Mlm Network Marketing Knowledge Base
How does mlm multilevel network marketing work and does it? Hello was just curious about this subject mlm multilevel network marketing and whether or not it is a way to financial freedom as all or most of the copy I have seen for product is like wow and finally its like the dumps and a rip off. It seems if you are rich and have money to waste then maybe you'll be successful if not then nope or so it seems? Canga
Who is currently struggling in their MLM/network marketing business? I would like to know how many people that are out there that have a mlm or home based business that is not doing as well as they would like. How long have you been in your business or the industry? What are you doing? What were some of your tried solutions and planned solutions?
Do people in MLM (Network Marketing) honestly think all business is a pyramid like MLM? You always hear them give the line that all business is set up like a pyramid to justify that MLM is built on recruiting people. While real business has fewer people in high earning roles, it seems MLMers miss the very obvious point that even a lowly janitor at McDonald's doesn't have to recruit 5 other janitors to make a living wage. Do people in MLM really think its the same? Do they really miss the point that real business doesn't have to keep hiring people for infinity to keep making money for its employees? It just seems such an obvious difference, yet it makes no sense that people in MLM are convinced it is the same. Andre - while you are correct about the legality, let's not let the absurdidty of the whole thing get lost on us. The fact that MLM gets around being illegal and not a straight pyramid scheme is ONLY becuase there are products and services available to be sold by the reps; however, the fact is nealry all MLMers focus their attention on recruiting others instead of sales - meaning although it is legal for all intents and purposes it is virtually the same. If MLM companies wanted to put the focus on personal sales instead of recruiting then how can you expalin that ALL MLM compensation plans allow you to move up the ranks ONLY by recruiting others. You can be the worlds best salesperson but unless you recruit other people you can't obtain the top rank in any MLM compensation plan. Let's get serious, they are the same, depsite anyone considering it "legal" or not. L.F.Heap - you spent spent your entire answer describing any sales company. Evidently the point of this question was lost on you because if MLM was focused on sales and not recruiting then there would be no issue. The question was in reference to the fact that MLM push recruiting, and weigh it as FAR more important than personal sales, and the evidence is in the MLM compensation plans.
Why is it? Despite what many who are involved in MLM/Network Marketing claim, there are so many who fail.? By fail, I mean fail to make a profit. Is it bad image or bad reality? Has negative word of mouth hurt the industry? I have seen some compare the failure in the industry to other forms of business and state that failure is all too common. One of the common statements made in the MLM/Network Marketing industry, is that the business model was designed to take the average person and make them successful. Is the average participant successful and can these statements be supported?
Is mlm network marketing lead a scam? I am ready to join Internet MLM marketing lead program, and create my own list, but is this a Scam?, how much is going to cost me?, what kind of leads am I going to get ?, I heard that from 1000 sign ups only 2 are good prospects, is that true? Any experience? Some of my searches send me to consider this article http://mlmnetworkmarketinglead.yrnot.com/ But I am still with more questions about how this system really works.
Should I list MLM/Network Marketing experience on my resume? I have had 3 years of experience in MLM and I would hate to not mention the skills I have gained from it. Also, when listing my past work experiences on online applications, I heard employers run background and salary checks. Well, I've recieved my 1099 Form for $5000 from doing MLM, so does that mean my MLM background will pop up during the background check?
Why are there no famous or super rich people from MLM/Network Marketing? It would seem if MLM is such a great vehicle for earning money, and being that it has been around since the 60's, that someone would have finally earned their way to being super rich. But there is not one MLMer famous outside of MLM that didn't make their money selling books or something, nor is there an MLMer that is a billionaire. It is because MLM really doesn't grow like they all tell you it does? Is it really just a load of crap like most people tell you it is? What gives? The question evidently goes right over the head of domers13. No one is saying that people in MLM don't make money...the point is that no one in MLM has ever made BIG money. Don't give me the "time" reasoning either, MLM has been around long enough for at least a single example of someone who would make it big. After all, isn't the whole basis that your downline grows exponentially? Wouldn't it makes sense than that someone by now would have a downline so massive as to be making BILLIONS?
