Is MLM A Joke Or Is It Just Me..

103 replies
I want to know every ones thoughts on mlm programs? When I first started out I was in a couple little matrix programs but did not have much success at all and quickly realized I could get the same money making one sale from clickbank than recruiting 30 people into my mlm business.

the whole thing that kills me, is that you have to pay to be an affiliate for that company or product. My thoughts its not worth the time nor the money unless you have a massive list already and can market it to them.

There are plenty of free affiliate programs and also 2 tier affiliate programs that are in my opinion much better than any mlm program.
#joke #mlm
  • Profile picture of the author seasoned
    Well, a LOT of them are technically ILLEGAL! They have been sued, and get off on some technicality, etc... They also get VERY complicated! It is like the time that I figured I would write a program to handle credit cards. Sounds SIMPLE, right? WELL....

    What IS 14%!?!?!? simple? Compound? a MIX? yearly? Monthly? Daily? And WHAT is it on? current principle? highest monthly average? Highest months average? last months average? Well, you get the idea.

    The "MLM" is the SAME way. I THOUGHT about one, and here is how IT worked!

    The TOP of the office made 200%! YEP, you heard right! The company wouldn't make a PENNY until a year later. The lower level guys made 30% AFTER completing a task that made the upper level 200% of your three sales. Of course, there WERE other levels. SURPRISINGLY, they WERE a viable company! Where are they now? They own onne of the largest banks in the US! INCREDIBLE! Still, you have to wonder HOW they get away with some of the garbage. And competitors DO bad mouth them, and try to destroy them.

    On the internet there is one big MLM that frankly I NEVER saw a point in. Later I figured what the heck, I'll join. They make it almost impossible to make money unless you buy leads from them. That lowers your requirements and yyou can get people thet get you points. One month without sales, and you can lose EVERYTHING!

    Another is similar but cheaper and many things can be done in a more direct fashion. AGAIN, if you go with THEM, other things are easier.

    Anyway, YEAH, I think the whole thing is a joke. The law should add TWO things to the code.....

    1. EVERYONE must be on the SAME rules.
    2. The owners can not make ONE PENNY, directly or indirectly, unless it is under the SAME plans as everyone else.

    Steve
    {{ DiscussionBoard.errors[1476533].message }}
  • Profile picture of the author SeanSupplee
    Out of my 1 and a half years I spent trying to get a number of MLM programs to work for me and make money I failed every time. To me they are a pile of junk and the only one really making any more is the company. Think about it...
    I have to order your product monthly even if i really don't want it and then bring in 2 or 3 more people under me just to break even? Just basic math tells you a boat load of people are going to fail with MLM and in a way its like affiliate marketing but you PAY them to be an affiliate...
    Thats when I went towards affiliate marketing and will never turn back. All profits and I can pick what I want to promote and trust.
    {{ DiscussionBoard.errors[1476543].message }}
    • Profile picture of the author Floyd Fisher
      Originally Posted by SeanSupplee View Post

      Out of my 1 and a half years I spent trying to get a number of MLM programs to work for me and make money I failed every time. To me they are a pile of junk and the only one really making any more is the company. Think about it...
      I have to order your product monthly even if i really don't want it and then bring in 2 or 3 more people under me just to break even? Just basic math tells you a boat load of people are going to fail with MLM and in a way its like affiliate marketing but you PAY them to be an affiliate...
      Thats when I went towards affiliate marketing and will never turn back. All profits and I can pick what I want to promote and trust.
      What you just described isn't an MLM at all, but a ponzi scheme.

      A legitimate MLM sells real products to real customers, just like a real business.

      Sorry you got scammed so bad.
      {{ DiscussionBoard.errors[1478180].message }}
  • Profile picture of the author Scott Murdaugh
    Gary Halbert summed up my opinion on it pretty well...

    The Gary Halbert Letter

    Multi-Level Marketing Sucks!

    It sucks big time. It's dorky, it's dangerous, it's sleazy and it's stupid. It is a magnet for slime. It is true that not every product sold by multi-level marketing is inferior. It is also true not every person involved in this nonsense is unethical. I must admit their are some (very few) good products and some (very few) good people involved in this insanity. However, even though it sometimes involves good products and good people...

    Multi-Level Marketing Is
    Always Stupid!
    -Scott
    Signature

    Over $30 Million In Marketing Data And A Decade Of Consistently Generating Breakthrough Results - Ask How My Unique Approach To Copy Typically Outsells Traditional Ads By Up To 29x Or More...

    {{ DiscussionBoard.errors[1476956].message }}
    • Profile picture of the author sdentrepreneur
      Not all MLM are evil, some have some good products and pay programs. I tried selling Monavie to my friends and family two years ago, it actually didn't go very well. I will stick with selling Internet Education, it is in very high demand. More and more people are losing their jobs or under employed and turning to the Internet for knowledge. I enjoy helping others find their success.
      Signature

      Learn Digital, Internet and Social Media Marketing For Your Business
      Click here to learn more - Digital and Social Media Marketing Training Course

      {{ DiscussionBoard.errors[1477020].message }}
    • Profile picture of the author Simon Ashari
      Originally Posted by Scott Murdaugh View Post

      Gary Halbert summed up my opinion on it pretty well...

      The Gary Halbert Letter



      -Scott

      cheers for sharing that.

      one of the best halbert letters I've read up to date.

      Simon
      {{ DiscussionBoard.errors[1477989].message }}
      • Profile picture of the author VegasVince
        Any business model that relies on the efforts of anyone but YOU in order to succeed....is a recipe for friggin' disaster.

        The day I have to rely on some down line....in order to pay my bills... is the day Vinnie "checks out."


        xxx Vegas Vince
        Legend.
        {{ DiscussionBoard.errors[1477996].message }}
        • Profile picture of the author Michael Oksa
          Originally Posted by VegasVince View Post

          Any business model that relies on the efforts of anyone but YOU in order to succeed....is a recipe for friggin' disaster.

          The day I have to rely on some down line....in order to pay my bills... is the day Vinnie "checks out."


          xxx Vegas Vince
          Legend.
          BINGO!!!

          In case those considering MLM missed it, allow me to emphasize Vince's words...

          Any business model that relies on the efforts of anyone but YOU in order to succeed....is a recipe for friggin' disaster.

          All the best,
          Michael
          Signature

          "Ich bin en fuego!"
          {{ DiscussionBoard.errors[1478438].message }}
          • Profile picture of the author CharlieSage
            Banned
            [DELETED]
            {{ DiscussionBoard.errors[1478459].message }}
            • Profile picture of the author Michael Oksa
              Originally Posted by CharlieSage View Post

              Sorry, gents, but a correctly run MLM/network marketing business does NOT rely on the efforts of other people.

              Hey ho.
              OK, then explain how to make money in MLM without a downline, or a downline that does nothing.

              I was deeply involved in one MLM for a number of years, and did quite well at it. But then I discovered a few things that made my stomach turn. I could not continue with it in good conscience.

              Your arguments for MLM sound exactly like what an MLM recruiter would say. That doesn't make them right or wrong, just an observation.

              Investigate more and you will see where the real money is made, and at what expense.

              All the best,
              Michael
              Signature

              "Ich bin en fuego!"
              {{ DiscussionBoard.errors[1478545].message }}
              • Profile picture of the author CharlieSage
                Banned
                [DELETED]
                {{ DiscussionBoard.errors[1479331].message }}
                • Profile picture of the author Michael Oksa
                  Originally Posted by CharlieSage View Post

                  Please read my previous post.
                  My apologies, Charlie. I guess I'm not tuning into to an answer to my question in any of your previous posts.

                  If you could just spell it out for me, it would be appreciated.

                  All the best,
                  Michael
                  Signature

                  "Ich bin en fuego!"
                  {{ DiscussionBoard.errors[1480740].message }}
              • Profile picture of the author jbr
                Originally Posted by Michael Oksa View Post

                I was deeply involved in one MLM for a number of years, and did quite well at it. But then I discovered a few things that made my stomach turn. I could not continue with it in good conscience.
                OKay, you discovered a few things (what?) and you decide to label all MLM bad?

                IM isn't any better. Lots of hype and incest with IM lol...
                {{ DiscussionBoard.errors[1481487].message }}
          • Profile picture of the author Floyd Fisher
            Originally Posted by Michael Oksa View Post

            BINGO!!!

            In case those considering MLM missed it, allow me to emphasize Vince's words...

            Any business model that relies on the efforts of anyone but YOU in order to succeed....is a recipe for friggin' disaster.

            All the best,
            Michael

            "I would rather make 1% off the efforts of 100 people, than 100% off my own efforts"

            -J Paul Getty from his book 'How to Be Rich'

            {{ DiscussionBoard.errors[1481260].message }}
            • Profile picture of the author Adrianne_
              I personally know people who are making over $20k a month from MLM. Even tho it's not unusual for a sponsor to try to sell additional products/services to their downline, the few people I deal with do not do that. You don't have to be a seasoned marketer to exercise a little common sense and NOT buy into everything your sponsor says.

              Has MLM been given a bad rap? Absolutely but its still a profitable industry that can be run successfully by ethical people. Just like with affiliate marketing, you get out of MLM what you put in.
              {{ DiscussionBoard.errors[1481430].message }}
              • Profile picture of the author Alexa Smith
                Banned
                [DELETED]
                {{ DiscussionBoard.errors[1482826].message }}
                • Profile picture of the author trafficwave
                  Some of the logic I see in this thread is pretty staggering.

                  "Some people are making a lot of money. Most are not. So MLM is a scam".

                  We can apply this same logic to this very forum.

                  There are people on here that seem to be making money.
                  There are a LOT of people on here telling us they can't or haven't figured it out yet. So is IM a scam?

                  New Restaurants open every day all over the world.
                  Some do well and make money.
                  Most shut down within a matter of months.
                  Are restaurants a scam?

                  I coach a high school basketball team.
                  Some of our boys are getting scholarship offers.
                  One has already committed to a Division 1 college.
                  Others are on track to do the same.
                  Most are not and will never play beyond high school.
                  Is basketball a scam?

                  Part of "The American Dream" is home ownership.
                  People are buying houses every day.
                  People are being foreclosed on every day.
                  Is home ownership a scam?

                  Every day, someone buys some sort of franchise business model.
                  The home office makes a LOT of money.
                  Every day, some franchise business model goes out of business, never takes off, or falters.
                  These folks pay a LOT of money to get started.
                  Some make a lot more than they spend over a period of years.
                  Many lose money.
                  Is franchising a scam?

                  Just as with any industry or segment of our world, there are good elements and bad. There are positive things and negative things. There are people that run with it and build. There are people that do stupid things and fail. There are people that never really get started and give up.

                  I've failed in various mlm systems.
                  I've succeeded in various mlm systems.

                  it's just a business model. There are good models and bad models; legal and illegal; profitable and unprofitable.

                  It is up to the individual to use some common sense, make an intelligent decision to either get involved or to not get involved and then commit to that decision.
                  Signature

                  -----------------------------
                  Brian Rooney
                  TrafficWave.net Email Marketing AutoResponders
                  Email Marketing Blog

                  {{ DiscussionBoard.errors[1483662].message }}
                • Profile picture of the author Tsnyder
                  Originally Posted by Alexa Smith View Post

                  It's quite staggering: just about the best MLM opportunity you can find and one's chances of actually making a proper living from it are virtually zero. And that's actually very typical!!
                  Actually... one's chances are exactly the same as everyone else's... what's
                  typical is that very few people in any line of work or business will rise to the
                  top.

                  There are several 6 figure IM earners on this forum. For every one of them
                  how many others do you suppose earn little or nothing? 100? 1000? 10,000?

                  The opportunity (IM or MLM) is exactly the same for all who choose to participate.
                  While it may be interesting to know what the ratio of earners to non-earners is I
                  think it's far more instructive to find out what the differences are so the non-earners
                  can be taught to take full advantage of the opportunities available to them.

                  Still... even with that knowledge... few will rise to the top. That's hardly an
                  indictment of the business model.

                  Tsnyder
                  Signature
                  If you knew what I know you'd be doing what I do...
                  {{ DiscussionBoard.errors[1484885].message }}
          • Profile picture of the author jbr
            ahh, another MLM thread.. Its been awhile...

            Anyone in here actually build a 6 figure business in the MLM industry and in the IM industry?

            Anyone with extensive experience in both industries actually commenting in this thread?

            Wheres david frey when ya need him lol...

            Originally Posted by Michael Oksa View Post

            Any business model that relies on the efforts of anyone but YOU in order to succeed....is a recipe for friggin' disaster.
            Michael,

            Maybe im misinterpreting what your saying, so please clarify.

            Are you suggesting a business that has employees and CEO to run a company is also a disaster? Are you saying YOU should be the ONLY one to make an effort in your business to make it successful?
            {{ DiscussionBoard.errors[1481464].message }}
          • Profile picture of the author VegasVince
            Originally Posted by Michael Oksa View Post

            BINGO!!!

            In case those considering MLM missed it, allow me to emphasize Vince's words...

            Any business model that relies on the efforts of anyone but YOU in order to succeed....is a recipe for friggin' disaster.

            All the best,
            Michael



            Wow. This thread reminds me of the game we use to play back in third grade.....

            You'se know....the one where one kid whispers to another kid who whispers to another kid...and by the time it ends up to the last kid in line....the entire premise has been lost and changed.

            Any of you'se people remember that game????

            Cuz it applies to this thread.

            The quote Michael referenced above in BIG BOLD RED FONT.....was MY QUOTE....AND I STAND BY IT.

