My experience in Multi-Level Marketing(MLM) and Network Marketing…

I did Multi-Level marketing(MLM) and Network Martketing three times. But all three times, I am a loser. I did this business for the sake of earning huge income in short span time just like others.

I have seen people chase this business when I was a child and when I am adult too.

Recently, One of neighbor bought a water filter which costed Rs.3,00,000.

They invited me and my wife to taste the water.

As there is a obligation we went to their home.

But in the conversation, I have realized that they bought this water purifier because it is product available in the MULTI-LEVEL MARKETING that they are doing recently.

Now, I am avoiding their to join this business in a smooth manner as My experience with this business was so bad.

My experience in Multi-Level Marketing(MLM) and Network Marketing...
My experience in Multi-Level Marketing(MLM) and Network Marketing…


If you see the above image people will come together to use a unique products and also will try to introduce the same with other people to do the same.

In the process, they should create a Network or simply can call it chain of people under his arm.

Then he/she will earn on the business done by his Network(team) too.


My career first started with this business.

After I had completed(stopped) my education, I was wondering what to do As my education is not sufficient to get a decent job to earn money.

Then, I found a business called Golden Trust Financial Servies (GTFS).

An Ex-Private college lecturer introduced this business to me.

I found this business attractive as it was not demanding big qualification and also earning possibility explained by the lecturer.

Insurance were needed to sell in this business.

Not only selling insurance policies but also there was a need to form the team or network under my arm to increase my earnings.

I did this business for 1.5 year of valuable time and was able to earn only Rs.3,000.

Then I realized, This business may not be good for me, and I transformed my self as LIC Agent.

My experience in Multi-Level Marketing business -2…

As a Lic Agent also, I found that I am not doing good to my policyholders by selling unnecessary endowment, money back and ULIPS.

My income was also not great as LIC AGENT too.

Again, I am helpless and was looking for an opportunity to earn more money to sustain my earnings.

Then one of my fellow LIC AGENT spoken about N-MART multi-level marketing.

There is a rumor that founder of N-Mart retain is a relative of Prathibha patil.

As I have little options left to earn money, I believed this business and joined.

N-mart retain used to start grocery shopping malls in major cities.

People who joined in this multi-level marketing should buy the groceries from this mart only.

As part of business we had to form the team or network too, to increase our


I tried hard to succeed in this business but failed to form any kind of network or team.

I had lost Rs.20,000 and valuable 1 year in this business.

But my fellow lic agent formed a good team and earned good amount of money.

But N-mart MD has been arrested on a cheating case as some people had given complaints against him.

N-mart shopping mall in my city closed completely in my city.

As my fellow lic agent has a very good talent in talking, he managed all his team about this issue.

But the truth is ever body in his team lost money except him.

My experience with Multi-Level Marketing business-3…

Later on I transformed as mix of Lic agent and Mutual fund distributor.

Unfortunately, My income levels were going down as a mutual fund distributor too.

As people do not know the importance long term benefit of investing into mutual funds, my clients were redeeming their holdings in mutual funds.

As my income was linked to the amount invested by them, My income started to come down drastically.

Again, I am help less and looking other opportunity to increase my income.

At that time, I was having heavy weight too.

This time another fellow Lic Agent introduced me to another Multi-Level Marketing business.

That business name is Herbalife (products are for losing weight with a shake).

I had used this product to lose extra weight with this product and tried very hard to get succeed in this network business for two years.

I had invested Rs.4,00,000 money into it.

There is club concept in this business where we offer people shake instead of normal breakfast at clubs.

As history repeated, I lost almost everything I had invested in this business and I had closed the club.

Later, I have realized the importance education and skill which most people require.

I have completed CFP in the year 2014, and became first CFP in my district and first Sebi Registered Investment Adviser too.

If I look back at my past, I feel surprised.

Who will do this Multi-Level Marketing…

People who were depressed and does not have enough qualification and skill and those who have big greed in spite of having good income will do this kind of business.

Who will succeed in this Business…

People who has people powerful speaking ability only can earn some good money in this business. They have to misguide their team to earn money.

Team has to buy the products with loans to get the promotions in this business model.

But the truth is these products will not be sold once bought.

What is the main attraction in this Multi-level Marketing business?…

When I was doing Herbalife business, I found an Ex. I.A.S officer and a Lorry driver also doing this business.

Here the catch is, your up liner will tell you that this is the only business where a lorry driver and I.A.S Officer can stand on the same stage to get recognized.

As a result of this we will fall into this trap, We will spend our valuable time and money into this. But success will not be there.

Why some Books promote this Multi-Level Marketing Business?…

I read a book named 21st century business.

The author of the book is a successful business man.

In this book, he intentionally promotes this multi-level marketing.

I have seen people to get joined into this business after reading this book.

I will tell you what is the benefit to this author of the book.

India is a growing country and looking at the already grown countries.

We would like to grow like them too.

In the process we are trying to copy them sometimes.

This kind Multi-Level marketing is first started in those countries only.

It is well regulated in those countries than India.

People like this author will form their team in countries India, Pakistan etc for their businesses.

As we want to copy their business model and want to earn.

We people will join under their arm.

Hence, more income to those country people than Indians as we are under their arms.

Not only this our country currency also will lose value because of this.

Definitely, The author of 21st century business book has some conflict interest in Multi-Level marketing business.

What Happened to My Ex-Client because of this Multi-Level Marketing business?…

Two years back, A Photo studio owner walked into my office for Financial Planning.

He read about financial Planning in some books and he has seen my name board and contacted me for planning.

Unfortunately, even he does not know what exactly a planner can do to his Financial Health.

In our conversation, I Had realized that he is a Multi-level Marketing apart from his studio business.

He took a loan of Rs.12,00,00 in Mudra Loan scheme.

Highlight is he had invested Rs.12,00,000 worth products in this business for the sake of his up liner’s promotion in this business.

Already, he paid nearly Rs.5 lack as interest to the back and entire Rs.12,00,000 is not yet recovered from the borrowers of the products.

People in this business has to push other people to buy the products.

Here, comes the problem. As it is a push product lending is mandatory.

As a result of this borrowers will not pay him money back.

Being a Planner, I know that he had to stop this business immediately.

I cautioned him about this and told him to stop the MLM business and also sell the existing house.

I also told him to to buy a smaller house in the same city.

But he didn’t listened my words and went away.

But just two days back, I came to know that he is selling his house now.

Now his debt are increased by another 20 lacks and now he is not in a position to buy a smaller house too.

His financials are completely disturbed.


According to my opinion, businesses must be done according to the people needs and taste.

Businesses built on the concept of pushing the products will not lost long.

But the truth depressed persons like me and My ex-client will come again and again to lose money and time in this business.

I request those who are reading this article not to fall into this trap.

Read an article about the agent, mutual fund distributor, and Sebi Ria- Who is best for you?. Click here to read.

Also, read the article about Real Estate Investment Profit Percentage. Click here to read.

Also, read the article about chit fund profit. Click here to read.

Read circular issued by RBI about this direct selling business. Click here to read.

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