Why do people in MLM/Network Marketing proclaim they are making so much money yet need to spam every question? Literally, you cannot post a question in small business or careers & employment without getting one of them spamming you with their business opportunity, yet these are the same people who supposedly are making money hand over fist? What is the deal, and do any of these people actually think decent people want to get into a business that requires nonstop spamming? Why is it only people in MLM feel the need to announce they are making all this money...no other business does that. ***Rich F, LMAO! You are a spam artist spamming about Melaleuca!!! Is there a worse MLM company out there than Melaleuca? Oh please. I love how in one of your answers you profess it involved "no selling". Priceless! No selling, so what, you just are a pure pyramid or its just morons like you buying? No sales...please. LOL. That is the problem with MLM you dolt...no one is good enough to sell the product on their own so you need to sign up others to get paid. Man, I pity your mentality.
Are you sick and tired of everyone pointing out all the flaws of MLM/Network Marketing? Look I admit it has problems, but I am regularly able to take advantage of people who are not familiar with MLM. But the more you see people answering questions pointing out all this stuff that is wrong with it the harder it is. I can't even spam in here anymore without most people knowing what is up. No one believes I am making $50,000/day anymore because some dummies have taught them to ask more specific questions. I don't know how much volume I do. Who cares! I am rich. Just sign up. Anyone else having this issue?
Are there actually people out there still thinking about network marketing/mlm? Has it been proven enough yet that these generally are set up as ponzi schemes, and those that are actually legal have products that no one could make a living selling on their own, thus making the recruiting part necessary? I am sure there are those who will respond with their company being the best and wanting to get my email etc...or those who are making big bucks but won't show me a financial statement despite calling this a business opportunity (who would start a business without seeing operating statements?). But I want to hear from those who are actually convinced about network marketing/mlm without having to sort through the above mentioned replies. So, is anyone out there, or is is this industry dead? ibofightback - thanks for the answer, but going over your numbers I had to comment. You say Network Marketing Firms distribute over $100 billion a year in goods and services and there are 8-10 million distributors...well simple division means that is $10,000-$12,000 annual sales/distributor!!! Even at 50% commission you could earn more with minimum wage in a year! With all due respect, your numbers give more credence to the belief that network marketing/mlm is a pure ponzi scheme than anything I have heard. It seems to me more than ever that the issue with network marketing/mlm is that its all about recruiting others to do the work, and not selling the products themselves. Of those 8-10 million distributors, how many can possibly be distributing enough on their own merit to make a living? Its all about making money off the efforts of others isn't it?
Who is the wealthiest person in MLM / Network Marketing? And how much is it estimated he/she is making and is worth? More specifically, who is the wealthiest person who has MADE their money in MLM? I assume there is at least one famous person since MLMers proclaim it to be the greatest business on earth. Somehow I don't think the fact that Trump spoke at a convention for ACN means he is doing MLM. Funny stuff though. The owners of the parent corporations are not what I am asking about. I am talking about someone who signed up with an MLM and made his/her millions. Thanks.
Is MLM/Network Marketing for people who are not entrepreneurial for actual business startups? It always seems like the people promoting MLM are either the bottom of the ladder in terms of entrepreneurial people or are totally kidding themselves. You can't ask an MLMer about due diligence or market projections without having them tell you are complicating the issue...do these people even realize how ridiculous it is calling what they are doing a "business". Essentially, you have these people sign up as reps (with some other company mind you) and never sell enough product on their own to make any money. Then they pull out these one liners their upline told them to justify what they are doing. Saying MLM is another means of marketing is like saying selling toothpicks is another means of making money...well maybe, but you have to be a moron to go that route. Will any MLMer actually answer this without slandering me for talking negatively about their "business"?
How do people doing MLM/Network Marketing justify trying to make money without doing any real sales volume? Even minimum wage sales jobs that high school students are doing require realistic volumes of sales...at least 3000-4000/week. If MLMers were required to actually sell the equivalent of even the minimum wage sales people they would quit in droves. So essentially MLMers are doing less personal sales than minimum wage salespeople yet they will tell you MLM is about sales and not making money by recruiting people. Well, if they are not doing real sales volumes, then they are making money recruiting. HMMM. How do those in MLM justify this? Brad H - the question was clearly addressing the money made by recruiting versus sales. Thanks for completely avoiding the heart of the question. What could I have expected though, this is normal MLM mentality; when confronted with a question you don't like, change the subject. Nice work. Laura J - A+ for your long and seemingly educated answer. However, a few points I want to bring up. A good portion of your answer describes the benefits of building a customer base. If you have a large customer base providing you residual income that is terrific, but if that was the norm in MLM than this question would not need to be asked. The clear point is directed to bulk of people making (or trying to make) money by building a downline. Surely if everyone built a massive customer base first, then it would indeed be about sales, not recruiting. But the fact that nearly all MLM compensation plans reward recruiting over sales speaks volumes. If you are making more money from your customers than you represent an extremely low percentage of MLMers. If you want to suggest that everyone be like that, then bravo, but we know the reality is people try to make money on recruiting instead of sales in MLM. Thanks for your answer though. Edi - Thank, but you clearly missed the point. If you are recruiting and not selling, what value do you offer to the company? You admittedly don't know how to sell, so your value is not in teaching anyone. The difference between a bank or any other company that recruits sales people is that the people being paid to recruit and train them have clear value else they would be out of a job. Merely making money recruiting is the very definition of a ponzi scheme. Sorry to be harsh, but what you described IS the exact problem with MLM.