            Any business model that relies on the efforts of anyone but YOU in order to succeed....is a recipe for friggin' disaster....-vegas vince


            My quote wasn't meant to indict the MLM industry....it was meant to push the point.... that in the final sunset...the only person who gives a **** about you'se people is YOU.

            DON'T EVER GIVE UP CONTROL OF YOUR EMPIRE TO AN UP LINE OR A DOWN LINE.

            Truth is, the MLM industry is set up in such a way.... that it ROBS YOU of your most valuable asset.....100% control of your own destiny.

            To me....that aint nothing I want any part of. I want to fail or succeed on MY OWN. That's true liberation.

            I have had the pleasure of meeting one of the true legends of MLM....

            Mr. Glenn Turner....

            I'm sure more then a few of you'se know who the hell HE is.

            The dude is a frigging LEGEND. And a true gentleman... and maybe one of the greatest MLM Legends of all time.

            I personally believe Mr. Turner got screwed over by our government...simply because he was too damn good...at what he did. He made too much damn money.

            But with that said.....I don't care what business you're in....the top VIP on on the pyramid.....better be YOU!

            Not Glenn.

            Not your ugly Aunt Tilly either.

            Not some smooth talking dude in an Armani suit ..etc.

            Cuz nobody but YOU.... is ever gonna care about YOU.... as much as YOU.

            Capiche!

            Because if your idea of a business model is based around answering to some MLM GodFather......you're just an underboss....a whore to be honest...and he or she above you'se is your pimp.

            And believe me....a ton of so-called "MLM God Father's" have been "whacked" over the years...John Gotti style. They come...they preach the dream...and they end up bankrupt..leaving you dazed and confused with a garage full of "stuff" you can't give away for free in many cases!

            Do your own research...and get back to me. It's true.

            And there are thousands of garages filled with boxes of soap, shampoos, and other "miracle products"......that came with big hype.

            The boxes represent the remains of "big dreams and big promises"... and yet...the company no longer exists anymore....

            Because all that "hype" they sold you'se people....ultimately failed to convince the most important person of all....the "customer."

            They sold YOU....but failed to produce a product anyone really wanted to "buy."

            And in order to make money YOU'SE PEOPLE HAVE TO SELL SOMETHING.

            That my friends....is how you make money.....you SELL STUFF PEOPLE WANT....AND IT DON'T REQUIRE AN UP LINE OR DOWN LINE TO DO IT EITHER.

            Don't ever whore out your dreams...and place them in the hands of other people...until you're damn sure you CONTROL AND OWN what ever it is you are pimping!

            THAT'S THE DIFFERENCE between MLM....and your own baby!

            Sell stuff people want to buy.

            You don't need a God Father or a down line to do that!

            You don't need to walk on egg shells worrying about who is doing what...and who is going to go bankrupt.....and you don't have to end up with a garage full of nasty soap, gold plated coins, and other stuff you got suckered into buying...thinking you could sell it.

            So you'se peeps that love MLM......god bless ya. Good luck for real. But don't say you weren't warned.

            Take the skills you learn from those great pitches that sold you on the concept....and start selling your OWN STUFF.

            Ultimately....it's better to control your own destiny then hand it over blindly to those above and below you....and hope they do the "right thing."

            Cuz that my fellow Warriors is "a recipe for disaster." For real.


            xxx Vegas Vince
            Legend.
            {{ DiscussionBoard.errors[1481962].message }}
  • Profile picture of the author Lou Diamond
    Hello,
    if you don't want to lose your friends and family stay away from MLM
    That's the way you will recruit your newest customers into the MLM scheme.
    Please I do not want to get flamed because of this post it is just my two cents.
    Signature

    Something new soon.

    {{ DiscussionBoard.errors[1476970].message }}
    • Profile picture of the author Technista
      Originally Posted by Lou Diamond View Post

      Hello,
      if you don't want to lose your friends and family stay away from MLM
      That's the way you will recruit your newest customers into the MLM scheme.
      LOL! I avoided MLM for years but joined one a few months back because they were pushing a "hot" product. Now that the sizzle has reduced to a simmer, my "upline" has been harassing me to go on autoship so she can keep getting paid! "Pay to Play" is the rule of the game.

      T
      {{ DiscussionBoard.errors[1478760].message }}
  • Profile picture of the author Loren Woirhaye
    It can work. You have to understand how to manage
    and motivate a sales force - and train them... since most
    people you bring in won't have much in the way of sales
    skills or the disciplines sales success requires.

    Do you want a career as a sales manager?

    If so, MLM could work for you.

    It's fun to throw stones at MLM but doing so doesn't reflect
    accurate understanding of what it is. Folks who want to
    be master direct response guys probably won't be happy
    in MLM, because that's really not the kind of game it is.
    {{ DiscussionBoard.errors[1477394].message }}
    • Profile picture of the author Fun to Write
      Originally Posted by Loren Woirhaye View Post

      It can work. You have to understand how to manage
      and motivate a sales force - and train them... since most
      people you bring in won't have much in the way of sales
      skills or the disciplines sales success requires.

      Do you want a career as a sales manager?

      If so, MLM could work for you.
      The problem with most MLM opportunities is, they don't reveal to you that you need to be a sales manager as you say. They push it as something that will make you easy money. Plus, there's all the "feel good" with our company hype they lay on you.

      When people get involved, you quickly realize that you're required to actually recruit a sizeable downline, and, move a lot of product in order to obtain the lifestyle that's advertised.

      Oh yeah, and you have to agressively SELL the product and opportunity to others.

      Most people do not want to be a sales manager and find it hard to sell those overpriced products. This is why they drop out.
      Signature

      Focus+Smart Work+Persistence=Success

      {{ DiscussionBoard.errors[1479293].message }}
  • Profile picture of the author peetred
    IN my opinion, MLM is the most difficult way to make money EVER! haha. And for those that want to work their butt off and hard sell for someone else's business for years to make it to the top, well that's great for them. Unfortunately, MLM seems to be one of those methods that newbies find first, and it makes them give up on working at home or online.

    I know because I have tried a couple of MLM "opportunities". It was all a bunch of hype, and the only people making money were the ones at the top... and they were making money off of us newbies who tried for months and failed. That's why they have to keep selling to all of the newbies and recruiting new people.
    Signature

    [CENTER]Founder of Nerdy Millennial - a blog all about millennials sharing their passions, ideas, and expertise. We love to share our knowledge about blogging, healthy living, psychology, arts, culture, and more! Interested in contributing? Contact us to pitch your idea or submit an article.

    {{ DiscussionBoard.errors[1477469].message }}
  • Profile picture of the author kendrickyi
    Read what Robert Kiyosaki says about MLM in his book Rich Dad, Poor Dad. (go to the library and borrow it) I like his take on MLM companies because he isn't saying it sucks, but he doesn't say that every MLM company is good. He's quite neutral and open.

    Not all MLM companies are evil, altho a large no. of them (in my opinion) are (lol). I only trust a few (my mom is involved in them so she would do a better job vouching for them than me).

    That being said, MLM is not a joke unless (lemme put it bluntly) the pay plan is a joke. I tend to get on the defensive when my friends join MLM companies because I don't trust most of them (except those my mom vouches for lol).

    For those who say MLM isn't easy, I like to say this: "some people know how to play the game well". The truth is I find a lot of stuff in life difficult (don't pity me) but I learn from my mistakes.

    I actually believe that network marketing first originated a looooong loooong time ago (I'd say about 2000 years ago). It's a bold belief but that's what I feel.

    Btw affiliate marketing is some form of network marketing actually. I read it somewhere (can't remember where).

    P.S. i'm assuming that network marketing is the same as multi-level marketing but correct me if I'm wrong.
    Signature

    "My Affiliate Marketing Mini Course To Help You Start An Affiliate Marketing Business That Could Generate Passive Affiliate Income For You Every Month, Even If You Are An Internet Newbie!"

    Unlock The Secrets To Wealth Now!

    {{ DiscussionBoard.errors[1477534].message }}
    • Profile picture of the author Jeff_Gardner
      I wanted to jump in, because I think "Internet marketing" gets a bad rap.

      "Internet marketing" is just another business model. A different way to get products to a market.

      Are there some scummy "Internet marketing" companies and "internet marketing" scamsters? Absolutely. There are those people in any business.

      However, those people who say they can't make money in "Internet marketing" are usually those who don't understand the business completely. They've eaten up the hype, but failed to study the truth about and methods of building and running a successful "Internet marketing" business.

      Right now, there are people all over the world making six- and seven-figure incomes thanks to "Internet marketing". However, it didn't happen overnight - and it didn't come without a lot of study, work, time, and energy.

      =======================

      Now, I've heard these exact sentiments (above) from many successful "Internet marketers" over the years.

      However, if you'll replace the phrase "Internet marketing" with "MLM" or "Network Marketing" in the section above, you'll see that the argument legitimizing "Internet marketing" as a business works equally well for "network marketing".

      MLM is just another method of making money. If it didn't work at all, no one would be involved in it. However, many people are making money, worldwide.

      Everyone? No. But how many of the millions involved in "Internet marketing" are swimming in pools of cash. Both methods have their share of wealthy... as well as the masses still struggling to make their first buck.

      It may not be your cup-of-tea... and that's fine. Not everyone likes "Internet marketing". Or real estate investing. Or working their job. But not liking something... or failing at something... doesn't automatically negate it as a legitimate way to make money.

      If it interests you, there are skill-sets you'll have to learn to really optimize your income. However, the same can be said of any business, including "Internet marketing".

      That's a long answer to your short question of... "Is MLM a Joke?" ;0)

      No. MLM is not a joke. It's just not right for everyone. And that's completely cool.

      Best,

      Jeff
      Signature
      Here's How I've Gotten Over $1 Million in Free Advertising >>> www.freeadvertisingacademy.com
      {{ DiscussionBoard.errors[1477585].message }}
    • Profile picture of the author Alexa Smith
      Banned
      [DELETED]
      {{ DiscussionBoard.errors[1478206].message }}
      • Profile picture of the author seasoned
        Quote:
        Originally Posted by kendrickyi
        P.S. i'm assuming that network marketing is the same as multi-level marketing but correct me if I'm wrong.

        Originally Posted by Alexa Smith View Post

        Actually you are wrong.

        But you're in such good company (with probably 99% of people who imagine they know what network marketing is agreeing with you) that you can get away with being wrong about this point, so I wouldn't worry.

        Robert Kiyosaki's got it all wrong too, like most of what he's written, but then he's just about the least reliable source of "information" you could ever find anywhere!
        kendrickyi isn't REALLY wrong! Network marketing talks about the idea of marketing around your personal network of friends, etc... That presents a lot of problems though, and HOW does it grow? If it grows, how do you encourage it and sustain it? The most popular way? have the SALES PEOPLE do it, and have different levels of income with overrides MLM!

        Still, US laws are SO complicated, and so many MLMs tweak things differently that it is RIDICULOUS!

        Steve
        {{ DiscussionBoard.errors[1478375].message }}
      • Profile picture of the author Lance K
        Originally Posted by Alexa Smith View Post

        Robert Kiyosaki's got it all wrong too, like most of what he's written, but then he's just about the least reliable source of "information" you could ever find anywhere!
        I always knew you were a pretty sharp gal.
        Signature
        "You can have everything in life you want if you will just help enough other people get what they want."
        ~ Zig Ziglar
        {{ DiscussionBoard.errors[1485713].message }}
  • Profile picture of the author David Hooper
    I just got hooked up with one, after being in business for myself for over a decade. For one, I actually use the service, but I also was curious to see how it works.

    Have only been in a week, but am pretty amazed at the people on the calls they have who just don't get it. People who seem to chase money above all else, yet don't have any clue as to how money works.

    The people doing well at it (or supposedly doing well at it) seem to treat it like a real job. Should the company fold though, do they have a real business?

    I think something like the one I'm in might be great "training wheels" for somebody new to doing his own thing or wanting to surround himself with "success oriented" people, but it's not the holy grail by any means.
    {{ DiscussionBoard.errors[1477790].message }}
  • Profile picture of the author mrozlat
    First off, there is NO miracle pill to grow your business.

    When you think about it, building a successful network marketing company really comes down to one thing...

    Knowledge!

    That's it. Building a business is like learning any other skill in life. The only difference is that this directly impacts your savings account and the lifestyle you're able to live.

    When you study some of the greatest business builders and marketers on the face of the planet you quickly realize one thing that they all have in common. Every last one of them...

    They're constantly studying, learning and absorbing knowledge. Equally important, they take this information and tweak, improve and make modifications to current systems they have in place.

    The ugly (but real) truth is that building a networking marketing business comes down to learning marketing and understanding human psychology. This takes time to learn and implement the appropriate knowledge into any business.
    {{ DiscussionBoard.errors[1478302].message }}
  • Profile picture of the author Sara Young
    I tried MLM many years ago. Now that I understand what it is - I stay away from anything that even hints MLM....

    I'm not saying it's bad, but definitely not for me.
    {{ DiscussionBoard.errors[1478324].message }}
  • Profile picture of the author Kanga
    Hi
    I do not know about MLM because i have stayed away from it, they maybe or maybe not all what have been said about it. What is sure, there is always one good way to start online business, by building first your list.It is a great shorcut, don't you think?
    Have a good day and cheers;
    {{ DiscussionBoard.errors[1478362].message }}
  • Profile picture of the author Ewan Robb
    MLM used to work before the internet killed it. I think most MLM companies have pretty good products, however the business model sucks. I guess you could say there are bad companies in every sector, anyone think the banks are great companies? Financial advisors? some good some bad! I think on the whole MLM sucks rather than the companies.

