are unable to find who runs the company is a red flag. These owners that are not transparent and don’t disclose who they are usually hiding something, so don’t sign up.
- A huge focus on recruiting and income claims with NO mention of the products are big red flags.
- If the compensation has it to where you make more money by recruiting new members rather than through product sales you make yourself is a red flag. Meaning that can a person buy just the products and not become a distributor to earn money.
These are good signs for determining the worst kinds of Multi-Level Marketing companies.
The get-rich-quick scams are usually made with one goal in mind.
For the owner to make as much money as he or she can and then run off with all of the commissions made later down the road.
This is not considered a good Network Marketing company, but people usually fall for these scams left and right.
I really hate these types of “here today and gone tomorrow” type companies because they really do give the industry a bad taste in people’s mouths.
And the media doesn’t help because we all know what the media like to report on… which is mostly the drama, and RARELY reports on the good parts of the Network Marketing industry like giving large sums of money to charities and helping causes out.
And the parts where they help so many families in different ways.
I would say just do your due diligence before you dive into anything out there.
In the next section, I want to share some articles from some trusted sources about some of the views about Multi-Level Marketing.
Some Views About Multi-Level-Marketing from Forbes.com
Some of the Network Marketing companies on the market have been frequent visitors of criticism combined with legal issues like lawsuits for various reasons both won and lost.
Like I mentioned before about the pyramid scheme model, many news and media agencies have criticized the similarity of these two business models even though they are very different in the key factors that make the MLM model legitimate.
Some of the techniques that have been criticized for some of the companies are the price fix on the product, the high initial start-up costs, the emphasis on recruitment of people rather than product sales, encouraging if not requiring people to purchase the company’s products, the potential exploitation of personal relationships which are used as recruiting training material for new sales and recruiting targets, complicated and sometimes exaggerated income claims, and the cult-like techniques that some groups use to excite their member’s enthusiasm and devotion.
However, companies like Mary Kay, Avon, Advocare, and Tupperware are the companies that stand out due to the fact that they lead with the product and have many people that believe and stand behind them.
These types of companies empower people that sell their products by helping them establish their very own business.
With that said there are many other legitimate Multi-Level Marketing companies that are out there, even smaller ones, the ones that I listed are the more well-known ones and the ones that more people can relate to because of their brand recognition.
Starting your own business is very attractive to those with an entrepreneurial mindset.
Many people have the dream of not having to work for a boss, and making a living by establishing their own home-based business.
The idea of having more time and more money to do the things that you want in life is very attractive and attainable with Multi-Level Marketing.
Many Network Marketing companies will also reward their distributors with trips and awards for doing a great job.
Good companies like to recognize and take care of their distributors that are working hard.
In the Forbes article, the author had recently spoken at the time of the article write-up to a woman from San Diego named Vicki Martin about her experience with Rodan and Fields.
Here was her take on her experience…
“The decision to join Rodan + Fields Dermatologists came easily. Since 2008 the construction industry which I was previously in] has been hit hard by our economic downturn and my income has been greatly affected. We were working harder for less like many of our friends. Being part of Rodan + Fields Dermatologists is allowing me to work with highly educated people who share a passion for business and for teamwork. Building a recurring, residual income that grows month over month is going to give my husband and me the peace of mind and financial freedom that is so vitally important to our future. My skin looks better than ever. And, I get to work my job around the rest of my life instead of the other way around.”
The author closes out by saying that the next time you meet someone that runs their own home-based business to give them a high five for taking their career and life into their own hand by becoming an entrepreneur.
My Final Thoughts About The Worst Multi-Level Marketing Companies
My final thoughts are this.
There is a huge list of Multi-Level Marketing companies that are out in today’s market so you really have to do your homework to determine a good legitimate one from a bad one.
Use the list of red-flag indicators that I have listed above to determine the difference quickly.
Don’t get enticed in by only the money claims because starting your own legitimate business with the passion of ONLY making money is not what this business is all about.
Just like having a normal brick-and-mortar type business, you need to have a good product to sell in order for your business to thrive and grow when getting involved with MLM.
This business model is all about the customers first, then the products, and then the people promoting it in that order.
So if you run across a company that is only pushing the possibility of earning huge commissions, don’t join it.
With that said, don’t confuse the affiliate programs with the Network Multi-Level Marketing programs, they are completely different models that have totally different pay structures and usually have some type of digital product associated with the affiliate programs.
Affiliate programs are another great way to start earning income from home and I would highly recommend starting in the affiliate marketing industry rather than the Multi-Level marketing industry when first getting started.
In my personal opinion, you get way more training and support about actual online marketing and online advertising than you will get with Network Marketing, and I have been working both MLM companies and affiliate marketing programs for a very long time, so I see the difference of success for the new person starting out with Affiliate Marketing compared to starting out with Multi-Level Marketing.
So with that said, if you are looking into any Multi-Level Marketing company because you are thinking of joining, make sure you do your homework and use some of the guidance I shared with you here in this article when determining the good MLM companies from some of the worst companies that you will want to stay far away from.
There are many great Multi-Level Marketing companies out there, so don’t let the bad ones or the media deter you or make you believe that the whole industry is bad.
And with that…
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