In today’s post, I will go into something that might be controversial.
I try to focus on mostly value, but when I see mindsets and misunderstandings that can affect my beloved Network Marketing (MLM) Profession, I cannot keep quiet.
So I was running a Facebook ad promoting my latest recruiting course: Instant Recruiting Formula.
Then something weird happened.
A spammer began spamming my advert with links about a money-making opportunity called MMM.
His sub-thread now attracted a lot of comments with people comparing MMM with MLM (Multi-Level Marketing).
Now I deleted his comments and banned the spammers, but it might confuse how many people out there as to the difference between MMM and MLM.
So I am making this my post today and I am sure you will get value.
These are my own opinions, and this post educates and is not meant to slander anyone or anything.
I moderate all comments meaning that if they are negative, they will be spammed, and thrashed and I will ban the culprits.
MMM vs MLM
First, what is MLM?
MLM is called Multi-Level Marketing, also known as direct sales or Network Marketing.
It originated from a concept pioneered by two friends, Rich DeVos, and Jay Van Andel, who started the billion dollar giant known as Amway.
The basic concept in MLM is this.
Getting a product or service from the manufacturer directly to the end customer using word-of-mouth advertising.
In other words, connect customers directly to the parent company, and when you do so successfully, you receive a commission for life as long as the customer uses and reorders.
Now. If the person you connected with the parent company duplicates the same process, you also get a commission up to some certain levels determined by the parent company.
That is where the multi-level concept comes in.
MLM has had its fair share of detractors with people coming up with pyramid schemes where there is no tangible product being moved, and no value added to the customer.
However, in the USA, there are regulatory bodies like the DSA (Direct Selling Association) whose job it is to regulate Network Marketing companies and their compensation plans.
The DSA also checks that MLM companies adhere to a code of ethics.
In Nigeria where I stay, things are unregulated, and we have many companies coming in (some of them outright pyramid schemes) but that is out of this article.
Basic fact… In a legit MLM (Multi-Level Marketing Company) there is a tangible product or service given to a customer which will add value to them.
It could be health and wellness products, skin care, etc.
But there is a value for value exchange, which is the foundation of any successful business.
Now let’s look at MMM
What is MMM?
MMM is supposedly a peer-to-peer funding system which involves people “helping” people.
So basically, you sign up for an account through a referral system and invest some money.
With the way the system works, you will get your money back with 30% interest, which seems like a sweet deal.
On their website, It specifically states “MMM is not an MLM” so it amazes me how people think the two are the same.
But let me go deeper.
According to the website,
“You declare the willingness to give help (click in your Personal Office (hereinafter PO) “Provide Help”), after which your account will be rewarded with mavro (internal “currency”/scores of the System).
Mavros will start growing from the moment of offering the contribution at the rate of 30% per month.
(Calculation of reward occurs twice a week, on Tuesdays and Thursdays at 00:00 GMT.)
This sum in Mavro shows how much you can request for yourself.
Say you have announced willingness to assist with $ 100.
You will be rewarded in your PO with 100 mavro.
And they will immediately start growing!
A month later, these 100 will become 130 mavro.
Accordingly, you will be able to request assistance for $ 130.”
Like I said….seems sweet on the outside.
I have done business for quite some time and I know one thing.
A real business involves trading a product or service for money”
Under MMM, If I decide not to help anyone, then what happens?
Does my money grow magically with 30% interest?
And why do I have to give help to a stranger and why must I sit down and wait for someone to give me help?
Where is the 30% interest coming from?
Reminds me of those HYIPs and wonder banks of the earlier days.
If MMM pays commissions where is the money coming from?
If they base it on the donations or “help” from people then it is just robbing Peter to pay Paul.
A legit business is based on sales.
Where are the sales in MMM?
These are my own opinions, but any adult can make choices for themselves and their money.
If you know the risks and still want to get involved, then good luck!
The major crux of this MLM vs MMM article is this.
MMM is NOT MLM and vice versa.
MLM involves the movement of products which add value to the customer, and sales back commissions.
MMM involves no movements of products.
MLM involves work, leadership, and selling skills, and is not get rich quick as most people think or claim.
Which is why most people run away from it to chasing quick and easy money schemes?
Major MLM companies like Amway in the USA do billions or USD in revenue and have been around since 1959.
Cosmetic Companies in MLM like Oriflame and MaryKay have been around since 1967 and 1963, respectively.
Health and Wellness MLMs like Forever Living, Trevo, and Organo Gold and GNLD put out products that actually help and add value to people.
Most MLM companies do millions of USD in monthly revenue and have been verified by the direct selling association.
The MMM has been flagged by the Central Bank Of Nigeria (CBN) and the SEC (Securities Exchange Commission) so go figure!
MMM vs MLM Conclusion
If you want to do MMM, then it is your choice and your money.
But if you want to make clean legit money, offer a product to people, that is valuable, and people will pay you money for it.
… solve problems for people by offering a product that solves their problem!
Choose any of these top MLM companies in Nigeria and get to work!
When this MMM crashes, as most of these things do, then what will happen to your integrity and the people you have referred to this program?
Funnily enough, when these Ponzi schemes reach a certain level, the owner of the software or website will just shut it down.
You will one day try to login to your back office and get an error.
Either that or the FTC (Federal Trade Commission) of the USA will call them a Ponzi scheme and shut them down like Bannersbroker, JustbeenPaid, ZeekRewards, Telexfree, and the likes.
But do not do this MMM thinking it is MLM or they are the same. The difference is clear!
If you got value from this article… MMM vs MLM, feel free to drop a comment (disrespectful ones will be banned faster than the speed of light) and share with people who you feel might benefit.
Other Resources On MLM s MMM
UPDATE: MMM crashed December 2017 with many people losing millions of Naira.
Did This Blog Help You? If so, I would greatly appreciate if you commented below and shared on Facebook and other social media.
Adewale Adebusoye’s MLM and Internet Marketing Blog
PS: If you are struggling to recruit people into your MLM business, then this is the course you should get. Click here to check it out!