Another MLM thread, possibilities?

13 replies
i have looked into the MLM threads here and i see some interesting commentary. i have initially thrown away the notions of MLMs in the past as scams but i have given them a second chance recently. i am not a paid member into a MLM but im considering and i wanted to run this by the forum to get some feedback.

this opportunity doesnt sell the "get rich quick" typical home based ideas. it teaches that time is better served building a small team who understand the model rather then 1000 recruits who have a lot of facebook friends.

also, another thing that is interesting, the product you are selling, the retail product isnt an actual tangible product like juice or vitamins or something that is boxed up in a basement or garage, its a membership to a discount club where you will be able to redeem discounts in shopping and travel from groceries to oil changes on cruise ships or car rentals and from applebees and arbys. the "product" is a discount memebrship club. ***Side note...Sams Club and Costco are set up similar...you pay a yearly fee to receive discounts on computers and televisions and tuna fish. You can also geta referral fee for signing somebody else up with Sams Club.

can you dispute the fact that conceptually there is not much difference between Sams club paying a member a referral fee for bringing Sams Club another customer and a MLM based on offering discounted prices on everyday items paying distributors on recruiting other distributors?

If i were to take the jump in, it would only cost about the same price as my gym membership a month. i have invested in rental properties that cost 20k but i cash flow 400/month. so im approaching this in a more business sense...my inner monologue is asking myself "how much disposable income would i need to invest to create a system that can produce passive income around 400-600 month? can i build a squeeze page to filter out the believers and non believers? how much to market the page to get decent amount of sign ups?"

idk im just thinking...thoughts...
#mlm #possibilities #thread
  • Profile picture of the author JohnMcCabe
    Color me cynical, but that sounds just like the Amway spinoff that's been around for years, and your post sounds like a presell trolling for people to ask you about it.
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    • Profile picture of the author Roscoe4
      Originally Posted by JohnMcCabe View Post

      Color me cynical, but that sounds just like the Amway spinoff that's been around for years, and your post sounds like a presell trolling for people to ask you about it.
      im not even a member...
      i have nothing to offer...
      dont ask me for anything...

      hope that will clarify any confusion...
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    • Profile picture of the author Steve B
      I am always very cautious about being involved with MLMs. I've made it no secret that I don't like them. I don't personally know anyone that has ever made a full time income from the business model. Now I'm not saying it can't be done . . . I know there are people that have made it work. But typically, it seems that the owners (early adopters, family, friends, etc) are the ones making the money on the back of all the downline members that do most of the work but never receive their due.

      In this case, I have to ask, what's the difference between joining "the discount club" and simply using my Costco or Sams Club membership to get my discounts? Is there an ongoing monthly fee to be a member of the club? I don't see the benefit.

      Regardless of what they are, MLMs operate on the basis of the downline paying those above them when they join. In most cases, however, the downline isn't successful in the business, they leave, and the matrix then crumbles from the bottom up.

      Even though your monetary investment may be small, your time (when you could be growing a real business) is precious ... so choose what you do wisely!

      Good luck to you,

      Steve
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      • Profile picture of the author reachintan
        so damn true...!!!

        A hard reality of downline or mlm business.

        Originally Posted by Steve B View Post

        I am always very cautious about being involved with MLMs. I've made it no secret that I don't like them. I don't personally know anyone that has ever made a full time income from the business model. Now I'm not saying it can't be done . . . I know there are people that have made it work. But typically, it seems that the owners (early adopters, family, friends, etc) are the ones making the money on the back of all the downline members that do most of the work but never receive their due.

        In this case, I have to ask, what's the difference between joining "the discount club" and simply using my Costco or Sams Club membership to get my discounts? Is there an ongoing monthly fee to be a member of the club? I don't see the benefit.

        Regardless of what they are, MLMs operate on the basis of the downline paying those above them when they join. In most cases, however, the downline isn't successful in the business, they leave, and the matrix then crumbles from the bottom up.

        Even though your monetary investment may be small, your time (when you could be growing a real business) is precious ... so choose what you do wisely!

        Good luck to you,

        Steve
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        Chintan Mehta

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  • Profile picture of the author onSubie
    Just make sure the prices you pay in the "discount club" are actually cheaper than a comparable retail alternative.

    Because they have to pay commissions, many MLM products are priced much higher than you would find at retailers.

    Amway, Market America, ACN, etc. are priced much higher than similar products outside of the MLM program in order to be able to pay out commissions down the line.
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  • Profile picture of the author danieldesai
    Before you get involved with any MLM, I always urge people to ask this simple question of themselves before they even look at the earning potential side of things:

    "Would you buy the product/service even if there was no compensation plan attached to it?"

    I think the best thing an MLM company can do is have an actual product that is priced competitively against other products made by non-MLM companies.

    It certainly makes the ethical aspect a lot more appealing, not to mention that it will be easier to make up your sales volume (I've heard enough people whine about not being able to sell their overpriced juice, membership fees, etc.).

    Regards,
    Daniel
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    • Profile picture of the author Jim Symonds
      Originally Posted by danieldesai View Post

      Before you get involved with any MLM, I always urge people to ask this simple question of themselves before they even look at the earning potential side of things:

      "Would you buy the product/service even if there was no compensation plan attached to it?"

