8 Facts About Working with MLMs
Before I started working with Young Living I never wanted to run it as a business. Like never, ever, ever! I am not a good salesperson, I don’t keep receipts, I can barely maintain my busy life, what do I need another business for?!
Plus, MLM companies have a bad rep….I mean, they are pyramid schemes, right? The people at the top make millions while the poor saps at the bottom get ripped off? Who’s got time for that mess?!
That’s what I thought, but then something happened. I started talking about my love for the Young Living products. It was nothing but friend-to-friend conversation. Then people started to privately ask me questions about different oils and their specific needs and I would try to help. They would sign up to get the products. I was genuine in my love for the oils. I only wanted to share my passion and help people get healthier and have options for wellness.
Then I started earning a small check every month. Cool! I bought more oils.
No one ever pressed me or tried to push me to get more members or promised me great wealth if I would convince others to join….I just loved Thieves and lavender and my diffuser and I had to tell people about it.
After a while, to my surprise, I hit a new “rank” in the company and my checks got bigger and I was still just sharing my love for the oils. But I heard from several people, “Hey, you’re part of a scam!”
Say wha?!
That concerned me because all I wanted to do was bless others. So I did some research, spent time working with the company and learned a lot about network marketing that I want to share with you.
1. Young Living is NOT a pyramid scheme! – In many countries (including the US) pyramid schemes are illegal. They are a form of fraud. Pyramid schemes, sometimes called Ponzie schemes, are not based on products and not sustainable for long. Pyramid schemes are about “get the money and get out”. Young Living has been around for 20 years and is still going strong.
“I am often asked if Network Marketing is a Pyramid Scheme. My reply is that corporations really are pyramid schemes. A corporation has only one person at the top, generally the CEO, and everyone else below.” — Donald Trump, Entrepreneur and Author
2. We are product based – The old scam was that there was no actual product, but money came from having people pay to join, then that money went to the previous members and as new people joined more money came in and was distributed, etc. Eventually it would collapse because there were no new members.
Young Living is nothing like that! It is completely built on incredible products. These oils and supplements are what get me excited. When you join, you are not buying air, you are adding value to your life with health and wellness and a support system for your family. It’s tangible in that small amber bottle of goodness you can hold, smell, enjoy! Of course you have to actually BUY it….there is money involved. They can’t give things away for free just like any business!
3. Membership has value – When you join Costco, you pay $50-$100 for the privilege of shopping there. They bring in products and offer them to you at a somewhat discounted rate. In the case of Young Living, if you buy their Premium Starter Kit there is no membership fee and you get 24% off on all of your purchases after that. Like Costco, you pay annually to maintain your membership status. Except in the case of Young Living you get $50 worth of product for your $50 instead of just paying a fee. That’s why I feel so confident sharing it. It’s a terrific value!
4. No ads! – Instead of doing what Coca~Cola does and spend $4,500,000 on a Superbowl ad, a network marketing company (MLM) spends that money on their members. It’s brilliant actually! Word of mouth by trusted friends is a great way to promote and sell a well made product. So Young Living pours their money back into their hard-working members and counts on them to continue to share.
“Home-based businesses are one of the fastest-growing segments in our economy, and that trend will only continue, as the age of the corporation, which began barely a century ago, now gives way to the age of the entrepreneur.” – Paul Zane Pilzer, Author and Nobel Prize Winning Economist
5. A connection between members and corporate – When a company relies so heavily on its members, they have to be willing to listen to them! Young Living deeply values every single member, no matter whether they ever become business builders or not. It’s apparent in their customer service, dedication to quality and treatment of the communities where they have their farms. Every comment or suggestion I have ever made has been heard and valued. I know this is the same for many of my friends who work with them. I love that there’s not a huge divide between the members and the guys in the business suits.
Just a few weeks ago I had the blessing of visiting the Young Living farms and corporate offices in Utah. The company executives were right out there with us answering questions, asking about our families, telling us how they produce the oils, etc. We are as much a part of Young Living as those who park their cars in their corporate parking lot every morning.
6. You are supported! – This fact really depends on who you join with, but many members give tons of support and encouragement to those who join with them. You are not left alone to figure it out for yourself. If you sign up with me, for example, I add you to Facebook groups that support your needs, I send you gifts to help you learn to use your oils and I check on you. I keep you as up to date as I can on the latest company news and I work to add personal value to your membership. Believe me, I EARN my income. I’m not just sitting on a pile of cash and flying to Hawaii while someone under me wonders where their money went.
7. How we really earn – Unlike the pyramid scheme of simply making money buy selling empty memberships, Young Living uses a direct sales model. They sell directly to the consumer instead of going through a retail outlet. We, the distributor, get commission on the purchases of the members we helped join. I hear people questioning that as if it’s evil. Why? I ran a successful etsy shop for years, selling what I made and no one ever said, “You shouldn’t be telling us about your burlap monogrammed table runners because you make money on them!” Of course I made money on them! That was how we supported our family!
This is the same thing….I tell you what products I love and hope you will buy them. But I am not lying to you….I spent my own money to buy those same products and will continue to do so. They cost me the same amount that they cost you and I happily pay it. Because I love them and they WORK!
In addition to commission, we earn a portion of the company’s profit each month. The % earned depends on your level or “rank”. This is not about “passing money to the top”. It’s that the members are an important part of the business and care about the company. It can be compared to any business that is partly owned by its employees. Avis Rental Car and Publix grocery stores, for example are at least partially owned by their employees who own shares. Those shares are allocated by the work performed (according to Wikipedia). Young Living is not owned by the members, but they do get a share of the profits every month. Those who work more earn more. There’s nothing scammy about that!
8. You can earn too! – IF you want (there is absolutely no pressure!) you can earn an income through this wonderful company too. You can do exactly what I did….tell your friends about your love for the oils and supplements. Then they tell two friends, and they tell two friends, and so on (anyone here from the 70’s?). Then before you know it you’re earning a small check every month that you can use to buy more oils or make a car payment or anything else you need!
And the coolest part is that it is available to anyone who puts in the time and effort. There’s no waiting for your boss to decide to promote you or hoping you will get noticed. It’s your business to do what you want with, but at the same time you are part of a huge support system. If you want to stay small and just earn enough to buy more oils, great! If you want to, like many of my friends have done, bring your spouse home from a job they hate so you can work together in your own business, you can do that too! It’s completely up to you. You have all of the power. And it is as available to you as it is to anyone else. You reap what you sow.
“Do not go where the path may lead, go instead where there is no path and leave a trail.” – Ralph Waldo Emerson
Believe me, no one is more surprised than I am to discover that network marketing is such a terrific model to work with. Yes, there is a system of ranking up through the company which can take some getting used to. But the more I work with it the more I can see how smart it is. Those people who have built a bigger team work really hard and deserve to make more money than I do. But if I keep educating myself and encouraging my new friends (and that’s been another huge benefit… the wonderful friendships I’ve built!) as they build their own businesses and continue to educate myself, I can grow as much as I want.
Encouraging others is my favorite part! I have members living on single incomes who are using their earnings to get their families out of debt, do home repairs, send their kids to college, etc. I actually get the privilege of being a small part of that! I care about them because they are my friends….not because I earn an income from it. That is simply icing on the already delicious cake!
I hope this helps you to see that MLMs are not the evil mastermind that they are portrayed as. If you’re thinking of joining one, look into the company and if it has been around for a long time, you genuinely love the products and can honestly share about them…GO FOR IT!
(and of course, I would love to have you join me in my amazing journey that God has me on through Young Living! Click HERE to get started!)