Building Wealth Column
July - August

"Let me tell you about an incredible business opportunity." Whenever you hear those words, you know what’s coming next - an invitation to listen to a conference call, sit through a ‘brief’ presentation or stop by a friend’s home for a multi-level marketing sales pitch.
Back in the day we only had to contend with Amway, Mary Kay, and Avon. Now multi-level-marketing (MLM) includes Melaleuca, Primerica, Arbonne, YTB, Herbalife, Juice Plus, Nu Skin, Pre-Paid Legal, Quixtar, and Tahitian Noni, selling everything from deodorant to legal services!

MLM has sometimes gotten a bad rap, but the real problem is not multi-level marketing itself, rather how some people and companies do business. Multi-level marketing (also called Network Marketing) has been around for some forty or fifty years and has been called one of the best opportunities for entrepreneurial-minded individuals. Today the industry, has several hundred companies, with 13.6 million people involved either part- or full-time. To determine if it’s right for you, let’s look at the good, the bad, and the ugly of multi-level marketing from a business and spiritual perspective.

The Good. Multi-level marketing is essentially a distribution method that allows an individual to resell a line of products or services, while at the same time receiving compensation for introducing other people to the business. MLM can provide an avenue to:
1) Start your own business, 2) Work from home and 3) Have flexible work hours. Most MLM companies have a very low cost of entry, with the potential for producing exceptional revenue. They also present the opportunity to learn a new skill - selling, which I believe almost anyone can learn if they are properly trained.

I like the concept of MLM and I know quite a few people who are extremely successful, as a mater of fact, my wife has done quite well as a Mary Kay Sales Director. If you are considering a MLM opportunity, you need to find a company you like, a product you believe in and most importantly, a product you’d be willing to use yourself.

The Bad. Like in any industry, there are some people, as well as some specific companies, that do not operate with integrity. First of all, a lot of people who get into multi-level marketing do so to “get rich quick” and aren’t prepared for the hard work and discipline required to work as an entrepreneur. The Bible says, “A greedy person tries to get rich quick, but it only leads to poverty” (Proverbs 28:22 NLT). In order to have a successful MLM business you have to treat it like a real job, not a way to make a quick buck.

Although many organizations entice new prospects by touting the extravagant incomes of their most successful representatives, in reality, most people who enter multi-level marketing do not make a lot of money. The failure rate is very high and many times people are left with a garage full of inventory or high credit card debt from ordering some of that inventory.

Another danger is the pyramid scheme masquerading as an MLM. Pyramids have a similar structure, but a completely different focus than legitimate MLM companies, which offer a way to sell real goods or services through distributors. If you encounter a plan that doesn’t have tangible products or services moving through the network, then it’s probably a pyramid scheme. True multi-level marketing programs pay commissions - not only on product/service sales, but also on the sales of the people you recruit. To spot a pyramid scheme, look for companies that pay you based on the number of new members/distributors you recruit and generally ignore the marketing and selling of products or services.

The Ugly. The most deplorable aspect of MLM occurs when people try to pimp the body of Christ (the church) for financial gain. Not only can you count on a Tahitian Noni rep sliding up to you in the grocery store or at the gym, you’ve got to worry about the YTB travel agent or the Primerica sales rep pushin’ up on you in the Lord’s house. Is nothing sacred anymore?

No, I am not a hater; I’m a God appreciator. It’s ok to generate customers from your church, especially when it happens as a natural course of conversation, but viewing your church as a “fishing pond” for new customers is immoral and just plain wrong. I’ve even had people schedule prayer meetings only to discover that all they really wanted was to recruit me into their MLM business. Now you and I both know that God don’t like ugly and that type of bait and switch definitely ain’t cute!

You don’t have to take my word for it, read God’s Word; in John 2:13-17 Jesus was outraged that people would see the church community as an opportunity to make a profit. After driving the salesmen and their animals out with a whip and overturning the money tables, Jesus said, “Take these things away; stop making My Father’s house a place of business” (John 2:16 NAS).

MLM companies and their representatives realize that churches are ideal environments for prospecting because the people trust each other and have a lot in common (their faith). As a result, MLM reps routinely call church leaders with the hope of gaining access to their congregations. To make matters worse some pastors put their flocks up for sale, aggressively recruiting church members from the pulpit. No matter how you look at it, a pastor pushing an MLM from the pulpit is pimping out his/her church.

It’s a gross misuse of power and influence that can undermine the integrity of the entire ministry. I once had a pastor to invite me to preach and conduct a financial seminar at his church. About ten days before the event, he sent me some information on a new MLM company he was involved in. He asked me to check it out, and if I liked it, he wanted me to endorse it during my presentation at his church. When I respectfully declined to endorse his business, he rescinded the invitation for me to speak to his congregation!

Look here; if you plan to enroll in an MLM or any other business venture, be mindful that there is a time and a place for everything. Please keep God’s house sacred. That’s the only way you will be blessed.