Why is MLM/Network Marketing the business of choice for the 21st Century? For example, in the book, "The New Professionals" - The Rise of Network Marketing as the New Profession, See Amazon.com link here: http://www.amazon.com/New-Professionals-Network-Marketing-Profession/dp/0761519661 This book was written by a Harvard Economics Professor. Not an MLM distributor. Also, why does Robert Kyosaki, self made multi millionaire support MLM even though he is not involved with MLM? So, answer the question as to why there are professionals such as CEO's, surgeons, attorneys, CPA's etc... leaving their regular jobs because of the success with the MLM company they've achieved? My answer is time freedom. They didn't want to be owned by their job... what's your answer? Don't say that most people at the top make all the money and you have to get in at the beginning because my 12,000 dollars proves this to be a bunch of horse pucky. I deleted the first question because it was not asked the way it sounded... I meant why so many professionals who are already six figure earners would choose Network Marketing as their vehicle of choice? Also, I'd like to add that there is no infinite depth in pay to keep it going forever... so, it's not a scheme. There is a cap on the depth in pay. Just no cap on how many income centers you can choose to open and grow.
Have you ever experienced success or are successful with a network marketing/mlm company? Before you answer this question, answer it without talking about network marketing or the company or the features, benefits or mention your company...ONLY talk about how it's changed your personal life style, your personal growth, your family or debt problems etc. Talk about YOU. For those of you who experienced or had a hard time, with some probing, I can find out why that occured. Always and I mean always honor the relationship... therefore, ONLY SUCCESSFUL people answer the question.
Do You See MLM/ Network Marketing as a personal side income Investment? investment,income,salary,payment,cash flow,cash,marketing,network marketing,network,job,business,mlm,multi level marketing,personal,vision,desire,passion,interest,greed,greddy,love,invest,
MLM/Network Marketing???It Will Fail???It Cannot Fail???Which is It??? Are people in Network Marketing/MLM recruiting "winners" to build business or is the design to attract the "naive" or "losers" who buy into the confidence of the one promoting the business opp? No matter the company, product or service, if the pitch presented by the company or reps at the meetings were accurate, the company would be larger than the general population of the U.S. in 1-1/2 to 2 years. This figure can easily be calculated through exponential growth based on the hype presented.
What happens in MLM or Network Marketing when someone under you leaves? If someone directly under you leaves the company... do the people under them automatically move to being directly under you? Lets say I recruit 20 people directly under me and they recruit 100 people all together. If all 20 of them leave.. will the 100 people they recruited be DIRECTLY under me?
How can people in MLM / Network Marketing claim to be educated on their business without knowing...? ...the percentage of sales the parent company does to their reps versus to non reps. If your answer to this question is that you do know it please provide us some evidence (please no "my company told me so"). If your answer is that this information is not important, explain why you would consider opening a business selling a product that might not have mass appeal to an unbiased public. If your answer is anything else, then you have not addresses the question and thanks for nothing : )
Any court ruling on MLM/Network Marketing? Hi, Are there any laws or hard & fast rules toward MLM / Network Marketing Industry/Concepts/Companies laid out by Supreme Court in India? Is MLM really banned in india? Any proofs? Thanks
what is MLM/network marketing/direct marketing/private franchise? My friend is in one of MLMs and he told me that Home based business or MLM or network marketing or Direct marketing constitute usd 150 billion global turnover and MLM/network marketing is about 70 yrs old business concept. According to http://www.forbes.com no 1 MLM is http://www.forbes.com/lists/2006/21/biz_06privates_Alticor_B15P.html According to http://www.forbes.com no 2 MLM is http://www.forbes.com/lists/2006/21/biz_06privates_Mary-Kay_9ETL.html According to http://www.forbes.com no 3 MLM is http://www.forbes.com/lists/2006/21/biz_06privates_Forever-Living-Products-Intl_4L21.html Some sites are as follows http://www.mlm.com http://www.dsa.com http://wfdsa.org http://www.indiandsa.com http://www.bww.com http://www.brittindia.com http://winnersinternational.org your comments please
MLM/Network Marketing? Quit or Fail? Which is it? Many independent studies show that 97% to 99% of participants in MLM/Network Marketing do not make a profit. Is it fair to say that the person is a quitter and they failed because of lack of participation? Is the structure set up for failure it self? Either way, is it fair to say that many of the 97%+ do give the marketing plan much effort (even spending many $$$ of their own money for promotion) and still fail to make a profit? We live in a world where we can create our own success. MLM/Network Marketing claims to offer a great opportunity for the average person to become successful. Why is it that 97% fail? Is it designed to attract quitters and failures?
