Why can't the core theory of MLM work?

76 replies
Just got an email from someone promoting some high, HIGH ticket MLM product.

From what little I know, the best chance a legit MLM has is selling products the customer would use daily ANYWAY, with or without the business opportunity.

The concept seems simple. Its almost like profit-sharing or being on a board of directors.

Company has a product and returns bulk of profits as reward in several ways.

1) like wholesalers, if you buy in bulk and use a certain amount for personal use, you get a discount rate

Like a rebate or reward for continued use of the product, longevity reward, and amount of usage.

2) Promoting a product you already use everyday anyway, you get upfront reward plus a percentage that is realistic that would not hurt the company but reward you like a commission salesman

3) This "shared" co-owner, shareholder, commission salesman, wholesaler, bulk rewards user,board member is given to all users of the product.., so you are both consumer and potential salesman, option only.

That means you are not just an employee but have a stake in the company, why can't a percentage of businesses operate in good faith like this? Of course it is the business owners option.

But a profit sharing model gives more stake in it to the employee/consumer/potential commission salesman/potential business builder.

The way Apple has open source for some of its products, so if the consumer of said product has an idea to create something, Apple says, "hey, lets split the profits".

The consumer is now a developer without being on the payroll and gets a commission for his invention, recurring income.

Now how great is that?

The CONSUMER creating off-shoots of the product they want to put cash in your companies pocket. Now, all the consumers are potential developers, unending number of product developers, little factories not on the payroll making what they want and pay YOU for it.

So whether you option for the business side of it, or simply use MORE of the product because you like it, you win, the company wins.

Since most only want to see the bulk profits in their pocket , trying to get as close to or better than 100% or more profit, or like the health care industries, 1000's% profit, these models are not the owners liking.

Maybe a business owner first starting out seems legit to get as much profit as possible.

But once you become a multi-million or billion dollar company, hey, how about the next subsidiary company you build, you give back to your loyal employees and consumers, and can STILL make a profit?

Pension funds would be unnecessary to most as most become profit-share holders/business builders. At a certain level, one can then finance their own medical, dental, vision, pension, unemployment, etc.

Thats what world economies need, employees/business owners, not mules and slaves dependent on someone to hire them....this model would also bleed into the education system, the cause of folks that even have multiple degrees to " look for a job ", not build or create one.

It would seem to help everyone.

Might even work for businesses on the start-up, who knows.

I will now stop smoking my mushrooms.

The 13 th Warrior
#core #mlm #theory #work
  • Profile picture of the author LMC
    Dude don't know about the MLM thing,

    but you have my two favorite clips in your sig, so just wanted to give you props.
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  • Profile picture of the author Slin
    MLM does not work because the product is always being sold for as more then it is worth.

    This is to pay commission on the product. Problem is let's say you are selling the product to other people, they have no reason to buy it, but ah! Then you point out they can make money selling the product, in fact with two sells it pays for itself!

    And they sell, you get money, they get money, until finally you can't find anymore buyers, nether can they, now the guys at the bottom are losing money! They quit! The next guys are losing money! They quit!

    And all the way up, all MLM's seem to end this way, the ones that stay around (Noni and all of them, totally just forgot the names) change their system so that it is not so MLM anymore.

    Don't get involved..
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    • Profile picture of the author Tsnyder
      Originally Posted by Slin View Post

      MLM does not work because the product is always being sold for as more then it is worth.

      This is to pay commission on the product. Problem is let's say you are selling the product to other people, they have no reason to buy it, but ah! Then you point out they can make money selling the product, in fact with two sells it pays for itself!

      And they sell, you get money, they get money, until finally you can't find anymore buyers, nether can they, now the guys at the bottom are losing money! They quit! The next guys are losing money! They quit!

      And all the way up, all MLM's seem to end this way, the ones that stay around (Noni and all of them, totally just forgot the names) change their system so that it is not so MLM anymore.

      Don't get involved..

      See... the problem with making general statements is that you will
      always be wrong... as you are with your generalization that all MLM
      products are overpriced in order to pay commissions and bonuses.

      In fact, the product I represent via an MLM is about 1/3rd to 1/5th the cost
      of lower quality products readily available in the market.

      In addition, there are several products distributed via MLM companies
      that are the #1 selling product in their category... in America. It's hard
      to imagine they'd have that kind of success with overpriced products.

      If you'd like to know more there's a link below...

      Tsnyder
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      • Profile picture of the author The 13th Warrior
        Originally Posted by Tsnyder View Post



        In fact, the product I represent via an MLM is about 1/3rd to 1/5th the cost
        of lower quality products readily available in the market.

        Looks like you are trying to sell good products to your customers...some MLM'ers only look for how much they can make, and for them, screw the customers and their downline.

        They simply summarize that is the way business is and always will be....not true, it does not have to be that way.

        Whether fruitful or not, some people consider this "self-righteous" or " moralizing"...., hey, whats wrong with attempting to have a conscious?

        Doing so its pointless and is non-pragmatic, so they conclude, so why waste time on a moot point?

        " Do unto others...", and all that useless jazz. This is business.

        Looks like you are the few that attempt to have a conscious.

        The 13 th Warrior
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  • Profile picture of the author Tsnyder
    Oh... and Slin... your assertion that MLM does not work is laughable.

    Tsnyder
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    • Profile picture of the author Alexa Smith
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      • Profile picture of the author The 13th Warrior
        Originally Posted by Alexa Smith View Post


        Just out of interest, do you mind sharing the name of the "high, HIGH ticket MLM product" about which you received the email? :confused:

        Carbon Copy PRO



        The 13 th Warrior
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        • Profile picture of the author Alexa Smith
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          • Profile picture of the author The 13th Warrior
            Originally Posted by Alexa Smith View Post



            "Carbon Copy Pro" is a funded proposal system for a company called Wealth Masters International, which isn't MLM.


            If you are saying that because it is an " interactive educational " product, maybe.

            Look what people pay for college.

            But I would be more comfortable promoting something " CONSUMABLE ", stuff people would use normally anyway.

            This is kinda greyarea product, to me, although its guarantee of what it can minimally benefit is the same as a 4 year college education.

            Like that woman who sued some college because she paid $70,000, graduated with a degree or something , and could not find work for the longest time, trying to pay her college debt, or some story like that.

            The 13 th Warrior
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            • Profile picture of the author Alexa Smith
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              • Profile picture of the author The 13th Warrior
                Originally Posted by Alexa Smith View Post


                WMI is not registered as an MLM company. It isn't licensed as an MLM company. It isn't regulated as an MLM company. Its marketing materials all state openly and clearly "We are not an MLM company". Its compliance department will tell you that it isn't an MLM company. Any regulator will tell you that it isn't an MLM company.

                It has nothing to do with what the products are.


                I really don't care what its registered as, licensed as, what the compliance department says, or what the regulator says..,if the methods and results are parallel to MLM, legally defined as such or not, what does it matter?

                Slight differences, similar results.

                In MLM, the main sell and profit is getting others to sell others, to sell others, etc., mostly 97% of it is selling the sell. The strength of the product, on its own, is not much profit when sold and/or a product one would not normally choose or even be in the top ten of products chosen for the sellers personal use.

                This non-MLM , as you say, main money is made by selling the various levels of packages to people. Someone else assigned to the leads you generate is supposed to do the hard selling , but to get credit for their conversions, you have to BUY the product 1st, first level being around $1500-2000.

                No mention or proof that the product , in and of itself, is enough for one to generate income. It is simply alleged that the product can do this for you.

