If you’re a user of Facebook, or the internet, really, then you’ve seen the people that work for multi-level marketing (MLM) companies. You know the ones: they sell diet programs, makeup, or leggings. You’ve likely been solicited by a girl you went to high school with (which was, like, 10 years ago) or the wife of an ex-coworker (that you met once or twice at a holiday party) or a family member you haven’t seen since the last wedding you attended. Sound familiar?
Now, let me say that there’s really nothing wrong with running an MLM business. Whether it’s a side job to supplement your income or you’ve made a go at hitting it hard to make it your full-time career; I applaud you. It’s work; I know it is. And for many of these men and women, it means getting a chance to spend more time with family. What’s better than that?
That being said, let me make one thing perfectly clear: being a distributor for an MLM company does not make you an entrepreneur or a small business owner.
I’ll clear a little something up for you if you aren’t too sure what an MLM company does. These companies create products or programs that are sold or distributed through individual sales people. They don’t sell their product or service from a brick and mortar location or on a website. Instead, they build up a team of people to sell these products as they see fit. In the past, it was often through at-home parties (which is still how they’re done sometimes). Now, a majority of these items are sold through friends and family on social media.
Truthfully, it’s a great way to market an item. You get to buy products from people you trust, who have tested it out and are recommending it. As someone with a background in marketing, that’s a pretty great way to sell a product!
But, being one of these distributors comes with an advantage. You are equipped with tools to sell these products. You have a team of people to work with that can give you advice. You have marketing materials provided for you to use. You don’t have to start from square one in selling your product. In fact, many people you’re selling to might already know a little bit about what you’re selling. You’re at an advantage!
A true small business owner, or entrepreneur, does not have that same advantage.
To really call yourself an entrepreneur means that you created something unique or different. You identified a need, crafted a product or service, and worked hard to see that come to fruition.
You put your heart and soul (and money) into your project and jumped head first. It’s risky, and I mean really risky. It’s not like these MLM “entrepreneurs” that can back out when they see fit. Sure, they might take risks when signing up and risk losing out on some money. But, they will likely be able to sell back the product they bought or simply back out of being a distributor.
Frankly, it’s a bit of a slap in the face to a real entrepreneur that an MLM distributor uses that same term but doesn’t even realize the true risk that comes with entrepreneurship.
Aside from actually selling the product or service, these MLM distributors also want to add you to their team, so they invite you join them on their journey. That’s where the multi-level aspect comes in. When you add people to your team, you make a portion of their sales.
What word do they use to entice people to join them? Entrepreneur.
That’s false advertising. You won’t become an entrepreneur because you don’t really have the power to make your own decisions. You’re restricted in a way. You have to abide by the guidelines of the MLM company. You still feel pressured by someone to continue making more.
If this is the kind of business you want to get into, then that’s great! It works for many people and there really shouldn’t be any shame in this. But, be careful with how you describe what you do.
You’re not an entrepreneur. You’re not a small business owner. You’re a sales person. Own it! You’ll earn much greater respect than by throwing around a word that you haven’t truly deserved.