      I think the best thing an MLM company can do is have an actual product that is priced competitively against other products made by non-MLM companies.

      It certainly makes the ethical aspect a lot more appealing, not to mention that it will be easier to make up your sales volume (I've heard enough people whine about not being able to sell their overpriced juice, membership fees, etc.).

      Regards,
      Daniel
      Amen, Daniel!

      I esp liked this part ""Would you buy the product/service even if there was no compensation plan attached to it?"" Yet not many MLM products (that I know of at least) can pass this test for most people. The industry needs to change.
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  • Profile picture of the author Tsnyder
    Originally Posted by Roscoe4 View Post

    this opportunity doesnt sell the "get rich quick" typical home based ideas. it teaches that time is better served building a small team who understand the model rather then 1000 recruits who have a lot of facebook friends.
    Good so far...

    also, another thing that is interesting, the product you are selling, the retail product isnt an actual tangible product like juice or vitamins or something that is boxed up in a basement or garage, its a membership to a discount club where you will be able to redeem discounts in shopping and travel from groceries to oil changes on cruise ships or car rentals and from applebees and arbys. the "product" is a discount memebrship club. ***Side note...Sams Club and Costco are set up similar...you pay a yearly fee to receive discounts on computers and televisions and tuna fish. You can also geta referral fee for signing somebody else up with Sams Club.
    You lost me here. A buyers club membership is not a product as that term is contemplated in relevant regulation and case law. Selling the potential for product... memberships, travel certificates, etc... is a very dicey proposition in MLM. Many of these types of deals have come and gone and still more have been attacked and shut down by government regulators, both state and federal.

    Getting a referral fee for signing someone up in MLM is illegal... PERIOD.

    can you dispute the fact that conceptually there is not much difference between Sams club paying a member a referral fee for bringing Sams Club another customer and a MLM based on offering discounted prices on everyday items paying distributors on recruiting other distributors?
    I can absolutely dispute it and so can every government regulator. Sam's Club legally pays referral fees as part of their marketing budget. They aren't offering to make you their business partner or joint venture partner and giving you the right to sign other associates up to earn overrides on those they refer. Sam's Club also does not pay you a portion of the profit they earn when other members buy their products or overrides on the purchase made by those referred by the people you referred.

    Two different animals governed by completely different statutes and regulations.

    If i were to take the jump in, it would only cost about the same price as my gym membership a month. i have invested in rental properties that cost 20k but i cash flow 400/month. so im approaching this in a more business sense...my inner monologue is asking myself "how much disposable income would i need to invest to create a system that can produce passive income around 400-600 month? can i build a squeeze page to filter out the believers and non believers? how much to market the page to get decent amount of sign ups?"

    idk im just thinking...thoughts...

    MLM is a powerful business model. When done correctly nothing else comes close to comparing... nothing. This isn't that. I have more than 30 years experience in MLM. I've enjoyed a great deal of success. I wouldn't touch a buyers club membership with your ten foot pole. I've never seen one end on a positive note.
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    If you knew what I know you'd be doing what I do...
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  • As someone else pointed out, the ppl who make any sizeable amount of money in MLM is the top 1-2% of the pyramid.
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    • Profile picture of the author Tsnyder
      Originally Posted by Online Revenue Life View Post

      As someone else pointed out, the ppl who make any sizeable amount of money in MLM is the top 1-2% of the pyramid.
      That is a statement that says absolutely nothing about MLM.

      The people who make sizable money in ANY business are the top few %.
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      If you knew what I know you'd be doing what I do...
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      • Profile picture of the author Rory Singh
        Yes. Exactly! It doesn't matter if you are selling vitamins, digital products or even Real Estate.

        The top 3 to 5% are the one's who will always make most of the money.

        I had a conversation with my real estate agent and my mortgage broker a while back. I asked them if all the real estate agents in my area make a full time income.

        They told me that most of the agents are only 'part time'.

        They also told me that the top 5% of real estate agents are the reps who make the most money and who are full time.

        Most of the other reps are doing it on the side for some reason.

        I asked them why is that?

        They told me that the top 5% are willing to go that extra mile to get what they want while the 'average' real estate agent isn't.

        And finally...

        They said that I most likely know who the top realtors are...the one's who have huge ads all over the place.

        Go figure!

        Originally Posted by Tsnyder View Post

        That is a statement that says absolutely nothing about MLM.

        The people who make sizable money in ANY business are the top few %.
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  • Profile picture of the author Rory Singh
    It sounds like you are asking marketing questions in regards to an MLM.

    If you are looking for an MLM to market online, I would suggest to you to find one that 'incorporates' all the technical stuff like lead capture pages, autoresponders ETC in one system.

    Yes you can learn all that technical stuff later on your own but if you do find the right system, you can spend MOST of your FOCUS on building traffic.

    Most people fail online because they are trying to learn too many different things and not being able to master 'one'.

    Originally Posted by Roscoe4 View Post

    If i were to take the jump in, it would only cost about the same price as my gym membership a month. i have invested in rental properties that cost 20k but i cash flow 400/month. so im approaching this in a more business sense...my inner monologue is asking myself "how much disposable income would i need to invest to create a system that can produce passive income around 400-600 month? can i build a squeeze page to filter out the believers and non believers? how much to market the page to get decent amount of sign ups?"

    idk im just thinking...thoughts...
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