                Oh, and if the marketers that are assigned to hard sell the leads your cloned website gets, if that lead buys the level 3-$20,000 or more, if you did not buy that product, you don't get the credit or commission of that sale.

                Also, no explanations, examples, proof of income and description of the educational tools they allude can make anyone successful in marketing.

                No examples of how the "educational products", by itself, can generate the buyer income by the information contained there in.

                Just because they don't fit the technical definition and legal status of a MLM, the shoe fits just the same.



                Originally Posted by Alexa Smith View Post


                If you'll excuse the observation, you've started a thread here specifically and expressly to denigrate the core concept of MLM but you seem not actually to know what an MLM company is.
                If you re-read it, I was exploring why the principle theory of MLM, which if you read, sounds great in concept, is not being implemented to its best and most honest course.

                If you carefully read , I wanted to get some feedback on the most honest MLM that is being practiced in principle or if it CAN be practiced in principal in the real world, mathematics and all.

                I am speaking of principles and parallels, not technically defined exact semantics. I'll leave that for the debate freaks.

                Scientist say, after DNA test were done, that a chihuahua has DNA more close to a Rat than a Canine.

                In fact, they say the chihuahua has NO CANINE DNA whatsoever.

                So technically and semantically, to be specific, accurate and exact, perhaps we should put it in the Rodent family..., the first RAT that barks like a dog and raises its leg by a fire hydrant when nature is a callin, .......jesus christ....,

                The 13 th Warrior
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    • Profile picture of the author bgmacaw
      Originally Posted by Tsnyder View Post

      Oh... and Slin... your assertion that MLM does not work is laughable.
      And your assertion that it works without ripping off most of the people involved in one is laughable.
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  • Profile picture of the author phil.wheatley
    I did MLM for a while, sorry in advance for sweeping statement, but it sucks. You make money by peddling crap to other people in your downline, and then they peddle more crap to their downline. It made me laugh when the top mlm dude said "this is not a pyramid scheme" - that's like when the pilot of a plane gets on the tannoy and says "Ladies and Gentlemen, there's nothing to worry about".
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    • Profile picture of the author Tsnyder
      Originally Posted by phil.wheatley View Post

      I did MLM for a while, sorry in advance for sweeping statement, but it sucks. You make money by peddling crap to other people in your downline, and then they peddle more crap to their downline. It made me laugh when the top mlm dude said "this is not a pyramid scheme" - that's like when the pilot of a plane gets on the tannoy and says "Ladies and Gentlemen, there's nothing to worry about".
      Phil...

      With all due respect your post tells me that you really know
      absolutely nothing about how legitimate MLMs operate.

      I peddle nothing to those in my downline. I have many actual
      retail customers using my product/service. None of them think it's
      crap.

      That's how real businesses operate, init?

      Tsnyder
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      • Profile picture of the author The 13th Warrior
        Originally Posted by Tsnyder View Post


        I have many actual
        retail customers using my product/service. None of them think it's
        crap.
        I think that is the key right there for legit success without scamming customers.

        They are going to use the product anyway, with or without the "make money" opportunity.

        The 13 th Warrior
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    • Profile picture of the author mr2monster
      Originally Posted by phil.wheatley View Post

      I did MLM for a while, sorry in advance for sweeping statement, but it sucks. You make money by peddling crap to other people in your downline, and then they peddle more crap to their downline. It made me laugh when the top mlm dude said "this is not a pyramid scheme" - that's like when the pilot of a plane gets on the tannoy and says "Ladies and Gentlemen, there's nothing to worry about".
      Sounds like affiliate marketing as most affiliates choose to do business... Doesn't mean that ALL affiliates are guilty of just "peddling crap".

      Sounds like info-product creation as a whole lot of product creators choose to do business... Doesn't mean all info-products are "crap"


      There's a dark side to every business whether it be retail, wholesale, multi-level, affiliate, on the internet, off the internet, person to person, business to business, business to person or person to business.

      The end result is always dictated by how you choose to run your business, no matter what type of business you're doing.
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    • Profile picture of the author JazzOscar
      Originally Posted by phil.wheatley View Post

      I did MLM for a while, sorry in advance for sweeping statement, but it sucks. You make money by peddling crap to other people in your downline, and then they peddle more crap to their downline.-----
      I have to take Tsnyder's side in this discussion.

      Phil, you say that you did MLM for a while, and, from the rest of what you say, you also seem to admit that you were peddling crap.

      I have two questions for you;
      • Where were your good business judgement when you decided to peddle crap?
      • Where were your business ethics when you decided to peddle crap?
      How can you expect to be successfull selling a product you don't believe in to customers very soon finding they don't believe in it either, expecting them to keep the deceitful operation rolling?

      Sure there are lots of crappy MLM opportunities around. Sure there are some top MLM marketers earning money on those opportunities. The reasons for them earning money, apart from being good at selling, are, as far as I can see;
      • They usually enter the MLM at the top level, or very early on.
      • They have a somewhat lacking judgement when it comes to business ethics.
      So, there surely are people in MLM earning money by peddling crap, but why should we try to fall down to their level? Be very causious in the nearness of people like that, however monetarily successfull they might be.

      I once bought into an opportunity that gave the impression of having a product of value. When I found this not to be the case, I took my loss, the unrefundable setup fee, and left. I couldn't stay in something where the only way I could earn money was what I looked upon as deceiving people.

      In contrast to the above mentioned crap filled opportunities, you have MLM opportunities with products that are quality products in their own right. For the companies offering these products, the MLM model is the vehicle for selling them, thereby adding an opportunity side to what they have to offer their customers.

      I'm a GVO (earlier Kiosk) customer/member, and have been so for 2 years now. I became a customer because I needed hosting and liked what they had to offer. The MLM side of their business was not very important for my decision to go with them.

      I'm still not sure whether I'm going to be a very active promoter of their new offering as GVO. What I know, however, is that I would not be ashamed at all to sell their product, MLM or not. Their's is the kind of MLM opportuny serious business people look for.

      If you want to go for MLM oportunities my points are;
      • Look upon it as serious business.
      • Have your ethical judgements in place.
      • Treat your customers in a way that would not make you uncomfortable meeting them face to face.
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  • Profile picture of the author Tsnyder
    We've had this pointless discussion many times on this forum.

    Those of us who treat the business like professionals would treat
    any business know the truth and the facts.

    Those of you who dipped your toe in the water and failed to do
    your due diligence on companies, products or sponsors are entitled
    to your opinions but please don't tell those of us who know better that
    your opinions should be taken as facts.

    The funny thing is all the naysayers are, themselves, engaged in a business
    (IM) that surely has a greater failure rate than MLM.

    Tsnyder
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  • Profile picture of the author phil.wheatley
    Tsnyder

    I don't think we doubt it doesn't work, I know for sure that you can make money doing it. But honestly, does it feel like a real business to you? Something sustainable long term. You're absolutely right, many other methods are more difficult and take more effort, like product creation, but when you stick at it and get it working, it will be more rewarding and long term. Do you honestly feel goodby calling up people and coaxing them into buying crap?

    Well, ok, maybe I'm showing my ignorance, and didn't spend enough time in it, but that is because I just didn't feel comfortable doing it. I mean, the guy who introdiced me to it, make plenty money because I spent 300 fkin bucks on stuff I'd never heard of, the sales videos were really slick, and I got taken for a ride.

    So, please tell me how it is supposed to happen and how it benefits people? And that is not supposed to sound sarcastic, I honestly want to see if I missed the point?
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    • Profile picture of the author Tsnyder
      Originally Posted by phil.wheatley View Post

      Tsnyder

      I don't think we doubt it doesn't work, I know for sure that you can make money doing it. But honestly, does it feel like a real business to you? Something sustainable long term.
      I built a huge business with a company in the mid to late 80's. I haven't
      been actively involved with them since 1991. I still receive my monthly
      residual checks. I'd call that sustainable long term. I'm in the process of
      building another at this moment. It, too, will produce long term residual
      income when I'm done.

