Many of our students want to know about how to generate income to pay off loans or just supplement what their future job might make for them by knowing and understanding how multi-level marketing works.
For this purpose, we are going to talk about one specific MLM or network marketing company to give you a glimpse of how things work and what is required to make it happen for you.
Young Living is at the forefront of the essential oil game, and it has been one of the largest suppliers of essential oils for a decade now. While many people claim that the essential oils sold by Young Living have dramatic health benefits, other people have claimed the products are nothing but worthless.
Some people call the entire company a giant ponzi scheme. However, most people don’t actually know much about Young Living or how it operates and therefore unfairly label the company a scam when it isn’t true by any stretch of the imagination.
MLM Businesses Legal Troubles
Part of Young Living’s image problems come from the several legal issues Young Living has had in the past. As recently as 2014, Young Living has been in hot water over the promotion of its’ products. According to the FDA, Young Living was actively promoting its’ products as a cure for the ebola virus.
This crosses into the drug world and the FDA warned Young Living to stop promoting its’ products this way because it causes them to be drugs, which is regulated by the FDA.
Young Living has also been in trouble for exaggerated claims made by its’ distributors. Both the FTC and FDA have warned Young Living against these practices. We also talked about this in our Le-Vel Thrive review a few days ago.
Young living’s legal troubles have only added to the poor image surrounding the company, which takes away the focus from the actual products and more on just the company. Thankfully, Young Living’s product quality has managed to keep the company’s image somewhat good, despite the setbacks from the legal side of the company.
Are All Network Marketing Opportunities a Ponzi Scheme?
Many people are quick to identify network marketing companies as pyramid, or ponzi schemes without understanding truly how they work. Ponzi schemes have no real product to back up the value of the investments and the company itself.
Young Living sells literally hundreds of products, which obviously means the company has something to actual back up its’ value to distributors. If the company stopped recruiting new distributors today, existing distributors could still earn commissions by selling products the Young Living would still end up making its’ 10 or 15% profit on all sales. That’s hardly the example of a company that is a ponzi scheme.
Why Do MLM Distributors Fail with Most Companies?
If you look deeper into Young Living reviews, then you’ll often find that most people claiming Young Living is a scam are distributors that simply failed with the business opportunity. In fact, this is typical for any network marketing company, not just Young Living.
So why do distributors fail with Young Living if it is such an exciting business opportunity? There are really two main reasons:
• Reason #1: The person is lazy and doesn’t want to put in the effort or work to actually build an active downline and sell Young Living products.
• Reason #2: The distributor is a poor marketer and doesn’t understand just how to sell Young Living Products.
In both cases, the failure is a result of the distributor, not Young Living. Of course, there are exceptions to this rule but most distributors fail predominately on their own fault.
In reality, network marketing companies are far from the scam that some people claim it is. MLM offers the opportunity for distributors to make a legitimate income, provided they can sell Young Living products and recruit new distributors or for any business or program. If someone cannot do either of those two things, then they probably should avoid Young Living – or any network marketing company for that matter.