    There is a great letter written on MLM and sums up tryin to work it in the 21st century MLMShockReport.com see what you think
    Signature
    Turn your home business insanely profitable in the next 30 days

    Here's where to go ~~> 'Operation Evolution'
    {{ DiscussionBoard.errors[1478389].message }}
  • Profile picture of the author CharlieSage
    Banned
    [DELETED]
    {{ DiscussionBoard.errors[1478453].message }}
    • Profile picture of the author Fun to Write
      Originally Posted by CharlieSage View Post

      I have been around MLM and network marketing for 20 years and made not much from it. However, with a business education and experience, I managed to research it pretty thoroughly and will defend it. Because I know why I did not succeed.
      Charlie . . .

      Why are you defending a business model in which you couldn't succeed in it for 20 years. Yet, you still spout all the mumbo jumbo about how great it is. This only means that those who push these MLM programs have convinced you that it's all YOUR fault that you couldn't make it work.

      I guess, you're still holding out hope that the NEXT MLM you join will be the ONE that finally gives you that better lifestyle you're seeking.

      WAKE UP!

      Are you here in the Warrior Forum just killing time between your next MLM attempt?

      People here don't like MLM because it's a crappy business model where most people fail. This forum is packed with all kinds of successful business models that involve personal effort.

      Yet, you're here promoting some kind of silly lottery scheme (your sig link) that also won't make you any money.

      Please consider opening up your MIND to learning new strategies that involve commitment and work. Right now, your head is still in the "get rich quick" with this new thing mode.

      You keep failing because you're stuck in that mentality. I bet you're still jumping from opportunity to opportunity.

      STOP.

      While you're here, take a look around and educate yourself. If you can't find anything here that starts you on the right path to financial freedom, then, I'm sorry to say, you'll probably never find it.

      One more thing, I've said all this with your best interest in mind.
      Signature

      Focus+Smart Work+Persistence=Success

      {{ DiscussionBoard.errors[1479340].message }}
  • The most awful thing in this world. I would recommend you to not join such culprits as you are doing nothing but wasting time and reputation contacting people. You are nothing other than a insurance agent , whom mostly people want to ignore.

    MLM in my concern means nothing. You just need to add some people below you and they also need to do the same thing. Do you know what the owner of shi*t MLM do with that money? Investing in properties and gets ahead of what he is today.

    But what you get? Nothing but yes, loose your reputation.
    {{ DiscussionBoard.errors[1478491].message }}
  • Profile picture of the author Michael Oksa
    Do you know what the owner of shi*t MLM do with that money? Investing in properties and gets ahead of what he is today.
    As much as I dislike MLM, I see nothing wrong with someone INVESTING their profits. That's just smart.

    ~Michael
    Signature

    "Ich bin en fuego!"
    {{ DiscussionBoard.errors[1478572].message }}
  • Profile picture of the author Kanga
    Hi,
    One thing is sure; either you make/have a downline which implies that you have an upline, The work is always done by Oneself. The point is no matter what if you don't do your work nobody is going to do for you.
    Cheers,
    {{ DiscussionBoard.errors[1478751].message }}
  • Profile picture of the author kay12345
    i always hate MLM

    did anyone knows about the MLM lead by Donald Trump?

    this one seems legit though
    {{ DiscussionBoard.errors[1479000].message }}
    • Profile picture of the author Jays80
      Donald Trump has already made money by endorsing the company, so its legit business for him!!!!

      Originally Posted by kay12345 View Post

      i always hate MLM

      did anyone knows about the MLM lead by Donald Trump?

      this one seems legit though
      {{ DiscussionBoard.errors[1479065].message }}
      • Profile picture of the author Martin Avis
        Before I discovered the Internet I got involved with two Network Marketing companies.

        In both cases the products were good, the compensation plans comprehensible and the training offered was excellent.

        In both cases I worked hard and was relatively successful. Not double-diamond, gold star, top of the tree successful, but paying some bills and making life a bit easier successful.

        One of the companies went out of business.

        The other had a change of heart and without any warning scrapped its MLM division, deciding to concentrate of its own retail sales.

        In both cases my income stopped instantly and all the work, time and effort I'd invested in building my businesses was wasted. Totally.

        It taught me several lessons but the principle one was that if you build a business that is entirely dependent on another company's whims, you are just setting yourself up for disappointment.

        Martin
        Signature
        Martin Avis publishes Kickstart Newsletter - Subscribe free at http://kickstartnewsletter.com
        {{ DiscussionBoard.errors[1479223].message }}
  • Profile picture of the author Adrianne_
    When you think about it, there's not that much difference between affiliate marketing and MLM. Most affiliate programs are free to join and you do not get paid to refer others to the program, or earn recurring commissions. You basicly earn money once per sale. Some people like this because they don't have to worry about managing a team. With MLM, there's usually some type of monthly membership fee and you earn residual income on the people you recruit.

    Both require you to work to either make a sale or recruit others, work online or offline, etc. The big difference is the amount of recurring income you want. If you are great at making sales where you just want to focus on advertising, then affiliate marketing may be a better fit. But if you want the kind of income that grows every month by doing the same amount of work, then you may want to pursue MLM. Do both and see which one is more profitable for you.
    {{ DiscussionBoard.errors[1479051].message }}
    • Profile picture of the author Fun to Write
      Originally Posted by Adrianne_ View Post

      When you think about it, there's not that much difference between affiliate marketing and MLM. Most affiliate programs are free to join and you do not get paid to refer others to the program, or earn recurring commissions. You basicly earn money once per sale. Some people like this because they don't have to worry about managing a team. With MLM, there's usually some type of monthly membership fee and you earn residual income on the people you recruit.

      Both require you to work to either make a sale or recruit others, work online or offline, etc. The big difference is the amount of recurring income you want. If you are great at making sales where you just want to focus on advertising, then affiliate marketing may be a better fit. But if you want the kind of income that grows every month by doing the same amount of work, then you may want to pursue MLM. Do both and see which one is more profitable for you.
      Adrianne

      I strongly disagree with the idea that MLM is just like affiliate marketing. That's just false. I know, because I tried various MLMs and business opportunities at one time.

      I now do affiliate marketing and really like it. WHY?

      Because I'm promote products that people actually want to buy. I don't have to worry about recruiting downlines or trying to offer products that nobody wants.

      Affiliate marketing does offer passive income. When you know what you're doing, you can set up websites, blogs and articles that will bring in the money 24/7. Which means, you can actually earn a profit in the long-term from the work you do now.

      MLMs promise this great residual income and fancy lifestyle, but it's really hard to achieve that because you're tied to one type of product, and you won't make much money (if any) unless you build a huge downline.

      Trust me, most people can't and won't be bothered with doing that.

      I DO NOT recommend that anyone reading this try MLM for any amount of time. There's plenty of resources here that can lead people to a home business model that actually works for them.
      Signature

      Focus+Smart Work+Persistence=Success

      {{ DiscussionBoard.errors[1479377].message }}
  • Profile picture of the author TheRichJerksNet
    Basically, yep MLM is a joke... Course that is my opinion. I have never dealt with it and never will. I have built several MLM company sites/scripts fo clients, so I pretty much understand it inside and out.

    Not something I would waste my time on as you can earn money online a great deal easier and without a "downline"...

    I had a friend that used to joke about MLM as he called it "Many Lowlife Marketing Companies" ...

    James
    {{ DiscussionBoard.errors[1479114].message }}
    • Profile picture of the author richdirtygirl
      I think the main problem with MLM are the recruiting tactics...

      During the RE bubble there was an MLM for mortgages, not sure if it is still in business...

      the manager of one of the offices in South Florida told me he had this method: get them emotionally charged, get them to pay the $200, once the did, they will take action to avoid losing the money...

      mortgages paperwork is not rocket science, but you need some experience to get it right... they had managed to jump the licensing requirements...

      weird stuff...

      that is a model that will certainly make friends and family not to answer the phone... :p

      on the other end of the spectrum, I met once an iridologist.

      he used iridology to make diagnosis, and natural remedies from an MLM company for treatment. If that is not to practice medicine... I got something wrong.

      the recruiting worked this way: he had students besides practising... each student and each patient fell under his line.

      patients got reductions in prices and stuff, the students followed his method and became resellers.

      he was growing a strong and healthy business.

      Laura
      {{ DiscussionBoard.errors[1479285].message }}
      • Profile picture of the author Powertreb
        The thing about MLM (or Network Marketing) is that it can be a pleasant business model and experience. The problem is companies like Amway and hordes of other fly-by-night scams using the MLM model have completely corrupted the public's view of it.

        There are indeed a handful of companies that offer good products and have their own unique payout structure and business model where distributors can succeed without a risky investment.

        I've been burnt a couple of times through the years by MLMs. I've also devoted a tremendous amount of research to it and coming up with my own criteria for determining a legitimate MLM company.

        And they do exist. The ones that are generally safe to get into are those that are structured for profitable direct sales. Avon, Gold Canyon, Mary Kay, Tupperware, and that Chef MLM that Warren Buffet bought are all legitimate and have proven to be successful for their members with useful products and honest advertising.

        Here's a brief list of criteria and general rules I use to determine the quality of an MLM:

        Is it a new company?
        • I'd really stay away from this. Especially if they push the "ground floor opportunity" and "pre-launch" buzzwords around.
        Is it a one product company?
        • This is NOT something you want to get into for the long run.
        • Generally this has scam written all over it.
        • Go with companies that have a range of products that can be useful in the average household.
        Are the prices of their products severely inflated?
        • If they have a range of products, do some comparative research.
        • Are their skin care products comparable to something one would find in Macy's or Sephora and are RETAIL prices of the company's products competitive with the large chains?
        • Are the retail prices generally set in a way that is competitive enough to convince your neighbors or friends to buy from you instead of taking a trip to the mall?
        STAY AWAY FROM JUICES!!!
        • You've got to be nuts to join another one-product "miracle juice" company.
        • They are all the same.
        • The only thing making them different from one another is the packaging, fancy name, and the "exotic fruit of the month" that they are using as their marketing ploy.
        • If you look at them, they are ALL the same sized bottles, with prices ranging between $30 and $50...and they all have the same serving size: 4 ounces a day.
        • It's the MLM equivalent to the "free trial" **** and Resveratrol pill scams. Same "rinse and repeat" approach. All fluff and no substance.
        Is this company making the same old bogus claims that have been made first snake oil salesmen went to work?
        • In general, MLM companies relying solely on exaggerated health claims or "highest ORAC value" and cancer prevention claims should be avoided like the plague.
        • That's always a real red flag if a new company comes out making all types of claims about its revolutionary "miracle cure".
        • There is no miracle cure.
        Does the company rely primarily on recruiting instead of actually developing a retail customer base?
        • This is where the scams and pyramids really get differentiated from legitimate companies.
        • If this is the case, then you can bet that the company is based in UTAH.
        • Trust me...they are NOT in Utah because they are God-loving Mormons.
        • They are in Utah because it is the only state they can legally operate out of.
        • Utah is the only US state that provides a safe haven for these companies.
        • It's the wording in the state law which recognizes distributors themselves as retail customers.
        • Any other state would immediately consider this an illegal pyramid by definition.
        • If more than 70% of the sales come from the distributors purchasing the product for their own personal use, it's a pyramid.
        • REMEMBER: If the only way you can make any decent money is by recruiting others to do the same, then it's an all out pyramid scam and they are lucky to have a state like Utah on their side.
        Does the company make it easy for you to retail their products and make a decent profit?
        • A legitimate MLM company will make it easy for you to create a revenue stream from RETAIL sales, not just recruiting other distributors.
        • If the company does not make it easy for you to actually RETAIL the product to a non-distributor customer, it should be taken as a warning sign. Stay away please.
        • To make a decent profit by retailing the products and not relying solely on recruiting a few things need to happen:
          • The retail prices need to be competitive to brick & mortar store products.
          • YOUR wholesale price needs to be low enough to get a decent profit margin.
        • Many MLM companies, especially the juice companies, let you earn like $10 for each bottle you retail.
        • They call it wholesale, but selling something for 15-20 percent more than what YOU paid for it is NOT wholesale.
        • The company I belong to gives me a 40% profit on each retail order. That's something I would consider wholesale.
        • Does the company also give you room to effectively market online and setup your own shop whether through their system or your own?
          • AN EXAMPLE: Monavie has prohibited their distributors from pushing their product on anything EXCEPT a Monavie cookie cutter website.
          • If that's not going out of the way to inhibit your ability to make retail sales then I don't know what is.
        What is their PAY structure? (This is really important for a financial decision)
        • First and Foremost: If a company has a "Binary" payout model, then RUN AWAY. RUN AND RUN AGAIN!
          • If you joined a company operating on a Binary payout model, then you are getting screwed more than Matthew McConaughey at a women's prison.
          • A Binary structure is where you have to have 2 legs underneath you. 2 lines of distributors basically.
            • You ONLY get paid commissions on the WEAKER LEG.
            • The weaker leg is the line that has the LESSER monthly sales volume.
            • So if you have Leg A generating $5000 in sales for the month of December. And Leg B only generates $1000 for the same month. You get paid on the revenue from Leg B (the $1000 leg).
          • You can essentially kiss that $5000 leg goodbye. It didn't do YOU any good!
        • Make sure you do your math and really figure out how much you would need to sell or how many new recruits you would need in order to NOT lose money each month.
        • Some pay models can be really tricky. They make them extra comprehensive for a reason. The more complex, the harder it is for you to figure out that you may end up losing money.
        • Go with a company that lets you make a decent profit by retailing the product WITHOUT paying for a monthly autoship of your own just to remain active.
        ONLINE SALES
        • I have heard of companies that WILL NOT pay you for a retail sale that was made through your web link UNLESS you are also purchasing your own minimum each month.
        • That is an absolute sham and shoudl be downright illegal!
        • Make sure the company you are signing up with allows you to generate a profit with online sales WITHOUT a mandatory monthly purchase of your own.
        I hope this helps some of you looking into joining an MLM make an informed decision.

