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What's the Real Deal with MLM?

by LegionNate
88 replies
I have mostly only heard bad things about MLM, but in theory I really like the business model. Do any of you that have tried your hand at it have anything to say about it?

On the surface it seems to me that it's like internet marketing in general; with the few making all the money and many others screaming scam. I suppose those that work the hardest at it can do well with it, although I have also heard others say it is all about getting in first.

I think at least my advantage would be that I wouldn't expect the world overnight and would treat it like a "real business", so to speak, just like I have with internet marketing. I make my living from internet marketing now, but it's been less than a year that I can say that, and it took about two+ years to get to that point... actually pretty close to three.

So I'd love to hear from anyone, and sure, go ahead and tell me why your MLM is the best and all that as well through a PM if you'd like. Thanks!
#deal #mlm #real
  • Profile picture of the author travlinguy
    The main issue with MLM is that the products, whatever they may be, almost always have to be way overpriced so the commissions can be paid to however many people might be in a downline.

    Look at Amway. They sell soap and other stuff. Soap costs no more than 50 cents a quart to make and might retail at Walmart for a couple of bucks. But Amway might charge $8 or $10 for what is essentally the same jug of soap that has what, special Amway power? I don't think so. It costs that much because there might be a half dozen people getting a commish on that jug. Not slammin' Amway folks. It's just the nature of the game.
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    • Profile picture of the author Dan Allard
      Originally Posted by travlinguy View Post

      The main issue with MLM is that the products, whatever they may be, almost always have to be way overpriced so the commissions can be paid to however many people might be in a downline.
      Exactly, every time I'm presented with an MLM opportunity I always look what the product is. I've yet to come across a product that would actually sell without having to beg and annoy your friends and family.
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      • Profile picture of the author Tsnyder
        Originally Posted by Dan Allard View Post

        Exactly, every time I'm presented with an MLM opportunity I always look what the product is. I've yet to come across a product that would actually sell without having to beg and annoy your friends and family.
        Pretty much all of my family and friends as well as many lawyers,
        chiropractors, photographers, a couple banks, real estate agents and
        owners of various other types of businesses use my product daily.

        I haven't begged a single one of them. I set them up with a free
        trial account. After using it they either upgrade or they don't.

        Most do...
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    • Profile picture of the author uniquecontent
      Originally Posted by travlinguy View Post

      The main issue with MLM is that the products, whatever they may be, almost always have to be way overpriced so the commissions can be paid to however many people might be in a downline.

      Look at Amway. They sell soap and other stuff. Soap costs no more than 50 cents a quart to make and might retail at Walmart for a couple of bucks. But Amway might charge $8 or $10 for what is essentally the same jug of soap that has what, special Amway power? I don't think so. It costs that much because there might be a half dozen people getting a commish on that jug. Not slammin' Amway folks. It's just the nature of the game.
      Oh I completely agree with you. MLM companies are earning from this pricy products and distributing cents to the downlines.
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  • Profile picture of the author Tsnyder
    The real deal with MLM is that if conditions are right
    there flat out isn't a more profitable long term business
    model... PERIOD.

    So, what are the right conditions?

    1. Legitimate product/service competitively priced relative to b/m sources

    2. Strong, stable upline leaders who can teach the correct skills

    3. Strong, experienced corporate office staff and leadership

    4. Fair compensation plan that incentivizes and rewards the right activities

    I've enjoyed a great deal of success with MLM for many years.
    Anyone interested in learning what it means to be mentored by
    a team of truly successful leaders should feel free to PM me.
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    • Profile picture of the author payment proof
      Originally Posted by Tsnyder View Post

      So, what are the right conditions?

      1. Legitimate product/service competitively priced relative to b/m sources

      2. Strong, stable upline leaders who can teach the correct skills

      3. Strong, experienced corporate office staff and leadership

      4. Fair compensation plan that incentivizes and rewards the right activities
      Very well put!!

      Like anything else, there are unfortunately some bad opportunities in MLM and also some very good ones.
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    • Profile picture of the author MaxNiche
      Originally Posted by Tsnyder View Post

      The real deal with MLM is that if conditions are right
      there flat out isn't a more profitable long term business
      model... PERIOD.

      So, what are the right conditions?

      1. Legitimate product/service competitively priced relative to b/m sources

      2. Strong, stable upline leaders who can teach the correct skills

      3. Strong, experienced corporate office staff and leadership

      4. Fair compensation plan that incentivizes and rewards the right activities

      I've enjoyed a great deal of success with MLM for many years.
      Anyone interested in learning what it means to be mentored by
      a team of truly successful leaders should feel free to PM me.
      No better explanation needed.
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      (Upgraded Version 2.0 12-12-2012) AUTHORITY MEGA NICHE SITES- GUARANTEED $500+ MONTHLY INCOME
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  • Profile picture of the author TheArticlePros
    I was involved in AmWay/Quixtar back from 1999-2002. I made $7 the entire time, but I learned so much more from that business than I have ever learned from anything else before. I loved being involved in the business, being around the people, and the chance to travel at least 4x per year to hear successful people talk about business.

    I think MLM is a fantastic opportunity for certain people, but you have to really be prepared to not make anything with it. (Then, if and when you do make something, you'll be really excited about it!)

    -- j
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    • Profile picture of the author payment proof
      Originally Posted by JaRyCu View Post

      I think MLM is a fantastic opportunity for certain people, but you have to really be prepared to not make anything with it. (Then, if and when you do make something, you'll be really excited about it!)

      -- j
      LOL. This made me crack up but it is so true. And I think it's true of any money making opportunity on line.

      Try several different things and if one or two of them take off and make money for you, run with it!!
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    • Profile picture of the author johnmorales
      Originally Posted by JaRyCu View Post

      I was involved in AmWay/Quixtar back from 1999-2002. I made $7 the entire time, but I learned so much more from that business than I have ever learned from anything else before. I loved being involved in the business, being around the people, and the chance to travel at least 4x per year to hear successful people talk about business.

      I think MLM is a fantastic opportunity for certain people, but you have to really be prepared to not make anything with it. (Then, if and when you do make something, you'll be really excited about it!)

      -- j
      I agree. I got involved in the Amway business back in the 1980's when we did things the old fashioned way, one presentation at a time, one meeting at a time. No internet.

      What I took away from this experience was how to have a positive mental outlook, how to be "people smart" how to network and salesmanship among other things.

      I can honestly say that if it was not for the Amway business and what I learned from all the people mentoring me, I would not have two unrelated profitable businesses today.

      MLM is not for everybody. There are some good ones and some bad ones. One has to make that determination for oneself. Every life experience good or bad is a stepping stone toward your personal growth and goals.

