MLM and Surveys-Can You Really Make Money

MLM and Surveys-Can You Really Make Money?

I thought that I would take the time to revisit these two types of programs. Why? Because both these programs promise you a way to make money with little effort and no experience. By the way, these four words "little effort" and "no experience" should be red flags for those new to the Internet.


I've written an article called "MLM, Surveys and Quick Money, Really?" This article will explain how both programs work, and include my own experience with these type of programs. As you will find out,  I'm not an avid fan of either.


 MLM, Surveys and Quick Money, Really?


As I browse the Internet, I am seeing more and more people trying to promote MLM and survey programs. I'll be honest with you, neither is a favorite of mine. And before you say, "you haven't tried them how do you know?" My answer would be, "I have". In fact, this early stage of my online experience is what I call the "stupidity" stage.



MLM - Who is Really Making Money?
MLM is Multi-Level Marketing. This is where independent distributors (which is you) will be compensated not only for sales that you personally generate, but also from sales that your downline has generated.

The downline will consist of people you recruit to become distributors under you. You are in essence, recruiting others to sell what you are selling. Or, in many cases, you are selling the program. If you have enough people under you, you can make money from your sales and the sales of others.

As a distributor, you will need to do several things. First, you will need to convince people that the product you are selling is great and the product is easy to sell. If someone enters your downline, you will make money, maybe. Unless the company requires you to have, at least three people in your first level before you can make money from your downline distributors. In addition, you may be required to buy more of the company’s products to stay active in the program and to move up to the next level.

In my case, I had just started with an MLM program, when I happen to meet a young couple who was also partaking in an MLM program.

At the time, they had made little to no money, and had to continue to buy more of the company's products. The ratio of products they were buying, to what they were selling was definitely skewed in the company's favor. After seeing this scenario I realized that the MLM program was not for me. I was able to get out of the program before I spent too much money. I consider myself lucky, even though I took a loss in this venture.

Am I convincing you yet that MLM is a gray area between legal and illegal. I hope so. Before you partake in an MLM program, you should at least determine for yourself the legitimacy of the program. You can do this by asking a few questions.

1. Why is the company not selling their product through the traditional marketing system?

2. Why don't you need experience? (If you hear, "This product can sell itself! There is no need for experience.” Run away from the deal as quickly as possible.)

3. Whose making the money?

4. If they state the selling of this product is "easy money" that should be a red flag. I know if you are in a serious financial position it could be a major temptation to lay out the cash, but do not do it. You need to take a moment, step back, look at the program and determine how much money you will need to put on the table. Moreover, if you find yourself trying to rationalize why you should join, you might want to step away.

5. Ask if they put a threshold on the ratio of how many products you buy to the number of the products you sell. If there is no threshold, and they want you to continue to buy their products to get to the next level or for bonuses, you might want to back away.

6. How many people are selling the same product? If many people are selling the same product, you can assume the market is over-saturated. If the market is over-saturated, you can anticipate few sales.

7. Be cautious of the "millionaire" snare. This is where the company will set up a conference call so that they can bring in a "so-called" millionaire to tell you how he/she was able to become successful with this MLM program. The purpose is simple, to generate enthusiasm and greater determination at succeeding in the venture.

Bottom line, if you have to buy more products then you will ever sell, just to get bonuses or to reach the next level, you will never succeed. In addition, the profits will usually be seen by the one at the top of the pyramid (and that can be short-lived because many in the downline will drop out) and the company.


Are Online Surveys Really a Money Maker?

You probably have seen something like this, "Get paid for taking online surveys. It is a great way to earn quick and substantial money. Most companies pay top dollar for taking a survey!"

If you believe this, you have just been suckered into the game. I tried surveys for three months. I received $3, a small sample of a hand cream, and I was out $45, which was for unlimited access to a directory of survey sites (Of which some were not active).

Can you really make quick, substantial money with surveys? In my opinion, no. In addition, taking surveys at your leisure is also a fallacy. In all cases, you have to meet the specific criteria for that survey. And that is determined by answering a few questions that will either qualify or disqualify you from the survey.

If you pass their criteria and complete the online survey, your name will be put into a drawing. At the end of the trial, the marketing research company will pull out two to five names (if you’re lucky) from the survey pool. Moreover, only those two to five people will be paid.

I don't know about you, but I would rather work hard and see a return, instead of relying on luck. Moreover, spending hours completing surveys, only to have my name put into a drawing, is not my idea of earning a living online.

I believe you can now understand why I call this my "stupidity" stage online. Once I got the “stupidity” stage behind me, I set to work at truly earning a living online. To be honest, there is no such thing as "quick money". Don't look for the quick money. Learn the business of Internet Marketing, work hard, and you can begin to make money and have a true business.


Note: My rule of thumb with an MLM is this, if the method of making money is by getting other people to pay the same fee that you had to pay, it's best to stay away.