        I was lucky to find a very good company last year that I joined up with. And there was no fee involved or any startup expense really. I'm not making a ton of money because I'm not a recruiting afficiaondo and I haven't really put in much effort as I should be into promoting it. But I generate about $500 a month just by having my own online company store that I pay $20 a month for. This really helps as I'm not required to recruit people to make a retail profit.

        I won't be pushing this here, as this is not a "plug my company" post or forum. You can PM me if you want though.
        {{ DiscussionBoard.errors[1479614].message }}
  • Profile picture of the author rawservices
    MLM Companies provide you all of the training and marketing materials that you need. If you do not know how to create these or sell, they are perfect for beginners.

    Overall, if you can create your own product / marketing materials / sales material your better off haha.

    -Ryan
    {{ DiscussionBoard.errors[1479242].message }}
    • Profile picture of the author TheRichJerksNet
      Originally Posted by rawservices View Post

      MLM Companies provide you all of the training and marketing materials that you need. If you do not know how to create these or sell, they are perfect for beginners.

      -Ryan
      You can get all that right on a forum for free ... Hmm 2 comes to mind and one of them we are all posting on right now..

      James
      {{ DiscussionBoard.errors[1479265].message }}
    • Profile picture of the author Fun to Write
      Originally Posted by rawservices View Post

      MLM Companies provide you all of the training and marketing materials that you need. If you do not know how to create these or sell, they are perfect for beginners.
      -Ryan
      Yeah, and people who "specialize" in recruiting big downlines also will sell you these marketing materials. That's how the companies, and certain individuals in the upline, make big profits off of unsuspecting newbies.

      Buy my training newsletter, tapes, CDs, DVDs, etc.

      More money down the drain as far as I'm concerned.
      Signature

      Focus+Smart Work+Persistence=Success

      {{ DiscussionBoard.errors[1479392].message }}
      • Profile picture of the author goindeep
        MLM is more or less a scam.

        Bare with me here..

        About 2 years ago i owned a blog titled "Online Cash Journey" and there i wrote an article about MLM and NetworkMarketing (they are virtually the same thing).

        Here is what i can remember off the top of my head;

        MLM is a way in which a company can decide to promote its product or service. Basically the company recruits individuals outside of the company and asks them to promote the product or service for a price, and to then go and recruit other individuals to do the same thing.

        MLM is structured like a pyramid. Every individual not only gets paid for every sale he/she makes but also for recruiting more members and or their recruits down line sales.

        The only problem with all this is A) you have to pay to join most mlms (why would you pay to sell someone elses product?), many mlm companies promote high incentives for recruitment and not so high an incentive on actual product sales (which seems odd again), and most mlms are saturated with other people which makes it extremely difficult to make an honest sale.

        In my research i actually met up with a guy trying to con me into joining USANA. It was a very bizzare experience i must admit. The whole time he kept drawing circles and lines and money symbols, but the math never made sense to me (i have never been that great at math, could just be me) and i didnt understand why so much focus was placed on recruiting instead of just selling the product, if of course it was such a quality product, it made no sense to me at all. And still doesnt...

        I read somwhere on the net that 99.9% of people who join mlms fail to make any money and most of them usually lose money, you'll have to excuse me cos i cant remember where i read that.

        Also while doing my research i found out that most of the guys in the mlm videos giving the testimonials who where making the big bucks all joined the companies in their infancy, again implying that only those at the top of the pyramid made any money.

        For me personally MLM is a dead set scam, im an open honest, hard working person who believes that if you have a quality product or service with plenty of value, you will find a way to sell.

        ***edit*** woops forgot to mention too, that my parents fell victim to an MLM scam when i was about 13, i would have to check with them but i think they lost about 3 grand and in the end the founders got caught and where given some jail time. My parents by the way have been immigrant factory workers in Melbourne Australia for many years, my old man now makes about 120K a year, my mum about 50K, they have developed 5 real estate properties over the last few years and are slowly but surely ramping up their real estate investments. I only tell you this to show you that even immigrant factory workers can make lots of money if they do it with an honest system "REAL ESTATE", yet why couldnt they do it with MLM...? ...Hmmm?
        {{ DiscussionBoard.errors[1482537].message }}
      • Profile picture of the author candoit2
        Originally Posted by Fun to Write View Post

        Yeah, and people who "specialize" in recruiting big downlines also will sell you these marketing materials. That's how the companies, and certain individuals in the upline, make big profits off of unsuspecting newbies.

        Buy my training newsletter, tapes, CDs, DVDs, etc.

        More money down the drain as far as I'm concerned.
        Just wondering if I am also being scammed when I want to learn about internet marketing and someone try's to sell me any of these things? Or do just people in mlm owe everyone free training for the same types of marketing tips sold in other niches? (PPC, Social media, etc)

        Aaron
        Signature

        {{ DiscussionBoard.errors[1488767].message }}
  • Profile picture of the author pavionjsl
    Just wondering how many generations have to explore on the empty pit called MLM. A little research saves time, money, effort on empty marketing processes. Bernie Madoff , etc, ones at top get money, recruit, recruit, recruit.........
    {{ DiscussionBoard.errors[1479308].message }}
  • Profile picture of the author xbokcom
    I was in several mlms and I fail but there is people that make decent money.
    So what does not kill you make you stronger. I must admit I learn allot how to sell on the mlm seminars. So that was a pluss sign for me. But the product must be good to sell it selves. I went and do some research and saw that the company I was involved it is been sue so many times so I stop.

    You cannot sell a product if you a honest person and you know that this product is not good for people.

    It is better to use the product yourself and see if it is as good as some people say.

    Well I wish all the Mlms the best. There are allot of millionaire been created in the mlm.
    {{ DiscussionBoard.errors[1479360].message }}
  • Profile picture of the author DogScout
    Everything is an MLM anyway

    A store needs Coke-A-Cola. An order guy comes by and takes the order and gets a commission. The next day the red truck comes and delivers the order and the delivery guy gets a commission. The Area sales manager get a commission for his whole area. The plant General sales manager gets a commission and then the General Manager gets a commission (although his/her commission is probably on the net).


    Same with cars. Salesman, 'closer' (if that dealership has them), Production Manager (if applicable, again), sales manager and general sales manager all get a commission. (Then the general manage gets one that is usually based on the net).

    Even the people cleaning the cars for delivery and the HR people, though probably paid salary are indirectly paid from the salesperson's efforts.

    Any company (except those with 1 or so employees) pays their employees on some sort of 'level'. It might be a percentage or an hourly rate or a salary, but the bottom-line is the world runs on thinly disguised MLMs.

    (Probably why this crew prefers being self-employed.)

    The trouble with the open MLM concept is it allows payments to go to people that have no accountability. How much effort do you suppose someone 5 levels deep put toward a sale 5 levels down? Since those that even CAN sell or if they can, even WANT to sell is so low, even if you sell an MLM to someone, the odds are they won't ever won't do anything with it. (A lot like IM products that are bought and never read.) You end up with a few movers and shakers and a bunch of slugs that though they may not make much, get paid for free. In order to pay all these slugs the cost of the product has to out of line. How many people can you pay to do nothing with a reasonably priced product?

    If you have a 'herd' or what I have also heard referred to as a 'tribe' that follow you from MLM to MLM, you just get to pay and pay. If you question, you get told you are just not working hard enough or some other bull. You are basically sold into staying a 'herd' member and nothing ever changes. You question yourself instead of what you should be questioning. Jim Jones got (most) of 900 people to drink pink kool aid laced with poison after getting their kids to drink it. Most did so willingly. Most MLMs do the same on a little lesser scale. (In my opinion). Sure if you are charismatic and can get anyone to do anything with a smile and a twinkle of your eye, you may very well do well financially in an MLM. And if you are a sociopath, you will probably also sleep well at night.

    Sure, that is my opinion. And it is not absolute. There are some very good openly MLM companies, (really). In my limited experience they are hard to find. If you had asked me what percent of Internet marketers were crooks before I joined this forum, I would have said 99. I was in the car biz for 27 years, so I am sure a lot of people 'assume' I am a crook. To be good at MLM you need to be both a good marketer and salesman and sales manager and everything in-between. (Helps to not have a conscience too). LOL.
    {{ DiscussionBoard.errors[1479373].message }}
  • Profile picture of the author TheBeatles
    Banned
    Stay away from MLM, sure the residual income aspect can be tempting (if you ever build a huge downline) but hey just promote a membership website instead!
    {{ DiscussionBoard.errors[1479388].message }}
  • Profile picture of the author aaah
    Hi- I'm new to this forum, so be gentle!
    My take on MLM, network marketing, whatever you want to call it is that the people I've met who are part of MLM act like they're in some kind of cult! They try to sell you stuff all the time, or worse, try to recruit you into their scheme.

    As far as I can see- the maths doesn't add up- MLM seems to assume an infinite number of people want to join the bottom of the list and doesn't seem to take into account market saturation, or the fact that many people are simply not interested in joining their list. It's selling a fantasy.
    {{ DiscussionBoard.errors[1479397].message }}
    • Profile picture of the author Powertreb
      Originally Posted by aaah View Post

      Hi- I'm new to this forum, so be gentle!
      My take on MLM, network marketing, whatever you want to call it is that the people I've met who are part of MLM act like they're in some kind of cult! They try to sell you stuff all the time, or worse, try to recruit you into their scheme.

      As far as I can see- the maths doesn't add up- MLM seems to assume an infinite number of people want to join the bottom of the list and doesn't seem to take into account market saturation, or the fact that many people are simply not interested in joining their list. It's selling a fantasy.
      Yes that is also something I'd agree on. The majority of MLMers are basically nuts. They really do act like a cult and will chastise you if you say anything negative about their company.

      Going to a "meeting" or "rally" is like going to a cult meeting literally!

      And the math never adds up. That is why MLM's focused solely on recruiting are considered illegal pyramids in every state except Utah. As I stated in my previous post, if the company is not structured to let you turn a decent profit from standard retail sales, then DO NOT JOIN!
      {{ DiscussionBoard.errors[1479655].message }}
  • Profile picture of the author n00b
    I got my start in MLM. I did make good money in it and I really thought I'd be doing it for the rest of my life. However, it was a lot of work (way too much for lazy old me lol). Here's my pros and cons.

    Cons: No matter how much a company touts that the top earners make all that money from the compensation plan, they are lying. I got to the top inner circle of my MLM because I was extremely young and moved to the top level of the compensation plan in 6 months working part time. I started meeting and hanging out with "big-wigs" in my company and others. What I learned was that they were making way more money selling their training and doing guest appearances than they were from their actual business. Now I knew they were making money off of these things, but my company repeatedly told the sales force that only money from the product being sold counted towards official income recognition by the company (example: John Doe is making $500,000 a year in the company). I know that was a lie because our CEO asked me to do a training series and told me my royalties from it would count towards my income recognition for the company. Pretty scammy. Last I checked it's impossible for everyone in a company to make a training series and get paid more by that than the actual product sales. I would have never believed that this company would so blatantly lie if I hadn't witnessed it myself. All of the top income earners also got huge perks. Say for instance there was a leg that wasn't under a big income earner to look up to, that leg would be moved over under one of these big income earners. A lot of them were also drawing a salary from the company for acting as marketing consultants, i.e. traveling around being a figure head saying they're making $1,000,000 a year, conveniently forgetting that 1/4 of it was salary and 1/2 of it from selling marketing tools.

    I left as soon as I saw what was really going on. I did make a nice full time income legitimately, but it was massive amounts of work and it now takes me a lot less time to make the same amount. My FIL is still in the business, he's been doing it full time for just over 10 years now. He's hands down the hardest worker I've ever met. He works full time hours each and every week and still hasn't even come close to $100,000 a year, but he keeps believing it's just around the corner. IMHO he was much better off when he was working his job, getting benefits and retirement, not to mention more money, and when he got home work was done. Now there is no separation between work and family, everything is the MLM business.

    Pros: It is, IMHO, hands down the best sales education you will ever get. If someone makes any money at all in an MLM and does so consistently (and not off of guilting mom into buying) then you know that person can sell. To me the key is knowing when to leave with your hard earned education and put it into something that will better serve you.
    {{ DiscussionBoard.errors[1479659].message }}
  • Profile picture of the author talfighel
    Guys and ladies,

    MLM online or offline WORKS. You guys are so negative, it is no wonder why some of you have quit the business and are bashing it.

    This business is very lucrative and they don't say 2-5 years for nothing.

    Tal
    {{ DiscussionBoard.errors[1479679].message }}
    • Profile picture of the author Michael Oksa
      Originally Posted by talfighel View Post

      Guys and ladies,

      MLM online or offline WORKS. You guys are so negative, it is no wonder why some of you have quit the business and are bashing it.

      This business is very lucrative and they don't say 2-5 years for nothing.

      Tal
      LOL

      You are kidding, right? Or have you just bought into the lie so completely you have to defend it?

      Believe me when I say I was there. I was a staunch defender of the MLM I was successful in, and had ALL if the reasons why it was such a great business model.

      It ain't.

      As far as, "...they don't say 2-5 years for nothing." You are, my friend, 110% absolutely correct! They say it for something. They say it to get people to sign up.

      Show me one person that you knew prior to their getting into MLM who was able to retire from their job AND put their IM business on "autopilot" (generating the mythical residual income) in 2 years. It doesn't count if you only know of them because of the MLM - it has to be somebody you know personally.