      You're absolutely right, many other methods are more difficult and take more effort, like product creation, but when you stick at it and get it working, it will be more rewarding and long term. Do you honestly feel good by calling up people and coaxing them into buying crap?
      How many good marketers or business owners do you know who call people
      up and coax them into buying crap... or anything? You're in the business of
      marketing... at least I assume that to be true by your presence on the best
      marketing forum on the planet... do you call people up and coax them into
      buying your crap? Neither do I.

      Smart marketers are looking for people who are looking for what they offer... right?

      Why would I call anyone else?

      Well, ok, maybe I'm showing my ignorance, and didn't spend enough time in it, but that is because I just didn't feel comfortable doing it. I mean, the guy who introdiced me to it, make plenty money because I spent 300 fkin bucks on stuff I'd never heard of, the sales videos were really slick, and I got taken for a ride.
      Sadly... your story happens too frequently. Hence the poor opinion some
      have of the business model. Yes, there are charlatans in MLM. But, they're
      everywhere... even on this forum.

      People considering businesses should stop thinking with their wallets and start
      using their heads.

      So, please tell me how it is supposed to happen and how it benefits people? And that is not supposed to sound sarcastic, I honestly want to see if I missed the point?
      How it's supposed to happen is no different than any other business with the
      exception that when it's done correctly there is a great support team in place to
      assist the new associate.

      Tsnyder
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  • Profile picture of the author DogScout
    even if 99% of MLM formats are set up wrong does not mean it cannot be set up right. In any multiple streams of income scenario, it has it's place. (IMO). Like any opportunity it takes research and due diligence and is not for everyone. Neither is real estate or being a lawyer. if it it not for you, do not include it in your MSOI.
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  • Profile picture of the author phil.wheatley
    sorry, I'm being silly now, but here's Bill Hicks talking about MLM ;-)

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  • Profile picture of the author debra
    The only problem I have with MLM is that they force you to be the consumer too in order to recieve a commission for sales.

    And...at the current setup...the math doesn't work. There are only so many specific product users out there. And if they are also forcing you into a consumer/distributor position, the majority of the downlines will be never even come to a break even point.
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    • Profile picture of the author The 13th Warrior
      Originally Posted by debra View Post


      The only problem I have with MLM is that they force you to be the consumer too in order to recieve a commission for sales.

      And...at the current setup...the math doesn't work. There are only so many specific product users out there. And if they are also forcing you into a consumer/distributor position, the majority of the downlines will be never even come to a break even point.
      There may be some truth to what you said.

      It should not be about "force".

      It should be, " I already use this brand toilet paper anyhow, why not have the option to do more?"

      The 13 th Warrior
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    • Profile picture of the author Tsnyder
      Originally Posted by debra View Post

      The only problem I have with MLM is that they force you to be the consumer too in order to recieve a commission for sales.

      And...at the current setup...the math doesn't work. There are only so many specific product users out there. And if they are also forcing you into a consumer/distributor position, the majority of the downlines will be never even come to a break even point.
      You've been looking at the wrong MLMs

      Tsnyder
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    • Profile picture of the author Silas Hart
      I believe that MLM would work in theory, but the reality is, the type of people MLM'ing appeals to are, well, lazy people who concentrate on the theory of it, not the reality.

      I did PPL for a while, I still receive checks from them once every 6 months, getting less and less. When it came time to request one of my PPL attorneys to send out a legal letter, they didn't go through. Then I stopped. It was all about getting people signed up under you, not selling the actual product.
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      • Profile picture of the author Tsnyder
        Originally Posted by FaJeeb View Post

        I believe that MLM would work in theory, but the reality is, the type of people MLM'ing appeals to are, well, lazy people who concentrate on the theory of it, not the reality.

        I did PPL for a while, I still receive checks from them once every 6 months, getting less and less. When it came time to request one of my PPL attorneys to send out a legal letter, they didn't go through. Then I stopped. It was all about getting people signed up under you, not selling the actual product.
        More nonsense...

        I'm not a lazy person and I won't sponsor a lazy person. If they fool me
        and turn out out be lazy they either get over that quickly or figure out what
        to do on their own. I won't waste time with them if they don't want to
        work.

        To me it's like a chess game... I move, you move, I move, you move. If I
        move three times and you don't move... game over. I will spend whatever time
        an associate needs to support them but I'm not in the business of dragging
        people across the finish line.

        As for PPL, I've had a membership for many years... I don't sell it... and
        I couldn't be happier with the service.

        Tsnyder
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        • Profile picture of the author Scooter2084
          I find it rather interesting that a lot of MLMer's use the phrase that "98% of network marketers fail". They usually go one to lead into how they will help you be in the 2% that do not but...

          Is this really due to them or is because the overall system is designed that way...
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          • Profile picture of the author Tsnyder
            Originally Posted by Scooter2084 View Post

            I find it rather interesting that a lot of MLMer's use the phrase that "98% of network marketers fail". They usually go one to lead into how they will help you be in the 2% that do not but...

            Is this really due to them or is because the overall system is designed that way...
            People fail at all kinds of things for all kinds of reasons. I have never
            failed any network marketing because I know and understand that real
            businesses run on real products being sold to real customers... and I teach
            that truth to my associates.

            MLM is obviously not designed to fail... there are several companies doing
            billions of dollars in annual sales and many more doing hundreds of millions.

            I would also challenge the notion that most peple fail... how can you fail
            at something you never really started? I liken it to all the IMers who have
            several gigs of stuff gumming up their hard drives that they've never bothered
            to read. Stuff that would make them money if they'd read it and implement
            the methods and strategies. Do they fail... or do they just never get started?

            Tsnyder
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  • Profile picture of the author Sosu
    I don't want to sell my Mom over priced fruit juice, mail my pee, or have secret parties where I jump out and yell surprise its MLM...

    But the concept is good and I'm thinking about running something like MLM on a project I'm working on.
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  • Profile picture of the author getsmartt
    naah MLM could never work....

    ever hear of

    Amway
    Avon
    Tupperwear
    MaryKay


    could go on for quite a while about companies that are successful in Multi-Level Marketing. The people that are successful are the ones that treat it like a business, they sell to their customers, show the the value in the product, convert them to their down-line, and work with them to make them successful
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    • Profile picture of the author Silas Hart
      Originally Posted by getsmartt View Post

      naah MLM could never work....

      ever hear of

      Amway
      Avon
      Tupperwear
      MaryKay


      could go on for quite a while about companies that are successful in Multi-Level Marketing. The people that are successful are the ones that treat it like a business, they sell to their customers, show the the value in the product, convert them to their down-line, and work with them to make them successful
      That's true, I take back my broad generalized statement.
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    • Profile picture of the author Fun to Write
      Originally Posted by getsmartt View Post

      naah MLM could never work....

      ever hear of

      Amway
      Avon
      Tupperwear
      MaryKay


      could go on for quite a while about companies that are successful in Multi-Level Marketing. The people that are successful are the ones that treat it like a business, they sell to their customers, show the the value in the product, convert them to their down-line, and work with them to make them successful

      I'd stay away from Amway - lots of motivational hype and high pressure to sign people up. I've seen this up close.

      As for those other companies. They have well respected products that rely on independent sales reps. These sales reps aren't pressured to bring others in. Much more friendlier, and I don't consider them traditional MLM companies at all.

