Thoughts

How MLM business influence you to join?

“Hey, why are you not using your talent?”- One of your old friends asked. You felt clueless cause you are still in college. And, is there any particular creativity I have, you doubted. They discuss your dreams, what you like and say, Wow. They find out such qualities in you and want you to prosper. After a long time, you get such an encouraging conversation. And at that point, they mention what they are doing nowadays. They are taking some courses to build their future. It’s not only a class but a practical one and you can earn too. Ow, that’s sound nice, you thought and, they also invite you to attend a meet with their Mentors. 

 Does this happen to you? Well, sometimes, the proposal comes from a relative or colleague. And yeah, it’s maybe a self-development course or a business of product. I even get an offer for Affiliate Growth Course,

 from Girl, whom I met on the Internet.

What is Multi Levels Marketing or MLM?

You met and heard about some Successful people in the company. Oh, you want that life. You want to be a Financially Independent, Entrepreneur.  After one or two meetings with Mentor or Boss, you get what business is like.  It’s Network Marketing or MLM. But, with lots of benefits to growing. You can earn through Recruiting People or Selling Products. 

Mom.
MLM or Network Marketing

Is It a Pyramid Scam?

Imagine this business model without products. How does that feel? There you have no products but get money recruiting people in your downline. These schemes are called Pyramid Schemes, and it is not even legal in India. 

Are MLM and Pyramid Scams the same?

No, but maybe yes. Most pyramid scams use a product to hide their identity. They do have some commodities but, which isn’t worth the money. They will not stand in the market.

Meme on MLM
Meme on MLM by 9gag

You can say it’s just to legalise the scheme. There may be some Good MLM but most of them are Scams. It’s an open secret, but people often fall for them. 

How does MLM influence you?

I always wondered how MLM guys make people join them? So, I tried to study their marketing strategy. They often don’t have an outstanding product and, I don’t think anyone cares about those in the network marketing. One point I knew was, they sell their stories. I was figuring out their pitching process, the life of MLM guys. To understand better, I read the Famous book of ROBERT CIALDINI, ” Influence: the psychology of Persuasion”. It almost explains everything they do. Reciprocation, Commitment, Social Proof, Liking, Authority and scarcity are the weapons of Persuasion.

So We will examine the psychology MLM companies use to influence their downline in Each step. 

How MLM business influence you to Attend a meeting: 

Network Marketing or Multi-Level Marketing means they are connecting people. So, who first introduced the plan is not some random guy. You get an invitation from a known person with whom you are comfortable. They use certain kinds of words like an entrepreneur, financially independent, lifetime earns, invest etc. There is very little chance that they will tell you what they do in the first conversation.  You get anxious to know more about the opportunity. But then they explain how they get guides from their mentors. 

They use your dreams to be Financially Independent, flexible work time etc. They asked the target Customer some random questions to make a profile of their dreams, background and interests.

Reciprocation: Give and take rules to influence downline MLM

It’s the First Principle of Influence Robert Cialdini mentioned. When someone offers you a small thing for free, you tend to return the favour. We follow the patterns to repay debts. Women show this more often than men. In almost every successful marketing, they use this human nature. To influence a person to join MLM, they offer kindness and free products. When you attend the first meeting, the mentor and other marketers show you a very decent gesture. They are all supportive, motivational and kind. They offer you some advice or products as a free trial. I can bet you will never have anyone who listens with more attention than an MLM mentor on the first meeting. They will encourage the potential buyer to share any personal downfall. 

Eventually, The person will think to pay off this kindness by joining them. They will first narrate stories of successful entrepreneurs like Bill Gates or Mukesh Ambani. Then they describe how they started to follow these legends footsteps. Slowly they will show you how similar you guys are, how you can grow together. 

But, here is the secret: Multi-Level Marketing is neither an Entrepreneurship nor you earn money on your own. When your payment depends upon another, it’s not your business.

