What Is The Truth On MLM? Do You Know...
Business → Marketing & 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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