      Most MLM is built on hype and more hype - and they are masters of using motivational techniques to keep people mesmerized by the opportunity. And, of course, when someone fails to sell their over-hyped opportunity (I mean products) to others then that means they are total failures (according to MLMers).

      Pffuft!

      MLM sucks.
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      • Profile picture of the author Tsnyder
        Originally Posted by Fun to Write View Post

        I'd stay away from Amway - lots of motivational hype and high pressure to sign people up. I've seen this up close.

        As for those other companies. They have well respected products that rely on independent sales reps. These sales reps aren't pressured to bring others in. Much more friendlier, and I don't consider them traditional MLM companies at all.

        Most MLM is built on hype and more hype - and they are masters of using motivational techniques to keep people mesmerized by the opportunity. And, of course, when someone fails to sell their over-hyped opportunity (I mean products) to others then that means they are total failures (according to MLMers).

        Pffuft!

        MLM sucks.
        What really sucks is people who spout nonsense on forums as if they
        actually know what they're talking about... know what I mean?

        Those other companies are most definitely MLMs. They most definitely
        recruit people to sell their products and they earn overrides and bonuses
        on those sales.

        As for Amway... a lot has been said, good and bad, about them. They're the
        biggest player in the game (BILLIONS in annual sales) and they actually had the
        guts to take on the FTC and won!

        Oh... and they have the largest selling brand of nutritional products ON THE PLANET.

        I think they might be doing a few things right but they make an easy target.

        Tsnyder
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  • Profile picture of the author Fun to Write
    MLM is not a business but a "business opportunity".
    Most people get sucked in by the chance to make money on promoting products they are always told everybody wants.

    Yeah, and then the truth is revealed that nobody wants them except those interested in the "income opportunity". The one exception I'll make is Watkins who sell all kinds of food and household stuff that's good quality. It's possible to make money just from customers who only want their products. Only a tiny percentage of MLM companies have these types of products.

    Even then, most people find out that they don't like selling or bugging others to buy their MLM wares. The MLM top dogs always hype it up, get you sucked in, then you realized that in order to make the big money, you've got to build a huge downline and move tons of product.

    Most people just can't do this - and NO this doesn't mean they are losers.

    It means this type of opportunity is not really for them i.e. direct SELLING.

    I believe anyone truly successful with these MLM companies are good at making direct sales, and motivating people. Not skills the average person has, or wants to have.

    Plus, I agree that the bottom of the downline often collapses. Trust me, many people who are at the top of pyramid will move their downline to the next big thing as soon as they sense their "wonderful opportunity" is going to go bottom up.

    I too will never get involved with MLM again, and recommend others stay far away.
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    • Profile picture of the author John Rogers
      Originally Posted by Fun to Write View Post

      MLM is not a business but a "business opportunity".
      MLM is a distribution method. And when implemented properly, it's a distribution method that works quite well. (no, I'm not in MLM)

      MLM is no more a business than internet marketing is a business.

      John
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  • Profile picture of the author actionplanbiz
    Its not the MLM that Makes it work, although it does influence it, its people that makes it work.

    Just like any other affiliate program That many are successful with. but some seem to struggle with it.

    Nothing works for Everybody, but Everything works for somebody
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  • Profile picture of the author Success With Dany
    Banned
    This is how you make mlm work:

    1- You suspend your (expensive) auto-ship. Better, you don't join a mlm YET.

    2- The money you saved from suspending auto-ship or from not buying a starting kit goes into investing a mlm system like Magnetic Sponsoring, Ann Sieg's, Budd's, there are a lot of them in the market. You research and you pick.

    3- You apply and take action on all the Internet marketing lessons taught in such systems. Articles video, forum, pay-per-click, EVERYTHING because hey, the system costs a monthly fee and you want to maximize your money.

    4- Your market to OTHER NETWORKERS ONLY, from every company under the sun including yours.

    5- Struggling networkers, seeing that you offer a solution to their mlm woes, sign into the system.

    6- You make money from referrals + extra commissions from mlm-related tools sold from the system.

    7- Eventually, you make enough money to restart your costly auto-ship or you finally buy the kit from your favorite mlm.

    8- A very small percentage will ask what company you are working and then now will be the perfect time to pitch them your mlm. Some will join!

    9- Effortless recruiting!

    10- You continue to help people and you watch your mlm, a totally extra revenue stream, grow by itself.

    Notice you could make money even with no mlm. But there is not a soul on earth that will say no to potential extra residual money.

    If there is, their pants are on fire.

    And THAT is how you make money in mlm in the 21st century.
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  • Profile picture of the author n8
    When you look into joining a MLM company make sure it's the right vehicle for you! A lot of people fail because the person that sponsored them in doesn't give them all tools they need to succeed. A lot of people get frustrated after 2 weeks when their friends and family stop returning their calls because they just joined a company that will make them a million dollars in 6 months, even though they know you do not have any previous knowledge in the industry. MLM shouldn't be a get rich quick scheme you need to go back to school per say and learn the process. A lot of people spend 80,000 on a degree and after 4 yrs of school are happy to make 50,000 a year. Don't expect to go to 4 meetings and listen to 6 calls and wonder why you aren't getting $10,000 checks in the mail Another thing we see time after time is teachers always make the best progress, those in a sales background seem to struggle until they learn the word sponsor and get the word recruit out of their vocab. If you can sponsor 3 people and show those 3 people how to sponsor 3 people so on and so forth, you are building a foundation to your home based business if you go out to recruit and recruit and wonder why your downline is quitting and getting frustrated it time to look in the mirror! Good luck with what ever you choose!
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  • Profile picture of the author Mike Murphy
    Oh the MLM debate.....

    I'm VERY close to the MLM scene. Not in it personally but let's say many people very close to me are in a certain MLM. I hated it at first and still admit that it (like anything else) has it's strong and weak points.

    By examining the top earners in a specific MLM based company, I was able to make a few observations.

    1) The ones that treat it like a real business have a better chance of succeeding.

    2) Damn near EVERY business is an MLM of sorts (and companies that Franchises is an MLM with fewer levels)

    3) The key to long term success in MLM is to look at what the company itself is trying to achieve and then find a way to provide it to them that also fulfills your needs.

    Many simply profit off the reps ordering stock....the reps get awards/prestige/title for moving large volumes of stock so they go crazy and order a ton of stock (that they never sell).

    They've taken the ML out of MLM. Cast your net wide, recruit like crazy and weed out the turkeys. Speak to the many to find the few as they say.

    30 reps running like a business beats 100 running like a hobby any day.
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  • Profile picture of the author DogScout
    1st, if your 'upline' is suggesting you sell to your family, they are not thinking long term and you have the wrong upline. In the car biz, it was "if you cannot XXXX your family, who can you?"

    Wrong mind set. MLM can be a great way to be mentored with the right sponsor and the sales techniques for those that have never realized they sold, no matter what they did, can be used in any business and vice versa.

    It is one of what you want to be multiple streams of income. Just because I cannot write and every time I do some article directory deletes my articles and my ex was a writer and took me for everything...doesn't mean article writing is not a good choice for a one business model.

    If you take it with the mindset that whatever you get out of it, you you deliver 2-10 times the value to it, you will be unstoppable. If new people freshly out of work need income to feed their families and are unable to reproduce Ewen Chia's 80k in a week, if they are part of your down line, you can help show them whole new way(s) to earn a living.

