What Is The Truth On MLM? Do You Know...

BusinessMarketing & Advertising

  • Author Christine Oakley
  • Published October 20, 2005
  • Word count 901

Just Mention the words "MLM", multi level marketing,

network marketing and watch the sparks fly. Reactions range

from distrust to anger. You hear words like 'scam" and

"fraud" a lot. On the other end of the spectrum are those

fiercely loyal to Network Marketing.

Why such strongly opposing views?

The Pro MLM voices come mainly from within the industry -

while the Anti Multi Level Marketing camp is largely on the

outside.

But that doesn't paint the whole picture.

Many of those who are adamantly opposed to network

marketing were once in the business themselves...and more

importantly - failed miserably. It's also true that many of

those with the strongest anti-mlm convictions base their

opinions on hearsay.

We've all heard the "My cousin ( friend, brother, uncle )

Bob got sucked into one of those things - he lost a pile

of money!" Or "Yeah - MLM is a scam - don't waste your

time!"

So then what is the Truth about MLM?

MLM is simply a method of distributing products to the end

user that allows a company to maximize revenues in order to

pay commissions out to their sales force. These commissions

are paid to individual distributors.

Companies minimize costs and maximize profits using this

model. Which explains the potential for the huge commission

checks you hear about.

But in order for an individual distributor to make money

they must spend the bulk of their time recruiting people

into their opportunity. In other words - product sales are

not the main focus. Recruiting new distributors who will

likewise consume the products is the name of the game - and

where the big money's made.

It is this factor that creates the bulk of the negative

perceptions about the MLM industry.

But does it have to be that way! What's the real problem?

Quite simply - it's this...

A new distributor is told to make a list of his or her

"warm market". In layman's terms that means every person

within their sphere of influence - from the garbage guy to

Great Aunt Lucy.

They're told not to let anyone who comes within 3 feet of

them get away without hearing their pitch. Suddenly the new

distributor realizes that even close friends and family are

avoiding them like the plague. So they try running ads

about their "great new opportunity"...

We've all seen those!

"Make $20,000 a week while you

sleep! Call xxx-xxx-xxxx Today!"

They pay good money to place those ads. Their upline

assured them it would work - only it doesn't!

Most of those distributors aren't intentionally trying to

"suck someone in". They're simply following instructions

from their upline distributor in order to grow their

business. And, if you're thinking - "Oh then it's that

upline guy who's the jerk! You'd be wrong...

You see many of those upline distributors have little or no

experience in network marketing themselves...so guess what

they're doing? You got it! Those poor guys and gals are

doing whatever their upline told them...and on it goes.

MLM offers an income generating model that's supposed to

allow the average person to reach up and grab their piece

of the pie. And - it's precisely because a person wants it

so badly and is so emotionally involved in the outcome that

they get so upset when it doesn't happen.

For most of the honest, hard-working people who swallow

their doubts and fears and scrape together the cash to give

MLM a shot - the results are dismal.

They jump in with both feet and flog their opportunity to

anyone thats breathing.

Net result? Most new distributors quit in short order

because no-one bothered to mention little details like

effective advertising and marketing and so they run out of

money almost as fast as they run out of people to talk to.

It's a known fact that 95% of all active network marketers

make little or no money. The industry attrition rate is

appalling which is why MLM'rs are bashing their brains out

trying to find people to pitch their opportunity to.

So - does that make Multi Level Marketing a scam?

I'll leave that to you to decide...

The real question to my mind is - how do professional

network marketers make the big dollars?

And the answer is that they target people who are already

successful - either within the MLM Industry or in some

other field.

Most network marketers fail because they recruit people who

know absolutely nothing about MLM - and even less about

running a business!

If you've been struggling to make a go of MLM - you might

want to read that again - it's the missing piece of the

puzzle.

So - is MLM a viable business option?

In my view - yes but on the proviso that you understand how

the game is played and know how to market effectively.

Isn't that true of any business?

There's a lot of money to be made in MLM if you're willing

to work at it and your message and your target market are

well matched.

If you don't know what that means then you need to study

marketing.

Bottom line - if you're considering network marketing as a

career or you're already involved in the industry and not

seeing the success you'd like - don't rely on your upline

to either know or be willing to teach you the Truth On MLM.

Chris Oakley specializes in helping Network Marketers and

other Business Owners Succeed. Frustrated? Get Your Free 10

Day Magnetic Sponsoring Boot Camp Email Course at

http://www.mlmprosonly.com/mlmcoach.html

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