5 Surprising Reasons Six Figure Mentors Is Not An MLM Company

5 Surprising Reasons Six Figure Mentors Is Not An MLM Company 2
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One of the questions we're continually asked by people interested in Six Figure Mentors, is “Isn't it just an MLM”?

It's actually one of our favourite questions and we're guessing it may have crossed you mind too so we'll take 2 minutes to explain the clear distinction to you.

MLM means Multi Level Marketing. Which means, if you're at a particular level in an MLM company and you recruit people into that company, then they join the MLM at a level below you. When they recruit people, those people join at a level below them. This is known as your downline, i.e.: the people below you in the hierarchy.

In most pay structures within an MLM you earn commissions whenever someone in your downline makes a sale. So you can get commissions passed up to you from many levels deep.

However the big trade off is, the lower you are positioned in the downline, the more difficult it is for you to recruit people into your downline.

In fact what actually happens is, the people who join the MLM Company first are the ones who are going to make the most money, because they are the furtherest up the hierarchy, and therefore get the most commissions.

It's a pyramid shaped structure.

An MLM is not a scheme per se because schemes don't have any products, participants get paid for introducing people to the scheme, and their downline gets paid for introducing people to the scheme – so there's no product involved apart from recruiting people. MLM companies do have products for example, Avon, Herbal Life, Mary Kay Cosmetics and so on. So while not strictly schemes, their structure is pyramid based, so people at the bottom of the pyramid have a much more difficult time finding people to recruit.

Think of it like the hierarchy in any corporate office – the office juniors, receptionists and mail room staff work the hardest and are often the ‘public face' of the business, but they're at the bottom of the pyramid, earn the least, but make profits for the managers and directors further up the ‘food chain'.

So exactly how is SFM different to an MLM company then?

1. We Refer Prospective Customers To Six Figure Mentors

When someone buys the Six Figure Mentors Product (Online Marketing Education Instruction) they become a member of the Six Figure Mentors. That's because the SFM runs as a monthly membership program. You access the training material for a monthly cost – very similar to how you pay your electricity or gym membership! But that's about where the similarity to an MLM ends. The Six Figure Mentors product is online marketing education training. So the back office of the SFM contains all the training a beginner needs to know to allow them to market anything on the internet.

Six Figure Mentors also provide a ton of online tools which you'll never find provided in an MLM, such as:

  • Digital Business Lounge – let's you host unlimited domains, and includes a step-by-step website builder which means no tech skills are needed to make your website live on the internet
  • SimpleLeadCapture – allows you to build your own unique lead capture pages so you stand out from the crowd
  • Digital Writer – where you get professional blog posts or articles written for you – so no clever wordsmith skills are necessary
  • YourTubePlayer – an app which puts you in control of your video branding and player controls for embedded Youtube videos, so they have the same consistent look and feel, which is important to your personal brand reputation
  • Simpletrakk – helps you track and split test your ads so you know which ones work the best and which ones to scale up fast
  • GraphixCreator – creates your unique 3D images which adds to your professional online persona
  • plus heaps more ++

There's a number of further differences so we'll start with the most obvious one:

2. How Is The Structure Of Six Figure Mentors Different To An MLM Company?

The Six Figure Mentors operates an affiliate program. You refer a prospective customer and you get paid a commission when that customer purchases. It's exactly the same structure used by any major department store with an online presence. You recommend their products online and receive a commission when your referral buys.

One of the best examples of affiliate companies we know of is Amazon. They're the biggest affiliate marketing company on the planet (well, the internet!). Anybody can set up an affiliate account with them and sell their products online – anything from books and DVD's to refrigerators!

And there are popular Affiliate marketplaces listing household names which all have affiliate programs. Look at the bottom of the websites for big department stores like Harrods and Bloomingdales to see where affiliate can register to promote that store. The affiliate model is a win-win for big corporates as it's a way of them getting customers referred without doing too much costly advertising.

3. What About Pay Scales In Six Figure Mentors?

We already said MLM companies have downlines that go many levels deep. In SFM you get paid when you make a sale. There's no pass-up commissions because there are no levels. It's the same as any other legitimate affiliate marketing company – you make a sale, you get paid a fixed percentage commission calculated per the price point of the sale.

