MLM vs HYIP – Where I stand

“With the internet explosion, in the future there will be two kinds of people those with networks (downline) and those without” – unknown

“The internet is like a goldmine, you have to dig a lot of crap to get one little nugget” – Unknown

If you have been following the trend of my analysis and thinking, I’m sure you have a perspective of where my votes will fall on this. I however feel the need to let you know why, and hopefully, someone might learn a thing or two.

I have been interested and participated in every MLM program that came into Nigeria since I graduated from University. FLP, Tianshi, CDT, Sapphire, Clubfreedom e.t.c. Some I did by proxy, others I actually got actively involved. MLM is hard work, and it doesn’t get easier even when it’s online. MLMs present one of the best skill development opportunities you will ever get. More about this later. I have also tried my hands on a few HYIPs, it’s all about the money, no learning opportunity. Greed grows, and more often than not, the rewards do not endure. If you reap where you didn’t sow, it also simply means you will sow also at times and not reap.

Permit me to structure these debate on a few key points.

1. Development

The human brain is grossly underutilized, the school system does not provide an avenue to develop all the skills essential to life. Your development is your responsibility. A good MLM will take you through the learning curves, you will not only earn like a director when you become one, you would have learnt. For clubfreedom/6k4you for example, your first role requires marketing and recruiting, your second role involves training and motivation, your third is management, team leadership and communication, your ultimate role involves governance, leadership, direction setting, strategy and leadership development. You learn win-win for real, when you get into the board, your next assignment becomes helping your downlines do the same. You also meets loads of people, and remember, you are who you are 5yrs ago, except for the people you met, and the books you read. For HYIPs there is no learning opportunity. Of course if it’s a high yield business and you are involved, you’ll learn. I was into minning of precious and industrial metals a couple of years back – Tantalite, aquamarine, tomalin and the family. I and a number of friends lost a lot, but because we were directly involved we learnt a lot too. Most HYIPs however, online or in Ibadan are pyramids, the base is stacked to pay the top.

2. Wealth Creation

I clearly remember a LASU student in 2002 (Tope) who came to address us at an FLP seminar I attended then, he was in his part 3 in his university then. I went with a friend of mine who is also a great speaker, we analyzed the seminar and picked holes in the young chaps communication skills, but you can’t argue with results. He has earned over 30Million as that time, he had also traveled to more countries than the number of states I had traveled to back then. He went on to make a lot more money on FLP (He actually married before he finished from school :)). Till date, he still earns N300,000 on a bad month. He’s into real estate and a number of other interesting businesses. In my 8 weeks of joining clubfreedom, I have cycled out twice and still counting, three of my downlines have also cycled out and are counting, we also currently have over 10 on our team on traveler positions. It’s not all about one person. I’m sure there are people who made a clean sweep with an HYIP as well, I mean, I know people who invested in number of wealth solutions that have gotten paid millions. I know of someone who invested N4,000,000 in the likes of pennywise and cash seed. I only need you to show me one person from the days of umana umana, who got rich then, and is still wealthy today. Don’t get me wrong oh, anything is possible, but for every one you are able to produce, I’ll give you the phone numbers of 10 who lost it all.

3. Health

With most of these HYIPs, any negative information about any of them, rocks the heart. Like, if I tell you that treasureline (wk 24) has started defaulting, and that by implication it means that the days of some other ones are also numbered, won’t it spoil some people’s day? Won’t some people immediately accuse me of trying to promote something else? The treasureline example is true by the way. For MLMs however, if you are not too greedy, it can be fun. I have received calls from many people who suddenly understood how the boards in clubfreedom and the revolving travel tables work, and are having so much fun they don’t sleep some nights. I got my first call around 6am this morning, someone was telling me what I need to do for him so he can break his board this morning. I remember the high days of FLP as well. A merry heart does good like a medicine. Wouldn’t you rather live long and enjoy your life. Health is wealth.

4. Ethics

Now this is a dicey topic, people have different perspectives about ethics. I’ll take a cue from Steven Covey though, and let’s look at true north principles. First what are these HYIPs into? There are a number of investment schemes and programs that do legitimate things, don’t get me wrong. I’ll recommend some legitimate ones without apologies any day. Hazonwao, I know the MD, and I can trust him and his company with my money. I know Wealthzone is also good, I know because I have researched these two. Of late, I’m discovering that Nospetco could last a lot longer than I had anticipated, some dynamics changed recently and they are interesting dynamics. Most of the popular HYIPs promising outrageous returns are simply ponzi schemes. You can read CBN’s definition here. The target of operational week 4 is to raise 100% above the promise made to the people in week 1. Somebody down the line will be badly beaten, and the Yoruba’s say that when we throw stones in the market place, it hits our relatives. For MLMs however, even if you don’t get the mouthwatering returns, you will know that it was because you didn’t give it what it required. You will see people around you, who joined after you and are still making money from the MLMs. Network marketing is less than 55yrs old in the world, it’s a baby, and the world is responding slowly to it. In the future, your network, will be your net worth.