    Sure, there are those that take advantage, (there are those that do that in every IM category!...I Know, been on the wrong side many times. I never learn!) And there are those set up so the higher brass get all the perks and no matter how hard you work, it is just rah, rah meeting after discouragement after rah, rah meeting. Don't paint all of one type with a single brush, if business models were human, that would make you a bigot. If it isn't for you, if you do not see the value, if you have decided it cannot work for you, no amount of help will change that mindset and you will become a self for-filling prophecy. In that case, do NOT join a MLM. It will be a waste for you and everyone you touch.

    If you can see how a good MLM set up can be used to teach and help get a person get by, while they learn how to make it a ONE viable long term stream of income, then it is for you. Without alienating your family and friends. To each their own, if it isn't yours do not knock others because it works for them. No greater percent of failures are in MLMs than any other business model. It is possible to fail in any of them given the proper amount of negative thinking.

    To YOUR success, wherever it comes from,
    Mark
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  • Profile picture of the author ArticlePrince
    While I've only been in a couple of MLMs, they can work. The key (in my personal opinion) is that they don't depend on making every single customer a distributor, there's an end. For example, my wife is in an MLM call Scentsy (I think thats spelled right) and she make good money at it. I'm in two (won't post links) that I make money off of. As for earning money from a business 18 years after you stop working on it; we need to hang out more. (Ha I was only 4 in 1991 though :-/)
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  • Profile picture of the author Brad Gosse
    I have some MLM experience as well.

    MLM Looks good on paper. I bought into Xocai healthy chocolate last year. I love the product so it was a no brainer for me.

    I know there are top earners in these companies that live a great lifestyle.

    The business itself is difficult to pull off online. I cracked the code to generating mass lead volume but I am too lazy to call them all on the phone so I put them into an email system. Let's just say the buyers I did get turned out to mostly be adult babies that wanted to tell me their sob stories.

    I gave it a good run and spent a fortune along the way. I don't actively sell it now but I do sell the leads to others now and I still enjoy the chocolate (my doctor told me to eat about the exact volume they autoship for blood pressure).

    What I learned helps me work with my MLM clients better. I speak their language and know their needs better than a marketer with no MLM experience.

    My time is better focused helping people with their marketing, teaching and creating products than it is flogging a business opportunity in MLM.
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    • Profile picture of the author Scott Ames
      Originally Posted by Brad Gosse View Post

      I have some MLM experience as well.

      MLM Looks good on paper. I bought into Xocai healthy chocolate last year. I love the product so it was a no brainer for me.
      That is good stuff. I've tried it at a booth once and even bought a bottle.
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      • Profile picture of the author Scott Ames
        MLM works.. but not for everyone.

        I've seen people go from zero to $7,000 a month within a few months, but they are certain types of people. They are the "go getters" and rejection doesn't phase them. You have to have a thick skin.

        One of my friends makes over $200K a year in one MLM , but she is as aggressive as can be. She doesn't even know the word "no" or refuses to hear it. I've gotten in arguements with her over simple things because she refused to hear my "no".

        What really works is owning the MLM. You can make some serious money, however... it's not easy at all. Believe it or not starting an MLM is not a piece of cake like some think it is. It takes lots of money and effort and many fail because they don't get it right.
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        • Profile picture of the author Alexa Smith
          Banned
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          • Profile picture of the author Scott Ames
            Originally Posted by Alexa Smith View Post

            One of my good friends, who is 25, makes over $350K a year from her MLM business and she isn't aggressive at all, quite the opposite in fact. She's totally single-minded, however, that she'll only ever show her business opportunity to people who are already looking for one and ask her, and will never try to persuade anyone.
            I like her already.
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          • Profile picture of the author The 13th Warrior
            Originally Posted by Alexa Smith View Post


            She doesn't do anything difficult or complicated, and isn't a "salesperson" at all. She just does simple, duplicable things very well and very consistently, and is very selective about whom she'll sponsor (I speak as one of her "rejects"!!)
            Why were you considered a reject?

            Sounds like a very good opportunity as described above, why did you not pursue it?

            If the products are competitive and sound, sounds like an astounding opportunity if it matches your description above.

            Especially the part of not needing to be a "salesperson".

            The 13th Warrior
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            • Profile picture of the author The 13th Warrior
              Originally Posted by Brad Gosse View Post


              I bought into Xocai healthy chocolate last year. I love the product so it was a no brainer for me.


              Originally Posted by Brad Gosse View Post


              I don't actively sell it now but I do sell the leads to others now and I still enjoy the chocolate (my doctor told me to eat about the exact volume they autoship for blood pressure).


              Originally Posted by Scott Ames View Post


              That is good stuff. I've tried it at a booth once and even bought a bottle.


              Jesus Christ, now you guys went on and did it.., make me curious as hell as to how good that chocolate is, damn it...,

              I don't think I can rest 'till I get a sample of that stuff.

              Thanks a lot..., dudes...,

              My purchase is going to contribute to the man's volume sales count, now.

              Chocolate and MLM, how can it go wrong?

              Unless it's like selling candy for a candy drive for some school.

              The 13th Warrior
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              • Profile picture of the author The 13th Warrior
                Here's another thing.

                Why can't MLM work like a McDonalds franchise?

                Lets say you go out and get a hot dog cart and are wildly successful at sales selling Brats with grilled onions or something.

                You went to several locations, with almost the identical , equal sales success, people want the grub.

                It's a hit anywhere sold, not a fad.

                So why can't that consumer success be dovetailed into an "Optional" MLM/franchise owner for sale, but only as an option?

                The main sale is selling the good tasting and in-demand brats.

                So like a McDonalds franchise opportunity, you have a solid in demand product, on its own, and an business opportunity.

                The 13th Warrior
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                • Profile picture of the author Tsnyder
                  Originally Posted by The 13th Warrior View Post

                  Here's another thing.

                  Why can't MLM work like a McDonalds franchise?

                  Lets say you go out and get a hot dog cart and are wildly successful at sales selling Brats with grilled onions or something.

                  You went to several locations, with almost the identical , equal sales success, people want the grub.

                  It's a hit anywhere sold, not a fad.

                  So why can't that consumer success be dovetailed into an "Optional" MLM/franchise owner for sale, but only as an option?

                  The main sale is selling the good tasting and in-demand brats.

                  So like a McDonalds franchise opportunity, you have a solid in demand product, on its own, and an business opportunity.

                  The 13th Warrior
                  That's exactly what I do. My best associates have
                  originally been my customers.

                  Tsnyder
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                  • Profile picture of the author The 13th Warrior
                    Originally Posted by Tsnyder View Post


                    That's exactly what I do. My best associates have
                    originally been my customers.
                    Then I say you and DogScout are the man.

                    Products that are competitive and good, by themselves, without the opportunity.

                    The problem is, to the public, MLM'ers all look the same, they can't tell ethical folks like yourselves from the snake oil salesman who would sell a product they either know or don't care is a low quality product for a commission.

                    I think maybe the key is how you guys market the product on the strength of the product , ALONE, like a Consumer Review type, comparisons of price and features vs the several popular competitors.

                    The 13th Warrior
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            • Profile picture of the author Alexa Smith
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              • Profile picture of the author The 13th Warrior
                Originally Posted by Alexa Smith View Post


                I didn't realise it then, but she was actually right.
                Man, I don't know.

                If the opportunity is as you described, unless it was something totally boring that you could not truly put your heart into, even if the product was awesome for that field, or the terms of marketing is not to your liking, seem like one would give it a try, at least.

                Unless it was something like needle point patterns, craft beads, or something.

                The 13th Warrior
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              • Profile picture of the author Ronniebranch
                Originally Posted by Alexa Smith View Post

                She was unwilling to sponsor me because she thought the opportunity probably wasn't an appropriate one for what I was able/willing to do at the time. I didn't realise it then, but she was actually right. (Also, I originally met her online, and she virtually never sponsors anyone "from online".)