      Good luck.

      As far as a negative attitude? NOPE! It's called reality. The one thing MLMs do their best to protect their members from.

      I'd rather burst bubbles than see more lives ruined by the festering cesspool of excrement that is MLM.

      All the best,
      Michael
      Signature

      "Ich bin en fuego!"
      {{ DiscussionBoard.errors[1480713].message }}
      • Profile picture of the author Alexa Smith
        Banned
        [DELETED]
        {{ DiscussionBoard.errors[1480742].message }}
        • Profile picture of the author Michael Oksa
          Originally Posted by Alexa Smith View Post

          No need for such tact and discretion, Michael: we're all friends, here - you can tell us how you really feel about it!
          I'm sorry. Thank you for the head's up. I know my feelings may seem somewhat ambiguous.

          LOL

          I was hoping the local "Wordsmith" would appreciate the alliteration in that line.



          ~M~
          Signature

          "Ich bin en fuego!"
          {{ DiscussionBoard.errors[1480760].message }}
      • Profile picture of the author The Dotcom Hippie
        MLM, Jehovah's Witnesses, Wicca, self help cults.... It's all the same. In these types of communities you'll generally find two groups of people:

        a) Those who desperately - for whatever reason - want to believe.

        b) Those who are more than happy to take advantage of these people.

        Now, why would you want to belong to any of these groups?

        MLM stinks. It's one of the many things that work in theory, but not in practice. For some people, however (and that includes people posting in this thread) the idea that it could work is so warm and nice and palatable and comforting that you just can't let go of it. Too bad, because life is short and you're honestly wasting a little more of it every day you work your MLM "business."
        {{ DiscussionBoard.errors[1480772].message }}
      • Profile picture of the author TheRichJerksNet
        Originally Posted by Michael Oksa View Post

        I'd rather burst bubbles than see more lives ruined by the festering cesspool of excrement that is MLM.

        All the best,
        Michael
        I agree Michael.. I have been online far too long and I could tell some stories about those so-called companies that have been around for even 10 years or so..

        Personally I rather make my own money and keep my own profit vs making some freaking upline or company filthy rich. If I wanted to give away money to someone it would be to someone that actually needs help like the hungry, homeless, and etc ...

        James
        {{ DiscussionBoard.errors[1480777].message }}
    • Profile picture of the author Powertreb
      Originally Posted by talfighel View Post

      Guys and ladies,

      MLM online or offline WORKS. You guys are so negative, it is no wonder why some of you have quit the business and are bashing it.

      This business is very lucrative and they don't say 2-5 years for nothing.

      Tal
      I'm not sure why you would say that so plainly and with such certainty.

      It is no way, shape or form a black & white area.

      MLM works, for a certain percentage of people. It's NOT for everybody. And there are some people who have tried, and tried, and failed. It could be a combination of several things such as their lack of skills, funds, and the particular product, company or even the particular point in the company's timeline.

      But most companies will push the notion that ANYONE can do this with ease. That is SO FAR from the truth!

      MOST MLM companies are set-up from the start to have most members fail. It's these types of companies that have corrupted the Network Marketing model.

      I don't understand people who are convinced that it is a foolproof business model where ANYONE can succeed. That is total BS.

      There is a finite amount of people that are available to join within a given length of time. If you got in at the beginning and the company is still growing, then you might come out on top, but as it is basically a pyramid structure regardless of its legitimacy, the further down you are the harder it is to build a downline fast enough to stay motivated and positive.

      This is ultimately true in companies that rely almost exclusively on distributor's personal purchases to generate volume and payouts. So if the product can't be retailed easily, the bottom of the barrell is usually destined to lose money.

      You don't even need any math for this. It's just basic common sense. You have a product whose sales are primarily coming from other distributors buying their own product. There are let's say 20 distributors to every purely retail (non-distributor) customer. There is simply noway to make a profit without endless recruiting.

      MLM companies who rely on this model and don't encourage easy retailing are setting up their bottom majority to fail.

      There are big players in some MLM companies earning 5 and 6 figures a month.

      One thing people fail to mention is that most of them are seasoned MLMers. They have a devoted following of THOUSANDS in their downline. And if they leave for a new opportunity, they take their followers with them.

      And as some have mentioned before. These players also sell their own training and motivational material which accounts for a heavy chunk of their income. The new guy who enters and thinks he'll make it big is totally oblivious to this.

      When you're in a company that is costing you $200 a month for autoship...
      • and the product is something that costs 10 times more than it would cost if it were on a regular store shelf
      • and you spend months trying to recruit enough people to cover your autoship because retailing the product is nearly impossible
      • and then you start being ostracized by friends who think you have lost your mind and your soul
      • and your bank account is slowly drying up because you're spending at least $200 a month to receive $50 back from the company
      Well, basically you cannot help but get negative. Moreover, that is not negativity anymore. It's REALITY!

      You realize it's a pipe dream that you can no longer afford. takke a loss for 2-5 years, but the rewards will pay off.

      If that is the case, and this is that "type" of company where your only shot at profitable revenue is by recruiting other people to recruit other people to recruit other people who all go on an autoship, then that company may not even be around in 5 years to give you your big payout.

      Plus, as you build your downline, there will be many others underneath you who will also experience the same "negativity" or reality, and they will leave the company and cut their losses. You lose members in your downline and end up always having to recruit to keep the volume flowing.

      It's a double-edged sword in this case. Where you have the chance to build a long lasting downline that are all having a profitable experience, you also encounter the opposite scenario where everyone keeps leaving after a few months because they are spending more each month than they are making.

      MLM online can work for some products and some companies.

      There is a good chunk of MLM companies that make an extra effort to INHIBIT your ability to retail the product online. These are the same companies whose products don't sell well at all and who focus on recruiting new members instead of selling and moving product.

      They are effectively killing the chances of success that any new member may have and for the life of me I don't understand why people join these types of companies. I think it's because they have this vision of owning a yacht and a mansion in less than a year.

      MY GOLDEN RULES...


      STAY AWAY IF
      • If you it's a product that will be hard to retail (or something a person in their right mind would never think of spending money on).
      • If you think the retail price for the product is absolutely ridiculous.
      • If you would truthfully tell a loved one that this product is NOT worth the money at all.
      • If there are obstacles put up by the company to prevent you from retailing the products online, but make it easy for you to recruit people through your company branded website.
      • If the only revenue being stressed by the company and your upline is from the personal sales of others you recruit into the organization.
      • If the company is brand new and in a "pre-launch" phase.
      • There are testimonials floating around that sound far-fetched about various miraculous healing experiences that medical science has yet to catch up with.
      • If the payout plan is a Binary (UGH!!!)
      BE WARY AND DO SOME RESEARCH IF
      • The company is based in Utah.
      • There is a "startup kit" that needs to be purchased before you can even become a member and gain access to the product at distributor pricing.
      CONSIDER IT A POSSIBLE OPPORTUNITY
      • If the difference between your distributor price and the retail price (provided it's not exuberant) is at least 30%.
      • If the overall retail prices for the products are competitive with the same types of products at local stores or chains.
        • Examples include:
          • Vitamins and health supplements at GNC
          • Cosmetics at Sephora
          • Skin care at Macy's
      • The company makes it easy to retail the products online and provides you with a comprehensive online shop of your own for no more than $30 a month.
        • NOTE: This is quite handy if you can make at least 30% on each sale through this online shop. You don't have to ever ship anything. And a little article marketing, blog and forum commenting should drive some traffic in for a few sales each month.
        • A certain percentage of peole visiting your shop will also inquire about the business opportunity side, and right there is a good recruiting channel for you, while still making a profit by retailing.
        • But remember, the profit needs to be AT LEAST 30% for this approach to work.
      • The company doesn't overwhelm you with recruiting bonuses and focus primarily on recruiting others as your "get rich ticket".
      • The company provides loads of free training tools and marketing materials (product brochures, samples, etc. at a fair price.)
      • The company has a simple straightforward compensation plan without a bunch or complicated percentages with vague conditions and all legs or business centers in your downline are pid on equally.
        • I prefer a plan with unlimited legs where each person you sponsor simply becomes another branch (this is by far the best type because there is no leg balancing and every leg gets paid on equally).
      {{ DiscussionBoard.errors[1483973].message }}
  • Profile picture of the author MrMike
    Take it from someone who lost a lot of money from MLM. It sucks. The hardest part for me in MLM was trying to motivate other people to go out and work it. In the past, I had about 200 people in my downline. About 199 of them I sponsored myself. I didn't even get the 80/20 rule. All mine were duds. I love the theory.
    {{ DiscussionBoard.errors[1479699].message }}
  • Profile picture of the author n00b
    The other thing I would say is that I don't think they teach very good money management skills (yes I realize that's not their job). When you start making good money you are under immense pressure to spend it on flashy things so others know you're doing well and recruits can see some bling bling.

    If I had a nickel for every time I got asked what kind of car I drove I'd be living off the interest right now. In a lot of companies it's a very well orchestrated game. Pressure people into spending every dime they get so they have to keep working. Forget being smart with your money. If you're making an extra $1,000 a month from your company then you should realize that you can now afford a higher house payment and a higher car payment.

    I prefer to spend my money on experiences, not things, I find it serves me better. I don't drive a luxury car and probably never will. If it gets me from point A to point B in a climate controlled space then it has done it's job. There were so many times when my upline would want me to get a new car, wear higher brands of clothes, etc. to "inspire" the downline and new recruits. Well I'm glad I didn't because if I had I'd probably still be in that company. Since I chose to be wise with my money I was able to leave that company and find a better fit because I wasn't under pressure to pay creditors. I understand some people want all the flash, but that just wasn't me, and I definitely don't think it's wise to pressure people into taking out more debt so as to better sell the dream.
    {{ DiscussionBoard.errors[1479730].message }}
  • Profile picture of the author trafficwave
    Are there bad elements within MLM?
    No question.

    Are there bad elements within many of the offers on this very forum?
    No question.

    Are there bad elements within the banking industry?
    I still have checking accounts.

    Are there bad elements in the automotive industry?
    I still drive cars I've purchased from car dealerships.

    My own personal "litmus test" involves a few simple questions:

    1) Would I personally use this product or service, regardless of any "opportunity"?
    * If I wouldn't, I stay away from it.
    * If I would, then becoming a customer is a no-brainer.

    2) Would I be able to recommend this product or service to my own mother?
    * I don't have any problem recommending a good restaurant or movie.

    I joined a company a while back because:

    1) I genuinely like the product.
    2) I actually save money by switching to this product.
    3) I know a lot of folks that would also like to save money and would probably like this product.

    So I joined. My total cost to get involved as a distributor: $50.

    How do I build my business/income?

    I invite people to try the product.
    If they like it, I ask them to buy it.
    They save money and get a product we both agree is superior to their former product.

    If they don't like it, I thank them for trying it and giving me their honest opinion.

    I also let them know that there is an available opportunity where they can be paid to do what I just did with them.

    Some folks take me up on the opportunity. They see the potential for themselves and decide to get involved.
    Others tell me, "Sales isn't my thing. But I would like to buy the product."

    I'm happy, either way.

    As a result, I have 2 kinds of people in my organization:

    1) product users. They're not "downline". They are customers and I get paid every time they buy.
    2) fellow marketers. They are in my downline.

    Like any business, some do better than others.
    I've got folks in my downline that make more money than I do.
    They sell more product than I do and deserve the income they are building.

    I'm not making a "fortune" with this particular business. It's not my focus.
    I enjoy the product.
    I refer a few customers from time to time.
    Some of those customers decide to get in to the business with me.

    There are businesses using the MLM model that I wouldn't go anywhere near.

    There are businesses using the MLM model that provide a great service and/or product and offer a business opportunity.

    MLM isn't the problem. The problem comes from unscrupulous individuals within the system itself.

    But if you are going to dismiss an entire industry over the acts of some ignorant and/or unscrupulous individuals, you need to stop eating out at restaurants, buying cars, going to the movies, getting mortgages, buying clothing, etc...
    Signature

    -----------------------------
    Brian Rooney
    TrafficWave.net Email Marketing AutoResponders
    Email Marketing Blog

    {{ DiscussionBoard.errors[1480149].message }}
    • Profile picture of the author Rod Cortez
      Brian, thank you for being the voice of reason. Listen, I'm no fan of mlm, but that's my personal choice. I always get a kick out of these threads because the vast majority of people posting their opinions have very little to no experience with the industry. Especially when they post "all mlms are..." or "mlm doesn't work". If people knew how many sales forces around the globe use a multi-level compensation program, they'd be whistling a different tune.

      I also think a lot of Warriors would be shocked at how many well-known Warriors excel in the network marketing industry. My own personal bias is creating your own products and having more control over your own compensation and even though I personally do not like mlm / network marketing as a whole, I'm intelligent enough not to make generalized statements that aren't true.

      The subject heading of the OP is simply laughable because for the most part only the nay sayers are going to chime in. I'm going back to chewing my popcorn to see what other entertaining posts are going to come in.

      RoD
      Signature
      "Your personal philosophy is the greatest determining factor in how your life works out."
      - Jim Rohn
      {{ DiscussionBoard.errors[1480573].message }}
  • Profile picture of the author bravo75
    I made more money with one 250 article in one day, than I made with MLM in 6 months
    {{ DiscussionBoard.errors[1480789].message }}
    • Profile picture of the author trafficwave
      Originally Posted by bravo75 View Post

      I made more money with one 250 article in one day, than I made with MLM in 6 months
      I just can't help myself:

      That was either one really good article or you were really bad at MLM!

