money Networking / Multi Level Marketing

[MiG-29C]

The Real Problem with Network Marketing and Multi-Level Marketing (MLM)

From Scott Allen,Your Guide to Entrepreneurs.

 

HINT: It's not the business model itself

 

It never ceases to amaze me the extreme polar views on the topic of network marketing and MLM. Some people are passionate about it in the extreme, and there are even top celebrity authors like Robert Allen, Mark Victor Hansen, and Robert Kiyosaki doing it and advocating it. Yet, in many circles, you might as well declare yourself a leper as admit to being in network marketing.

 

So, what is the problem with MLM and network marketing?

 

Maybe it's the pyramid structure? But you can't really take issue with the tiered compensation structure—almost every large sales organization in the world has that. Salespeople get commission, and sales managers get overrides or bonuses on top of that, and sales directors on top of that, and VPs on top of that.

 

Or maybe it's the fact that you have to pay to participate in it?

 

But that can't be it—that's a standard franchising model. And I assure you, the franchise fee of most traditional franchises dwarf the sign-up cost of any MLM program by comparison.

 

Now certainly, there are illegal pyramid, or "Ponzi", schemes. This is where the money is all being made off of signing up other people, with little or no real product ever being delivered. But in spite of whatever perceptions people may have, the fact is that Amway, Excel, Meleleuca, PrePaid Legal, USANA, and many others have sold millions upon millions of dollars of products to happy customers, many of whom are NOT also reps. So, there may be a perception problem here, but if so, the perception is out of line with the reality.

 

But surely the bad rep*tation MLM'ers has some more basis in fact than the occasional illegal pyramid scheme?

 

The real problem with MLM is not MLM itself, but some of the people it attracts. Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.

 

But those same things that make it attractive make it attractive to many who are NOT really qualified or prepared to become business owners. The salient characteristics of MLM make it attractive to people who:

 

 

1)have not done well in their business or profession and have little money saved up to invest

2)have no previous experience owning or running a business

3)have no previous experience in sales

4)have little or no experience developing business relationships other than that of employer/employee/co-worker

5)are not satisfied with their current level of income

6)have unrealistic expectations of the amount of work involved compared to the revenue realized

 

Don't get me wrong—I'm not saying that there's anything wrong with any of these things, or that this describes even a majority of network marketers—only that it describes a disproportionate number of network marketers, and that many of them never do anything about it.

 

As a result, many network marketers end up:

 

 

1)over-selling the opportunity

2)inappropriately discussing business in social situations

3)coming across as desperate

4)over-focused on new recruits and neglecting existing customers as a result

5)being either inaccurate or deceptive when talking about their business

 

 

Again, I'm certainly not saying that this describes a majority of network marketers, but it does describe enough of them to tarnish the rep*tation of the rest. To pre-judge someone based on the basis of a small minority of people in that group is horribly unfair, but we must realize that most prejudices have some basis in reality, even if it has been distorted.

 

So what's the solution?

 

There's a first time for everything. And network marketing/MLM is a great opportunity for people to have their first business, their first sales role, etc. My point is this—recognize it for what it is: it's a business, and you are a business owner. And if you've never owned a business before, if you've never done sales before, if you've never networked before, you need to learn about how to do so, not just from the network marketing/MLM experts, but from established experts in those fields.

 

Network marketers who are serious about building a business should be reading and learning about business fundamentals, the latest sales and marketing techniques, strategies for networking and business development, etc., not just swapping tips at your team's weekly or monthly meeting. Act like a small business owner, and people will treat you like one.

[LoNeLy_BoY]

Hmmm good point. If only people would not focus the discussion and inroduction in earning this BIG $$$ and that BIG $$$. And jus focus on the business itself then people would get the idea problem is the people tend to get focused on getting the BIG $$$ rather than learning the business that's why there's so many misconceptions today.

[CheeZeR!!!]

You two are right... I just would like to add something, sometimes when you invite people they forget that this is an effort based activity. Many times, especially when you invite SALES PERSONS, they forget that the most important in MLM is follow-up on customers. Sales people often thinks that if they made the prospect to say yes, it's a done deal. WRONG! In MLM the most important here is taking care of your Downlines, sure there are lots of money to be made but you won't be able to earn if you cannot do the system!!! The system is very simple but people are so focus on earning big that they tend to make haste!!! Well, as in a real business, it takes time effort for people to earn in MLM!!! And I hope people would understand it, it's simple BUT NOT easy...

[dyakhardy]

Don't GO for brands that focuses earnings on recruit, this is pyramiding... instead go for the brand that has a popular product, yun bang no need to do sales talk...

[rodman2006]

I am inviting everyone to a no-commitment business presentation on a simple, affordable business which can lead you to financial freedom.

 

Pre-emptive information about the product and the business plan is not the purpose of this leader. But rather, this is a simple invitation for you to "come, look and see for yourself" if this opportunity is right for you.

 

We know that this may not be for everyone and we ask nothing from you but a few minutes of your time.

 

Who knows? This may be the big break you're looking for.

 

For reservations, please PM me.

 

Business presentation meetings are available everyday, every 7pm.

 

Thank you for hearing me out.

[Pussyboy]

networking business are best done on actual invites to prospects and not merely posting on the internet.

 

if you back to your marketing subjects in college, its like giving out leaflets where 1% will be your feedback percentage. feedbacks are not solid leads.

 

my two cents worth. peace.