                That part's true of all serious, successful MLM opportunities. The people who think it's a "sales job" are among the 95%+ who fail to make a living at it. "Sales skills" are not duplicable enough, and rejection will eventually put most people off, unless you have a simple, duplicable system that's rejection-free.
                Alexa you made some really great comments, You see the vision and clearing as I do... If we come in a MLM business with the mindset of making a fortune we are not going to make it. People know when your after their wallet and have one thing on your mind. There is a right and wrong way to do this business, we just have to learn from the masters who are doing it right and earning a full time living from it. We have to dedicate ourselves to being that Alpha Leader, We become who we surround ourselves with. Just make sure that being around like minded positive motivated people is your focus and to never give up.

                Great comments thumbs up!

                Ronnie Branch
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                • Profile picture of the author Alexa Smith
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                  • Profile picture of the author Ronniebranch
                    My style and I suggest others who are doing a multi level and direct selling business is just be humble and know there is always somebody better then you. Be a good student, keep learning you do not need to know everything.. People don't care how much one knows they just need to know how much you care first.

                    As mentioned previously this is a caring sharing business. Alexa your right the blind do lead the blind. People easily get a bad taste in their mouth because it is easy to get a bad experience joining the wrong sponsor. Knowing that many will not give the honor and respect to build a fantastic income many will be left thinking it just does not work.

                    The real question is do you work? A businessman or woman has to commit and treat this like a real profession. It is the greatest job in the world, just my personal opinion... I love it because of the relationships of friendships you develop.

                    Ronnie Branch


                    Originally Posted by Alexa Smith View Post

                    The absence of doing this has certainly always struck me as one of the common reasons some people don't do too well: they're learning directly from people who joined the month before and are earning nothing. It's very clearly an entirely viable and sustainable business model for people who do learn from the masters who are earning a full-time living from it and do it right. I think in some companies the blind are leading the blind, while others have a proper education/support set-up and avoid that problem at least to some extent.

                    I'm very badly placed to talk about it, in a sense. I've actually learned more about it, just through interest, since dropping out of the "industry" than I ever knew when I was briefly and not very successfully involved in it! (I was in a pretty good company too, I think, but learned the little I learned then from the wrong people).
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  • Profile picture of the author DogScout
    I 'bought in' to an MLM. Was a travel MLM (not the high priced one you see around). I saved double the price I paid to join on the 1st airfare I needed to buy over what I would have had to pay Southwest for a three legged journey. (cross country, then back to Orlando for Bill Glazer seminar then back to DC).

    If I sell that product, I know what they pay will be re-couped even if they do not sell anything. That (to me) is an ethical MLM. And they get those kinds of discounts for life with the one payment!, no monthly fees.

    How exactly is that unethical? If a person flies 3,000 miles in a lifetime, they break even. After that any flights, hotels, cruises, etc are gravy. The product delivers 2-20+ times the cost in value, EVEN if they never sell a position under them. If they are sales oriented and do sell positions, they have a chance to make even more money, but it is not necessary to make the purchase a good one.

    (For those who wonder how they make money doing that, local chamber of commerce chip in, airlines and hotels etc give bulk deals that are split up so you get to still go wherever you want with the discounts most times. Etc.)
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    • Profile picture of the author The 13th Warrior
      Originally Posted by DogScout View Post


      If I sell that product, I know what they pay will be re-couped even if they do not sell anything. That (to me) is an ethical MLM. And they get those kinds of discounts for life with the one payment!, no monthly fees.

      Originally Posted by DogScout View Post


      The product delivers 2-20+ times the cost in value, EVEN if they never sell a position under them. If they are sales oriented and do sell positions, they have a chance to make even more money, but it is not necessary to make the purchase a good one.

      That is the kind of MLM I am talking about.

      These type of deals need to be listed, MLM products that are good on their own, without needing to sell the business opportunity side, only available as an option.

      A product that good as you mentioned above, you HAD to have some noteworthy success with such a good product.

      If its still available with those qualities, you should name it.

      The 13th Warrior
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  • Profile picture of the author hotftuna
    MLM can work- but in order to make a profit, you need to perform well above the average participant in the group. Here's why-

    Let's exclude sales to folks outside the group of reps for this example. Let's say that there are 1000 reps. They buy 2 mil in products per year and their upline get 1 mil in commissions per year. That means that the average rep spends $2000 per year and earns $1000 in commissions.

    Those at the upper levels can make tons.
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    • Profile picture of the author DogScout
      Originally Posted by hotftuna View Post

      MLM can work- but in order to make a profit, you need to perform well above the average participant in the group.
      The 'average participant' does nothing. Same as IM or any opportunity, so that is a no brainier. The question is, is the price of admission off set by what it saves you IF you never sell another person the opportunity. IF it is well done and the prices are brought down by a combination of service provider, people who have a vested interest in the service provided and other means, then an MLM can be valuable without even the money available in creating a down line. If eventually the company reqruits every person in the world that uses that service, the opportunity for the last entrants is limited. BUT if the service saves them the cost of admission as quick as mine did, they still get value over what they paid, hence, though not millionaires, they save a little and do not lose anything.

      Low priced travel MLMs can be very easily successful because chamber of commerce and other business entities like hotels, night clubs, etc chip in to lower travel costs figuring they will make it up in entertainment spent by the traveler. Same reason Vegas will comp travel, room and food to a player. Soap sellers have a much harder row to hoe and so to make up for commisions paid, the items are priced high.

      But think about this, any service that makes you pay to be an affiliate, is basically an MLM in disguise. Lol. GDI makes you pay $10 for a $3.52 service because they automatically make you an affiliate and pay a commission for referral. Some other hosts just sell the domain and hosting at $3.52 and if you want to be an affiliate, you pay an xtra fee. (this is not completely fair as GDI and others allow use of other products and training that regular hosts don't offer, such as cheap auto-responder, etc)

      It is all value related. If you can over-deliver value for every dollar, you will be successful. That's why research in MLM (or any opportunity) is so important. It is possible to deliver value in a good, well put together MLM without the price having to be high to pay commissions.

      That is true of any business. Because an e-book affiliate gets 75%, does that automatically mean the book is crap and over priced because a high commission had to be paid?
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      • Profile picture of the author The 13th Warrior
        Originally Posted by DogScout View Post


        people who have a vested interest in the service provided and other means, then an MLM can be valuable without even the money available in creating a down line.

        If eventually the company reqruits every person in the world that uses that service, the opportunity for the last entrants is limited. BUT if the service saves them the cost of admission as quick as mine did, they still get value over what they paid, hence, though not millionaires, they save a little and do not lose anything.


        Originally Posted by DogScout View Post


        Same reason Vegas will comp travel, room and food to a player.

        But think about this, any service that makes you pay to be an affiliate, is basically an MLM in disguise. Lol. GDI makes you pay $10 for a $3.52 service because they automatically make you an affiliate and pay a commission for referral. Some other hosts just sell the domain and hosting at $3.52 and if you want to be an affiliate, you pay an xtra fee. (this is not completely fair as GDI and others allow use of other products and training that regular hosts don't offer, such as cheap auto-responder, etc)

        It is all value related. If you can over-deliver value for every dollar, you will be successful. That's why research in MLM (or any opportunity) is so important. It is possible to deliver value in a good, well put together MLM without the price having to be high to pay commissions.


        Man, if there ever was a consideration to write a Bible of MLM or Ten Commandments of MLM, this should be in it and you should be a contributing writer.

