Must Read: 6 Biggest Myths about MLM aka Network Marketing

This is going to be one of the most important articles you will read on network marketing and the MLM industry.

This is because I am going to go head to head and address the biggest myths, concerns and problems that people have with the MLM industry.

I truly believe that the MLM industry is one of the most misunderstood industries out there and I am here to set things straight.


Below are the 6 biggest myths that people have about network marketing. I am going to show you that not only are they blatantly wrong, but they are stopping hundreds of people starting in business and building an extraordinary life for themselves and their families.

This needs to be changed right now.

The Problem With MLM

Let’s start with what I think the biggest problem with MLM and why 95% of the misunderstandings exist. It is because 95% of people who start in MLM have never had previous business experience. Meaning, the industry is full of “Untrained Sales People”. This is very dangerous.

It’s very common when starting out in business, is to only think about making money. To only think about your needs, wants and goals and not to consider other people.

The 95% are just trying to get people into their business, so that they will gain financially. But this is not how good business works and that’s why now we have myths and misunderstandings, which has given the industry a bad name in the eyes of some people.

Myth 1: Pyramid Structures Are Bad. 

The first biggest misunderstanding people have with this type of business is the structure. Some brand new inexperience consultants do not know what to say about this, and end up trying to deny it or cover it up by saying, it’s an upside down pyramid, but here is my response.

So what? So what if it does.

Here is the important point that 95% of people overlook. So have traditional business and government and religion and nearly every big organization out there. They all have a pyramid structure.

The Traditional Business
Picture this: In traditional business, you have the CEO/MD at the top of the pyramid, followed by heads of department, followed by upper management, followed by middle management, followed by lower management, followed by supervisors, followed by new staff, followed by customers. It is a pyramid structure.

With religion, you also have the pope at the top of the pyramid, followed by cardinals, followed by priests, followed by church leaders, followed by helpers and so on. It is a pyramid structure.

Next, government. So in government you have the President/Prime Minister at the top of the pyramid, followed by his closest advisors, followed by heads of department, followed by chief MP’s, followed by MP’s and so on. Guess what? It is a pyramid structure.

Myth 2: MLM is A Scam 

The next concern some people have about starting a network marketing business is that they have heard, that it might be a scam or that it is a pyramid scheme. If this is you then do not worry. Firstly, MLM is not a scam or pyramid scheme. Why? Pyramid schemes are illegal.

What Is A Pyramid Scheme?

A pyramid scheme is where the owner gets people to invest their money, with the hope of getting a return on their investment.

The owner keeps recruiting new people and then begins to pay the initial people off with the new investors’ money. The main difference is that there is no product involved. The product is money.

Pyramid schemes are illegal. The big difference with a network marketing business is that these companies are not illegal and they distribute actual products.

So is it a scam? The short answer is no. It is an industry regulated by a strict government body that has been around for decades and is one of the fastest growing industries today.

The reason you many have heard it might be a scam is because someone you know, may have joined a company, realized that there was actual work involved and then quit. To make themselves feel better, they then tell their friends and family that it was just a scam to save on any embarrassment. Today, it is just an easy excuse.

Myth 3: People Are Just In It For Themselves

Another misunderstanding is that it is not about customers, like in traditional businesses. It is just about that person trying to get you on board so that they can make money from you. Let’s take a closer look.

When you go in to a McDonald’s restaurant, and they give you a burger, what are they doing? Trying to make money.

When Virgin Media knocks at your door to offer their services, what are they doing? Trying to make money.

When you go in to any shop and buy anything, what is the business trying to do? You guessed it. Trying to make money. This is the same for all businesses

QUESTION: Why do we buy a burger or broadband or anything?

ANSWER: Because, we will become better off afterwards.

It makes our life better. So, if someone came to you with a product that made your life better, would that be a problem? No.

The problem is if the sales representative, was just trying to make money from you, without thinking about you right?

So here is the recurring theme of this post. The problem isn’t MLM, the problem is the sales representative. Makes sense?

Myth 4: It Doesn’t Work Due To Market Saturation

one more fear some people have is that network marketing doesn’t work as the numbers don’t add up. Meaning when everyone in the country has a business, then there is nowhere else to go and it all fall down.

Very simple, if this was true, then why has it never happened yet, with any of the hundreds of companies in the 80 years it has been around?

The issue people have is that MLM teaches a simple system of, finding 4 people who find 4 people and so on. This is the compounding exponential growth model. It works like this.


And so on. The problem people have with this is that it is not mathematically possible for this to continue as you run out of people in the world. (The critics love mentioning this.)

Here is the important point. This is not how the business must be done. This is just an example of how you can grow a business using only referrals. This is the same for any business!

