Truth in MLM (Multi Level Marketing)
Tuesday, December 17, 2013
*This blog was originally posted 12/17/13 and updated to reflect new thoughts and opinions 12/17/15
I wanted to share MY truth and what I've learned about MLM (Multi-Level Marketing) systems over the past few years. This blog isn't about recruiting you and I'm leaving the name of the MLM I am a part of out of it. This is meant to be an educational piece for people researching whether or not they should join a MLM company.
Let's clarify first (Wikipedia)...
"Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of the other salespeople that they recruit. This recruited sales force is referred to as the participant's "downline", and can provide multiple levels of compensation."
"Pyramid scheme is an unsustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public. These illegal in many countries."
If you get nothing else out of this article please recognize the differences between the two and 'judge' accordingly. Multi Level Marketing is often confused with the Pyramid scheme which is where most of it's negative reputation spawns from. Another source of negativity comes from peoples failed attempts at running a successful MLM business. I'm sorry it didn't work for you but basing a systems integrity on your failure doesn't make the system (or company) unworthy.
Okay... so you're considering joining a MLM which is pretty popular now-a-days because jobs aren't paying as much, people are looking for outside sources of income and MLM's have the opportunity to make your dreams come true. Most people are skeptical and the truth is you shouldn't be. What?!? Why? Because if you learn as much as you can, like anything in life, than you can make an informed decision.
So how do you make an informed decision? By asking the right questions. Here is a list of some of the questions I would ask, and if there aren't answers to these, then you have my permission to turn on your skeptical radar :)
- Who is pitching you on the company? Is this a friend, loved one, stranger? What is their credibility? Some people over look this part. How well do you know the person pitching you the idea? If it's a good friend then I'd hope they'd have your best interests at heart and if not, get some new friends. If you don't know the person, get to know them. Is there contact info readily available? Are they willing to set up a chat or answer your questions? If not, shy away. Why would you want to join that person you can't get a hold of anyway?And just because someone is new to a business opportunity doesn't mean you should automatically run away. They obviously see something you don't. Allow them to share their vision before judging them on it.
- MLM's are business opportunities, that's it! MLM's are opportunities to succeed, not guaranteed success. If they guarantee anything that is a sign that you may need to start taking a few steps backwards. Either your going to work towards the opportunity or you're not; but I can promise you if you don't put any work in you won't get anything out.Think of an MLM as a job that hires everyone. Instead of a salary or hourly rate you get paid on your success and progress in that company. Work = getting paid. Not working = no pay. It's up to you to decide if you're willing to do the work.
- Getting rich quick? Be honest with yourself, it doesn't happen often. The only people getting rich quick are the ones starting the business and getting millions of people to sign up. If you're in the business to get rich quick, it's probably not going to happen. Make sure you have a good reason to be in the business.Now to be fair define quick. I know people in my MLM who worked their butt's off for 14 months and are making six figures. That's pretty quick right? Of course I'm sure it didn't seem quick at first. For others it may take 3-7 years to get into that range. Whether it's 2 years or 7 years all I know is that earning six figures is better than I could do at my last job!
- Do you know anyone, or access to anyone who is making money doing this? If so, how much? Not everyone is willing to show you their income statements but I think it's important they give you a ballpark of how they're doing. Or the company should have a statement of incomes earned by their members. I've had people come onto my team who make more then I do and I've had people make less. Either way it's a good idea to get some kind of idea.
- Marketing: will you have to do it all by yourself? This is a big one that is often overlooked. Assuming you're selling a product or a brand does anyone know about it already? Are you going to have to ONE, convince people the brand is trustworthy, and then TWO sell them on the product? If the brand is already well known then that cuts half your work, if not more, right there!
- What are the products (if any)? Do you believe in or take the product? Maybe you can share a product you don't use but I can't. People aren't as stupid as we sometimes think they are. If you're not excited about what you do they will sense it. Steak knives may sell fast but how long until you become bored with them. I have nothing against knives all I'm asking you to consider is try to find something you're passionate about.
- Is there a membership fee and what is it going towards? In the MLM's I've come across there is always a membership fee but the real question is where is that money going? Is it going towards the support of your business or it is just going to the CEO? Make sure that your money is going to support, services, web maintenance, etc and not to someones pocket. Remember you're making them money by promoting and selling their products, they shouldn't also be making money off of your membership fees.
- Is there a support or training system? Okay so I'm about to join, what kind of support do I get? Is the person who recruited you going to help you? Is there training material and if so is there an added cost for it? Find someone who is going to stick with you on this journey and who you trust will help you. I can't tell you how many people I see get lost in the system because their sponsors didn't help them. It's very sad because many of these people could have been very successful and instead they left with a negative view on MLM's.
- Is there a need? What is the longevity of the product? How long has the product been around? Is it brand new? Does the company have a large catalog of products or are all their eggs in one basket? Candles, jewelry and makeup are all great until someone comes out with something better. Guess what, someone always does. Is your company continually innovating are is this a one time deal and you're just waiting around for a new company to take over?
- False Promises and Webpage Hits. I've see this one emerging more and more. I'm not an expert but MLM's that promise web traffic and fast commissions don't last. You may make a nice paycheck here and there but most MLM's are based on repeat business, so find a company where you are connecting and providing value to your customers, not just taking a quick buck or two. Just because your reaching millions of people doesn't mean you can convert them to customers. How often do you get spam email or ads and look right over them?
- Happiness... Here's one I think is often overlooked. In all likelihood you're going to be in this business for a few years. Does it make you happy? Do you enjoy the business or is it just a pay check? Find an MLM that will give you years if not a lifetime of happiness. Not only will you never work a day in your life but your customers will sense that in you.
Conclusion
MLM's are real business opportunities but that's it. It's an opportunity, either you take a hold of it and put in the work or you don't. Just like you job if you show up and do nothing you get paid nothing. Same thing here except in my opinion the rewards out-weigh the work far more then a typical job. Check out my other blog where I give you a more personal review on that HERE.
I hope that this blog helps you make a more informed decision for your future and if this is something that is right for you!
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