      I'm not for or against MLM. I'm just saying that for me, I needed to go out and do something to get my butt in gear and mlm was what did it for me for starters. YMMV.
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  • Profile picture of the author DubDubDubDot
    MLM is for people with a lot of social connections in business. If you don't know ahead of time that you can get a ton of people to sign up under you, don't even bother with it. MLM is about those at the top not pushing the product, but instead the promise that pushing the product can make those at the bottom a lot of money. Of course, those at the bottom make almost nothing. However, if the people at the top have convinced enough of these idiots to sign up, there can be a power in numbers thing.
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    • Profile picture of the author travlinguy
      Originally Posted by DubDubDubDot View Post

      MLM is for people with a lot of social connections in business. If you don't know ahead of time that you can get a ton of people to sign up under you, don't even bother with it. MLM is about those at the top not pushing the product, but instead the promise that pushing the product can make those at the bottom a lot of money. Of course, those at the bottom make almost nothing. However, if the people at the top have convinced enough of these idiots to sign up, there can be a power in numbers thing.
      Idiots is pretty strong. There are MLM models that are decent. I've made some good money while being fairly close to the bottom.
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    • Profile picture of the author Tsnyder
      Originally Posted by DubDubDubDot View Post

      MLM is for people with a lot of social connections in business. If you don't know ahead of time that you can get a ton of people to sign up under you, don't even bother with it. MLM is about those at the top not pushing the product, but instead the promise that pushing the product can make those at the bottom a lot of money. Of course, those at the bottom make almost nothing. However, if the people at the top have convinced enough of these idiots to sign up, there can be a power in numbers thing.
      MLM, of course, is about none of that. The top earners in our company
      lead by example... We have more non-distributor retail customers than
      any of the newer people on our teams.

      It helps when your product retails for about 1/3rd of what comparable
      quality costs from our competitors.
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    • Profile picture of the author Devin X
      Banned
      Originally Posted by DubDubDubDot View Post

      MLM is for people with a lot of social connections in business. If you don't know ahead of time that you can get a ton of people to sign up under you, don't even bother with it. MLM is about those at the top not pushing the product, but instead the promise that pushing the product can make those at the bottom a lot of money. Of course, those at the bottom make almost nothing. However, if the people at the top have convinced enough of these idiots to sign up, there can be a power in numbers thing.

      lol I totally agree with you man! I grew up in MLM essentially and this is more or less how I feel about it. I've seen enough people succeed and fail in it to know what it takes. The above is pretty spot on.
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      • Profile picture of the author Tsnyder
        Originally Posted by TheRealDudeman View Post

        lol I totally agree with you man! I grew up in MLM essentially and this is more or less how I feel about it. I've seen enough people succeed and fail in it to know what it takes. The above is pretty spot on.
        dude... Seriously... You haven't the first clue of what it takes.
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        • Profile picture of the author Devin X
          Banned
          translation:

          "dude...like...seriously...you hurt my feelings"
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          • Profile picture of the author Tsnyder
            Originally Posted by TheRealDudeman View Post

            translation:

            "dude...like...seriously...you hurt my feelings"
            dude... Like seriously.. Just stating the facts.

            If I had a dime for every anti-MLM troll who
            claimed to have grown up in the business and
            knows all about it... But demonstrates that they
            actually know nothing... I'd have a whole lot of
            dimes.

            One of us knows this business inside and out and
            one of us doesn't know squat. It's fairly obvious which
            is which...
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            If you knew what I know you'd be doing what I do...
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            • Profile picture of the author Devin X
              Banned
              Originally Posted by Tsnyder View Post

              dude... Like seriously.. Just stating the facts.

              If I had a dime for every anti-MLM troll who
              claimed to have grown up in the business and
              knows all about it... But demonstrates that they
              actually know nothing... I'd have a whole lot of
              dimes.

              One of us knows this business inside and out and
              one of us doesn't know squat. It's fairly obvious which
              is which...

              This is the final word, because I'm sick of instigators who don't know when to shut up. You haven't demonstrated anything besides your insecurity with the subject.

              I answered the OP, and you interjected with your hollow statements. You could have just said "Dudeman you're blue!" and it wouldn't matter because you're just flabbing gums and not presenting anything else.

              The statement is a statement. It has no meaning unless you cite an example. (Which you haven't, you've only tried to insult my intelligence.)

              At least I illustrated (and can illustrate many more) specific comparisons between MLM schemes and legit biz opps.

              You'd have better luck and more dignity selling simple merchandise out the back of your car. MLM is garbage. Get over it, pops. You don't like it? Oh well. I if I was wrong, then why not just ignore me? ::makes retarded face::

              Now I'm done here. Have a day.
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              • Profile picture of the author Tsnyder
                Originally Posted by TheRealDudeman View Post

                This is the final word, because I'm sick of instigators who don't know when to shut up. You haven't demonstrated anything besides your insecurity with the subject.

                I answered the OP, and you interjected with your hollow statements. You could have just said "Dudeman you're blue!" and it wouldn't matter because you're just flabbing gums and not presenting anything else.

                The statement is a statement. It has no meaning unless you cite an example. (Which you haven't, you've only tried to insult my intelligence.)

                At least I illustrated (and can illustrate many more) specific comparisons between MLM schemes and legit biz opps.

                You'd have better luck and more dignity selling simple merchandise out the back of your car. MLM is garbage. Get over it, pops. You don't like it? Oh well. I if I was wrong, then why not just ignore me? ::makes retarded face::

                Now I'm done here. Have a day.
                I imagine your retarded face is what you wear most of the time... Junior.
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                If you knew what I know you'd be doing what I do...
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  • Profile picture of the author David Sneen
    MLMs get a bad reputation from overpriced items, encouraging members to inventory a boatload of products they don't need...["the product sells itself,"] or folding. There are also many, many MLMs that closed down. A rep who had created an income is not be happy with that, and may bash MLMs.

    The idea that products need to be overpriced is bogus. Most of the MLM's main products compete with traditional stores. Stores spend $.70-$.75 of every dollar for advertising. (Included in this figure are the ads for the products themselves, which must be passed on to the consumer). By the time it has been carted from warehouse to warehouse paying trucking and warehousing fees along the way...the amount is close to $.90 on the dollar. MLMs do not pay for advertising, and drop shipping a large order is usually far cheaper than the warehousing/trucking combination. Thus, there is considerable money available for commissions.

    I recommend 2 considerations when looking at a money-making opportunity. 1. Does it make sense for someone who just wants to use the product, and never earn a dime? 2. Does the company look economically strong?---RUN from ground floor opportunities...98% fail in the first five years.

    If those criteria are met...dig in, and good luck!
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    David Sneen
    It's what you do when no one is watching
    that determines what you will be able to
    do when everyone is watching.
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  • Profile picture of the author Coolstro
    MLM is why I got in to internet marketing. I wanted to learn how to market better than talk to people you know, there had to be a way to generate leads for your mlm on the internet right? Currently I am not active in my MLM because I wanna master online marketing make full time income and come up with a great system that when i actually recruit people into my mlm they can have success with my system. MLM business models are amazing only the company doesnt teach you how to be successful being good at IM can. someone said something about products...ACN is sick they partner with major companies on monthly bills (recurring commissions) like phone/tv/mobile..I easily got my own customer points because friends and family use those services already however i had a hard time building a downline with no marketing knowledge
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  • Profile picture of the author Devin X
    Banned
    I've been around Morons Losing Money for a long time. Both my parents have had great success with it but I think it's a ****ty business model. In fact, I see it as a glorified sales job, not a business at all. Now some might claim that "oh dudeman, you're being a jerk. MLM is as much a business as internet marketing." ummm no it's not.