      [ducking and running]
      Signature

      -----------------------------
      Brian Rooney
      TrafficWave.net Email Marketing AutoResponders
      Email Marketing Blog

      {{ DiscussionBoard.errors[1480799].message }}
      • Profile picture of the author Michael Oksa
        Originally Posted by bravo75 View Post

        I made more money with one 250 article in one day, than I made with MLM in 6 months
        Originally Posted by trafficwave View Post

        I just can't help myself:

        That was either one really good article or you were really bad at MLM!

        [ducking and running]
        Be nice, Brian. Just look at Mr. Zappa's sig.

        LOL

        [ducking and running, too]

        ~M~
        Signature

        "Ich bin en fuego!"
        {{ DiscussionBoard.errors[1480821].message }}
  • Profile picture of the author Dr Dan
    Its not for everyone. But I made so many lifetime friends, mentors, and learned so many invaluable lessons from mlm over the years. If it wasnt for mlm I probably wouldnt have ever read an entire book, let alone wrote 2 best sellers.
    {{ DiscussionBoard.errors[1480826].message }}
  • Profile picture of the author Tsnyder
    We get one of these ridiculous threads about every two
    months... I'm always amused at the number of people who
    claim to know everything about a business they've never been
    involved in... or had any success with.

    Most of the crap in this thread is so far removed from the
    reality of legitimate MLM companies that it really wouldn't be
    worth the time to rebut most of it. I've done that already
    in prior threads yet the same know-it-alls keep coming back
    as if they have the key to it all. They don't...

    I know a whole lot more 6 figure earners in MLM than I know
    in internet marketing. The whiners will tell you all about the
    allegedly dismal failure rate for MLM... ask them how it's worse
    than most of the crap you see peddled in IM these days... or
    any days past. Here's a clue... it isn't.

    If you're out to build a real business based on real business
    principles MLM is as good as any business model. To know that
    you'd have to get advice and opinions from someone who actually
    knows the business. For the most part, those people aren't posting
    in this thread.

    Tsnyder
    Signature
    If you knew what I know you'd be doing what I do...
    {{ DiscussionBoard.errors[1481101].message }}
  • Profile picture of the author MillionaireMonkey
    It's funny to see how passionate some people are about this subject.

    I'm not trying to get anyone mad, but honestly network marketing is not very much different than Affiliate marketing. In fact, most people I know who are not involved internet marketing, do not see much of a difference. Most people I know see sales copy on a website for "ABC-Assassin Affiliate Code" and think it's just as "slimy, or suspect as any MLM or internet scam...

    One compensation plan is not more or less legit simply because they pay one or multiple levels of commissions.

    Yes Donald Trump has lent his name to an MLM company... but he seems to slap his name on pretty much anything these days! I don't think that's a point for or against network marketing.

    Robert Kiyosaki's books are far from amazing. Low on real content, but popular, because they're motivational and easy to read. Regardless of how you feel about him, Kiyosaki is a GREAT marketer. He caters to MLM for a reason. He was an unsuccessful writer. Then he got "Rich Dad Poor Dad" in the hands of an Amway Diamond, who then funneled the book through his entire downline... Soon other Amway Diamonds picked it up for their organizations, and next thing you know he had a national bestseller! That's when the rest of the world decided maybe they should read his books... He makes sure to keep his MLM base happy!

    I personally know two people who work from home full time network marketing. One's definitely not struggling. The other one's doing very well... I know she also makes MORE than her direct upline...

    I also know nobody wants to get stuck talking to her at a party because she will talk your EAR off trying to sign you up! lol.

    Network marketing and selling in general, takes certain skills. Whether networking socially, networking online, email marketing, or writing sales copy, not everyone is going to be good at it. People are capable of developing new skills, but most simply don't. Creating new habits and attitudes, and personal development is hard work.

    Yes, some MLMs are shady, some have been sued, some traditional businesses are shady, some have been sued... One of the great things about America is that it isn't difficult to start a business! But that also brings a down side.

    And most sales pitches... whether for AbcAffiliate Assassin Code" Or "Amway" preach the "You can do it!" "I was a 19 yr old drop out, now I'm a millionaire! Sign up today!" Sure you want to be positive, believe in people, but not everone IS going to do be able to do it. It's a BUSINESS. Most people sign up because it seems easy, not because they're at a point where they're really ready for the sacrifice it takes to build a business.

    Some of these negative experiences with MLM are really just a reflection of being involved with a weak company. I can name companies who give all of their personal development materials FREE. Free newsletters, free online streaming of training videos and audio, free conference calls, etc. NO meetings. They focus on internet marketing. They just want to grow. Just like how that company YOU affilliate for gives you free banners, and prewritten emails, etc.

    Some companies commissions also pay really WELL for your direct sales. So you can treat it as Affiliate marketing if you want. Try to ignore the residual monthly income after the first sale, and ignore the growing sales volume of your downline!

    Just like you do your homework when choosing a keyword or product to affiliate market for... One would have to research the company/ product you network market for.

    And someone said the company can dissapear and you lose your business... "Assassin Code's" affiliate program can go out of business also... If they pay residually, you lose it. The only point made with that statement is that one should own their own PRODUCT and have affiliates marketing for THEM.

    One last note. Cognitive dissonance. People don't like to believe that they failed at something. There's a lack of congruency, because people want to believe they are winners and NOT quitters... So when your grandmother failed at selling AVON to her book club, she builds legs under her reality that the SYSTEM was built to fail. A lot of failed internet marketers feel the same way. "It's impossible to make money BLOGGING! Stupid, lying EBOOK!"

    Last year I went on a snowboarding trip. Bought my first snowboard, the whole outfit, I looked like I knew what i was doing. I went out every day for a week and almost killed myself on the newbie trails. I sucked. I spent 3 days just drinking cocoa feeling sorry for myself... But I did NOT run out and tell people snowboarding doesn't work!

    Oh and PS, I totally made up "abcAffiliate Assassin Code" as a random example. If there's a product with that name, my apologies! I'm not dissing the code!
    Signature

    {{ DiscussionBoard.errors[1481164].message }}
  • Profile picture of the author MillionaireMonkey
    It's funny to see how passionate some people are about this subject.

    I'm not trying to get anyone mad, but honestly network marketing is not very much different than Affiliate marketing. In fact, most people I know who are not involved internet marketing, do not see much of a difference. Most people I know see sales copy on a website for "ABC-Assassin Affiliate Code" and think it's just as "slimy, or suspect as any MLM or internet scam...

    One compensation plan is not more or less legit simply because they pay one or multiple levels of commissions.

    Yes Donald Trump has lent his name to an MLM company... but he seems to slap his name on pretty much anything these days! I don't think that's a point for or against network marketing.

    Robert Kiyosaki's books are far from amazing. Low on real content, but popular, because they're motivational and easy to read. Regardless of how you feel about him, Kiyosaki is a GREAT marketer. He caters to MLM for a reason. He was an unsuccessful writer. Then he got "Rich Dad Poor Dad" in the hands of an Amway Diamond, who then funneled the book through his entire downline... Soon other Amway Diamonds picked it up for their organizations, and next thing you know he had a national bestseller! That's when the rest of the world decided maybe they should read his books... He makes sure to keep his MLM base happy!

    I personally know two people who work from home full time network marketing. One's definitely not struggling. The other one's doing very well... I know she also makes MORE than her direct upline...

    I also know nobody wants to get stuck talking to her at a party because she will talk your EAR off trying to sign you up! lol.

    Network marketing and selling in general, takes certain skills. Whether networking socially, networking online, email marketing, or writing sales copy, not everyone is going to be good at it. People are capable of developing new skills, but most simply don't. Creating new habits and attitudes, and personal development is hard work.

    Yes, some MLMs are shady, some have been sued, some traditional businesses are shady, some have been sued... One of the great things about America is that it isn't difficult to start a business! But that also brings a down side.

    And most sales pitches... whether for AbcAffiliate Assassin Code" Or "Amway" preach the "You can do it!" "I was a 19 yr old drop out, now I'm a millionaire! Sign up today!" Sure you want to be positive, believe in people, but not everone IS going to do be able to do it. It's a BUSINESS. Most people sign up because it seems easy, not because they're at a point where they're really ready for the sacrifice it takes to build a business.

    Some of these negative experiences with MLM are really just a reflection of being involved with a weak company. I can name companies who give all of their personal development materials FREE. Free newsletters, free online streaming of training videos and audio, free conference calls, etc. NO meetings. They focus on internet marketing. They just want to grow. Just like how that company YOU affilliate for gives you free banners, and prewritten emails, etc.

    Some companies commissions also pay really WELL for your direct sales. So you can treat it as Affiliate marketing if you want. Try to ignore the residual monthly income after the first sale, and ignore the growing sales volume of your downline!

    Just like you do your homework when choosing a keyword or product to affiliate market for... One would have to research the company/ product you network market for.

    And someone said the company can dissapear and you lose your business... "Assassin Code's" affiliate program can go out of business also... If they pay residually, you lose it. The only point made with that statement is that one should own their own PRODUCT and have affiliates marketing for THEM.

    One last note. Cognitive dissonance. People don't like to believe that they failed at something. There's a lack of congruency, because people want to believe they are winners and NOT quitters... So when your grandmother failed at selling AVON to her book club, she builds legs under her reality that the SYSTEM was built to fail. A lot of failed internet marketers feel the same way. "It's impossible to make money BLOGGING! Stupid, lying EBOOK!"

    Last year I went on a snowboarding trip. Bought my first snowboard, the whole outfit, I looked like I knew what i was doing. I went out every day for a week and almost killed myself on the newbie trails. I sucked. I spent 3 days just drinking cocoa feeling sorry for myself... But I did NOT run out and tell people snowboarding doesn't work!

    Oh and PS, I totally made up "abcAffiliate Assassin Code" as a random example. If there's a product with that name, my apologies! I'm not dissing the code!
    Signature

    {{ DiscussionBoard.errors[1481179].message }}
  • Profile picture of the author Michael Oksa
    No. A CEO can fire people. An MLM upline can't.

    In all businesses you need other people to spend money in order to make a profit. The way to be successful in MLM is to...

    1. Sell the "system" tools. Books, CDs, DVDs, seminar tickets, etc.

    2. Get people to sign up.

    If you make money doing #1, and you don't disclose that, then you are a lying scumbag who is misrepresenting the business to get people to sign up. Period.

    If you make money doing #2, then you better be VERY careful that you are not promoting an illegal pyramid. Not all MLMs are illegal pyramids, there is a difference. But if you only make money by signing people up, it's probably illegal.

    What about Option 3...selling items directly to customers. If, as some have hinted at, that's where a good chunk of the money comes from, then why not sell stuff directly, instead of giving such a huge % to the paent company. Think of it this way - you are not getting a 6% commission, you are giving the company AND your upline 94% of every sale.

    It's like paying to have a boss.

    Any time someone in MLM brings up #3, they are explaining WHY traditional selling is superior to MLM. However, they are fooled into thinking otherwise.

    There are many other differences.

    @ Tsnyder, I was successful at MLM, and I understand EXACTLY where you are coming from. I have to admit, it's so much nicer not having to feel the need to defend such a "non-business" model.

    Which leads to another question. You say these threads are "ridiculous". Why? It betrays a sense of uncertainty to call it as such (in my opinion).

    Actually, the real question is why there is such a strong need to constantly defend MLM at all. Some have compared it to affiliate marketing, but even the worst examples of affiliate marketing don't need to be defended to the degree that MLM does.

    MLM, in and of itself, is a lousy model that is DESIGNED to MAKE the majority fail. It has to, otherwise it collapses from its own weight - this is called "mathematics". People don't fail at MLM because they didn't work hard enough, they fail because it's built into the model.

    ----

    Affiliate marketing is different because you can succeed at the highest level without recruiting a single person below you to sell stuff that you collect a % of.

    All the best,
    Michael
    Signature

    "Ich bin en fuego!"
    {{ DiscussionBoard.errors[1481503].message }}
    • Profile picture of the author Tsnyder
      Originally Posted by Michael Oksa View Post

      @ Tsnyder, I was successful at MLM, and I understand EXACTLY where you are coming from. I have to admit, it's so much nicer not having to feel the need to defend such a "non-business" model.

      Which leads to another question. You say these threads are "ridiculous". Why? It betrays a sense of uncertainty to call it as such (in my opinion).
      I believe I answered that question rather succinctly in my last post.
      These threads are ridiculous because they are populated, for the most
      part, by people who express strong opinions but have never been
      involved in the business... or... dipped their toe in the water briefly
      but never stuck around long enough to learn how to become successful.

      If I wanted to launch a new product I think I'd be more inclined to listen
      to what Jeff Walker, or Frank Kern, or John Reese, or Eben Pagan, or the
      Stompernet folks have to say rather than Joe Schmoe who has never
      participated in a successful product launch.

      If I wanted to learn how to become successful in MLM there are precious
      few people posting in this thread I'd waste time asking.

      Actually, the real question is why there is such a strong need to constantly defend MLM at all. Some have compared it to affiliate marketing, but even the worst examples of affiliate marketing don't need to be defended to the degree that MLM does.
      A little spin there, Michael. I don't see my participation in these threads
      as defending MLM. MLM needs no defense. Despite your belief, MLM is a
      proven business model that has produced billions in sales since its inception.
      I merely have a desire to correct the record where I can. Erroneous information
      posted by those without knowledge shouldn't be allowed to stand unchallenged
      by people who know better.

      MLM, in and of itself, is a lousy model that is DESIGNED to MAKE the majority fail. It has to, otherwise it collapses from its own weight - this is called "mathematics". People don't fail at MLM because they didn't work hard enough, they fail because it's built into the model.
      That's simply a ridiculous statement that assumes a zero sum game.