[henry_yeo]

pharmanex: a scam or legitimate MLM company sila? parang ganito yun conversation namen, papunta na sana ako pero buti nakita ko to sa net

 

http://noneed4ink.i.ph/blogs/noneed4ink/20...st-got-scammed/

 

 

meron rin bang nangyari, tumawag na pinapapunta kayo sa octagon buulding?

[henry_yeo]

pharmanex: a scam or legitimate MLM company sila? parang ganito yun conversation namen, papunta na sana ako pero buti nakita ko to sa net

 

http://noneed4ink.i.ph/blogs/noneed4ink/20...st-got-scammed/

meron rin bang nangyari, tumawag na pinapapunta kayo sa octagon buulding?

 

 

wala bang naloko ng pharmanex, or legitimate talaga to? im confused...

[loudchild]

mdmi tlaga gnito. parepreho style nila. pag pumunta k waste of time n money tlaga. they would promise you good compensation and a top position pro pagbebetahin k pla. ussualy mga beauty and health products.

[Diego Lo]

Who is knowledgable and experienced in network marketing? Please pm me for possible employment.

[knutt]

im never into networking bec it uses ur closesness to a friend to get a sale ... and most of the time it turns out they bought bec of friendship ... most networking will get someone who is mid range then make him a top seller .. u would notice the improvement ... then he would be a reason for u to strive but it would always be that person only no one else will go near that status

[sampatsiaw]

magkanu po ung joining fee na inaalok sa inyu?

nung last tym na pinapunta ako dun is 12k eh...

sasali lng sana ako pag gawin nilang free...

[Guest fhoryou]

ACtually Pharmanex is a legitimate company. Its under NU Skin, if you heard about it? Its also a blue chip company in the Wall Street. They were one of the sponsors of the Olympics.

 

The problem is the people who invites you. There are many different groups and has different strategies.

 

One strategy is doing a product demo. The other consultation. They are basically like franchising.

 

One thing you have to know some groups are good talkers and you might carried away.

 

 

Before you get into this be sure its something you can work on. It takes effort if it ain't your thing.

 

This is not for everyone. So be careful this can disappoint you.

[wolverine69]

tsk tsk tsk

[dyodyo]

Dami ngayon mga totoong SCAMS & they are proud pa to announce it!

 

$$$ pa kitaan!

 

Kawawa mga huling maginvest, 3-6months closed ang website!( web based kc, wala clang ofc! )

 

The problem is the legitimate companies maapektuhan na naman because of these "PYRAMIDING SCAMS"!

[grovel]

i think it's legit. kaso nga lang bad rep ang mlm dito sa tin. I don't think its bad pero ang masama kasi minsan nabubulag ang mga tao sa akala nilang kikitain nila kapag nakapag recruit sila. di nila alam dapat pala naka 100,000 people na na recruit mo para maka 1 million. di nila sinasabi yun of course.

[freezer]

any feedback regarding ponzi investments that is hunted by SEC? Some of my friends are into this and they are earning. does anybody here knows somebody that has a very bad experience on this kind of investment?

[aspogg]

I know of a group of friends who are into francswiss. One joined early made a few bucks. The other joined a bit later & almost got his capital back. The last one joined & then the so called "investment" firm is hounded down by the PSE, which by the way didn't even get anything back!

[freezer]

i was about to invest and have that "risk" which my friend told me at the very start. it just so happen that i watched a report from tv patrol and they keep on hounding them till now... whew! that was close to saying goodbye to my 1,000$.

[Guest lene]

i was about to invest and have that "risk" which my friend told me at the very start. it just so happen that i watched a report from tv patrol and they keep on hounding them till now... whew! that was close to saying goodbye to my 1,000$.

 

good for you, then. there is an AMLA circular that goes around banks at the moment, warning people on this modus operandi and asking employees to report any suspicious operations of these sort.

 

don't believe what your friend will say. that's why there are a lot of victims since they all want to make easy money. there's no such thing as easy money. the ones who enter at the start of the modus operandi are the ones who get paid. thats part of the modus operandi since the people behind the scam depends on word of mouth and greed to spur more victims to invest. then they will immediately disappear with the money.

Edited July 10, 2007 by lene

[freezer]

i was contacting my friend but he's unreachable. i wonder what happen to him...

[taboolover]

Be careful and check them out thoroughly. Remember, if it's too good to be true....

[juniperxxx]

Products are legit, if you're into using them

[jayy]

Mga pare ko, and the beautiful babes here, share ko lang senyo yung nadiscover kong 3 websites where one can earn money by just clicking the mouse!

 

The first one, taketheinternetback, pays 1 dollar for every mail read. And you don't really have to read the mail, but just click that you've read it. In just one day, yesterday, i earned $10.

 

The 2nd one, englandbux, pays in British pounds. It pays 1 pence for every ad viewed.

 

The 3rd one, clixsense, also pays in dollars.

 

All 3 sites pay extra for referrals. $3 for every referral sa taketheinternetback, while sa englandbux, 5 pence.

 

You also have to register for free in paypal.com for engladbux so your earnings could be credited there. Paypal will then send you the money when you want it.

 

Ok, here are the referral URLs. Just click on each of them. And then register your free account for each of them. Let's start making money! Cheers! =)

 

http://www.taketheinternetback.com/index.php?refId=98294

http://englandbux.org/pages/index.php?refid=jay1219

http://www.clixsense.com/?2180851

[Captain_Crunch]

Any feedbacks on Herbalife?