    In IM I don't have to recruit or train anyone. In MLM, that's all I do. I hate that and don't have time for it unless I' getting paid to do training beforehand.

    Furthermore, their "training" equates to a cheesy pep talk and email/script swipes. Then they tell you to hound your personal network. No thanks.

    On top of that, my operating expenses are hella lower in IM than working for some MLM scheme. I say scheme because it really is all it is, if not a sales job.

    Ohh, and in order to make more money, you have to spend more money per month, and get other morons to spend more money a month. I don't have time or patience for gimmicks and policies like that.

    I mean no offense here but I'm tired of seeing the morons on FB groups and forums all trying to recruit people by posting cheesy email swipes and making outrageous claims all in hope of "sponsoring" some poor bastid looking for a quick buck.

    Meant no offense, but you asked for opinions so here is my not so humble one. =D
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    • Profile picture of the author travlinguy
      Originally Posted by TheRealDudeman View Post

      I've been around Morons Losing Money for a long time. Both my parents have had great success with it but I think it's a ****ty business model. In fact, I see it as a glorified sales job, not a business at all. Now some might claim that "oh dudeman, you're being a jerk. MLM is as much a business as internet marketing." ummm no it's not.

      In IM I don't have to recruit or train anyone. In MLM, that's all I do. I hate that and don't have time for it unless I' getting paid to do training beforehand.

      Furthermore, their "training" equates to a cheesy pep talk and email/script swipes. Then they tell you to hound your personal network. No thanks.

      On top of that, my operating expenses are hella lower in IM than working for some MLM scheme. I say scheme because it really is all it is, if not a sales job.

      Ohh, and in order to make more money, you have to spend more money per month, and get other morons to spend more money a month. I don't have time or patience for gimmicks and policies like that.

      I mean no offense here but I'm tired of seeing the morons on FB groups and forums all trying to recruit people by posting cheesy email swipes and making outrageous claims all in hope of "sponsoring" some poor bastid looking for a quick buck.

      Meant no offense, but you asked for opinions so here is my not so humble one. =D
      You call people morons and then you say you don't mean any offense. :rolleyes:
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      • Profile picture of the author Devin X
        Banned
        Originally Posted by travlinguy View Post

        You call people morons and then you say you don't mean any offense. :rolleyes:
        Hey, people shouldn't be so sensitive.

        I mean I've been called a ****ing retard plenty of times, (among other things) but I've learned that brawling every time someone insults you is a surefire way to either:

        a. land in the big house for a long time
        b. get stabbed

        They're just words...they might sting, but they won't kill you.
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        • Profile picture of the author joseph7384
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          • Profile picture of the author Scrambler
            The real deal with MLM depends on what program and product you get into. Read the terms, conditions, and rules of the distributor agreement you have to sign, then read it again to make sure you understand everything. I will outline a model that made us some good money.

            We tried several different MLM programs. Basically we lost money on 3 and made good money on one. The money maker promoted a line of makeup, jewelry, and health food by a famous "personality." Ultimately it was sold off to a larger MLM company. Once that happened the terms and conditions of participation changed in a way that killed our business model.

            Each consultant had their own "personal website" where their customers could log onto, shop, and pay for their products. Actually they were just cookie cutter sites with the consultants name and bio on the header, pretty much a useless site. Worse yet consultants were forbidden from promoting the products on their own site.

            So what made it work for us? The program rules were wide open when it came to incoming links to the consultant's personal site from other sources. So a "friend" created a health and beauty site reviewing and featuring our products, and then linked to the appropriate product pages on our consultant site. We did our SEO and promoted the heck out of the site like any other IM site. This left the cookie cutter sites in the dust.

            So no more annoying relatives and friends. Sales came from referrals from our "friends" site.

            No good deed goes unpunished however and MLM can get ugly, lots of folks scrapping for small commissions. We got noticed by other consultants, many asking us for some advice. But we also got noticed by the bitter people, they were not too happy once they figured out how we worked. The hate emails from consultants high on the food chain started coming in, including veiled threats to get us kicked out of the program. But we followed the programs terms to the letter and were on solid ground. One particularly arrogant senior consultant outright told us they were the number one seller and we had no chance in success unless we joined their up sell network.

            As I said, the program got bought out by a huge MLM company and was put in a stable with a bunch of other MLM programs, commissions dropped to a pittance, and consultant support was terrible.

            Well, that's our experience. Yes, with the right program you can make money if you take advantage of the loopholes. But your entire business model can be yanked out from under you at any time.
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    • Profile picture of the author bigballin6161
      Originally Posted by TheRealDudeman View Post

      I've been around Morons Losing Money for a long time. Both my parents have had great success with it but I think it's a ****ty business model. In fact, I see it as a glorified sales job, not a business at all. Now some might claim that "oh dudeman, you're being a jerk. MLM is as much a business as internet marketing." ummm no it's not.

      In IM I don't have to recruit or train anyone. In MLM, that's all I do. I hate that and don't have time for it unless I' getting paid to do training beforehand.

      Furthermore, their "training" equates to a cheesy pep talk and email/script swipes. Then they tell you to hound your personal network. No thanks.

      On top of that, my operating expenses are hella lower in IM than working for some MLM scheme. I say scheme because it really is all it is, if not a sales job.

      Ohh, and in order to make more money, you have to spend more money per month, and get other morons to spend more money a month. I don't have time or patience for gimmicks and policies like that.

      I mean no offense here but I'm tired of seeing the morons on FB groups and forums all trying to recruit people by posting cheesy email swipes and making outrageous claims all in hope of "sponsoring" some poor bastid looking for a quick buck.

      Meant no offense, but you asked for opinions so here is my not so humble one. =D
      I agree. I have been in MLM and hate the people associated with them. Most of them are a pain in the a$$, talking out of their a$$e$. I was in a reputable company and every time I would talk to the people at the very top I wanted to slap those phony a holes. Tell it the way it is...most people wont make anything with them and probably lose some.
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      • Profile picture of the author bigballin6161
        I would also like to say that you are way better off spending your time on your own business that you have total control over. What happens in MLM if you are making good money then something happens to the company or for some reason they get rid of you. You cant do nothing about it.
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  • Profile picture of the author joseph7384
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    • Profile picture of the author Alexa Smith
      Banned
      Originally Posted by Dan Allard View Post

      I've yet to come across a product that would actually sell without having to beg and annoy your friends and family.
      You haven't lived.

      I have a friend who made her first Million in MLM before the age of 25. She refuses to sponsor people who intend to try to prospect mostly their "warm markets". For most people, most of the time, it just doesn't work.

      You have to have a product which genuine retail customers buy and re-order, which is either better or cheaper (or both) than what they can readily buy in a store. Otherwise it doesn't work in the long run.

      I tried MLM for about year - in a good company. Quite liked it, made some money from it, got out of it and on balance am glad I did. It wasn't really for me.

      That said, I always agree with every word Tsnyder says here, in these threads, about MLM. Partly because he's pretty often the only one who actually knows what he's talking about.

