Is MLM A Joke Or Is It Just Me..

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

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.

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

The Gary Halbert Letter

-Scott

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.

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.

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.

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.

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.

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.

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.

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;

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

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.

As much as I dislike MLM, I see nothing wrong with someone INVESTING their profits. That's just smart.

~Michael

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,

i always hate MLM

did anyone knows about the MLM lead by Donald Trump?

this one seems legit though

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.

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

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

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.........

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.

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.

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!

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.

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.

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

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.

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.

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...

I made more money with one 250 article in one day, than I made with MLM in 6 months

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.

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

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!

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!

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

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.

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.

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

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.

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

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!

You were doing pretty well right until ...

Just ..... wow

:confused:

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.

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

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.

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.

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

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

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.

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.....

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.