        If more MLM'ers applied these principles, MLM would not have a such a bad reputation, a smear in character.

        As usual , the bad apples take most of the spotlight.


        The 13th Warrior
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  • Profile picture of the author Loren Woirhaye
    Joe Schroeder says MLM is a "distribution model" - it can
    be applied to lots of types of products and some services
    too. It's very similar to affiliate marketing, though many affiliates
    will bristle at such a suggestion.

    Often the products sold through MLM are way overpriced
    in order to support the bloated pay-plans MLMs use to
    recruit "heavy hitters". It's a bit of a catch-22 = because
    MLMs get distributors mostly on the "make money" appeal -
    which usually results in the product selling at an inflated
    price, which makes value-conscious consumers resistant,
    which makes MLM sales reps more aggressive, which
    makes people think MLM is obnoxious - when in reality it's
    just an area of sales that attracts some obnoxious individuals.

    I've written about it quite a lot - but your opinion is always
    gonna depend on which side your toast is buttered on...
    so to speak.

    In short - people promoting MLMs tend to think they've got
    the greatest things since sliced bread, because it's to their
    benefit to win others over to the same opinion.

    I'm more of the "why would I pay $60 for a bottle of vitamins
    when it's obvious, from the pay plan, that very little of
    my money is going towards making a quality product" school
    of thought. Of course saving money on vitamins is not
    everybody's main agenda - but it's pretty obvious to me
    that I can walk into any health food store and have a lot
    of choice of supplements and things like that... and get
    some excellent quality stuff that I'll wager surpasses the
    MLM products in quality, and usually pay fewer dollars
    than I would if I bought through an MLM distributor.

    The thing than keeps MLM going is that people aren't
    rational - they want to make money at it so they convince
    themselves the product has more merit in the marketplace
    than it sometimes does.

    Nothing I've said applies to all MLMs, just almost all of the
    "wellness" ones.
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    • Profile picture of the author Ronniebranch
      My mentor taught me about petroleum machines and how many food supplements are actually synthetic vitamins that turn to coal tar when you apply heat to them in the oven. Or try taking your local vitamin you would buy and place it in a dark damp place to see if mold grows on it. That would suggest there is no life energy in it and therefore people are getting ripped off buying synthetic vitamins from pharmaceutical drug company's...

      My old company threw me out when I exposed their product line of being synthetic and they owed me $8,000 and did not pay but that is ok I keep smiling, but they changed their comp plan around so many times all my leaders left so I had to rebuild in a different direction over past year... I simply could not promote the business knowing what I know today and thankfully I never have to worry again

      One should never buy a product unless it is accepted in Peer review to prove it is creditable. The money will only circulate and build retention if it is something that people can experience the difference with. I've discovered it is not the marketing hype or ra ra or big leaders joining the next great launch as it all will settle down.

      Just wanted to share some thoughts.


      Ronnie Branch


      Originally Posted by Loren Woirhaye View Post

      Joe Schroeder says MLM is a "distribution model" - it can
      be applied to lots of types of products and some services
      too. It's very similar to affiliate marketing, though many affiliates
      will bristle at such a suggestion.

      Often the products sold through MLM are way overpriced
      in order to support the bloated pay-plans MLMs use to
      recruit "heavy hitters". It's a bit of a catch-22 = because
      MLMs get distributors mostly on the "make money" appeal -
      which usually results in the product selling at an inflated
      price, which makes value-conscious consumers resistant,
      which makes MLM sales reps more aggressive, which
      makes people think MLM is obnoxious - when in reality it's
      just an area of sales that attracts some obnoxious individuals.

      I've written about it quite a lot - but your opinion is always
      gonna depend on which side your toast is buttered on...
      so to speak.

      In short - people promoting MLMs tend to think they've got
      the greatest things since sliced bread, because it's to their
      benefit to win others over to the same opinion.

      I'm more of the "why would I pay $60 for a bottle of vitamins
      when it's obvious, from the pay plan, that very little of
      my money is going towards making a quality product" school
      of thought. Of course saving money on vitamins is not
      everybody's main agenda - but it's pretty obvious to me
      that I can walk into any health food store and have a lot
      of choice of supplements and things like that... and get
      some excellent quality stuff that I'll wager surpasses the
      MLM products in quality, and usually pay fewer dollars
      than I would if I bought through an MLM distributor.
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      • Profile picture of the author The 13th Warrior
        Originally Posted by Ronniebranch;1382258


        My mentor taught me about petroleum machines and how many food supplements are actually synthetic vitamins that turn to coal tar when you apply heat to them in the oven. Or try taking your local vitamin you would buy and place it in a dark damp place to see if mold grows on it. That would suggest there is no life energy in it and therefore people are getting ripped off buying synthetic vitamins from pharmaceutical drug company's...


        Hey, man, thats good stuff, I heard of this before.

        With such strong incentive to buy the product of its own merits, the business side is only an option.

        I think thats the kind of strength the product should have in comparison to others.

        If one could not make money simply from consumers buying it for personal use, then maybe THAT opportunity is one one should not pursue.

        The 13th Warrior
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        • Profile picture of the author The 13th Warrior
          I think if there is a distinctive dividing line between regular business and MLM's is that a regular business attempts to recruit consumers of their product while MLM's try to recruit a 99% consumer base consuming the business opportunity side of the business.

          We all recommended a good movie or lobster/steak house to someone else.

          Why should we not get an incentive or cash benefit for our "word of mouth" advertising?

          Business should use elements of MLM like this :

          All consumers of a product are , depending on purchase rates, automatically get referring income based on their word of mouth, or what not.

          Because most business ask , " How did you hear about us?"

          All consumers of product who who go the extra mile and purchase coupons and other advertising "word of mouth" messages to recommend to others will get an extra incentive.

          These coupons or whatever should be of real, competitive value, fair amount of savings or so.

          We are talking about consumers who are going to use the product anyway.

          We all use toilet paper, ( I hope), and if there was no business opp, we would still use it.

          So why not get credit if someone else buys it on our recommendation?

          And, get ALL credit of future purchase , to some extent , of any thing that purchaser buys, even if its the business op side, we get the commission and/or recurring income of some sorts, after all, our recommendation , that should be our lead in whatever that purchaser buys.

          IPOD already does it with their open source, recruiting product developers not on the payroll , not business ops. Turning consumers into product developers.

          "Help us invent something you want that you would put cash in our pockets?"

          So, like, whats wrong with that?

          The 13th Warrior
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          • Profile picture of the author Alexa Smith
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            • Profile picture of the author Golf Guru
              Originally Posted by Alexa Smith View Post

              Well ...

              I think this analogy is sometimes a bit overstretched by people in MLM, to be honest. I know some companies teach their people to present it as "recommendation marketing" and "word of mouth marketing", and I can see the attraction of a personal recommendation, but there's one huge difference between recommending a movie or a lobster dinner venue and recommending your MLM products that people often miss, I think.

              When you recommend a lobster dinner or a movie, the person to whom you're speaking knows that you're not getting anything out of it at all. With your MLM products, people know the opposite. The reality is that this makes it embarrassing for most people, and they're not willing to do it.

              As my "mentor" puts it, warm-market prospecting only really works if your warm market happens to comprise either people who are already looking for a home-based business opportunity or already wanting to buy those products. And that's just not true of enough people to make it a successfully duplicable model. Therefore, "warm market prospecting" doesn't really work.



