Pros and Cons of MLM programs

I guess it depends on how you define MLM. Most corporate owned businesses with a network marketing distribution model don't use payment processors like Paypal anyway. They have real merchant accounts and process credit card payments that way. And I don't believe that those business structures are in decline. Look at Solavei. They had a very successful launch and appear to be doing well.

If you're talking about HYIPs, that's an entirely different matter.

I don't think MLM is fading away...

Direct Sales has been around for a long time and I doubt it will cease to exist any time soon. I think the big con to MLM is that essentially you are farming people in to your opportunity whether they are capable of succeeding or not...

A lot of sponsors in MLM don't support their downline and for that reason both the people who join under them fail and ultimately so do they because they have no retention rate.

However, there are people like Daegan Smith who have recruited over 8000 people to their downline by generating leads online. The way they do this is by crafting systems that their whole downline can follow so that everyone has support and everyone grows the team using proven strategies. In my mind this is the only way to have long-term success in MLM

None are accepted, some just haven't been caught.

MLMs aren't going anywhere anytime soon. They were around long before PayPal and will be around long afterwards.

I don't understand what MLM exactly is. Multi Level Marketing, but how come is this bad, I don't know.

Ha ok, so what is "illegal" is buying a book with resell rights, that you can sell with resell rights.. Something like that?
Well in that case, it's like pot, it shouldn't be illegal in the first place :-)
Because if it is, then why medium (you know, future teller) are not illegal?

Well anyway, thank you for the information, it doesn't make much sense, but I know some laws are a bit funny sometimes.

They don't seem to be, really. I think the numbers of people involved in MLM worldwide are growing, perhaps even growing exponentially?

The proportion of MLM participants who need PayPal (or any other online facility) to receive their payments is absolutely tiny.

Some of the world's biggest, most reputable and longest-established MLM companies (such as FLP, which is about 25 years old and has nearly 9 Million distributors worldwide) do almost none of their business, their marketing or their sponsoring/promotion online at all.

Just time for one "con", here (and I offer this as someone who's broadly pro-MLM): the reputation and image of MLM companies in some quarters, and in some countries, seems to be at an all-time low because of the terribly unfortunate and inefficiently regulated illegal pyramid schemes which pretend to be MLM's, many of which are wound up by court orders only after years of trading. It's really terribly difficult (close to impossible?) for the public to distinguish between them. It isn't even always easy for lawyers.

MLM is like anything else in life, you get out of it what you put into it. Not sure why so many people have a negative view of the MLM business model. More millionaires have been created in MLM then in any other industry. Did you know that 70% of the people that have a license to sell real estate never sell a house in their careers? Come on, its not that the business model doesn't work, it's usually because of the type of people that these network marketing companies attract, you know, the type that want something for nothing.

It think that this is because there have been a lot of Ponzi schemes out there.

There are so many variables to becoming successful in MLM, the least of which is hard work!

I think that people look badly on MLM because many people see if as their ticket to do no work, and make a fortune, which is ridiculous.

MLM or network marketing isn't going anywhere, and I wouldn't be using PayPal as a stick to measure success by either.

MLM is horrible. 100% of your success lies in the hands of the people running the MLM. If they make any mistakes, you pay the price. If they earn a bad rep, you pay the price. Additionally, 95% of your earnings as a MLM member come from recruiting other MLM members, which is a crappy job in my opinion. You'd be better off getting a job as a corporate head hunter or salesman if that's the sort of thing you're into.

Last, but most important is that the structure of the program itself is set up to limit the success and money to the few at the top. Sure, they'll tell you that if you recruit x number of people and sell y number of product you'll enter the super elite ranks of the uber successful. The problem is that they have full control of that, and when enough people get close, they just change the structure and put out some bull memo about how the new structure is so much better, when in reality they were bumping their best and most loyal reps down a few pegs so that the MLM managers continue to get the majority of the profits.

Stay away from MLM.

the best MLM is the one you started yourself.

Personally, I think the reason mlm's are continuing to grow is the lagging economic recovery in much of the world. As long as people need additional money, there will be a place for mlm programs.

I love MLM programs and have lots of experience with them but with that comes the good and ugly !

Pros:

You can build a large business and earn off residuals for the life time of the business with little maintenance once you build it.

If you know how to build and organization. The money is in you becoming a business builder ( become a recruiter ) and not attempting to become the best seller of products.

Take away is -- RESIDUAL INCOME - TIME FREEDOM - FINANCIAL FREEDOM

It is an exciting business model and one I will always keep dear to my heart but for now I am looking at building residual income from other businesses which I have total control off, not to say that I may not do it again once I have built my own business to a level of success I can afford to take a chance with another MLM company ! BEWARE... There are some fast talking cheesy ones and then there are reputable long time great MLM's to join, be careful and do your home work before you join any of them !

If you want more help and info personally PM me....., don't join anything till you run your questions to me. By the way I am giving back to this community and not involved in any MLM nor will I try to recruit you into anything I promise LOL I will not allow any fast talking rip off take you for a ride if I can help it ...



Cons:

You select wrong company you will work you A** Off, build a large organization of distributors under you, and BOOM closed down or some other member of another organization steals your organization away from you, your downline jumps ship which has happen to me ;>)

You can lose your business if the company gets shut down due to something illegal and the attorney general office comes down on them, you give up control to that company.

It is essentially their business the people who created the company you are just a distributor within their organization. But don't sneeze at this if you go with a company like Amway who will probably never die away, you have truly built a residual income business.

Forgot to mention you can make a shit load of money with MLM, the right kind of money ! There have been millionaires made and not speaking about the guys who created the business but those who became top earners in their organization.

By the way Harvard University has a course that teaches about the MLM business model, if they teach it then there is a reason why they do which means they do not think it is a Ponzi scheme.

Yes, there are some Ponzi shemes out there but then there are legitimate ones you make a lot of money like avon, mary kay, amway, noni, etccc there have millionaires made from these companies, choose your wars and which ones you choose to fight in, then your battle will be one that you could win the battle and come out with little damage if you are careful.

Don't let anyone tell you that it is totally bull - I got hurt along the way, but that is because I did not follow the advice I gave you on top...but I also made money and residuals for a long time

You are talking to guy who saw checks from my upline at $30,000 a month ok nothing to sneeze at and they just maintained their business and did not have to kill them selves too much !

Follow your heart and don't let others discourage you, do your home work like you are doing and then make up your mind.