MLM and the Internet: A Match Made in Heaven?

13 years ago

It all looks great on paper but the truth is MLM programs
don't do well at all on the internet. It's been tried several
times.

The internet can be a great tool for generating interest and
making initial contact with potential prospects but in order to
flourish the relationship has to develop significantly beyond
the internet.

Tsnyder

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Michael Oksa

13 years ago

Regardless of my feelings on the business model itself, I agree with T. MLM thrives on more personal interaction.

The internet still has its place, but it is no substitute.

All the best,
Michael

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Alexa Smith Banned 13 years ago

I completely agree with the gentlemen above.

Actually the people I know myself who are really successful in MLM (that's 3 or 4 people - I'm talking 7-figure successful) say that MLM and the internet don't intrinsically mix, for good and valid reasons to do largely with distributor-retention, and they wouldn't dream of building an MLM business that way.
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- polrbearz 13 years ago
  
  Great--helpful answers. Thanks to everyone.
  
  It seems that to avoid confusion it's be best to just focus on looking for the very best affiliate models out there--things like RAP and Digiresults where there is a viral component would be examples. Hopefully these will continue to evolve over time and get better and better
  
  As Aiden Chong, AJ Silvers and many others have implied, the goal is to get the most long-term benefit from the effort of acquiring each new customer. If an affiliate model doesn't serve one's needs in that regard, we have the old tried and true method of having your own product and/or list. It makes sense that, at the end of the day, being of continual and evolving service to an audience that you are committed to is the best way to "residual income."
  
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dsiomtw

13 years ago

I think the idea in your original post is still valid. Forget calling it an MLM - too many negative associations as you said. But a killer product or service with a multi-tier affiliate program that goes viral would be pretty killer for everyone involved.

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polrbearz

13 years ago

Originally Posted by dsiomtw

I think the idea in your original post is still valid. Forget calling it an MLM - too many negative associations as you said. But a killer product or service with a multi-tier affiliate program that goes viral would be pretty killer for everyone involved.

Agreed ! That's how we should focus the question:

"What are the best multi-tier affilliate programs with viral potential ?"

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dsiomtw

13 years ago

There are relatively few multi-tier programs for one primary reason - the pareto principle. Except instead of 80/20, in affiliate marketing it's more like 95/5. 5% of affiliates probably generate 95% of the results, so "super affiliates" don't want to take a lower commission on their sales just so the program can payout on additional levels of people who will most likely never do anything anyway. For it to work, the product or service being sold would be key. It would have to be something that literally sells itself so that ANYONE could relatively easily expect to get some sales, not only established and successful affiliate marketers. This is the only way a multi-tier affiliate program would go viral, and it's easier said than done I'm afraid. I'm sure it's not impossible, I just haven't seen it yet in 10+ years online!

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polrbearz

13 years ago

Originally Posted by dsiomtw

There are relatively few multi-tier programs for one primary reason - the pareto principle. Except instead of 80/20, in affiliate marketing it's more like 95/5. 5% of affiliates probably generate 95% of the results, so "super affiliates" don't want to take a lower commission on their sales just so the program can payout on additional levels of people who will most likely never do anything anyway. For it to work, the product or service being sold would be key. It would have to be something that literally sells itself so that ANYONE could relatively easily expect to get some sales, not only established and successful affiliate marketers. This is the only way a multi-tier affiliate program would go viral, and it's easier said than done I'm afraid. I'm sure it's not impossible, I just haven't seen it yet in 10+ years online!

GREAT bottom-line analysis. I really appreciate it. It helps me manage my expectations of this concept. Including knowing the magnitude of what we might be asking our brainstorming partners/mastermind to try and come up with

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Tashi Mortier 13 years ago

I want to add to all that has been said already.

While on the internet there is an endless source of potential customers there is also an endless source of competition.

In traditional Network Marketing you always get to know new people and once they trust you they may join your company, then you "unlock" their circle of trust, so that with every new person the range of people that can be reached expands.

On the internet, every person you sponsor becomes your direct competition because each and everyone tries to reach the same anonymous mass.

The internet can be a tool for MLM but I think it takes just away those things that make this form of marketing special. Also, I noticed that a lot of companies limit your rights to market their products and services online. I guess they're trying to keep the balance between offline and online affiliates or something.
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AceOfShirts

13 years ago

I was able to use the internet to recruit about a dozen people into the Network Marketing (MLM) company I am involved in (the first line in my sig). It was mainly through PPC ads, craigslist and forum posts.

My company is probably a little easier because it offers several technology related products which sell well over the internet. I don't think I would have been able to sell any of the recent vitamin related drinks or make-up.

One of the products we offer happens to be Web Conferencing, like GoToMeeting. With this service it is easier to keep in touch with and train other people. It also gives you a chance to meet people "face to face" instead of just email or over the phone.

I like recruiting on the internet because it gives you a chance to grow your business across the country much easier.

Just my opinion, your mileage may vary,

Dennis Graves

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scottlin

13 years ago

Originally Posted by polrbearz

One of my mentors is a man with lots of direct sales experience and now online as an information product owner. He told me years ago that MLM and the Internet are the PERFECT match. He is still amazed that no one has put the right program together. Here are some of his main criteria:

* A consumable product or service that many need
* No face to face selling or signing of contracts, etc.
* A free introductory trial that becomes paid automatically
* A forced matrix of several levels (basically means that we all benefit from one another's referrals).

* A simple and easy to understand compensation plan--no tricks or fancy "legs" in your matrix structure. The idea is that you just put your link out there and promote it and the program does the rest !

If this already exists--let us know--we'll get in

Part of the challenge is semantics: "MLM" is an outdated meme with negative connotations. In modern terminology, what we are looking for is a true "viral affiliate program." More vendors are beginning to offer lifetime commissions which is DEFINITELY a step in the right direction. And some are offering 2-tier programs.

Anyhow--any thoughts on the perfect affilate model ? If it doesn't exist, I'm sure we Warriors are capable of putting one together. I would volunteer to be in that group for sure.

Wow!!!

I feel like your mentor has been in my head. As someone who did a lot of MLM but was able to always look at it objectively, i totally agree with him and have had the exact same thoughts.

I've seen it go close but every time they stuff something up.

Generally I find that their "MLM" ways get in the way. They have this huge opportunity but they miss the gold and always market it to the same 3 million people and around they go in circles.

The key is to have every day people who would never do mlm doing it, making money and not even realising they are doing it.

I have a new business launching soon so for those i know on here don't think I'm talking about that but i have also been developing almost exactly what the OP is talking about here....freaky!!!!

And i intend to put my belief and now, and it is nice to see someone else's belief, to the test!!

And there is another option that could possibly be it as well but it isn't 100% clear yet.....polrbearz, or anyone feel free to pm me if you want...cheers!

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MLM and the Internet: A Match Made in Heaven?

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