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Hi Everyone

MLM Marketing?? Once I encounter a company called aimway were you bring member ship in and when they sell you get comission , my self I am not much fan of this concept of MLM Marketing. In this day I like the concept of online affiliate, which I will be lunching it this week for my online business. MLM Marketing is history and  this is only  my opinion

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Thanks for starting this dialogue Rich.

I`ve failed twice in the past at network marketing and am currently involved in a third opportunity because it complements my primary business handsomely. I was hesitant before taking on the commitment again, but enjoy the rewards of using the product and have gained enough maturity and experience over the years to know what is expected to succeed.

As Kathleen and several others have mentioned, success in any business will boil down to commitment, strong business skills (ie. marketing, sales, maybe copywriting and speaking) and a serious attitude.

The problem with network marketing is many of those involved are promising others fast money, carefree lifestyles and neglect to share the truth that personal growth is necessary, specific skills must be developed, consistency must be practiced and in reality, it could take two to four years of committed effort to see significant results.

Many network marketers recruit employees who have no idea whatsoever what is required to be an entrepreneur. It`s no surprise that the attrition rate is between 80-90%. In most cases, it`s the blind leading the blind.

As mentioned earlier, MLM or network marketing are still "business" and require the same level of due diligence, commitment and discipline required of any other business.

Thanks, Leedsfan. Your reply to Rich`s question is comprehensive.

I`ve read this somewhere "To be successful, study those who are successful and what makes them tick. Further, study also those who have succeeded then failed as well as those who tried but never succeeded - what and why they failed."

In network marketing, we hear people (big and small) succeed in the business. And there is no reason why we can`t succeed in it if others have. Because others failed, that does not mean we will also follow their track. We can change our destiny by changing tactics and be aligned with our strategies.

That is why "Step 1 - Create a Life Plan of 10 Steps to Open for Business" is very important. What you really want in Life?

  There are also other great site about network marketing, proving that it is the trend of the future. BTW,  I  visited you site and found a link that I also frequently go and a subscriber, too.

 

 

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In business with a burning passion, making people`s life better - Health, Wealth and Happiness.

Hey there rich..everyone here is right to some extent...MLM is in some way what you make it.  What i have found in my 3 unsuccessful attempts at MLM is that they people who make money right away or those you here about the most within the company have already been successful in a prior line of work, thus giving them many many contacts to promote there new business to.  In MLM its all about numbers.

 I have been successful with the "branch" of MLM called direct selling.

Its not multi-level, and MLMs generally don`t interest me because you
have to buy product every month and persuade and motivate a lot
of other people to do so in order to break on your own required
product purchases.

Its really, really important to get clear about how many people you
need to enroll to make money... what they will have to do to keep
making you money, and what your own overhead will be.

Understanding Pay Plans is Very Important

Most folks are recruited into Multi-level programs without understanding
the amount of work involved in  turning a profit with building a sales
organization that pays out small commissions.  Its true that MLMs have
a smaller barrier to entry ($$$ to get started) than big-ticket direct sales
programs... but the overhead is actually higher with MLMs because
of "autoship" requirements and the cost of lead generation and advertising
is recouped over a long period of time.

With bigger ticket items cost of customer acquisition can be covered much
quicker with larger, up front profits.

Attrition: why people quit and how it affects your income

MLMs with "autoship" purchase requirements have a huge attrition rate,
and it can really hurt when half your downline jumps ship and goes to
another program without you.

The Myth of MLM "walkaway residual income"

The notion of the "walkaway" residual income from MLM is deceptive.
The truth is that distributors, even moderately successful will continue to
quit your MLM all the time.  You will have to continue to recruit or
your organization, and income, will dwindle.

MLM is an amazing business model though.  So just be CLEAR on
what you want and how you intend to go about getting it. If you don`t
comprehend the network marketing industry, you`ll probably find it
frustrating and find yourself losing money consistently.