      Originally Posted by joseph7384 View Post

      There are legitimate MLM companys but there is a fine line between a legitimate MLM and a pyramid scheme
      I think Joseph makes rather a good point, here. It can be difficult for people to tell the difference between an MLM and an illegal pyramid scheme. There've certainly been enough cases in which even courts have had some difficulty telling the difference. It's complicated and difficult.

      MLM does have a lot of bad press. But its bad press is actually about all the things pretending to be MLM's that aren't really MLM's at all. The things without genuine retail customers, where people are just buying their checks by buying products "for personal consumption" and making no retail sales, and all they're really selling to others is the right to promote the business opportunity by re-selling that same right to others. Unfortunately, it seems like there are more of those than legitimate ones. :p
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      • Profile picture of the author CDarklock
        Originally Posted by Alexa Smith View Post

        It can be difficult for people to tell the difference between an MLM and an illegal pyramid scheme.
        In a nutshell...

        MLM: valuable product people buy and use because they wanted the product.

        Illegal pyramid scheme: totally worthless product people buy and throw away because they wanted into the scheme.

        It is also abnormal for any legitimate MLM to explain why it is not illegal.
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        "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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  • Profile picture of the author Alex Guzman
    This is a good business model if you know what you are doing, many people that successfully combine Internet Marketing with their Network Marketing opportunity are doing very well... Using the internet to make leads instead of chasing your family and friends is a good way of doing it. I have personally been involved in MLM and have made good money by mixing MLM with IM.

    Hope this helps,

    Cheers,

    Alex
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  • Profile picture of the author edy8888
    This is very well. In Indonesia this business model has been developed and spreaded virally. Many of the internet marketer combine MLM with the squeeze page then they can follow up the pre-downline or give some motivation and so on.

    And of course your imagination is the only limit. May this can improve this thread and my ability to tell my opinion in English.
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  • Profile picture of the author EmmaA
    The difference for me between MLM and IM is that IM removes the need to be motivated/cheesy/obsessed in a face to face way with people. That's pretty much why I got into IM. Sure I like talking to people, but there is a certain falseness that comes with all sales jobs. You build rapport with people that would not normally be in your circle of aquaintences. I found this to be more concentrated with MLM. You've basically got 2 choices:

    1) Sign up your family and friends
    2) Sign up people you network with

    Either way you are building quite close relationships with people under a pretty unnatural structure. What I mean by this is that it can get very exhausting spending hours every week with people you wouldn't normally associate with. Sure it can be immensely fun, but after the 5th seminar and 30 weeks straight with the same people (discussing nothing but a business where you don't actually own the product) it is sometimes disenchanting.
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  • Profile picture of the author Michael Lewis
    One of my close friends is connected with an MLM business that is in it's first year. I joined for 3 months because I really love the product being sold. (Gano Coffee) They told me I was getting the "wholesale" price but then I found the same product online for half the price.

    I also really didn't understand the business model of the whole downline thing with your weak leg and your strong leg. The MlM is called unlimited profits if anyone has heard of it. Im sure there is money to be made for those who love cold calling people up night after night but thats not me.

    I love IM much more and affiliate marketing is where its at for me.
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    • Profile picture of the author Joe Mobley
      One of the major issues that is not often discussed is that it's "Never Really Your Business!"

      Let's say you sponsor me... among others.
      I use the products. I sponsor others.
      The group that I have sponsored uses the products and sponsors other.
      Life is good. There's a nice little 4 figure per month business going on.

      One day, for whatever reason, you and I have a disagreement. I tell you I'm taking my group and moving on. Not Happening!

      Not only that, if someone in my upline doesn't like me for whatever reason, I can be kicked out of "the business" and all of "my people", "my business" get moved up.

      If you come to me with some MLM idea, leave Jesus at home. He will not be able to help you.

      Joe Mobley
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      Follow Me on Twitter: @daVinciJoe
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      • Profile picture of the author Joe Mobley
        From Perry Marshall.

        MLM and the Myth of

        Joe Mobley
        Signature

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        Follow Me on Twitter: @daVinciJoe
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        • Profile picture of the author bt
          The problem I had with MLM Is keeping my downline, they would sign up under me and stay for a month or so and eventually drop out. I like the MLM business model, but In my opinion the ones making all the money are the owners of the MLM programs.

          The people coming In at the bottom are what keeps MLM programs going, In my opinion.
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        • Profile picture of the author Tsnyder
          Originally Posted by Joe Mobley View Post

          From Perry Marshall.

          MLM and the Myth of

          Joe Mobley
          Well, that article was complete nonsense. Why do people
          who clearly know so little about a subject always feel the
          need to talk, write or speak about it as if they do?

          If you want to know the real deal about something ask someone
          who's been successful at it... not someone who obviously knows
          very little about it.
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          If you knew what I know you'd be doing what I do...
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        • Profile picture of the author scrofford
          Originally Posted by Joe Mobley View Post

          From Perry Marshall.

          MLM and the Myth of

          Joe Mobley
          Perry Marshall needs to stick with what he's good at and not talk about things he knows nothing about. Nothing what he says is correct in his article! Not one thing!
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          • Profile picture of the author Joe Mobley
            Apparently it is you who doesn't know what you are talking about if you think Perry knows nothing about Amway or MLM.

            Originally Posted by Tsnyder View Post

            Well, that article was complete nonsense. Why do people
            who clearly know so little about a subject always feel the
            need to talk, write or speak about it as if they do?

            If you want to know the real deal about something ask someone
            who's been successful at it... not someone who obviously knows
            very little about it.
            Originally Posted by scrofford View Post

            Perry Marshall needs to stick with what he's good at and not talk about things he knows nothing about. Nothing what he says is correct in his article! Not one thing!

            Also, I have noticed the lack of response to my statement about your MLM business is "Never Really Your Business!" That would be a deal-killer for me.

            Perhaps somewhere between being defensive and telling anybody that disagrees with you that they "don't know what they are talking about", you might share some facts regarding whether your business is really your business.

            You have a good working relationship with an MLM company, great. You provide a product or service that benefits your clients and you, fantastic. My own experience and the experiences of other business people that I respect leaves me less than enthusiastic regarding this business model.

            Unless there is a handgun involved, I'm probably not going to consider an MLM business.

            Joe Mobley


            Originally Posted by Joe Mobley View Post

            One of the major issues that is not often discussed is that it's "Never Really Your Business!"

            Let's say you sponsor me... among others.
            I use the products. I sponsor others.
            The group that I have sponsored uses the products and sponsors other.
            Life is good. There's a nice little 4 figure per month business going on.

            One day, for whatever reason, you and I have a disagreement. I tell you I'm taking my group and moving on. Not Happening!

            Not only that, if someone in my upline doesn't like me for whatever reason, I can be kicked out of "the business" and all of "my people", "my business" get moved up.

            If you come to me with some MLM idea, leave Jesus at home. He will not be able to help you.

            Joe Mobley
            Signature

            .

            Follow Me on Twitter: @daVinciJoe
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  • Profile picture of the author WF99
    Many MLM schemes are scams - some are illegal. If you are at the top of the pyramid, you make money. Eventually, the guys at the bottom get cooked because planet earth only has a certain number of people willing to "sign up."
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  • Profile picture of the author Osman_M
    I have tried a couple here in Canada around life insurance. Its all about networking. I know who I use to work with ended up quitting his job cause he was making more then enough through a MLM business model.
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  • Profile picture of the author AdwordsMogul
    Here are some facts:

    1. The only people who will argue that MLM can give you financial freedom are
    a) Hopefuls who are not making any money
    b) People who are making money from hopefuls

    2. The math isn't right. The profit margins are too low to realistically give you an income that is of any significance.

    3. If you can make money selling MLM products, you are better of starting your own business - you will make way more profits.

    4. It takes a lot to run a successful business. If your downline could do it, they wouldn't need to be in your downline.

    5. MLM companies very often don't allow you to advertise the products, amongst other things. How are you supposed to run a business this way?

    6. Yes, you can learn a lot from MLM. 97% of what they teach you is true - the rest is poisonous lies.

    7. You may experience an emotional reaction at this point. Please refute my arguments with NUMBERS (actual results, sales figures etc.) not angry comments.

    MLM exists for the same reason smoking is legal - the governments of our world find it beneficial enough. The fact that something is legal doesn't make it right.
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    • Profile picture of the author JD Ways
      Originally Posted by AdwordsMogul View Post

      Here are some facts:

      1. The only people who will argue that MLM can give you financial freedom are
      a) Hopefuls who are not making any money
      b) People who are making money from hopefuls

      2. The math isn't right. The profit margins are too low to realistically give you an income that is of any significance.

      3. If you can make money selling MLM products, you are better of starting your own business - you will make way more profits.

      4. It takes a lot to run a successful business. If your downline could do it, they wouldn't need to be in your downline.

      5. MLM companies very often don't allow you to advertise the products, amongst other things. How are you supposed to run a business this way?

      6. Yes, you can learn a lot from MLM. 97% of what they teach you is true - the rest is poisonous lies.

      7. You may experience an emotional reaction at this point. Please refute my arguments with NUMBERS (actual results, sales figures etc.) not angry comments.

      MLM exists for the same reason smoking is legal - the governments of our world find it beneficial enough. The fact that something is legal doesn't make it right.
      I couldn't agree more!!
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      • Profile picture of the author Tsnyder
        Originally Posted by JD Ways View Post

        I couldn't agree more!!
        Then you're both wrong...
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        • Profile picture of the author JD Ways
          Originally Posted by Tsnyder View Post

          Then you're both wrong...
          Are you trying to pick a fight or engage in conversation?
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        • Profile picture of the author JD Ways
          Originally Posted by Tsnyder View Post

          Then you're both wrong...
          Look at my opinion and tell me how wrong I am...
          You obviously have a vested interest so unless you can give facts that paint a well rounded picture of the industry and your opportunity, instead of just saying how great it is for you..your opinions are just biased and may not reflect the true state of what to expect going into mlm?
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          • Profile picture of the author Tsnyder
            Originally Posted by JD Ways View Post

            Look at my opinion and tell me how wrong I am...
            You obviously have a vested interest so unless you can give facts that paint a well rounded picture of the industry and your opportunity, instead of just saying how great it is for you..your opinions are just biased and may not reflect the true state of what to expect going into mlm?
            I'm happy to have a serious conversation with anyone who
            has a serious interest in the business. As for responding to
            anti-MLM trolls who offer opinions as facts I have little interest
            in getting info the tall grass. You are free to interpret that
            any way that suits you but I've been doing this a long time
            and I know how it works and how it doesn't. You guys all
            want to describe your failed attempts and have everyone assume
            the business was at fault. Clue... It wasn't.
            Signature
            If you knew what I know you'd be doing what I do...
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    • Profile picture of the author Tsnyder
      Originally Posted by AdwordsMogul View Post

      Here are some facts:

      1. The only people who will argue that MLM can give you financial freedom are
      a) Hopefuls who are not making any money
      b) People who are making money from hopefuls

      2. The math isn't right. The profit margins are too low to realistically give you an income that is of any significance.

      3. If you can make money selling MLM products, you are better of starting your own business - you will make way more profits.

      4. It takes a lot to run a successful business. If your downline could do it, they wouldn't need to be in your downline.

      5. MLM companies very often don't allow you to advertise the products, amongst other things. How are you supposed to run a business this way?

      6. Yes, you can learn a lot from MLM. 97% of what they teach you is true - the rest is poisonous lies.

      7. You may experience an emotional reaction at this point. Please refute my arguments with NUMBERS (actual results, sales figures etc.) not angry comments.

      MLM exists for the same reason smoking is legal - the governments of our world find it beneficial enough. The fact that something is legal doesn't make it right.
      I'll be happy to refute your facts as soon as you post some.
      Signature
      If you knew what I know you'd be doing what I do...
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  • Profile picture of the author JD Ways
    Every time I got introduced to an mlm opportunity, I seem to go to that meeting where everyone is so successful and so happy they found mlm and in particular their specific company! Of course the main speaker is one of the founders that always look like a televangelist spreading the gospel of prosperity that only available thru their company/opportunity. My big turn off with mlm is they say you can make such and such money with only a little bit of effort and great training...but they never seem to tell you about the hard work it takes and that it will be A LOT of it! And also that the training is time consuming and expensive including national and regional conventions. I'm sure there are companies that this doesn't apply too, but this has been my experience so far?
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  • Profile picture of the author scrofford
    I haven't been here for months and when I come on here what do I see? A thread about MLM and lot's of people fighting over whether it works or not...LOL! I'll tell you the truth...The reason I haven't been on here is because I've been busy building an MLM business that is absolutely awesome!

    The truth of the matter is that most MLM products can be found on ebay at an undercut price so most of the reps that peddle lotions and potions and what not are getting severely screwed over. If you want to work in the MLM business, you want to find a company that offers a service that nobody can sell on ebay. If you can find that, and make sure the company is stable and has been around for a while, then you can do pretty well.

    MLM isn't a scam. It isn't a pyramid. Working for someone else is really working a "legal" pyramid scheme. The guy at the top, the owner is making all the money and you-the little guy is making pennies.

    Anyway, I just thought this was all pretty interesting after not being here for a while lol!
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  • Profile picture of the author igl0w
    total scam imo
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  • Profile picture of the author scrofford
    Originally Posted by Ken_Caudill View Post

    Why is it that MLM people always talk about opportunity and never about product?
    I'll tell you all about my product if you want to hear about it! Send me pm and we can chat Ken!
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    • Profile picture of the author scrofford
      The product is called Legal Shield. Ever heard of it?

      Originally Posted by Ken_Caudill View Post

      "Thanks to a revolutionary and proven income-building system that YOU TOO can plug into...thousands of people are creating financial freedom from the comfort of their homes. Come inside to see how."

      So what's the product?
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  • Profile picture of the author italad
    my personal experience with MLM is that it didnt work for me, I am glad I tried it however (in my early days of looking for a home based business) it led a foundation to other things, some worked some didnt, and I am still learning new things everday, i think this foum is great to meet other people and see new money making offers/opportunities. but yeah MLM mmm wont be going there again
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  • Profile picture of the author mafumoo
    As a new person to IM, i have been learning, testing, reading, and slowly but surly working my way into this market and skill set. I made my first sale, yesterday, whoot!!! 5$ for a little book I wrote... Thank you to the person who payed for it, and I hope you enjoyed it.

