MLM - The Pros and Cons

by Coert Coetzee


Today I want to share with you the pros and cons of Network Marketing and at the end of the article I will tell you what the devastating underlying danger is and how to solve it.


“The pros and cons of something are its advantages and disadvantages, which you should consider carefully so that you can make a sensible decision.” - Collins Dictionary


Most Network Marketers will know the advantages of network marketing and they will know it very well, because it is what many of them mainly use to sell the opportunity. Some of them know the compensation plan better than the products they're supposed to promote. By the way any company with a compensation plan which is better than the products, will catch the eyes of the authorities and regulators. It's just a matter of time.


On the other hand, when the products of a network company are excellent, it will attract the attention of the competitors. If they cannot beat the products, they will use underhanded tactics to portray the network company's network compensation plan as a pyramid or Ponzi scheme. The media is always very willing to play along with the mudslingers!




Network marketing, also referred to as “referral” or “word of mouth” marketing is by far the quickest, cheapest and most effective way for a company and for affiliates to build a business. 


I think Multi-Level Marketing is by far the easiest way for networkers to build a lucrative passive income stream.




Success attracts negativity from competitors and regulators. They will do their best to stop it and to have it declared a pyramid scheme. If they can do that, the MLM company will be closed and liquidated. When that happens, executors are appointed. The executor's job, amongst others, is to collect all the commissions that were paid out to the networkers since the beginning.




Most affiliates won't have the commissions anymore because they've spent it!


If the affiliates can't pay, they will be sequestrated in order to recover some of the money. It happened with the two most notorious pyramid schemes in South Africa, like Kubus and Krion for example. Promotors of such schemes lost everything eventually!




It's very simple ...


An affiliate should never be a natural person or a company. It should be a specialIsed TTS Trading Trust. It is the only possible solution we know of, and it still needs to be tested in a court of law in future. However, what we are certain of is that doing it WITHOUT a TTS Trading Trust will definitely lead to financial disaster if the paw paw hits the fan!


Please note, the TTS Trading trust is not an ordinary trust. It's a specialised trust deed. The protection lies in the wording of the trust deed.




Even if your affiliate position is in your personal name or company at the moment, it can be rectified by moving it to a Trading Trust with a correctly drafted and registered resolution.




Contact our trust lawyers today on the link below if you want to know more about the TTS Trading Trust: