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Sensei Gary Simpson
35 years in karate
15 years in motivation
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Zen Garden > MLM the Shocking Truth Exposed - Why 99.66% of People Will Never Make More Money Than They Will Spend

This article is an extension to my EIGHT Part series called: "MLM - Why Most People DO NOT and WILL NOT Make More Money Than They Will Spend - Parts One to Eight." This information will blow the lid off the TRUTH about MLM and Network Marketing. You will be shocked to learn some of the secrets that I am about to expose. MLM devotees will be fuming over what I have to say. But I defiantly say: "Bring it on!"


Let me establish my credentials here before I put my case to you. In that way you will be under no misunderstanding about where I am coming from.

From 1987 to 1997, I was involved in MLM - multi level marketing or network marketing - call it what you want. If it involves uplines and downlines and sponsors and "legs" or lines of sponsorship then that is what I am talking about. Don't let ANY NEW fancy name fool you. They keep changing the names just to hide what it really is.

I reached a direct with the warehouse level in three years after "showing the plan" relentlessly to anybody who would look at it. I was 100% motivated. I was a worker. I listened to ALL the tapes. In fact, I ordered hundreds of EXTRA tapes just to saturate my mind with knowledge. I read ALL the recommended books. More than that - I studied them. I attended ALL the functions. I wanted success so badly in this "business" that I immersed myself in it.

After around the seventh year of my involvement I came to the realization that it was NOT a "three to five year retirement plan." No. It definitely was not. If it was I would have succeeded. Nobody was more dedicated than me. Nobody listened to as many tapes or read as many books and I'm damn sure that I sponsored as many newcomers as anybody. My "group" numbered in the hundreds.

So, here is a SUMMARY of my own TEN YEARS of knowledge and observations:

  • Most people who join will do NOTHING. They expect it all to be done for them. Most people will not even use the products of the MLM. They will not read books and they will not listen to tapes - even if you give them to them free. They never have the "time" because they are too busy doing NOTHING. Only around 25% to 30% of people will do anything. Less than 10% will be committed.

  • Only one third of one percent of all MLMers will make enough money to cover ALL of their expenses. The other 99.66% will lose money or break-even. Most of the money is gobbled up in expensive products, promotional material, books, tapes, the never-ending functions, baby-sitters, take away meals and 100's of gallons of fuel to attend all the meetings and presentations.

  • The really "big-pins" - Diamonds, Double Diamonds and above make more money on shoveling the "tools" into their down-lines than they do from moving product through their organization. They receive escalating percentages on everything that is sold, according to their rank. This includes the "gate" which is the cost of tickets sold for functions.

  • Lying is endemic. Most big pins will tell you anything to keep you pumping products and tools through the system. The so-called "counseling" is nothing more than instructions skewed to making them more money and protecting their positions. One of the worst pieces of upline advice that I ever heard was to miss out on meals so the money saved could be put towards function tickets. Big pin upliners will ALWAYS be able to find a tape for any disillusioned down-line distributor to listen to so that they can "correct" their aberrant behavior and attitude.

  • MLM puts enormous pressures on marriages and other relationships. Some people become so "focussed" on "The Business" that they lose sight of everything else in their life. The pressure to perform is intense as is the pressure to keep pumping money upline.

For more detailed information you might like to read my tell-all series; "MLM - Why Most People DO NOT and WILL NOT Make More Money Than They Will Spend - Parts One to Eight."

Please make sure that any person you know who is intending on venturing into MLM reads these articles. It will save them years of wasted time and thousands of dollars, maybe even $30,000 like it cost me.

Not everybody will believe what I say here. In fact, some will hotly dispute it. It will depend on the level of brainwashing that has been undertaken.

If you present these articles to a MLM afficionado they will undoubtedly say: "Oh, but my MLM is DIFFERENT." Sure it is. Keep spending the time. Keep spending the money. Your upline Super-Diamond will LOVE you for it - right up until the day you come to your senses and quit. Then they won't even remember your name.

Brought to you by: Gary Simpson's http://www.MotivationSelfEsteem.com/Zenspiration.html website where you can receive motivating "Zenspirational Thoughts" plus an immediate FREE copy of the highly acclaimed, life-changing e-book "The Power of Choice." Here you will also be able to get your password for the "Wealthy Minds" Newsletter which will give you access to the MEMBERS' ONLY area of the http://www.turn-debt-into-wealth.com website.

Gary Simpson is the author of nine books covering a diverse range of subjects such as motivation, self esteem, affirmations, self defense, wealth creation and much more. His many motivation and success articles appear all over the web.


Gary Simpson is a 7th Dan karate master who teaches self defense, motivation, self help and wealth building to students around the world through home study courses. You may reprint this article as you include this author credit and an active link to his web site.

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