    As a person who is learning,, and interested in all options. It is sad to me that there is such a divide and polar opposite opinion on MLM. I like the basic idea of it yet i am finding it very hard to find answers.
    A friend of mine took me to a meeting for a company called ACN. What struck me was how the entire presentation was about hype, and how well you will do, and about how Donald Trump endorsed them. I was a little on edge after because it seemed that no facts were given to me. If this is a business, were are the numbers? I would like to see reports, and projections, and market research. I learned at the end that it cost me 500$ to start up. But no one could answer my questions... are the products competitive in price? Do I have to pay for promotion materials or education? Why does a company as big and legitimate as ACN need 500$ from me if their income is all in their product? If they are saving money on advertizing, and that is how they can pay me,, why do I pay them first?

    I don't mind paying to start up a business. I do however want to know why I am paying and what I am buying with that start up cost.

    I would love to have some insight into this.

    I don't jump without first doing some digging.
    The odd part, is that if it was not for that 500$ start up payment I would have been fine with it all. I would have then believe that it was about selling and providing a service.
    Thank you in advance.
    I am grateful for responses to come.

    Mish
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    http://mishpeden.com
    "if you think the little things don't matter, Try sleeping in a room with a mosquito"

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    • Profile picture of the author shane_k
      Originally Posted by mafumoo View Post

      As a new person to IM, i have been learning, testing, reading, and slowly but surly working my way into this market and skill set. I made my first sale, yesterday, whoot!!! 5$ for a little book I wrote... Thank you to the person who payed for it, and I hope you enjoyed it.

      As a person who is learning,, and interested in all options. It is sad to me that there is such a divide and polar opposite opinion on MLM. I like the basic idea of it yet i am finding it very hard to find answers.
      A friend of mine took me to a meeting for a company called ACN. What struck me was how the entire presentation was about hype, and how well you will do, and about how Donald Trump endorsed them. I was a little on edge after because it seemed that no facts were given to me. If this is a business, were are the numbers? I would like to see reports, and projections, and market research. I learned at the end that it cost me 500$ to start up. But no one could answer my questions... are the products competitive in price? Do I have to pay for promotion materials or education? Why does a company as big and legitimate as ACN need 500$ from me if their income is all in their product? If they are saving money on advertizing, and that is how they can pay me,, why do I pay them first?

      I don't mind paying to start up a business. I do however want to know why I am paying and what I am buying with that start up cost.

      I would love to have some insight into this.

      I don't jump without first doing some digging.
      The odd part, is that if it was not for that 500$ start up payment I would have been fine with it all. I would have then believe that it was about selling and providing a service.
      Thank you in advance.
      I am grateful for responses to come.

      Mish
      I went to a thing by ACN last year. At the time I was looking for a new sales job and saw an add in craigslist and they called me up for what I thought was a job interview for a sales position.

      When I got there the dude who was supposed to interview me told me he was sick, and then said, "but you're in luck the owner of our company is here today and he is training some of our sales reps. Would you like to sit on a training session?"

      I obviously wasn't thinking and said, "sure ok."

      So I found myself with about 20 other people all of whom also setup interviews for a sales job and we all ended up getting pitched by this guy and they wanted $500 from us.

      Man everyone was pissed!

      We all ganged up on the poor dude and tore his presentation apart.

      I kind of felt sorry for him, lol.
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  • Profile picture of the author sanjx01
    MLM is a business model like any other.

    You have to have a look and see whether it's right for you depending on what it is you're trying to achieve.

    ~S
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  • Profile picture of the author Nick Barton
    The problem with MLM is that to make money quickly you need to be in a new start business that may not last. I made a lot of money in a perfume MLM that was going great until it tried to crack the USA and ended up going bust.

    Then I built a group in a telecoms company that got bought out and shelved the program.

    You put in a lot of hard work and if the company continues to flourish you can make a bomb, but it's hard work. I have to admit the most money I made came from selling services to others in the company. When the perfume company tried to crack the USA I discovered that I could get the mailing prepared, rent a list, and get the whole thing done with just a couple of calls to a mailing House in Texas for less than the cost of a stamp to send it from the UK. I could undercut everybody by 50% and still make 100% markup.

    You need products that have mass appeal and most importantly are consumable so you get repeat business. I have a number of friends that have been involved in Kleeneze for years and make an extremely good living from it, but they work hard and still put catalogues out every week.

    If the internet didn't exist that is probably what I would be doing because if you work at it it's a solid moneymaker but then I worked as a door knocker for many years so face to face selling doesn't bother me.

    If I were trying to set up a new company there is no doubt that the MLM business model beats any other form for creating speed of growth, but then of course many companies have used MLM to create a presence that has allowed them to go mainstream. Of course when that happens they don't need the distributorship any more.

    Certainly in the UK I know of at least a dozen products that launched as mlm that are now on the shelves of every supermarket.

    So is mlm a scam? No, but there are a lot of companies that aren't perhaps truthful about their objectives.

    Would I get involved in mlm again? Not a chance!
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  • Profile picture of the author cypherslock
    But, how do you explain a company like Amway that's been around 50 odd years? Certainly that isn't a scam.
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    • Profile picture of the author Black Hat Cat
      Banned
      Originally Posted by cypherslock View Post

      But, how do you explain a company like Amway that's been around 50 odd years? Certainly that isn't a scam.
      What is there to explain? There are no absolutes....even crappy business models have some successes here and there.
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  • Profile picture of the author CyborgX
    what can I say about MLM. Started with a lot of enthusiasm but ended up with nothing. I really had a bitter experience with it. I am not saying its bad...it didn't suit me at all. Those who are making dime with it are welcome.
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  • Profile picture of the author davidjoel
    In the words of Tim Sales, multi-millionaire in network marketing, "The mlm business model is the most fair, efficient, and ethical way to get goods and services to the market place." One can argue this all day, but I'd rather start as a new rep in my cell phone mlm than as a greeter at Wal-mart. How much chance would I have of making serious money in that "corporate pyramid?" I'm already making serious money in my mlm business.
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    • Profile picture of the author CMGbz
      The best, real-life description that I've read about the MLM biz model is from MJ Demarco...

      "Low-barrier-entry businesses are weak roads because easy entry creates high competition and high traffic, all of which share the same pie...

      Network marketing, or multi-level marketing (MLM), always fails the Commandment of Entry—unless you own and create the MLM company yourself. If you’re in a room with 2,000 other people who do exactly what you do, you’re fighting stiff probabilities. Who is the innovator, the leader, and the one standing on a cliff parting the Red Sea? The guy on stage who founded the MLM company is the Fastlaner. And you? Sorry, but you’re just another soldier in his Fastlane army, a cog in his marketing strategy. The MLM founder doesn’t need to climb the pyramid, because he built the pyramid! You can be a pyramid builder or a pyramid climber. You can be the sheep or the sheepherder."
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  • Profile picture of the author shane_k
    What I don't like about MLM is what Joe Mobley brought up and that is that you don't own a business.

    They try and convince you that you will "own your own business."

