Top 7 Reasons To Ban MLM’s

by Tellman Knudson

If you’re anything like most of us, then you’ve been tempted by the allure of the ever-present, overwhelmingly attractive, but often misleading promise of easy money from a MLM company…

Chances are good that a well-meaning friend or family member who was down on their luck financially got “sucked in” and didn’t know what was happening.

Either you’ve been a victim or you know someone who has…and that’s probably why India is moving to ban MLM’s entirely.

Will the US be next?

Here’s my question for you today:

“Should the US ban MLM’s?”

If you’re not sure, read the rest of this article and then make up your mind and respond in the comments to cast your vote.

#1 The Products Suck!

They say “this company has GREAT products” but when you try the “gel” or “skin care product” or the  “next big thing” you realize that you wouldn’t consume this product – even if it was free!!!…

You don’t want that crap. They are all just trying to sell stuff that you wouldn’t touch with a 10 foot pole. Now it’s your time to try to get your friends and family to eat it.

Good luck with that.

Yea, feed them another chemical infused energy drink that will probably give them cancer. They will love you for that won’t they?

But hey, It’s all about the compensation plan, right?


#2 Confusing “Comp Plans”

Another problem with MLM’s is the so called “Comp Plan.”

Nobody can ever understand how much money they have made (or how much money they are supposed to make) for their efforts! With all the crazy Pyramid Schemes out there – how can you keep it all straight?

Most MLM’s are just big Ponzie Schemes that end up leaving the folks at the bottom (that’s you) out of your hard-earned money, and a pile of “product” in your garage that you don’t want to use or eat yourself because it tastes like CRAP and doesn’t even work as advertised…

#3 Your Family Will HATE YOU!

MLM’s are notorious for turning average, everyday citizens into walking slime-balls. Or at least making people want to screen their calls.

The only way to “enroll” people is to get the closest people in your life to sign-up under you, for something you don’t even believe in yet!

If you EVER find an MLM that tells you to get friends and family in under you – RUN the opposite direction as fast as you can. Your friends will stop talking to you, and your family will stop inviting you over for the holidays! YUCK.

#4 You have to work 24-7!

MLM’s are terrible because they REQUIRE you to “Hand Hold” all the new people who come “into the business.”

MLM’s aren’t businesses. They are schemes that suck in unsuspecting people who are hard-wired to be EMPLOYEES.

The only way to succeed at ANY business is if you are an Entrepreneur, and most people are NOT entrepreneurs.

If your goal is to get a bunch of people who spent their whole life as an employee (even if they just got laid off) to become an Entrepreneur – THINK AGIAN!

#5 MLM’s don’t build YOUR business…

They build THEIR business!

You have to understand, when someone starts the next big MLM – they DON’T care about you.

They care about them and making them money.

Then they build the “Comp Plan” to make it seem like it will make you money, or confuse you into thinking that it will make you money.

#6 Only the people at the top make money.

The people at the top are AMAZING networkers.

They have rock-solid relationships with OTHER ENTREPRENUERS that know how to run serious businesses.

If you try to make any amount of money, and you aren’t already part of a super-savvy group of high-level entrepreneurs, you’ll be swimming up-stream until you join yet another MLM and the cycle will start all over again.

#7 The worst of them all – COLD CALLING!

After you’ve burned every bridge you can think of with friends and family it’s time to hit-the-phones and start making Cold Calls to “Hot Leads” that are skeptical people who don’t want another telemarketer (yes, you are now officially a telemarketer) calling them at dinner time with their family. You will get rejected time and time again, and you will hate your life!

Ok…so after reading my COMPLETELY UNBIASED article about MLM’s…what do you think?

Should MLM’s be allowed to continue to proliferate in this country or should Obama do something about it?

Cast your vote in the comments below.


