Five Mind Games That MLMs Use to Deceive People
If you’ve ever been looking for a way to make extra money or looking for a new job, chances are you’ve come across a few multi-level marketing (MLM) companies that promise that you can actually make a lot of money. fast and really easy. You probably know that most MLMs are pyramid schemes where the only real way to make money is to keep recruiting more fools into the scheme, but there are “legitimate” (sort of) MLM businesses where you can actually make some money selling products.
But not a lot of money. Even the most legitimate MLM is a waste of time for the vast majority of people: most people make less than $100 a month from an MLM business. And this is a legitimate business. So, you may be wondering, how do people keep getting sucked into MLM companies like Amway when no one seems to be making any money from them?
The answer is simple: the key word in “multi-level marketing” is “marketing” , and these organizations know how to use psychological tricks against you.
Targeting the vulnerable
MLM people usually sell a pretty compelling dream: you can work for yourself, set your own hours, and be financially independent . They usually target people who are looking for work or desperate for extra money, making them vulnerable to pitching. Recruiters for MLM companies often describe their lives as the ideal version of the American Dream: no worries about bills, a luxurious vacation and lifestyle, all while working just a few hours each day. Many MLM companies actively target stay-at-home parents looking for ways to make extra money and immigrant communities who lack access to more traditional job opportunities, banking on their vulnerability to cause them to ignore red flags. If you’ve been seduced by network marketing, chances are you’re in a bad place, both financially and mentally.
Lovebombing
Many MLM companies recruit using a form of ” love bombing “—a firehose of positive attention. The MLM representative will assure you that you have something special that will lead to success and will tirelessly talk about his own success, often showing you evidence of awards or bonuses he has received. They will often try to get you to go with them to a conference or other event where you will be surrounded by people who are just as eager to tell you how successful and happy they are, while praising you for being smart enough to sense this opportunity.
Some MLMs also encourage members to use social connections to find new employees, meaning they often use social credit and established relationships. If a friend offers you an “opportunity,” you may be less inclined to push him away and more inclined to give him some time out of affection or politeness.
Pressure
Once you’re interested in an MLM, there’s usually an element of pressure: If you’ve attended a meeting, you’ll often be surrounded by people who want you to sign up right away, and if you do, an “opportunity” will usually arise. for example, lower starting prices for the company’s products (which, of course, you will have to pay for upfront).
When I had just finished school, a family friend told me he had a job opportunity for me. He picked me up to go to an interview, which turned out to be a meeting for an MLM company. After several presentations from successful participants, I was shoved into a room with half a dozen smiling people who told me to sign up right away, and I had to insist—vigorously—that I wasn’t signing anything, that I needed to think about it, before they reluctantly let me leave. Combined with a little financial desperation, this tactic can be very difficult to resist.
Obfuscation
People trying to get you into MLM will talk a lot about success, but usually give very few details. Most MLM companies have complex compensation structures that make it difficult to determine how much money you’ll actually make, and recruiters sometimes talk about the income their team generated without explaining that the income must be shared among everyone, turning an impressive number into disappointing.
MLMs also use misleading disclosure statements to hide the true numbers. The Federal Trade Commission’s analysis found that many MLM disclosures emphasized a small number of highly paid participants to hide the fact that most participants made very little (or even lost money), omitted information (such as the number of people who made no money), and often completely ignored expenses incurred by participants to make income appear more sustainable.
Referring to bootstrap
Another trick MLMs use to trick you is by appealing to the “bootstrap” mindset, which assumes that the only thing standing between you and financial success is hard work. In a world where “grinding” is often touted as a positive thing, this can be compelling—if you’re not afraid to work your fingers to the bone, the American dream can still be yours .
It’s effective because it’s a pre-built excuse for making little to no money at first. If you’re making your way through the first few months of MLM experience and you don’t have anything to show for it, that’s okay – you were told it wouldn’t be easy at first, you just have to keep pushing until you reach the next level and reach the next level. achieve the financial success that was sold to you.
The opportunity for passive income, financial independence and the ability to be your own boss will always make MLM attractive to some people. Knowing the methods they use to draw you into their trap can make you more resilient.