    Really then why can't I sell it?

    And what happens if the guy who started the MLM decides to shut it down or sell it, can I tell him no?

    They convince you that you have a business, but what you are truthfully is an employee, but you are never called that.
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  • Profile picture of the author Rob Whisonant
    I make very good money with Network Marketing. In fact it consists of about 90% of my income. You have to TRULY understand the business model. Most people do not truly understand it and blow it off or turn into a mule about it. Don't know what a mule is? Look it up.

    Here are some key points to keep in mind about network marketing.

    1. Choose a company that has a PHYSICAL product that is already selling very well in OTHER channels.
    2. Make sure you can sell the product CHEAPER through the network or add VALUE.
    3. Now this one is USUALLY the key to your success or not. MAKE SURE you join an upline team that is WILLING to do what it takes to make you a success!
    4. Read number 3 again.
    5. read number 3 again.
    6. read number 3 again.
    7. Make sure you read number 3.

    In fact I am looking for other Network Marketers or serious people who are interested in getting into Network Marketing to share data and do some brain storming with. PM me if you are interested.

    Re's
    Rob
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  • Profile picture of the author YoungAndOpulent
    Banned
    MLM is cool if you're one of those high-pressure, annoyingly persistent types who like to employ hard sale tactics. That's really the only way I've seen people make money in MLM.
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    • Profile picture of the author Rob Whisonant
      Originally Posted by YoungAndOpulent View Post

      MLM is cool if you're one of those high-pressure, annoyingly persistent types who like to employ hard sale tactics. That's really the only way I've seen people make money in MLM.
      Actually if you are with a good upline team that teaches you the "correct" way to move product, you don't come over as a sales person at all.

      The key is to become a product of the product. Then simply share your experiences with people. Don't try to sell them anything. The ones interested will take it from there and the ones not will simply not.

      Do you tell your friends about a movie you saw? How about a restaurant you tried? When you get a new cool cellphone do you tell people about it?

      That's how you move product without using the hard sell or making people annoyed with you.

      Re's
      Rob Whisonant
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    • Profile picture of the author Tsnyder
      Originally Posted by YoungAndOpulent View Post

      MLM is cool if you're one of those high-pressure, annoyingly persistent types who like to employ hard sale tactics. That's really the only way I've seen people make money in MLM.
      That's ridiculous. In fact, the opposite is true.
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      • Profile picture of the author YoungAndOpulent
        Banned
        Originally Posted by Tsnyder View Post

        That's ridiculous. In fact, the opposite is true.
        LOL. Sure, pal.

        MLM consists mostly of people selling dreams who haven't made a cent in the business themselves. They tell you stories of how everyone but themselves have made lots of money. No one cares how much other people made when its YOU trying to make the sale.

        A bunch of people who swear up and down MLM is the only way to achieve financial freedom. People who can't accept the fact that MLM isn't for everyone. A MLM salesperson once told me I'm not business minded since I'm not willing to join their down line. Poor person didn't know I make more in a day in my profession than they make in a month. I'm also not too keen on how they spend their time tearing down people who have jobs. Insulting someone isn't the best way to sell them something.
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        • Profile picture of the author Tsnyder
          Originally Posted by YoungAndOpulent View Post

          LOL. Sure, pal.

          MLM consists mostly of people selling dreams who haven't made a cent in the business themselves. They tell you stories of how everyone but themselves have made lots of money. No one cares how much other people made when its YOU trying to make the sale.

          A bunch of people who swear up and down MLM is the only way to achieve financial freedom. People who can't accept the fact that MLM isn't for everyone. A MLM salesperson once told me I'm not business minded since I'm not willing to join their down line. Poor person didn't know I make more in a day in my profession than they make in a month. I'm also not too keen on how they spend their time tearing down people who have jobs. Insulting someone isn't the best way to sell them something.
          I'm sorry you've had the misfortune of dealing with so many
          amateurs and posers. Then again, they say you're the average
          of the 5 people you associate with most. I don't know if that
          makes you an amateur or a poser but maybe you should seek a
          better class of associates.
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  • Profile picture of the author VegasVince
    I have no issue with the "model" called MLM. But remember you live and die by the "product." Unfortunately more companies then not bite the dust because they invest too much time into the "means" rather then the "end." (What they ultimately must sell the end consumer.)

    On a positive note: MLM can be a great crash course in sales and marketing that you can apply in other ventures.


    Vegas Vince
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  • Profile picture of the author bkdubs
    The money is in the support systems. That is something you can control and own, learn lead generation and sell that as a reason to join you or as a business in itself, something that can be independent of any mlm
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    • Profile picture of the author Tsnyder
      Originally Posted by bkdubs View Post

      The money is in the support systems. That is something you can control and own, learn lead generation and sell that as a reason to join you or as a business in itself, something that can be independent of any mlm
      Two problems with that theory. One... it just isn't true. Two... very few
      legit companies will even let you do it these days.
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  • Profile picture of the author The Copy Warriors
    It's just the way MLM networks are structured.

    The math doesn't work.

    You somebody HAS to lose for someone else to win... I'm not going to explain it all here but here's a nice little rundown:

    Small Town Skepticism: Multi-level Marketing: The math doesn't work

    Arguably it's a little different with MLM networks that sell concrete physical products, but note that:

    1. even in those networks, the top people mostly make their money from "recruiting" rather than direct sales.

    2. The business model pretty much requires the goods to be overpriced.
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    • Profile picture of the author Tsnyder
      Originally Posted by Andy Button View Post

      It's just the way MLM networks are structured.

      The math doesn't work.

      You somebody HAS to lose for someone else to win... I'm not going to explain it all here but here's a nice little rundown:

      Small Town Skepticism: Multi-level Marketing: The math doesn't work

      Arguably it's a little different with MLM networks that sell concrete physical products, but note that:

      1. even in those networks, the top people mostly make their money from "recruiting" rather than direct sales.

      2. The business model pretty much requires the goods to be overpriced.
      And here we have a classic example of someone posting as if they know something
      when, in fact, those who really do know how this business works realize the poster
      actually knows nothing! The math doesn't work... ROFLMAO!

      Nobody in any legitimate MLM makes money from recruiting.

      The business model does not require overpriced products. The company I represent
      offers the same quality product found in the top tier B+M retail stores at 1/3rd to 1/5th
      the price. We're actually revolutionizing an entire industry the way that Net Flix and
      iTunes revolutionized theirs. Better, faster, cheaper, more convenient.
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    • Profile picture of the author Rob Whisonant
      Originally Posted by Andy Button View Post


      2. The business model pretty much requires the goods to be overpriced.
      I will agree that many do require the products to be overpriced. But.... I knew you knew there was going to be a but.

      The particular network marketing company I deal with sells a ton of product directly through TV, Cable, Magazines etc....

      You know what? Their network marketers actually sell the products for LESS than they do directly and their network marketers get to offer free bonus items with each purchase.

      That's not a bad deal at all. They also assign customers THEY generate to their network marketers so they make commissions on future sales of the company generated customers. Now that's just plain sweet.

      I guess the bottom line is not all network marketing companies are created equal.

