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So, you want to know whether or not Wealthy Affiliate is an MLM scheme?
Good for you.
I’m guessing you read a bunch of positive Wealthy Affiliate review and wonder whether it’s really all roses and if maybe, just maybe, all these people are trying to become your uplines so they get paid off your hard work.
If you lost me at the word “upline” then you need to keep reading, as everything is explained below…
Table of Contents
What is an MLM Scheme and Is Wealthy Affiliate One?
Multi-level marketing (MLM), also called pyramid selling and network marketing is a controversial for the sale of products or services where the of the MLM company is derived from a non-salaried selling the company’s products or services, while the earnings of the participants are derived from a pyramid-shaped or binary compensation system. An MLM strategy may be an illegal pyramid scheme.
Here’s another way of putting it:
MLM (Multi Level Marketing) is a business model where products and services are sold through an extensive distributor network.
MLM members are called “distributors” and they can earn money in two ways:
Selling the product;
Recruiting others into the MLM.
The latter option is more lucrative and here’s why.
As a member of MLM you’re encouraged to “build a team”. Each person that joins under you is your downline and you’re their upline.
And you earn passive income from your downline’s work.
For example, you get 5 people to join the program and you get paid $100 for each. That’s $500.
Then your 5 downlines each get 5 more people as their downlines and you get $10 for each of those.
That’s $250 in truly passive income and it’s a dream come true… except that it’s unsustainable and unrealistic. Recruiting people without skill is damn hard work and most folks just can’t do it successfully.
Hence, 99% of all distributors end up loosing money.
Theyget a negative cashflow because they have to keep paying to be a part of MLM program and they can’t make their money back because of poor direct selling skills.
3 Excellent Reasons Why Wealthy Affiliate Is NOt an MLM Scheme
#1- It’s An Affiliate Program; There Are No Downlines
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