P.S. My only hesitation is that there is a terrific guy I know who makes a literal FORTUNE from a different kind of MLM than I’m talking about here, (and the poor dude used to live in a van). Do you think he should “go down with the sharks” ? – You’ll get a chance to chip in on that one in my next email…

“The Only Thing Worse Than An MLM”

That’s right…there’s only ONE thing worse than an MLM.

In fact, it makes MLM’s look like Girl Scouts… I’ll tell you what it is tomorrow.

In the meantime, go vote below and leave a comment with your thoughts!

If You're Unstoppable:


{ 9 comments… read them below or add one }


Tellman, I stand by my first comment. An at the same time me, myself, I basically agree with what you said. Taking the adventure is half of it and you have done very well on your adventure. My adventure is still in the beginning stages, but with you and some of the other I know out there that are will to help in any way that they can is the best kind of adventure I could ask for. Thank you for ever thing.


Louise Johnston

No – they shouldn’t ban MLM

but they should ban Macdonalds ….lol


Richfield- Emcaye

MLM does really sucks. If you are at the bottom of the ladder, hard luck you
will fill up $$$$Mullah$$$$ to the top piggy dude on the MLM ladder. Thanx this
is eye opening==>” #5 MLM’s don’t build YOUR business…They build THEIR business!”


gary moore

Leave them alone man. all the idiots invest in them and leave all the cash for us to grab. they are too busy being stupid with these systems to make any money!



If MLM’s are outlawed, only outlaws will use MLM’s.


Winona stark

Obama needs to first learn how to be president in my humble opinion and tend solely to the business at hand. Mlm businesses are what you make of them. There have been good ones and there have been bad ones. We still live in a free country and mlm entrepreneurs should still be allowed to continue to create and flourish OR NOT. We really have extremely important issues facing our country now and for the past few years and need to stop tending everyone’s business. Obama needs to be schooled on quite a few common sense issues like how to manage monies and leave marginal subjects like mlms to their own devices!!!!!!


David Frey -

Normally Tellman, you’re so right on about stuff.

In this case, you’re so wrong about so much stuff in this article that it’s hard to even know where to start.

You make such sweeping generalizations that it’s hard to even take your article seriously.

David Frey


Jackie Mackay

This is a storm in a teacup. to ask Obama at this point to pop down to the nursery to stop the children behaving like pitbull puppies would IMHO be a waste of his time – HEY! he has better things to do.
Most MLM products may suck however not ALL products suck. Is not AMWAY an example of a GOOD product that distributes fairly and has been set up to consider the group rather than their own pockets?

Obviously the Fat Corps inc would prefer the monopoly and would whine to the government to stop this way of diverting some of the X market’s profits to entrepreneurs.
So what?? – it’s been like that for at least a millennia. This is the terrain in which we operate.

ANYone entering an affiliate or a dealership or a commission based deal will struggle unless they genuinely like (love) the product. This goes for all salesmen selling anything – it goes for politics as well. It’s called HONESTY…. which is the element that works. By the way Sir – that’s why people like people like Branson (your ringbearer – in England a ‘best man) . He’s tough, he’s blunt and sometimes appears cruel BUT he’s honest as well as having a very ‘there’ charm. He goes to a lot of trouble to make sure his products are good and well supported. Ditto Steve Jobs and countless unknowns who are doing very nicely thank you.

When MLMs have great product remember its sometimes the only way to distribute them outside the control of greedy monopolists. CHECK the product, CHECK the service CHECK the support and don’t do business with dumbass robots* and you would be perfectly safe – and God speed.

Long live common sense 🙂
Jackie Mackay

PS* how to check this? make sure that the process of selling is not ONLY automatic. Support ticket agencies are also capable of sucking their client off the map with antique software past its sell-by date, inefficient, haughty, remote slow behaviour. If they cannot answer a simple question (with a question mark 😉 TIP / warning ! give them the swerve.



It’s always good to look at both side. Some people need that kind of structure and some are a little more adventures. As long as it is improving their live and they are happy with the way thing are going. An no Telllman not matter what anyone tell you, you are not a idiot or a moron. But I think you know that.


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