      Re's
      Rob Whisonant
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  • Profile picture of the author GorillazGoods
    Years ago, I was referred to an MLM type business by a friend from college. As mentioned various times in this thread, this company was Amway/Quixtar. After showing up to several meetings, I did see potential in it as there were many people in the business who were very successful. The problem that I personally had with it was the fact that in this business, they pressured you to try to recruit as many associates as you can for your downline including: friends, family, neighbors, co-workers. I did understand why and I knew there was a lot of potential in this type of business model.

    I personally had a big issue with this as I felt very uncomfortable mixing my personal and professional life. I didn't want to deal with the awkwardness of trying to "recruit" friends and family into it. I also got really annoyed that they spent more time with "motivational hype" than actual practical tips and suggestions about how to be successful. Thankfully I ended up getting into affiliate marketing/CPA and I never looked back.
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    • Profile picture of the author Claude Whitacre
      I can give a few personal experiences with MLM.
      Tried Celltech about 20 years ago, and made a few thousand dollars a month in a very part-time effort. The company died, I don't remember how. But I really liked the product.

      Worked with the largest Alpine (air purifiers) distributor on the planet for 2 years. His overide checks were more a month than most people make a year. The company product was actually mostly sold by personal sales, for several hundred dollars. The only reason I stopped was that a company in China started building the identical products, so I started selling them. I still do.

      Pre-Paid Legal (I never worked with them) had, or has a product designed so you can actually make a living just selling the product. I know a man who sells that program to huge audiences. He is a multi-millionaire.

      And I know, slightly, several people that support themselves quite nicely in an MLM business.

      But it isn't for me. I'm a businessman...a salesman. Frankly, working with non-businesspeople, and trying to get them to do something "businessey" is something I don't enjoy.

      But there are realities in any business. Such as;

      Because you are sharing the total profit with several other people, it takes longer to make money, than if you just bought wholesale and sold retail. Eventually, that becomes an advantage. But only after you have build a decent team.

      It is more a business of people management than selling. Lots of hand holding goes on to prop up new people. I've never seen it otherwise, even with highly successful distributors.

      If you stick with the same company you can make real money after a few years. Nobody makes money at this by jumping from company to company.

      Here's the kicker. Depending on the state, between 1.5% and 3% of the adult population are in an MLM. That number doesn't vary much. It has been the same for 30 years. So your potential distributors tend to be the same people over and over again. There are WSO junkies. There are also MLM junkies.

      With automatic monthly charges (for pre-selected product), online video, and other technologies MLM is faster to grow with than in years past.

      And I have to say, some of the bigger companies have marketing materials that are a goldmine of marketing ideas.

      But it isn't for me.

      And (I love this one), thinking you are going to find hard working motivated distributors...online...with no personal contact.....and create loyaly to you and your company....
      Maybe, but that's not how I would bet.
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  • Profile picture of the author socialsite
    I have been in more than one mlm program. I would say that it can work for you but what anything you have to put work into it. You will get out of it what you put into it. I have had some success with mlm programs. I have also had failures with some mlm programs. But overall I would say that they can work for you if you put effort into it. I would say my main motto on it, is to do both mlm and affiliate marketing. That way you're making money from more than one source and if one goes down the other one will still make money for you.
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  • Profile picture of the author Tsnyder
    Originally Posted by Ken_Caudill View Post

    Why is it that MLM people always talk about opportunity and never about product?
    Maybe you're just talking to the wrong MLM people... or the
    people you're talking to don't represent a company offering a
    product worth talking about... or the company has fantastic
    products and the people you're talking to are amateurs who
    haven't got the first clue about how to build a successful business.

    I wouldn't even discuss the compensation with you until you use my
    product... and I'll provide it to you free of charge. If you don't like it
    we move on.
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  • Profile picture of the author trevb
    Most MLM opportunities are great at marketing. Look at what marketing techniques they are using to generate interest and then apply those to your own business.

    Why is it that MLM people always talk about opportunity and never about product?
    Because the math is sound, but the assumptions are usually over inflated
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  • Profile picture of the author SuperRyan
    Nothing wrong with MLM. Actually I see as a great way to start entrepreneurship.

    Just remember:

    1. MLM is not a business. MLM is a media (a way of selling a product)
    (just like Internet Marketing is not a business but again just a media)

    2. You don't own a business, you're part of a sales force. The guy who own the MLM network own a business not you.

    3. You greatest asset is not the "products" but the customer database. You're basically helping the network building their list. You're not creating any asset for yourself because if you leave the network you technically and legally can't market to those customers you brought on board.

    Enjoy the journey!

    Ryan
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    • Profile picture of the author Claude Whitacre
      Originally Posted by SuperRyan View Post

      Nothing wrong with MLM. Actually I see as a great way to start entrepreneurship.

      Just remember:

      1. MLM is not a business. MLM is a media (a way of selling a product)
      (just like Internet Marketing is not a business but again just a media)

      2. You don't own a business, you're part of a sales force. The guy who own the MLM network own a business not you.

      3. You greatest asset is not the "products" but the customer database. You're basically helping the network building their list. You're not creating any asset for yourself because if you leave the network you technically and legally can't market to those customers you brought on board.

      Enjoy the journey!

      Ryan
      Smart, smart, smart.

      One other thing I might add is that the vast majority of companies sell the vast majority of their product to their distributors (who are mostly just end users). So the distributors are the real customers.

      But there are exceptions to this. Some companies are real sales organizations that just use the MLM model as compensation. But if you are encouraged to buy lots of product to get started (maybe over $1,000), then you are the customer. As long as everything is spelled out for you before you get started, it may be the right vehicle for you.

      When I was with Alpine, there was a $4,500 package to get started...and there were no refunds. Some people made real money (I know I did), but I also know that there are lots of air purifiers sitting in people's garages..unsold.

      I also want to point out that this isn't the company's fault. There was no mis-representation. But lots on non-businesspeople get into MLM with the fantasy that other people will make them money, without a massive effort from themselves.
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    • Profile picture of the author Tsnyder
      Originally Posted by SuperRyan View Post

      Nothing wrong with MLM. Actually I see as a great way to start entrepreneurship.

      Just remember:

      1. MLM is not a business. MLM is a media (a way of selling a product)
      (just like Internet Marketing is not a business but again just a media)

      2. You don't own a business, you're part of a sales force. The guy who own the MLM network own a business not you.

      3. You greatest asset is not the "products" but the customer database. You're basically helping the network building their list. You're not creating any asset for yourself because if you leave the network you technically and legally can't market to those customers you brought on board.

      Enjoy the journey!

      Ryan
      If I don't own anything please explain to me how I legally sold my
      "business" with a particular company to someone else... and the company
      approved.

      Please explain how it is that I have the contractual right to sell my
      business to someone else with my current company or how it is that
      I have the right to leave this asset to my heirs when I die?

      Please explain how a "super affiliate" owns a business if I don't.

      Is it possible for an individual to own a business that contracts with
      another business for the sale and distribution of its products or services?

      If I don't own a business please explain why the IRS doesn't disallow the
      deductions I take on Schedule C of my tax return. I've been audited. They
      didn't seem to have a problem with any of that.

      I love these discussions. They give me an opportunity to educate the ignorant...
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