Comments on Vitamin/ Supplement MLM

IMHO most nutritional MLM companies are selling snake-oil, ie.
overpriced products you don`t need to be healthy.  Health comes
largely from a right diet. Most Americans eat way too much animal
products and processed foods. 

Most MLM nutritional companies are in the business of selling
a panacea for health and wealth... and the solution is generally
a compromise on both fronts.

Hi All,

Some thought provoking responses since I was last here.

Firstly to me, Network Marketing IS Direct Selling, i.e. it is actively communicating with consumers rather than via advertising/retailing. Multi-Level Marketing being a system by which you leverage yourself and receive compensation for the effort of others in your organization.

Over time, I have come to use "Network Marketing" as interchangeable with "Multi Level Marketing", so forgive me if I keep consistent with my use of Network Marketing as it also means (to me) MLM.

Loren, your post hits right at the heart of what I was saying. Why would you treat a Network Marketing opportunity any differently to ANY other business opportunity or model?

If you are starting any business of any kind do you not perform market research, evaluate suppliers, look at your growth, your capabilities, your motivation for this business, etc etc etc?

I would like to clearly state that in NO WAY do all Multi Level Marketing Companies force people to purchase product every month. There are those that do and those that don`t. I personally would not involve myself with one that did.

Similarly there are Network Marketing Companies that make representatives buy "kits" - that to me is also wrong and I would not involve myself with a company that did so.

So in the Network Marketing world, there are great , good, OK, bad and awful Companies. Is there another industry where this is not the case?

In Network Marketing, it will take a period - determined by how many hours you choose to put to building your business per week and/or your investment into that business to grow it into profit or livable income. Can you name me a business model that does not take two years to build into profit and success?

The huge differences between Network Marketing and any other business model are that

1)    You assuredly can be profitable with little to no investment if you are willing to dedicate time and effort and the Company trains properly.
2)    You do not have to put at risk the cash sums, collateral, house equity etc at risk. Starting your Network Marketing Company costs next to nothing. If you are unsuccessful you will simply not make money. Fail at virtually any other business and you are in financial trouble.


With ANY business model, attrition is a factor. If you do not generate new customers, your sales and income will dwindle. If you are only selling on one level, this will be a huge factor.

This is where again that Network Marketing scores massively over any other business model because you have others out generating business for you without the desire to compete against you or steal your customers. The larger the downline you build, the more insulated you will be to attrition. I assure you that if I was to cease all effort in my business today, my monthly checks will increase. This is because I have people in my organization intent on building their businesses. Of course I continue to build and develop mine.

If I`m being honest, I really don`t comprehend the notion of "losing money" or "failing" in Network Marketing. If you do not build your Network Marketing businesses you will not make money. If there are other circumstances - wrong industry, product etc, you will not make money. If those conditions apply in any other business model, you lose your shirt.

Again Loren, your post hit on some fundamentals. When you say "If you don`t
comprehend the network marketing industry, you`ll probably find it frustrating and find yourself losing money consistently". That is true in so far as the greatest flaw in Network Marketing is the lack of quality training and systems.

Many people sign up to a Network Marketing Company on the basis that they "like the product(s)", "can see the potential", etc. If they are not educated to and/or are not willing to evaluate the Company, the Industry, themselves and how to be successful why should success be expected?

In other words if I said to you I was going to buy a Coffee Bean and Tea Leaf because coffee sells well and I fancy working for myself and that I`ll open it near my house but people will come to it anyway and I`m good with people so the staffing will be no issue, would you think I`d be successful?

There is a chance because of the nature of the brand name that I would be by default, but in all likelihood I would lose my shirt. It seems that many engaging in Network Marketing feel that success will somehow come by osmosis. Network Marketing does not offer an "effort by-pass" or "get rich quick".

The fact is that if I had the money for a Coffee Bean and Tea Leaf, I would strongly consider it as their training is excellent and I would definitely listen to their suggestions of location and absorb all I could from their training and work from the bottom up. Having committed to that business after researching the market, the industry, the franchise, my capabilities and desire, I would do everything necessary to be successful.

