Author Topic: Team National Multi Level Marketing Business  (Read 6197 times)

Canoe Bum

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Team National Multi Level Marketing Business
« on: October 05, 2016, 09:46:44 AM »
Hello all,

A little background first:
I am 32 and live in Texas.  I am married and have two young kids.  My wife is a full time homemaker, at least for now until the kids start school (3-5 years from now).  The only debt we have is a 60k home mortgage. 
I have been running the numbers and I don't see how we can reach FI any time in the near future on my current income (at least 20 years).  That being said, I have been looking for other ways to generate more income.  On this subject, I wanted to know if anyone has had dealings with a multi level marketing company called Team National.  The way I understand it, they are a membership company that provides discounts at many retailers (walmart, home depot, etc) through collective buying power and once you are a member you can sell the membership to other people and make money when they in turn sell memberships and so on.  My wife and I are very skeptical about this business and can not decide if it is something that we should get involved in.  The lifetime membership is $2,195.  I have been given the sales pitch twice now, once about a year ago and then again last night (both from friends).  The person who talked to me about it last night has integrity and is trustworthy, so I am less skeptical than I used to be about the whole deal.  He is closing his mechanic shop and pursuing this full time as he has been successful in it.
Any advice would be appreciated.

Thanks

Khaetra

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Re: Team National Multi Level Marketing Business
« Reply #1 on: October 05, 2016, 09:54:34 AM »
MLM's are to be avoided like the plague.

swick

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Re: Team National Multi Level Marketing Business
« Reply #2 on: October 05, 2016, 10:06:59 AM »
The person who talked to me about it last night has integrity and is trustworthy, so I am less skeptical than I used to be about the whole deal.  He is closing his mechanic shop and pursuing this full time as he has been successful in it.
Any advice would be appreciated.

Thanks

That is usually the problem with MLM's the person selling them may actually believe in them, it doesn't mean the numbers make sense financially and aren't predatory.  You have had to sit through two "friends" who are exploiting your relationship to sign you up.

This is how MLM reps make money - usually, it is not selling their product. It's suckering people into their downstream. This works awesome for the people at the top. It gets harder the lower down you are, and if you have already been approached by two people in your network, how hard of a sell is it going to be for you. You pretty much have to be okay with being "That" friend. The one you are always wondering about in the back of your head if they are genuine or authentic or just want to sign you up. If you are okay with that -  by all means go for it.

MsPeacock

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Re: Team National Multi Level Marketing Business
« Reply #3 on: October 05, 2016, 11:22:53 AM »
MLM's are to be avoided like the plague.

X1000

I would suggest through research via BBB and others regarding this and any other MLM.

BigHaus89

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Re: Team National Multi Level Marketing Business
« Reply #4 on: October 05, 2016, 11:36:43 AM »
MLM's are to be avoided like the plague.

X1000

I would suggest through research via BBB and others regarding this and any other MLM.

Agreed. Not worth it by any means. Best case scenario, you lose some money and not friendships.

FLBiker

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Re: Team National Multi Level Marketing Business
« Reply #5 on: October 05, 2016, 11:40:17 AM »
MLM's are to be avoided like the plague.

X1000

I would suggest through research via BBB and others regarding this and any other MLM.

Agreed. Not worth it by any means. Best case scenario, you lose some money and not friendships.

Agree with everyone else.  MLM literally means pyramid scheme.

esq

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Re: Team National Multi Level Marketing Business
« Reply #6 on: October 05, 2016, 11:47:32 AM »
Their business and payment plan depends on them being in business forever.  Among other red flags, that's a huge one.

I wouldn't do it.

pbnj

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Re: Team National Multi Level Marketing Business
« Reply #7 on: October 05, 2016, 05:12:10 PM »
If I want to shop at a retail.store I do not have to spend thousands of dollars to get a discount.  I'll wait for my.item to go on sale, use a coupon and use a credit card for points/cash back.

It doesn't matter to me what the MLM company is, my response is the same.  No thanks.

MarciaB

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Re: Team National Multi Level Marketing Business
« Reply #8 on: October 05, 2016, 09:34:49 PM »
A couple of questions you need to answer for yoursellf. First, the $2195 for the lifetime membership...what does it actually get you?

Second, what's the break even on the $2195? in other words, how much do you have to spend in order to  "save" that much?

 I did a Google search on this company and got to a website with some information, but it was very vague and not very informative. Lots of bragging about their integrity and how wonderful they are, but no real substance on what the hell they actually do.

I'm with the other posters on this. Run away!

With This Herring

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Re: Team National Multi Level Marketing Business
« Reply #9 on: October 05, 2016, 10:06:36 PM »
Do not do this.  You will lose time and money.  MLMs like this only make money for the founders and the top couple levels of the pyramid.  I know someone who has gotten burned by an MLM with a similar plan to this one: pay a big fee, get small discounts, recruit others to make money.  The only way to make money in an MLM is to rope in a lot of suckers.  You have already heard the pitch twice, which means your area is running out of suckers, so you will just lose money.
MMM Forum: Multi-Level Marketing

There are a number of threads on this forum on safe, legitimate ways to earn extra money.  Picking up a part-time job, writing for certain websites, etc.  Depending on your current income and work hours, it might make a lot more sense to see where you can cut expenses first.  That will speed up your path to FIRE by increasing savings and decreasing your target invested assets.