Remember This: You can build a highly success MLM business by just building a customer base without ever recruiting anyone.

We just teach the 4 find 4 strategies because it is really easy modal for a brand new person to understand and get started with.This leads me to my next point;

It’s So Easy To Be A Critic

It’s so easy to be a critic. Anyone can be a critic. Anyone can sit there and pick faults in people and businesses and tell you all the reasons why it won’t work.

What it more difficult and worthy, is choosing not to just follow the crowd and stand up for what you believe in. To go for your dreams and put yourself out there in front of the critics.

There are two kinds of people in this world. Ones that go out and try to build a better life for themselves and their families, and ones that sit there, poke faults and tell you all the reasons it can’t be done, without even actually doing it themselves.

 Myth 5: There Are Ethics and Relationship Costs?

Now we have the dispute of whether this business is ethical and if there are any relationship costs when talking with your family and friends about starting a business with you.

I repeat again, the problem isn’t the business; the problem is HOW you do this. If you had a way of genuinely improving your closest loved ones lives then, would let them know about it? Of course you would.

If that person wasn’t interested then fine. But you would be doing them a disfavor by not letting them know about it. There are millions of people becoming financially independent all around the world with network marketing.

Network marketing is one of the fastest growing industries that have created more millionaires than anything else. You would actually upset your friend if you became a big success and you hadn’t told your friend about it and given them the freedom of choice to decide if it was right for them or not.

So here is the actual problem. The problem is HOW people get told.

The problem is when people “trick” their friends in to hearing about it. They will ask them to meet up for a catch up and then suddenly start onto a business opportunity.

DO NOT DO THAT. This is why people think that there might be relationship costs. It is not good for anyone and it is giving the industry a bad name. Stop it!

Bottom Line: Just be open and honest and let people choose for themselves if this is right for them, and there will be no relationship costs.

Myth 6: Only The People At The Top Ever Make Money

Another concern people have is that, it is only the people at the top that make any money. 90% of people who join don’t make any money. Guess what? This is true. You’re right. However let me also reveal some very important insights to you.

This is the same in learning any skill or industry!!!

Let me explain.

The Martial Arts Analogy
The best analogy for starting a network marketing business is that it is very similar to starting in and progressing in the martial arts.

Picture This: In a room of 100 people in a typical martial arts class, there will be a 1-2 black belts who are taking the class, 3-7 brown belts helping out, quite a few more red and blue belts, and the vast majority of people are white belts or brand new. Sound familiar?

Building your MLM business is just the same as wanting to become a black belt. The sad fact is that most people quit.

Most people didn’t realize that there was actually work involved. Most people did not have clear goals of what they wanted. Most people did not have a clear reason why they were doing this in the first place. Most people did not turn up to training. Most people have bad habits. Most people did not take it seriously and most people quit!

But the important point is that anyone could of become a black belt if they wanted to.

Want another example?

The Gym Analogy
Lets take getting in to shape. Of 100 people in a gym, how many actually have great gym bodies? 1-2 probably.

Those were the ones who have trained and worked at it for a few years. Those were the ones who took it seriously. Those were the ones who had a strong reason why they were doing it. Those were the ones who turned up to train when it was raining or they don’t feel like it or when people told them to just stay at home that day.

You then have a few more people in the gym who are in good shape, a few more people in average shape and then the 90% of people who join a gym realize it’s hard work and quit!

Most Business Do Not Make Money
90% of ALL business fail. Not just in network marketing. Why? All the same reasons.

Most people just want to get rich quick. Most people don’t have any proper business plans. Most people didn’t realize that it takes years of work.

Most people didn’t have a good enough reason why they were doing it. Most people have bad habits. Most people like watching TV instead. Most people let other people talk them out of it. Etc etc etc.

Bottom Line: Yes 90% of people don’t make money, but this is everywhere and in everything we do.

The Good News!

Ready for the good news? If you do take it seriously. If you do set clear goals, if you turn up to training every time, if you get better every day, if you have strong reasons why you are doing this that isn’t just about money, if you fix your bad habits, if you start with the right expectations and commit to becoming successful and don’t just quit after 3 months, then you too can and will be in the top 10%.

That’s all they did.

 In Summary

So, to quickly answer all these concerns I would say… So what if it is pyramid shaped, so has traditional business, government, religion and every other big institution.

No it’s not a pyramid scheme, they are illegal.

This business is about helping other people. I am sorry that a bad sales representative didn’t respect you and just tried to make money from you. This is not how good business really is.

Yes, the maths does add up. Compounding is just an example we give for new people so they can easily understand.

No you won’t burn close relationships if you are just straight and honest with people.

Yes only the top 10% do make the big money, so work hard and get in to the top 10% of people. If you don’t someone else will.

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