Commitment and Consistency to influence:

Indeed, this world is full of trust breakers. But the basic human tendency is to be committed and consistent in their job or words. MLM uses this to make sure you don’t leave them. First, they ask them to share their view about finance or business. They ask about their life. They ask for your phone no or a meeting time to get your commitment. Marketers only have You. So they snatch each possible detail they can and use them to trigger your consistent behaviour. They point out your pain points, like your debts or less family time. After someone joins them, it gets hard to leave. 

Social Proof in MLM:

Another Influence weapon is Social Proof. Haven’t you noticed how MLM companies introduce to their other reps? They pressure a buyer to join them because people are joining, their relatives or friends are joining. Peer pressure is so powerful that we want to do what others are doing. This effect has a connection with our need to be in a Group. They make sense of the community of reps, which has similar lifestyles or problems. Once you join, they want you to attend their meets. They invite their others represented to indicate how they are doing and succeeding. If a rep wants to leave after failure, they show how others are rising. They even pressure them to follow others to get results. 

You can check how Advertisements influence you here.

Liking tendency in MLM

Do you ever notice how an MLM guy mentions their colleagues and mentors? They often describe themselves as a Family who is constantly supporting them to reach their dream. Many reps can’t escape from MLM even after losing money because of this family bonding. I met a girl who said she learnt a lot from her mentors and friends of MLM. They guide them in each step of life. She didn’t want to hear any negative comments about the MLM family. 

But it is a trick to use your motions. When they contact a consumer, They always use some words to wash their brain, like teamwork, positivity, friendship. You get to know people of your kind, having similar interests there. Even they emotionally force you to follow the pattern of your coworkers. We tend to follow people who are like us. MLM bosses want their reps to be friendly with each other. Again, they prefer their representatives to be impressive in dressing and personality. They will ask them to use the money on a lavish lifestyle to show off the following targets. People follow attractive people, and so they want their agents to behave like that. 

Authority building to influence MLM r

We trust experts, and it’s more a visual thing. We judge someone’s expertise by their looks and personality. You can see how toothpaste companies use Doctor’s images. MLM business also introduces you to some experts. They are successful, live a luxurious life and a great motivator. They build a kind of authority you feel to obey. No, constructive criticism or questions get no welcome. 

MLM influencers use some highly rated words. In every conversation, they use these terms to wash your brain. You must see positivity even if you are losing money. Even if you are not allowed to think that something is wrong with the model, it’s your fault if you can’t sell. 

Scarcity for MLM influence:

Availability makes a thing less appealing. So any marketer states how rare they are. Even if there are hundreds of MLM companies, they want you to feel the scarcity. They create a worrying situation by Offering a limited time discount offer, horrifying about going even more downline. The buyer feels they will lose the chance. It makes them more reasonable and gives less time to figure out their persuasion tricks. 

Set of distorted words:

They promise you the world at first. But often, those words and data are misleading. After joining MLM in the hope of Flexibility of work hours, representatives need to spend all their time to get back the initial investment. Only 1% of people can earn a decent amount of money who are in the top line. But if you fail, they say it’s your fault for not being successful. They will only say positivity, motivation but will not teach you how to sell products. How could you sell those overpriced and not so good products? (Unless you can influence people as they do). 

Another word they use in such a misleading way is entrepreneurship. At first, they fool you that it’s something you own. But, unlike retailers, you don’t have control over your business. You can’t earn a huge profit by selling products unless you are regretting others. Only after joining the scheme, you realise the saturation of the market. Though they tell you this is an Investment, you become the consumer of their product. 

What’re my thoughts on MLM?

Every marketer uses those tricks to influence consumers. But what I found disgusting in MLM they mislead consumers to think of them as a Seller. They spend money on things they don’t need, in an urge for money. We just explained how they influence your mind. 

But, it’s your choice to join an MLM or not. It’s maybe the right decision for you, or maybe not. 

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