If the industry was questionable, the product bad, the Company offered scant training, or I wasn`t really motivated by retailing coffee, I wouldn`t have committed to it in the first place.

So for consideration:

1)   Network Marketing Versus Starting Your Own "Traditional" Business Entity

I started my own business in the tent and event industry. I had the background for it, having had years of providing tents for large events like Formula 1. It was funded by myself and my partner. Because it was a new venture, we could not get funding so we "boot-strapped" it.

Over the next two or three years I had the most stress I`d ever dealt with and came close to bankruptcy on at least three occasions. That would have meant losing my house. I rode it through and over the next few years built a moderately successful entity.

In order to run the business properly I had to quit the job I was doing at start up otherwise I could not have got it going. This cost me my income.

Over the years I suffered employee theft, vendor theft, client theft. When I found the employee that I really wanted, they would invariably leave. I was lucky in that regard as they didn`t set up against me. My friend in the industry came close to losing his business of 20 years of building when his manager left with his client list and set up directly against him.

I sold the business this year. Having been through 12 years of effort, stress, changing an industry, guess how much residual income I have from it? The clue is that it`s somewhere between zip and nada.

My Network Marketing Company cost me $25 to set up. I don`t purchase inventory, I don`t stock inventory and I do not get the product to the clients. Everyone in my organization has the same potential as I to grow a successful business so there is no need for people to cheat me or leave and set up against me.

My costs of advertising and lead generation are miniscule compared to my former business.

If I need to engage in a position to bring in income over the period I need to build the business then that is easy to accomplish.

Whether or not it diminishes with time, I will receive residual income from my Network Marketing business.

2)  Network Marketing Versus Franchises

I have looked at franchises very hard over the years. To me, these represent the best business model outside of Network Marketing.

In principle, your research must be the same for both - industry, training, products, myself in that equation. The differences are that franchises need very large capital commitment, you have territories with franchises and not with a decent Network Marketing Company and you have a true pyramid with a franchise as your employees do not have the same income opportunities as those above them. This will lead to all the typical employee issues.

I like to consider myself an entrepreneur. With my Network Marketing Company, I can be creative. Indeed I can add other opportunities to my portfolio as I am in fact independent of the Corporate entity. Owning a franchise does not allow for any lateral thinking. If such occurs, the franchise would fail. Following instructions is the hallmark of a successful franchise.

3)   Network Marketing Versus Purchasing an Existing Business.

You may have more success in purchasing a going concern as financing will tend to be easier and if the business has been around more than two years, they have likely done the stressful graft for you.

Again, however, the issues of capital investments, collateral risk, lack of true leverage, employee issues, attrition of customers loyal to the seller.

I also engaged in this business model. This was a much less successful venture as I allowed the seller`s opinions to colour my judgment.


Bottom line, there is no business model that can compare to Network Marketing.

Low to zero start up costs.
Easy to start part-time.
No collateral risk - keep your house!
No employees.
"Paying it Forward", i.e. giving those in your organization everything you have in terms of training, skills, ideas, benefits everyone. It does not create competition for yourself.
Leverage, leverage, leverage. If you do not have leverage you cannot achieve wealth.
Residual income.
No territories.
Work from home.
Work when it suits you.
Reward to risk ratio like nothing else.
Helping others achieve their goals. Sounds cheesy, but it`s a fantastic feeling.
Systemized, yet allows for your creativity.
For the same building period and effort, exponentially better reward.


I`m pretty convinced by the Network Marketing Business model. I categorically, hand on heart, would do nothing but Network Marketing if I could wind the clock back 20 years. It took the efforts I made in other areas to make me understand that though so no regrets.

