Tag Archives: 12 Factors

Why 95% of People Fail in Multi-Level Marketing (MLMs)


In recent weeks we have seen a few MLMs have the rug pulled out from under them.  Along with those actions are the tales of individuals who have lost their life savings trying to find the American Dream via MLM or multi-level marketing opportunities.  I know what MLM really stands for though; Most Lose Money!  Multi-level marketing opportunities are not about helping people,  superior products or great savings.  Sure some may tell you that you need to buy their cell phone, or services and that you will save money and even offer you an opportunity to make money getting people to do that same.  However MLMs miss the mark, and they lack key factors that cause 95% of those who join an MLM to fail.

I will tell you recently I was in disbelief as I saw two families I know plunk down a large sum of money to buy into two different MLM opportunities.  I could not believe that they decided that either was a great opportunity.  One company sells only an anti-aging cream, that’s all.  The other is one of those cell phone, and home services deals.  I saw this after the fact and I know anything I would say at this point is a moot point, they are not going to be able to bow out now, there is no risk free money back guarantee. Their hard-earned  money that they put down is gone and it’s highly unlikely this is going to be the big break or their ticket to financial freedom.  Sadly, what will probably happen is they may sell some cream and some services to a few friends and family who might feel sorry and want to help them but it won’t be enough to justify the effort involved or the money they will have to put in month after month.

Now you would think someone who has been through this would never do it again, but ironically that’s not the case, they don’t see that this kind of business structure will not work for the majority of those who try it.  They will think it was the product, so they may try a miracle juice next or maybe a weight loss magic pill and sadly, the same outcome will most likely occur. Will they give up on MLMs after that?  Will they realize that if they really want financial freedom they need a different business model?

The answer is usually no, and many people try multiple MLMs sometimes realizing a financial gain but quickly losing it and then ending up in the red again.  It doesn’t matter if it’s cell phones, energy services, fountain of youth creams or magic weight loss pills, MLMs are risky, depend on when you get in, and the people above you will always be making more.  Some choose to try an opportunity that is brand new, thrilled they’re in on the ground floor and they are determined to ride it to the top this time.  Then comes the rude awakening when the company folds and  they are left with nothing, it’s not worth anything to be on the top of nothing.


There are 12 factors any business you are looking to start should have, if it’s missing even one the rate of failure is high and the venture risky.  Watch the video below and make sure to do your due diligence and find out if the company you want to partner with meets all 12 of these key factors.


Oh and stay away from MLMs.  If you are curious to find out what company is the only one that meets every one of these 12 factors just go to our contact page and ask, we are happy to tell you.