I’ve been meaning to contact 80,000 Hours with a suggestion they look at (and hopefully write something about) Multi-Level Marketing (MLM) as a viable career option. I have first-hand experience and can thus share a bit from my point of view.
Basics. MLM is a different way for companies to sell their product: rather than having stores display their products on their shelves, they ship directly to customers. Customers who tell others about the product can receive money from the company as a “thank you” for word-of-mouth advertising.
Income. My parents have been in an MLM company for about 8 years. They have reached an income of about $80,000/year. A person they directly know in the company has received over $500,000/year. Others within this company make several $million per year. While these results are not common, they are not impossible. This makes MLM potentially one of the highest-paid careers for those who want to Earn to Give (E2G).
Influence. A second component of an MLM career is that you end up talking to hundreds of people, many of whom regard you as someone who helps them with their business. Many of these people become close friends. This means that an MLM career could provide the ability to influence others. For example you could encourage everyone who also becomes financially successful thanks to your invitation and help, to give 10% of their income to charity.
Freedom. This type of work allows for a very flexible schedule and often a lot of free time. My parents have taken many month-long vacations with no drop in their monthly income. Residual income is one of the most alluring aspects of MLM.
Harm. On the harm side, not all MLM companies provide good products. If you are able to find a good company (I firmly believe my parents have), you could also be encouraging people to use products that are healthier for them, or provide benefits over the conventional ones. This would not be a misalignment with your values.
All these factors make me think MLM is a career path that should be at least considered within the EA community. I look forward to your replies.
There are many things to say about it. Pyramid schemes are illegal in the US. And it all depends on the business plan (compensation plan) the company offers. Some companies will allow you to earn a decent income if you just get people to buy products. If the products are good, I see no harm.
There is a harm if you lie and promise people riches (that seems unethical); there is harm if you let people believe they will become rich (lie by omission is still a lie in my ‘book’). There is harm if you lie about the products. The last harm seem identical to one present if you just become a car salesman (or any kind of salesman).
I’ve been meaning to contact 80,000 Hours with a suggestion they look at (and hopefully write something about) Multi-Level Marketing (MLM) as a viable career option. I have first-hand experience and can thus share a bit from my point of view.
Basics. MLM is a different way for companies to sell their product: rather than having stores display their products on their shelves, they ship directly to customers. Customers who tell others about the product can receive money from the company as a “thank you” for word-of-mouth advertising.
Income. My parents have been in an MLM company for about 8 years. They have reached an income of about $80,000/year. A person they directly know in the company has received over $500,000/year. Others within this company make several $million per year. While these results are not common, they are not impossible. This makes MLM potentially one of the highest-paid careers for those who want to Earn to Give (E2G).
Influence. A second component of an MLM career is that you end up talking to hundreds of people, many of whom regard you as someone who helps them with their business. Many of these people become close friends. This means that an MLM career could provide the ability to influence others. For example you could encourage everyone who also becomes financially successful thanks to your invitation and help, to give 10% of their income to charity.
Freedom. This type of work allows for a very flexible schedule and often a lot of free time. My parents have taken many month-long vacations with no drop in their monthly income. Residual income is one of the most alluring aspects of MLM.
Harm. On the harm side, not all MLM companies provide good products. If you are able to find a good company (I firmly believe my parents have), you could also be encouraging people to use products that are healthier for them, or provide benefits over the conventional ones. This would not be a misalignment with your values.
All these factors make me think MLM is a career path that should be at least considered within the EA community. I look forward to your replies.
How do you address the criticism that MLM schemes are essentially pyramid schemes, that rely on constantly recruiting more gullible people to sign up?
There are many things to say about it. Pyramid schemes are illegal in the US. And it all depends on the business plan (compensation plan) the company offers. Some companies will allow you to earn a decent income if you just get people to buy products. If the products are good, I see no harm.
There is a harm if you lie and promise people riches (that seems unethical); there is harm if you let people believe they will become rich (lie by omission is still a lie in my ‘book’). There is harm if you lie about the products. The last harm seem identical to one present if you just become a car salesman (or any kind of salesman).