However:

1)  Study which market gives you the best opportunity for building a business.
2)  Study Companies offering opportunities in that market.
3)  Avoid ANYTHING offering "get rich quick".
4)  Training, training, training. How will this company help me and crucially help me help others to be successful?
5)  Evaluate yourself. Are you truly ready to make the effort, learn the skills and build your Network Marketing business. If not, why are you considering getting into any business?
6)  Evaluate the Company. Does the Compensation Plan benefit me or the Company. Do I have to buy "kits" to start? Do I have to commit to purchases? Do I have to buy and distribute product? Do I service customers. Yes to any one or more of these is a massive red flag to me.

Network marketing is human nature. There isn`t a day goes by that we don`t recommend a Company, product, service, something to other people. We have been conditioned against human nature mostly through our school systems into believing in the ways of creating income that the vast majority of people engage in, i.e. working for others.

Starting a business is a the only way to take control of our own futures. In my opinion, there is no business model that comes close to Network Marketing for doing that. As Robert Kiyosaki says, "it is the perfect business model". I would add to that that it is the perfect business model if you consider and evaluate it in exactly the same way as you would any other business model.


As a quick aside, Loren`s thoughts on supplements and vitamins are not complete (and I`m not in the human supplement arena business wise). The facts are that most supplements for humans are garbage. The overwhelming majority of those are sold via retail rather than Network Marketing.

My personal belief is that modern agricultural methods mean that humans need supplements. However these need to be the right kind and not just "label" purchases. Choosing the right supplements is very possible and I believe incredibly important. When researched, buy the right ones whether from retail or Network Marketing.

The bald fact is that Network Marketing allows more money to be put back to the manufacturer to improve quality. It is therefore highly likely you will purchase a better quality supplement system via Network Marketing than via retail.

I know I`m getting in really late on this thread, but I just figured I should toss in my own thoughts.  Somebody might find them useful. 

When I hear people talk about "good" and "bad" MLM companies, I don`t generally agree with the reasons for the distinction.  Most people talk about incentive structures, training, etc...  But the truth is, mathematically, the ratio as to how many people make money versus how many don`t should be just about the same regardless of the system.  A few make a lot of money, most don`t.  But that`s not what makes a company good or bad, or even an MLM opportunity good or bad.

In my mind, a good company is any company that creates value.  It provides new value to its market, not just an elaborate system for moving money around.  Adding value means manufacturing a product or offering a service that somehow contributes to an increase in your market`s standard of living.  This can include MLMs, but which MLMs it includes is relative.

The reason it is relative is because, as a direct seller, you yourself comprise your company`s target market.  If you`re contemplating an MLM opportunity, you need to remember that you will be encouraged to buy your own product, just as you will encourage your own downlines to buy theirs.  You must ask yourself if the product itself is worth what you`ll end up paying for it.  If the MLM sells high quality soaps, do you want a higher quality soap?  For some people the answer is `yes` and, in their case, a direct selling business is simply a bonus opportunity on top of a rational purchase.

I think a great example of a unique value add comes from Quixtar.  I am not an IBO, but I think it`s an interesting model, because essentially what they are selling -- their unique value add -- is their supply chain operation and their delivery service.  If you like the idea of paying a little more for your consumables for the convenience of receiving them at your doorstep on a fixed schedule, then being an IBO and having the opportunity to make money from it is simply a bonus.

Now, a BAD business is one that doesn`t offer any real value to its market.  A company that makes money without creating value through a legitimate product or service that your market desires is not a real business.  MLMs that sell `marketing software` or `motivational products` are purely exploitative.  The only reason anyone buys marketing software through an MLM is to learn how to sell more marketing software so that more people can sell marketing software ad infinitum.  The only reason people buy large quantities of motivational products is the same.  In these cases, purchases aren`t based on rational consumer behavior; it`s simply gambling.  Unlike normal gambling, however, it doesn`t come with any entertainment value -- only a high probability of disappointment and monetary loss.

Whether an MLM is a good or bad fit for you is completely up to your preference as a consumer.  To know whether an MLM is a good or bad company, however, you need to ask yourself where the value add is.

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Darien Brown
dbrown02@gmail.com

The MLM company makes the money. Everyone else gets to make them money.


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My site: www.entreplanet.com

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