4. Another Major Difference Is MLM's Make Most Their Money From People Failing!

There's a term called Breakage, which prevents most people apart from those highest up the chain from succeeding. Breakage is unclaimable bonus income that distributors (especially part-time people) fail to earn because of high group volume and downline rank requirements that stop them from qualifying in almost every pay plan.

Six Figure Mentors doesn't have any bonuses for introducing new members (only commissions), no bonuses for having the most people in your team, nor any other forms of bonus. So when you join Six Figure Mentors you're on an even playing field with all other members. As long as you refer prospective customers who buy, you earn commissions.

There's no advantage for someone who has been in Six Figure Mentors for a long time, apart from their marketing knowledge, to be able to earn more commissions than someone who has just joined. It's all down to how well you market, and a beginner (after watching and implementing the training) has as much chance of success as someone who's been in online marketing for a while.

5. No Team Building

We haven't been involved in an MLM, so can't comment on the team building mentality, however all SFM members are part of a community, where everyone helps each other succeed. There's no advantage to the person helping, it's simply a supportive culture that has grown alongside the Six Figure Mentors Digital Business System. There's also no team concept, where all the people you've introduced work in their own little private group and compete with other teams. The community based structure, in our opinion, is one of the most attractive benefits of Six Figure Mentors.

So hopefully that's given you a bit of an insight into the MLM vs SFM question.

If you want to build your own successful online business without having yo sell your family and friends, without having to do team building, and without having to do tedious hotel meetings that keep your location bound, take Six Figure Mentors for a test drive here.


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Facebook Comments:

  1. Rob 8 years ago

    Hi Greg and Fiona,

    Thanks for sharing this article. I was thinking about this matter myself as I just joined SFM and a Ponzy scheme did cross my mind. However, as you rightfully mention the products / services offered are of very high quality. I have an online business already and will definitely benefit from the trainings in that business. Especially if people will afterwards use their knowledge and apply it to other business areas this definitely is not a pyramid game / MTM. At the same time I do have my doubts about certain members that actually just start their online business and pretend they are already living their laptop lifestyle. I guess that for some people to reach their dreams they are OK with “Fake it untill you make it”? What’s your opinion on that? Best regards, Rob

  2. Author
    Greg Fiona Scott 8 years ago

    Hey Rob

    Thanks for stopping by and leaving a comment – and well done for choosing to leverage marketing online to further promote your business.

    Many people don’t understand the depth and breadth of Six Figure Mentors marketing education and the millions of possibilities the education provides people. For example, members are becoming marketing consultants, running marketing agencies, running social media training services for small and local businesses, helping charities with their list building, promoting affiliate products and services they’re passionate about – the list goes on.

    As for people pretending to be something they’re not – that’s inauthentic and unattractive – and it won’t bode them well in the long term because prospective customers will see thru the falsehood sooner or later.

    But, at the end of the day, people will believe what they want to believe – you can tell them the truth and they’ll choose not to listen…

    Hope that helps.

    Greg & Fiona

  3. Alex 7 years ago

    I am surprised by some of the vast misinformation that’s written about SFM. Then I realised It’s all written by affiliates of Wealthy Affiliate. Anyone who is researching I am sure will find the same.

    I am actually a member of both SFM & Wealthy Affiliate. They are also vastly different and both have their pros and cons. However, if I had to pick which one I was going to give my money it would be SFM no question. The training is far more engaging if you ask me and is not just about affiliate businesses. Plus SFM provides far more actual ‘hands on’ support in my experience. Yes, they do charge for it, but to me it’s very worth it.

    Within the first 6 weeks of me being a member of SFM I had used some of the training and tools to move my offline business online and got my first internet lead and customer.

    I am seriously considering closing my account with Wealthy Affiliate as I am so turned off by how so many of their members are spewing out blatant lies in order to try and make sales of WA.

  4. Author
    Greg Fiona Scott 7 years ago

    Thanks for your pertinent comment Alex. We’re actually working on a blog post about honesty in marketing and addressing that exact topic of inauthentic marketers publishing misleading/unfounded/unresearched reviews with the single intent of luring unsuspecting opportunity seekers into their nets. As with a lot of stuff online, people need to read between the lines. But honesty and authenticity will always win out in the end!

  5. Kirsten 6 years ago

    Great clarity. Many thanks for this.

  6. Author
    Greg Fiona Scott 6 years ago

    You’re Welcome Kirsten 🙂

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