      Affiliate marketing is different because you can succeed at the highest level without recruiting a single person below you to sell stuff that you collect a % of.
      It's called leverage, Michael. You may enjoy the notion of earning only what
      comes your way based on your own efforts but that is little more than a commissioned
      sales job... not a business. The business owner in affiliate marketing is the producer
      of the product. That person understands leverage.

      You seem to like math. Do the math on a successful affiliate product launch.
      Tell me who ends up with the most income... the producer or the affiliates? The
      affiliates may collectively receive more than the producer but my bet is it would
      be the rare individual affiliate who earns more than the producer.

      Tsnyder
      Signature
      If you knew what I know you'd be doing what I do...
      {{ DiscussionBoard.errors[1481613].message }}
  • Profile picture of the author rgenterprise
    Luckily when I discovered IM I heard enough negative things about MLM to know to steer clear. Not a lot of people have good MLM experiences to share.
    {{ DiscussionBoard.errors[1481888].message }}
  • Profile picture of the author J Bold
    Let me tell you, I believe MLM can be a huge moneymaker (seriously). That is...if you are great at sales! Or, if you are willing to learn how to give vague invites to your friends (soon to not be) about this great new opportunity with a multi-million dollar organization on how to make money on the internet or how to achieve financial freedom, etc.

    Needless to say, I hate MLM. I hate the whole idea of getting your friends to buy in to the scheme. I know people who had best friends that they tried to stop hanging around so they wouldn't be bombarded with references to how fantastic Xango (sponsor of Real Salt Lake that uses MLM) is anytime they mentioned something health related. I hate the whole idea of getting rich by selling to your friends a scheme that they really probably don't need.

    However, I don't believe in what Vegas Vince is saying. The whole point of scaling and making the big bucks is to outsource, and for this you DO have to rely on other people.
    {{ DiscussionBoard.errors[1481972].message }}
    • Profile picture of the author VegasVince
      Originally Posted by redicelander View Post

      Let me tell you, I believe MLM can be a huge moneymaker (seriously). That is...if you are great at sales! Or, if you are willing to learn how to give vague invites to your friends (soon to not be) about this great new opportunity with a multi-million dollar organization on how to make money on the internet or how to achieve financial freedom, etc.

      Needless to say, I hate MLM. I hate the whole idea of getting your friends to buy in to the scheme. I know people who had best friends that they tried to stop hanging around so they wouldn't be bombarded with references to how fantastic Xango (sponsor of Real Salt Lake that uses MLM) is anytime they mentioned something health related. I hate the whole idea of getting rich by selling to your friends a scheme that they really probably don't need.

      However, I don't believe in what Vegas Vince is saying. The whole point of scaling and making the big bucks is to outsource, and for this you DO have to rely on other people.

      Dude...you obviously missed the point. And I don't much care if you believe me or not.

      I outsource too.

      And I rely on many, many people to get me where I need to be.

      Difference is....I outsource things that relate to PRODUCTS I CONTROL.

      I don't outsource **** that aint mine.....for somebody who might vanish tomorrow.....etc.

      See the difference between the two?


      xxx Vegas Vince
      {{ DiscussionBoard.errors[1481994].message }}
      • Profile picture of the author J Bold
        Originally Posted by VegasVince View Post

        Dude...you obviously missed the point. And I don't much care
        See the difference between the two?


        xxx Vegas Vince


        Nope, I didn't miss your point, I was just getting you to say it clearer, because you needed to do so.

        Thanks.
        {{ DiscussionBoard.errors[1482097].message }}
  • Profile picture of the author caseyzeman
    I have looked into MLM's and actually was signed up for a few of them. At this point I would rather help the people looking to pursue MLM by benefiting them with my internet marketing tools.

    thanks

    Casey Zeman

    www.myonlinebusinesstoolkit.com
    Signature

    The First Dead Simple Webinar Platform for Wordpress.
    More Leads, More Customers, More Time ...Easy Webinar Plugin

    {{ DiscussionBoard.errors[1482042].message }}
  • Profile picture of the author grandstar
    What is essential in mlm is to find a good mlm company whose product has long term potential and not just a "sizzle".

    Then promote aggressively and stay for the long term and you are bound to make it.

    It requires those 3 elements

    1. Finding a good company

    2. Promote aggressively by finding downlines and teaching them to do the same.
    Alternatively, get lots of downlines so even if many are duds, a few true gems.

    3. Stay in for the long term!

    My 2cents.
    {{ DiscussionBoard.errors[1482092].message }}
  • Profile picture of the author Tom Byrde
    Well it's interesting to hear the comments of fellow Warriors. I must admit I have been tempted, but managed to resist that temptation and build my own online business.

    Tom
    {{ DiscussionBoard.errors[1482144].message }}
  • Profile picture of the author aceshigh
    MLM is awsome....if you're name is Mark Hughes and you started Herbalife. Otherwise if you're the person at the bottom, then you're down the creek without a paddle. Attrition is what generally kills it. If you can't get people into money in 3 months they'll quit, and you can't blame them because no one will work for free forever. I swear after the last mlm I tried 10 years ago that if I ever joined an mlm again I'd be the one who started the business too, because it's all just BS. Most of them are actually very similar to cults. There's no difference. People get brainwashed, then no matter what you say, like..."but your not making any money, and only spending money..." They won't listen because they've been brainwashed into believeing in the dream, the vision, the fairytale, the potential, the critical mass. I want to learn how they do that by the way, if you could learn to brain wash people the way the MLM industry does it, wow there you go, you'd get rich fast!
    {{ DiscussionBoard.errors[1482145].message }}
  • Profile picture of the author CharlieSage
    Banned
    [DELETED]
    {{ DiscussionBoard.errors[1482663].message }}
    • Profile picture of the author goindeep
      Originally Posted by CharlieSage View Post

      Ah, reading this thread, I have just realised one of the greatest benefits of MLM/network marketing and that is a good company will have a training system which teaches you how to deal with people effectively.


      Oh, and a final thought, governments now regulate the business carefully so, if you do look at a MLM or network marketing company ensure it is signed up to the Direct Selling Association trade association (or your local equivalent) and their terms of conduct.

      Can anybody tell me the trade association for online trading? Actually, it is likely to be the same body.
      Its the ADMA in Oz. Australian.Direct.Marketing.Association

      What do you mean by carefully regulated?
      {{ DiscussionBoard.errors[1482727].message }}
      • Profile picture of the author Blase
        Here is how to make a lot of money in MLM.

        1. Start your own MLM company.

        2. Develop some awesome products that
        teach how to be successful in MLM
        and sell them.

        I have been in MLM, I've made over $4000 per
        month through MLM.

        But, the 80/20 rule works against you.
        Signature
        "Nothing Happens Until Something Is Sold"
        {{ DiscussionBoard.errors[1482749].message }}
  • Profile picture of the author trafficwave
    You were doing pretty well right until ...

    Originally Posted by ishansoni View Post


    Your MLM company should be irrelevant to what you do. Once people already know you, and trust you - you can sell them literally anything...

    It doesn't matter if its MLM/Network Marketing or even drugs...
    Just ..... wow

    :confused:
    Signature

    -----------------------------
    Brian Rooney
    TrafficWave.net Email Marketing AutoResponders
    Email Marketing Blog

    {{ DiscussionBoard.errors[1483685].message }}
  • Profile picture of the author Joel
    The problem I see with almost all MLM's is that the retail price of product or service they are selling costs significantly more than can be bought outside the MLM ... that's why they ultimately fail.

    For long term success, look for an MLM where the price is equal to or less than can be bought outside the MLM ... sure, this is hard to find, but Send Out Cards, for example, meets this requirement.
    Signature

    "Without data or facts, you are just another person with an opinion"

    {{ DiscussionBoard.errors[1483700].message }}
    • Profile picture of the author Alexa Smith
      Banned
      [DELETED]
      {{ DiscussionBoard.errors[1483717].message }}
      • Profile picture of the author Tsnyder
        Originally Posted by Alexa Smith View Post

        It does indeed, and a number of others, too. But its distributors aren't earning anything worth talking about. Even the "very successful" ones at high levels who've been doing it for 5 years. (Have you seen their income-disclosure figures? They'll chill your blood.)
        You blood chills easily, Alexa... there is absolutely nothing chilling
        about the incomes earned by the top reps in SOC.

        Tsnyder
        Signature
        If you knew what I know you'd be doing what I do...
        {{ DiscussionBoard.errors[1484919].message }}
        • Profile picture of the author Chris Busa
          Wow I did not expect this question to get the response it did, the fact of the matter is I know MLM is a joke and also see that the majority of you feel the same way. To tell you the truth I wanted to see what kind of response this question would get and it blew me away.

          So with that being said you can still target MLMers to build your list and market to. This is a great market to with hungry buyers and the sad fact is most these people do not know how to market or that FREE affiliate programs exist. The training I have seen provided by the so called MLM guru's is complete garbage and most they know is only networking.
          Signature

          Discover The Easiest Way to Generate Passive Income Month after Month Fast!...Click Here To Get The Free Training Now!

          {{ DiscussionBoard.errors[1485529].message }}
    • Profile picture of the author trafficwave
      Originally Posted by Joel View Post

      The problem I see with almost all MLM's is that the retail price of product or service they are selling costs significantly more than can be bought outside the MLM ... that's why they ultimately fail.
      I think there are other more prominent reasons for failure with those companies but pricing can be a big factor. If the company is jacking up the price simply to make room for commissions, that should be a red flag, for sure. But if they are able to justify higher pricing with higher quality, that may be a different matter.

      The company I buy my coffee from is considerably less expensive than my previously long-standing Starbuck's addiction. They pay commissions via an MLM model.

      I save money.
      I enjoy what I feel is a better product.
      I make a little money by introducing others to the product.

      Simple.
      Signature

      -----------------------------
      Brian Rooney
      TrafficWave.net Email Marketing AutoResponders
      Email Marketing Blog

      {{ DiscussionBoard.errors[1483796].message }}
  • Profile picture of the author Rod Cortez
    I think we can all at least agree on one thing: different strokes for different folks. Now excuse me, I've got to put the finishing touches on a new infoproduct.

    RoD
    Signature
    "Your personal philosophy is the greatest determining factor in how your life works out."
    - Jim Rohn
    {{ DiscussionBoard.errors[1483753].message }}
  • Profile picture of the author DougHughes
    MLM is not my thing. I have had a number of friends play with it and none of them were successful.

    Do I think MLM is a joke? No. Some people are doing well with it. But 97% are not.

    I am an internet direct response marketing and online business evangelist.

    I love this stuff and I believe I am a better human now because of things I have learned in my quest to become successful online.

    I figured out some proven methods of earning decent money online. I created a products around those methods and was obviously excited to share those products with my friends and family who were always complaining they didn't have enough money.

    In fact, I gave my courses away to dozens of family and friends in an effort to help them.

    Out of all those people only one took action and he earns a small amount of money here and there from the actions that he took.

    Would I call him successful? Probably not because he stopped after the first niche and failed to rinse and repeat the system.

    Like I said, I know MLM is not for me. But...the fact is that most people are going to fail with anything where they have to take action, make themselves uncomfortable, be disciplined, or face perceived uncertainty.

    MLM recruiters are sales people. They hype things up and people allow themselves to be taken with the fantasy they hear in between the lines.

    Just like a good sales letter. Even though it may say out right "this is not a get rich quick formula, this is for those willing to put in the work." People have high opinions of themselves and will hear a compliment in that statement. Such as "Hey Bob...you look like the type of guy who wouldn't fall for a get rich quick scheme your too smart for that and you're a hard worker."

    Then, throughout the rest of the sales letter, and as they should if it is any good begin to see only what you want them to see. Only the benefits.

    By the end of the pitch you forgot about any kind of work or effort you would have to do because your blinded by thoughts of that new car, or that big house, or sunning yourself on that white sand beach.

    MLM is stratified like all human endeavors - some are at the top, some in the middle, and most on the bottom.

    Look at the world around you. Fortune favors the brave.
    Signature

    I write copy. Learn More.>>

    {{ DiscussionBoard.errors[1484003].message }}
  • MLM just for a certain people will success, it's impossible for you to reach the top. AVOID MLM. Just waste your time and money.
    {{ DiscussionBoard.errors[1485725].message }}
  • Profile picture of the author Michael Oksa
    I would like to offer a very heartfelt apology.

    While I haven't had a total change of heart about the MLM model...

    I will say I truly wish much success to all of those who get involved in it.

    After all, who am I to tell ANYONE how to earn their money? As long as it's moral, legal and ethical who really cares?

    To your success,
    Michael
    Signature

    "Ich bin en fuego!"
    {{ DiscussionBoard.errors[1485931].message }}
    • Profile picture of the author jbr
      Originally Posted by Alexa Smith View Post

      I couldn't disagree more, Ishan.

      This "branding" approach, so suitable for internet marketing, is a very, very widespread cause of abject and repeated failure in network marketing.
      Hi Alexa,

      I disagree with your disagreement

      Only because I view both ways as profitable.

      Do you think just because its a "widespread cause of failure" in network marketing that its not a very powerful strategy in the RIGHT HANDS? Is there real evidence and data that says branding alone is the cause for widespread failure in network marketing industry?

      Even if its true, you can't blame the strategy, its the business owner that doesn't know what they're doing. Especially in mlm/network marketing as there is a lot of opportunity seekers- NOT business owners.

      Branding can increase profits in just about any business, network marketing is not an exception. The problem is WHO is doing the branding. As most people do not know how to brand effectively.