I notice that you are new to the forum.  Welcome!  If you look through the rest of the "Ask a Mustachian" area where you posted this topic, you will see that there are a couple different "Case Study" topics.  If you would like the help of the forum in trimming your expenses, your best bet would be to post your own case study.
Here are the instructions:  How to Write a Case Study

shuffler

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Re: Team National Multi Level Marketing Business
« Reply #10 on: October 05, 2016, 11:04:34 PM »
I have been looking for other ways to generate more income.
This MLM is unlikely to do that for you.

Look at its own income disclosure statement:
http://www.bign.com/BusinessOpportunity ... links to ...
https://communication.mybignbusiness.com/documents/Income-Earnings-Disclosure1.pdf

82% of members (or whatever they call them) make nothing.
~98.5% of them average less than $5k/year.

... do you think you can get into the top 1.5%?  Considering that you're just starting, and you're on the bottom of the pyramid?
Unlikely ...

Driko

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Re: Team National Multi Level Marketing Business
« Reply #11 on: October 06, 2016, 03:19:11 AM »
I don't really see a problem with being involved with an MLM as long as the product is something that you believe in and would purchase in the store regardless of the fact that it can make you money. The only MLM's I have been involved with had products I actually really enjoyed. I made money without really selling to my friends, but if you wanted to quit your job or make more than 5k a year, you would really have to be obnoxious about the products which to me is not worth the effort or money. I know people making 40k a month doing MLMS, but its their entire life and you really need to have the personality for it. Some companies are fairly generous on their pay structure, but most suck. The MLM you are describing I probably wouldn't touch with a 10 ft pole.

Also pyramid schemes are illegal and are not MLM's. People saying such have no idea how they really work. With a good MLM the person at the bottom is still receiving a quality product and it doesn't matter if they don't sell anything because they enjoy the product. Again there are very few MLMs with solid products that are also generous in pay structure and this one doesn't seem like it is one of those so I would run away.

pbkmaine

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Re: Team National Multi Level Marketing Business
« Reply #12 on: October 06, 2016, 03:45:26 AM »
With This Herring's advice is sound. Write a case study!

Goldielocks

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Re: Team National Multi Level Marketing Business
« Reply #13 on: October 06, 2016, 07:27:56 AM »
Can you go with your friend and watch how the discount is used ?  Often there are restrictions, so it needs to be a very good deal to sell well.

Most of the clubs go out of business in a year or two, would that be a problem ?

I have seen one from the old days that group bought telephone discounts and other services can work.  You need to put on your business nose to ask if the underlying product is compelling, but easy to sell for your effort and compensation. Also, you need a large personal network to sell to or willing to set up and pay for a booth at the mall.

Canoe Bum

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Re: Team National Multi Level Marketing Business
« Reply #14 on: October 07, 2016, 07:47:05 AM »
Thanks everyone for the advice, all of you just clarified my natural misgivings regarding this MLM.  Team National has been in business for over 20 years and is in good standing with the BBB and the Chamber of Commerce.  I have no doubts that the business is legitimate, but is it for me?  I don't think so.  Having to sell something to my friends and family and jeopardize those relationships is not worth it.  Plus, I just don't have the ruthless personality that it would take to make money by taking advantage of people.  There are more important things in life than making money this way. 
My wife and I talked about this over the past couple of days by sorting through what our main motives for joining this company would be.  We discovered that our main motive was to make money, which we did not feel was a solid reason to give and risk the time, money, relationship hazards, etc. that this would require.  I want to spend the 5 plus hours a week it would require to work on this business with my family.
I will plan to submit a case study soon, thanks for the suggestion With This Herring.

Thanks again everyone.

BigHaus89

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Re: Team National Multi Level Marketing Business
« Reply #15 on: October 07, 2016, 09:29:55 AM »
Thanks everyone for the advice, all of you just clarified my natural misgivings regarding this MLM.  Team National has been in business for over 20 years and is in good standing with the BBB and the Chamber of Commerce.  I have no doubts that the business is legitimate, but is it for me?  I don't think so.  Having to sell something to my friends and family and jeopardize those relationships is not worth it.  Plus, I just don't have the ruthless personality that it would take to make money by taking advantage of people.  There are more important things in life than making money this way. 
My wife and I talked about this over the past couple of days by sorting through what our main motives for joining this company would be.  We discovered that our main motive was to make money, which we did not feel was a solid reason to give and risk the time, money, relationship hazards, etc. that this would require.  I want to spend the 5 plus hours a week it would require to work on this business with my family.
I will plan to submit a case study soon, thanks for the suggestion With This Herring.

Thanks again everyone.

Lots of better side hustle alternatives than MLMs. Check out this thread for ideas: http://forum.mrmoneymustache.com/ask-a-mustachian/who-has-a-side-gigjob-that-brings-in-extra-cash-share-with-us!/