Imagine a situation. Your friend or coworker invites you for dinner, and you are, naturally, expecting nothing more than a tasty meal and an interesting conversation. To your surprise, it turns out that your friend simply wants you to join Total Life Changes – a direct sales company that practices multi-level marketing.
Sounds familiar? The truth is, approximately 1 in 13 adults have participated in a multi-level marketing (MLM) organization at some point during their lifetime. But do all of these people really manage to become rich and successful doing MLM? Probably not.
What is Multi-Level Marketing (MLM)?
Before diving into whether you can really make money with Total Life Changes, let’s take a look at what MLM is all about.
Multi-level marketing presents a distribution model that companies use to deliver their product to consumers. With MLM, the company forgoes the old-school physical retail or even online stores and uses sales representatives to distribute and sell their products instead.
Sales representatives usually work from home on their own time and purchase inventory to sell at in-person or online get-togethers. Here, sales representatives aren’t considered to be employed by the company, but rather own their own businesses.
The “multi-level marketing” term stems from the fact that each representative can recruit other representatives to work under them. As these recruits hire their own representatives and make sales, each person above them earns a commission. As such, if you work as an MLM distributor, your income comes from your personal sales, combined with a percentage of the sales earned by reps working under you.
Total Life Changes or TLC: What Are They About?
One great example of an MLM organization is Total Life Changes – a popular network marketing company offering healthy tea and smoothie products. Founded in 1999 by Jack Fallon, the company quickly expanded to operate in over 140 countries, including U.S., Canada, U.K., India, and the Philippines.
The aim of Total Life Changes is to help people to live healthier lives by offering weight loss supplements, natural energy drinks, and even organic skincare products. By 2016, the company has made over $152 million in sales and even got ranked as #100 in DSN’s 7th Global 100 awards as one of the top revenue-generating direct selling networks.
MLM Success and Dropout Rates
While the products offered by Total Life Changes have an excellent idea behind them, and the rapid growth of the company seems to project a bright future to those joining the company’s sales representatives ranks, it isn’t so black and white.
The study conducted by the AARP Foundation found that 44% of MLM participants tend to drop out within the first year of joining the MLM scheme. Another research by Jon. M. Taylor, Ph.D. and the founder of the Consumer Awareness Institute, shows similar numbers:
- At least 50% of MLM representatives drop out within the first year.
- At least 90% of MLM reps leave within the first five years.
- By year 10, everyone drops out except those near the very top – meaning that a minimum of 95% of representatives has dropped out.
This means that, if you join the promising MLM scheme of Total Life Changes, you have a 95% probability of failing and leaving the company by the end of 10 years. On the other hand, if you start a regular small business, you have a 50% chance of lasting five years and around a 33% chance of making it through the first decade.
Can You Really Make Money with Total Life Changes?
So can you really make money working as an MLM representative for Total Life Changes?
The short answer is yes. However, there is a tiny probability that you will stick with the company long-term and realize high earnings advertised at that promotional meeting that your friend invited you to. In fact, most people don’t make any money at all, and many actually lose their personal savings.
According to the AARP Foundation, only around 25% of people participating in MLM schemes actually make money, 27% break even, and nearly half of all MLM representatives come out at a loss.
Among the 25% of the study participants that have made profit:
- 14% earned less than $5,000
- 6% earned between $5,000 and $9,999
- 3% earned between $10,000 and $24,999
- 3% earned over $25,000
- 0.05% earned over $100,000
This means that you have a 1 in 33 probability of earning more than $25,000 and a 1 in 2,000 chance of becoming one of the lucky ones earning over $100,000. That is if you don’t drop out within the first few years, of course. Doesn’t seem like a lot, does it?
Private Label Rights: the Realistic Way to Make Money Online
While multi-level marketing opportunities over-promise and under-deliver, it doesn’t mean that making money working for yourself is something out of the fantasy world.
With Private Label Rights or PLR, you can purchase high-quality, yet affordable content and use it instantly as if it was your own. With having access to premium content come countless opportunities to convert it into a money-making machine. For example, you could purchase and resell PLR ebooks at a profit, use PLR content to promote a website, and then sell it for instant cash or convert it into a full-time writing business.