      Duplication is also important. In the case of internet marketing with network marketing, duplication of websites can be a huge downfall for the affiliate. Reason is saturation and law of diminishing returns can cause negative effects on ones network marketing business.

      Both strategies have there place, imo. There is neither right or wrong way to do this.

      Originally Posted by Alexa Smith View Post

      "Branding yourself" is almost the exact opposite to that concept.
      And thats why it works so well!!!!!!!!! LOL

      Doing the opposite of your competition is awesome marketing- those that know how to do it right. The strategy/tactic isnt the problem- its who is implementing it.


      Originally Posted by Michael Oksa View Post

      I would like to offer a very heartfelt apology.

      While I haven't had a total change of heart about the MLM model...

      I will say I truly wish much success to all of those who get involved in it.

      After all, who am I to tell ANYONE how to earn their money? As long as it's moral, legal and ethical who really cares?

      To your success,
      Michael
      Hi Michael,

      I agree with everything you are saying.

      Success is a journey. And just because one doesnt make a full time income with there network marketing business their first or second try, doesnt mean the EXPERIENCE has no value. I have made decisions in MLM before that werent the best, FINANCIALLY. But that doesn't mean I didnt LEARN anything..
      {{ DiscussionBoard.errors[1487579].message }}
  • Profile picture of the author Fabian Tan
    MLM can be a joke or a genius scheme. It can be a short term big 'churn and burn' campaign or a successful-long-term enterprise. It depends on the company, product and compensation plan.

    You can have a hyper markup web service with a crappy hybrid plan on one side set up for the purpose of distributors earning commissions off one another, and a great value nutritional product that provides real value to the consumer with a great unilevel plan on one side.

    The problem with MLM is that there are a lot of companies and compensation plans set up for the purpose of transferring money from distributor to distributor, with the product as an afterthought.

    Now, we're all in business to make a profit, but if the company provides a slipshod service or commodity with a high markup to pay compensations, basically what happens is that the MLM only attracts distributors (and the suckers who pay the high prices), rather than real customers. So in effect, it is merely a VEHICLE for paying compensations. The product can be crap, who cares?

    Household items, commodities and Internet services rarely last long in the MLM arena because they can be bought from other places at a LOWER markup and often at a greater value. The MLM's are often set up, as said, just as a vehicle for earning compensations from one another. Many companies still give away 'training bonuses' for providing your new downline members with training materials. That is of course illegal.

    On the other hand, a company that provides a quality product, say a high-end valuable nutritional product that is unique, with years of experience has always done well in MLM.

    Fabian
    {{ DiscussionBoard.errors[1487601].message }}
    • Profile picture of the author mlevenhagen
      In the 90s I tried several MLM schemes.. one a girlfriend and I got into together. We ended up investing $1000s of dollars in products. A few years later this billion dollar business was put out of business.. Last I talked to that ex-girlfriend those boxes were still in her parents attic..

      ..probably factors in why they hated me and they talked her into dumping me. :p That and my long hair at the time..

      The greatest thing I got out of it was learning how these businesses were delivered and sold. How they motivated their people. I sat through many motivational meetings and seminars.. they made you feel like you could CONQUER the world!!

      ..Besides all the motivational books, other seminars and experiences that have shaped me over the years the MLM experience had an impact; not in terms of direct success... Not short term.. but long term. In my thinking.. in my perception of motivation, inspiration and success.

      As a coach today (which I could never have envisioned at the time I'd be doing..) It helps me today motivate others by applying some of the same in motivational principles to inspire my troops.

      The model in and of itself in my opinion isn't bad if there is a good product to back.. but I haven't known anyone personally to truly succeed on the level they communicate you could.. or can. In my experience, it's only those that get in early that make the big bucks.
      Signature

      ~ Matt Levenhagen
      Blog: Niche Marketing
      Latest WSO: Check Out Conversions Academy!

      {{ DiscussionBoard.errors[1487694].message }}
  • Profile picture of the author trafficwave
    It seems to me that much of the negative feedback about MLM on this thread is (IMO) based on a bad experience (or experiences). But most of the time, we could probably trace much of the bad stuff back to someone selecting a company without doing any actual due diligence or applying any sort of business sense.

    They bought into a total hype-fest and now they're upset that the inevitable has happened. And they blame the company and/or the entire world of MLM without accepting any personal responsibility for their decisions.

    These same people, if they were researching a Franchise opportunity would probably conduct much more extensive research on market potential, legality, position in the market place, potential market share, etc.

    The company would also be more likely to conduct extensive interviews, run background checks, etc... to find people with the right "profile" to potentially build a successful business.

    The blessing/curse of MLM is that it is open to virtually anyone due to the low cost of entry.

    Your chances of success are considerably higher if you perform some due diligence, use some common sense, apply some business logic, and then be prepared to WORK to create the level of success that you want in your particular business.

    Ask some BASIC business questions when considering any network marketing opportunity.

    Things like:

    Is there a need/demand for this product or service?
    Is it at least comparable (or better) in quality than what is already available?
    Is it priced competitively?
    Does the company have strong management?
    Is their business model legal?
    Does the opportunity exist for you to be fairly compensated based on your sales efforts?
    Would you offer it to your own mother? (if she was in your market)

    If you see/hear things like, "Who cares what the product is? We're gonna be rich!" ... don't be stupid. RUN!

    A little research ... a little common sense ... and most of these "horror stories" would be avoided.
    Signature

    -----------------------------
    Brian Rooney
    TrafficWave.net Email Marketing AutoResponders
    Email Marketing Blog

    {{ DiscussionBoard.errors[1487789].message }}
    • Profile picture of the author mlevenhagen
      Unfortunately isn't it impractical to think that those that fall into an MLM company can stop or have the experience to stop themselves from getting swept up into the hype and strong persuasion tactics used.

      They haven't talked to you to gain that wisdom first. And an MLM company isn't going to say, before you join us, have you done your due diligence and looked at other companies? They are in recruiting mode and focusing only on bringing you on board.

      The only way that could be squashed if there was some sort of pamphlet MLM companies were required to give out stating what you said..

      ..it's common sense to you, but you're not the MLM target. They are focused on bringing in individuals with weaker backgrounds and control of themselves.. preying on their life situation.

      There are probably great companies run by great individuals.. but there are probably many more that aren't that are hurting people. How does that stop without regulation?
      Signature

      ~ Matt Levenhagen
      Blog: Niche Marketing
      Latest WSO: Check Out Conversions Academy!

      {{ DiscussionBoard.errors[1487862].message }}
      • Profile picture of the author trafficwave
        This is a pretty good example of some of the broad generalizations being used by so many people based on some bad experiences.

        For many people, they are true ... but they are not "truth". There is more to the story.

        Originally Posted by mlevenhagen View Post

        Unfortunately isn't it impractical to think that those that fall into an MLM company can stop or have the experience to stop themselves from getting swept up into the hype and strong persuasion tactics used.
        You could use this same question with virtually any business offer, including franchising, IM, Affiliate Marketing, buying an existing business, etc... This certainly isn't exclusive to MLM.

        Originally Posted by mlevenhagen View Post

        They haven't talked to you to gain that wisdom first.
        I'm reasonably confident that wisdom can be attained outside of talking to me!

        Originally Posted by mlevenhagen View Post

        And an MLM company isn't going to say, before you join us, have you done your due diligence and looked at other companies? They are in recruiting mode and focusing only on bringing you on board.
        Another generalization. I have experiences that tell me that there are those who do say exactly that. Again ... just because someone has had a bad experience doesn't mean that all companies fit that same mold.

        A strong company that is focused on building a solid business will not have a problem encouraging people to check out other companies.

        I encourage anyone looking at my particular company to do their research. If you think we're the best fit for your needs, we'd love to have your business.

        Originally Posted by mlevenhagen View Post

        The only way that could be squashed if there was some sort of pamphlet MLM companies were required to give out stating what you said..
        That is ONE way that could be squashed. It is not the "only" way. Legislation is being considered to require certain disclosures and a "cooling off" period. Some of the legislation is actually a pretty good idea, IMO. Much of it is not.

        Originally Posted by mlevenhagen View Post

        ..it's common sense to you, but you're not the MLM target. They are focused on bringing in individuals with weaker backgrounds and control of themselves.. preying on their life situation.
        Yet another generalization. While there are companies that this phrase would accurately describe (and we've all seen a lot of them), there are also companies that sincerely believe they provide a solid product or service along with a powerful opportunity. They are in business and have selected the mlm distribution model to spread the word about their offer.

        And some of them do a really good job. Some ... not so much.

        And believe me ... I'm definitely the MLM target. I'm a business owner. I have extensive experience in network marketing from both the distributor side and the ownership side.

        I get multiple offers on a daily basis. Most of them aren't worth the effort it takes to hit the "delete" key or to toss the pitch in to the trash can.

        Originally Posted by mlevenhagen View Post

        There are probably great companies run by great individuals.. but there are probably many more that aren't that are hurting people. How does that stop without regulation?
        There are, indeed, some great companies out there. Unfortunately, the media doesn't get nearly as excited about sharing those success stories as they do the Bernie Madoff scenarios. The problem is ... the people doing the reporting aren't educated enough to distinguish between legitimate network marketing and the scammers posing as network marketers.

        Right now, there are companies in a broad range of industries and markets that are growing, thriving, serving their clients, and having a positive impact on the world.

        Right now, someone is reaching a new level in their chosen profession (mlm or otherwise).

        Right now, someone is courageously launching a new business in the hope of creating a better future for their families.

        You won't hear about those stories on the news or see those articles online. You'll hear about excesses, abuses, scams, etc... because that's what sells.

        Like many things in life, our most powerful weapon will be education.

        Regulation would have to come from a body that is even more riddled with abuses, excesses, moronitude, theft, lack of integrity, etc... the government!

        The lunatics would be running the asylum!

        But that's an entirely different thread, altogether.
        Signature

        -----------------------------
        Brian Rooney
        TrafficWave.net Email Marketing AutoResponders
        Email Marketing Blog

        {{ DiscussionBoard.errors[1487979].message }}
        • Profile picture of the author mlevenhagen
          And believe me ... I'm definitely the MLM target. I'm a business owner. I have extensive experience in network marketing from both the distributor side and the ownership side.
          But many don't target those with business experience.. there in lies the problem. You're thinking like a business person.. do you know (you probably do as you seem mighty intelligent..) how many people are pulled into schemes that have never run a business?

          And regarding.. "Another generalization".. it's an argumentative phrase that doesn't add value to a debate... Let's redo this one.... I might say..

          Another generalization. I have experiences that tell me that there are those who don't do that... Again ... just because someone has had a good experience doesn't mean that all companies fit that same mold.

          And I agree it's not only MLM here either. But that's the topic and it's a business where it's probably more prevalent than others. :p
          Signature

          ~ Matt Levenhagen
          Blog: Niche Marketing
          Latest WSO: Check Out Conversions Academy!

          {{ DiscussionBoard.errors[1488100].message }}
          • Profile picture of the author trafficwave
            Originally Posted by mlevenhagen View Post

            But many don't target those with business experience.. there in lies the problem. You're thinking like a business person.. do you know (you probably do as you seem mighty intelligent..) how many people are pulled into schemes that have never run a business?

            And regarding.. "Another generalization".. it's an argumentative phrase that doesn't add value to a debate... Let's redo this one.... I might say..

            Another generalization. I have experiences that tell me that there are those who don't do that... Again ... just because someone has had a good experience doesn't mean that all companies fit that same mold.

            And I agree it's not only MLM here either. But that's the topic and it's a business where it's probably more prevalent than others. :p
            Your mom does mlm!

            :p

            (Just had a Napoleon Dynamite moment).
            Signature

            -----------------------------
            Brian Rooney
            TrafficWave.net Email Marketing AutoResponders
            Email Marketing Blog

            {{ DiscussionBoard.errors[1488148].message }}
  • Profile picture of the author sdentrepreneur
    Commission are too small on MLM, E-Books and Affiliates. Way too much work for so little actual net profit. I will stick with selling Wealth Based Products online, earning $1,000, $5,000 or $10,000 per sale.
    I do like drinking Monavie though.....
    Signature

    Learn Digital, Internet and Social Media Marketing For Your Business
    Click here to learn more - Digital and Social Media Marketing Training Course

    {{ DiscussionBoard.errors[1487917].message }}
  • Profile picture of the author Scott Ames
    MLM is nothing more than a commission structure but it gets applied broadly to companies that use that structure.

    There is nothing wrong with offering commissions on many levels. Sales organizations do that with Area Managers, Regional Managers, Product Managers, sales people. etc. Everyone gets a cut when something is sold.

    Companies that use the MLM commission structure however are very often those with a low barrier to entry. This low barrier to entry plus a hyped up projection of how much money someone can make attracts the strangest of people.

    When any distributor can sponsor and earn income from anyone that is willing to join, they seem to get a really crazy about sponsoring anyone and everyone.
    This leads to false promises, over hyped income projections, unrealistic projections on level of effort, and general bad karma.

    Many of these companies have overpriced products as well. They have to keep the prices up to pay out a commission and make a profit. To be fair some of the products are really good, are the best quality, and cost more to manufacture than typical "off the shelf" products.

    Most of the products sold by these companies are consumed by the distributors themselves. Not a lot of retail selling actually takes place. Amway is one of the biggest companies out there, yet never did I have an Amway rep. try to sell me anything except "joining the business". They have all kinds of things I might use, but I'll never know because unless I join, I won't hear about them. Avon on the other hand at least has reps that leave little books on my door.
    Signature

    Success consists of going from failure to failure without loss of enthusiasm. -Winston Churchill

    {{ DiscussionBoard.errors[1488415].message }}

Trending Topics