              This is very true, but most people don't really know what MLM is, and don't really know what a pyramid selling scam is either. So their opinion that "most MLM's are a pyramid" is no more than ill-informed prejudice, really. (The two are, in fact, mutually exclusive!).
              Well stated Alexa, MLM haters are oft-times small minded or simply uneducated on the topic. Once educated, it is very easy to discern a MLM pyramid scam from a legitimate MLM product/company.
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            • Profile picture of the author Ronniebranch
              Warm Marketing Prospecting does work but it requires a different approach. One may think your family is not interested in the business and that likely is true. I like to think of it this way if we think and care for strangers why can't we care for people close to us? What kind of family would we be?

              I personally don't do warm marketing prospecting although I know if one develops themselves enough and has that personality they can do it if they commit to it.
              I believe anything is possible when we set our minds to it as I'm sure others have likely heard this before.

              I personally do everything online, but the gentleman I've worked with has great success for many years doing things the older method working with corporate accounts and warm market and it works good for him. I know I could do that as well but I prefer online marketing.

              Really the key is finding out a persons needs do they have health challenges? Provide a solution and let the product convince them and if it helps them they will want it and just leave it at that. Following up with information to help with their condition as they likely may be concerned about their ailment so they will likely be happy to receive it. Overtime they likely would be receptive to trying the product or service out.

              There are obviously faster ways to build a business referring to the internet with so many people getting laid off and this is a perfect time people are looking for a home based business.

              I've discovered a lot of your distributors will be more then happy just to use the products and that becomes your ongoing residual income and you'll find builders and leaders along the way. We just need to think of the methods in our marketing to whom we are trying to reach out to that will grow our business...

              Ronnie Branch


              Originally Posted by Alexa Smith View Post


              As my "mentor" puts it, warm-market prospecting only really works if your warm market happens to comprise either people who are already looking for a home-based business opportunity or already wanting to buy those products. And that's just not true of enough people to make it a successfully duplicable model. Therefore, "warm market prospecting" doesn't really work.
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              • Profile picture of the author The 13th Warrior
                Originally Posted by Alexa Smith View Post


                When you recommend a lobster dinner or a movie, the person to whom you're speaking knows that you're not getting anything out of it at all. With your MLM products, people know the opposite.

                Here's the thing, what if you REALLY, REALLY, ACTUALLY loved the product and are using it, wheither there is a business opportunity or not?

                Incentive or not, if I am truly honest and frequently use the product on the merit of its own quality, that should be good.

                Ever here of ," ...I am not just the owner of Hair Club for Men, I am also a Client"......?



                Originally Posted by Ronniebranch View Post


                I've discovered a lot of your distributors will be more then happy just to use the products and that becomes your ongoing residual income and you'll find builders and leaders along the way.

                I think there it is right there.

                One of the missing mantras that should be a vital ingredient in MLM.

                Should be probably one of the Ten Commandments of MLM.

                The 13th Warrior
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  • Profile picture of the author tricky.admin
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    • Profile picture of the author The 13th Warrior
      Originally Posted by tricky.admin View Post


      IT DOES NOT WORK!

      In retrospect to the information, I think it can work.

      My opinion is that the strength , competitiveness and demand of the product is the major force necessary to win with longevity.

      Say if McDonalds simply added this element : told franchise purchasers that are in operation that anyone that they can get as a franchise purchaser will get some residual up to some point on the new franchisee to several levels or more.

      So how can that not work?

      Great business opportunity or not, if regular consumers are not buying your products simply for the product, I don't see how any business can survive for long.

      The 13th Warrior
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      • Profile picture of the author Ronniebranch
        I have to tell you I love Multi Level Marketing I have made a lot of money and had teams of thousands but it is not about how well i am doing it is only about how others are doing. Multi Level Marketing most will not succeed because it requires a lot of patience and it takes time to mold the relationships and build trust overtime. We are not sales people, we are business developers looking to develop long term relationships with.

        I have found one of the great ways to succeed in MLM is doing team Co-Op's with the right kind of people and recruiting system a team can grow at a pretty fast rate. Like anything in life if there is teamwork involved it is a win win for everybody. I usually only surround myself with team players and therefore I find the fruits of what MLM can offer.

        The key is finding the right types of people, Some will be internet savy and smart others will be the strong types having MLM fitness muscle if you want to call it that. The types that never let obstacles slow them down, The types of people that do not need their hand held they just go in there and build teams.

        I've found if one wishes to become successful in multi level marketing you must advance yourself through personal development and marketing knowledge. If you want your business to grow you have to grow yourself as this is an attraction business and the beauty is we all are attractive if we let our positive energy flow and let ourselves Shine. I personally Love Jesus Christ he is the Lord and master in my life and I've found he has been a big secret in my success in multi level marketing because often times you will feel alone but having Jesus to hold onto it makes it worth it. Another tip to build a fantastic mlm business is not to hype or show cars money on pages just being a genuine person will attract the type of people you want to work with and therefore each day you wake up your going to find your working relationships with them will be positive. You will wake up each day feeling good about your business. So as you market be sure to know what your wanting to attract back to you.

        If your trying to attract enough of the types of people you want on your team, then be sure your striving to be this person yourself that is really the key to becoming successful and taking consistent action. What I love about MLM is that once u get the ball rolling it gets easier overtime and creates leverage and time leverage.

        Just keep working on yourself, the rewards are there if one keeps climbing their way and as you do others will be sure to follow along your lead that is how it works. You must have a strong desire for your product service with a good positive mindset and be willing to be of service in helping others. This is a caring sharing business and if anybody has dollar signs in one eye their half blind, if they have it in both eyes they are totally blind which is why most will fail. They must build this business with the mindset and focus of the people and not their income. The income will come as a result to the direct support teaching marketing knowledge and providing leadership to your team.

        Thanks for reading my post, I hope everybody is having a great day!

        Ronnie Branch
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  • Profile picture of the author DogScout
    I run this MLM past people that have asked about home biz & motivated enough to put name address, phone and email in a form. If they are not sales orientated or do not think they can do it, I mention the savings even if they never sell it,. I then refer them to several posts to help get them started in a different type biz, that can hopefully help them find their game. I stay with them as long as they like and do what I can to help and steer to ethical teachers of whatever model they think they want to try. If they are looking for the magic pill, I explain it doesn't exist. Some accept that others don't.
    Yes, I do things a little different. I work at this and don't just automate 200 blogs and live my life. I believe we are all here for a reason. Ever hear some one ask, "What is the meaning of life?"

    Let me answer that for in three words: "To Help Others" Nothing else does it for me more than being available to do that.

    Do that and everything else falls into place. Funny ideology from a car guy, but when financing cars I had the same philosophy and was highly successful and respected as one (of few) honest people in that biz. Actually there are as many honest people in that biz as any other, it is just a high emotion purchase to a customer & it is like a different world. They are quick to lie themselves and quick to accuse others of it unless everything goes just as they want it. I have been lied to by military officers while they were buying a car more than car salesman trying to get out of having done something wrong.
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  • Profile picture of the author Golf Guru
    I don't know if this has been touched on or not, but those who call MLM pyramid scams often work for some type of pyramid structured organization. Wall Street is a pyramid, the governments are pyramids, capitalism is a pyramid if you really think about it. I really feel that often times there are some MLM scams out there, but there are also some MLM's with very good products.
    Are they over-priced? Absolutely. But so is the shirt you buy at the mall, or the fruit you buy at the grocery store.
    Many times, the company is choosing to market their products through relationships versus contracting a marketing firm to run campaigns for them.

    I may be way off on this, but I really think at some time or another, people have been burned or invested a lot of money in MLM and giving up on it before the success came. Thus the bad taste left in their mouths. Network Marketing is going to be more and more prevalent in the near future, even college marketing classes are teaching it.

    Just my 2 cents. Good to be here.
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