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Multi-Level Marketing Online – 5 Things To Know

Here's how much money you can make doing MLM online...

multi-level marketing online

What is Multi-Level Marketing?

With this type of online business you’d be a salesperson for an MLM company that sells physical or digital products

You’d make money by selling the company’s products but the big earnings come from recruiting other salespeople and getting a percentage of their sales, then a percentage of sales from the people your recruits recruit, and so on down the line.

Multi-Level Marketing is one of 19 types of online business and considered a Level X online business, according to our framework.

How can you make money online with multi-level marketing?

Unfortunately, it seems that making money with multi-level marketing is almost impossible.

There have been a number of studies and investigations into the earnings of MLM participants – Wikipedia has a handy list – and frankly they’re all quite discouraging.

The most recent, large-scale MLM income report I found was a 2018 survey by Magnify Money.

They surveyed 1,049 MLM participants and these were their key takeaways:

The hourly earnings of those surveyed worked out to a paltry $0.67 per hour:

Marsha here represents a typical MLM participant…

  • Marsha MLM

  • Multi-Level Marketer
  • $0.67 average hourly earnings

Pros and Cons of MLM Businesses

  • Possible – though very unlikely – to earn big money. Usually only happens if you get in early and can recruit well.
  • Decent skill-building opportunities, especially in sales and marketing.
  • MLM companies are highly controversial and widely considered to be a scam.
  • Almost impossible to earn a consistent living this way.
  • Good chance you’ll spend more money than you earn.
  • MLMers are often encouraged to sell to friends and family, which can make Christmas dinner kinda awkward.
  • Many MLM companies encourage you to sell offline rather than online.

Is MLM a good way to earn a living online?

I wouldn’t recommend it.

The odds of making good money here are ridiculously low and, if you ask me, MLMs have too shady a reputation to risk associating yourself with them.

Multi-Level Marketing Resources

  • The Multilevel Marketing Cults: Lies, Pyramid Schemes, and the Pursuit of Financial Freedom.
    The below video by James Jani is a must-watch for anyone considering MLM…
  • Multilevel Marketing: Last Week Tonight with John Oliver
    Another video about MLM that’s worth a watch…
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