What You Need to Know About Multi-Level Marketing Companies


It’s almost impossible to check your Facebook account without finding posts from loved ones who joined multi-level marketing companies and invite you to join their pages. Also known as MLM companies, they sell everything from toothpaste and shampoo to kitchen tools and clothing. Those who sign up with these companies claim that they make money when you buy from them and that you can make money when you join too. Before you consider signing up for one of these programs, you need to know a few things.

Money First

College students quickly learn that a real job offer doesn’t require an upfront payment. When you join an MLM, you usually need to put some money down. This can range from $50 to $250 or more for a starter kit that teaches you how to sell the products as well as a few samples. Other companies ask that you spend thousands of dollars on inventory. Though you get a discount on those products, you might need to spend quite a bit on your initial stock. Some companies even ask you to open a new credit card with a high-interest rate to pay for your inventory.

Making Money

If you need extra money to pay for college in order to brush up on your skills, you can work with a private student loan lender. These lenders offer repayment terms and interest rates that help you get the funds you need without finding a cosigner. To get money from an MLM, you need to focus more on having people sign up under you than selling products. You might make as little as 5% on each sale that you make but get twice that when someone in your downline sells something. Anyone who signs up under you is part of your downline.

Social Media

A big part of working for an MLM involves online selling through social media. That is why so many of your family members and friends have pages dedicated to selling jewelry, makeup and clothing. When you join, the person you joined under will send you posts that you need to share. These posts include empty spots that you fill out with your info, including why you want to make money and the names of your loved ones. Depending on how many of your friends work for these companies, you may see the same posts multiple times within a few weeks.

Getting Out

Getting into an MLM is easy, but getting out of one may take more work than you expected. Those companies often use tactics to convince you to stay, including claiming that you’ll lose your discount if you drop out or that you’ll miss out on a chance to win a big prize. When you want to quit a standard job, you simply turn in your two weeks’ notice and leave at the end of that period. An MLM may require that you sign a contract that states you won’t share its sales tactics with anyone else and that you won’t talk negatively about the company. Before signing up for an MLM, you need to make sure that you understand what it means for your present and future.


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