MLM/Network Marketing? Does success come at the expense of others? To be successful in the industry of MLM/Networking you have to accept the fact that the design of the marketing plan is set up to attract the naive. Right or wrong? You are taught that less is more when spreading the word. To build business, do you have to accept that many fail by design? (Many independent stats show 97% or higher) Are the trainings set up to teach taking advantage of others? For example, not giving full information and targeting peoples needs for extra income. Many times MLM/Network Marketing creates new buying habits for the hope or chance of financial freedom yet less then 3% ever experience profit from participation.
What do you think is a more respectable profession, investing in real estate or network marketing/MLM? D - post the question about franchising and MLM yourself and I will happily answer it. Or, search it on google, OR search through my Q&A as I have discussed it before. As far as this question, it was clearly satirical. Anyone offended had it go over their head. As far as real estate being down in areas, its always up and down in areas. Its never up or down. Smart investors make money when the market is up or down. It merely means its a buyer's or a seller's market, both are profitable if done right.
Is there any other so called "home business" that gets more negative connotations than MLM/Network Marketing? I realize the bulk of those in MLM with blinders on think that MLM gets as much respect as any business, so this question is directed at those outside of MLM. There has got to be something else out there that gets as little respect right? Even the companies calling up for long distance services are at least doing sales to people other than themselves and paying employees, but MLM...not exactly. Can anyone think of any other business like this??? For those in MLM whose emotions get the best of them (as usual) that inevitably feel the need to come in here to answer anyway and calling me names and such, you need to get over it. hoozdaboss - the "bad press" isn't because MLM is illegitimate its because the whole presentation of MLM as some opportunity based on signing other people up as oppose to focusing on sales is a sham. The concept is merely based on the idea of using other people to do the work. And like I said, those in MLM have blinders on as you are a perfect example of one in MLM who is unable or unwilling to grasp the obvious. As far as being jealous because they are not making an effort to succeed, that is pure MLM garbage (more specifically, MLM brainwashing for the naive). So the assumption is that anyone that isn't doing MLM isn't trying to get ahead? MLM is the only business on earth? Gimme a break!
Have you tried selling MLM / network marketing? Does anyone know anyone who actually has made a decent living this way? Please be honest... Unbelievable. Two responses were from people selling a scheme. They were deleted. I can't believe how predatory people can be.
What are some network marketing companys actively involved in san antonio texas? hi all my wife and i just recently moved to san antonio texas and are looking to become involved with a local mlm network marketing business. id just like some help finding some of the more popular companys used here so i can meet with the local people involved and possibly join their team if the opportunity looks good.Thanks in advance for your help!
Forever Living Products, an MLM or Network Marketing Company? My close friend has taken up this MLM and wants me to help him to do the marketing as a distributor. I am dead against MLMs. The products are too costly for anyone, especially we Indians. He is upset when I told him his business model is no good for me. Please do tell me if foreverlivingproducts company is a pyramid MLM, is it really legal and straight to enter into it - your advice and suggestions please. Thanks. Ram
Is MLM/Network Marketing the least entrepreneurial of all businesses? Considering that... ...you don't need any business savvy, knowledge, experience, or education to join. ...you are never asked to examine your market other than to accept one liners about the global market demand ...your primary sales are to yourself and your close family and friends ...your whole network buys more product that they sell ...the whole basis is set up so that no individual should ever have to do enough sales to support themselves ...you need to be enticed emotionally to do the business by being show all the things you can buy like cards, vacations, homes, etc. (aka, people enter on hype, not on financial assessments). *** Laura J *** - Statements such as AT&T and Gillette are MLM companies are so blatantly misguided its a wonder anyone has the gall to even suggest it! The fact that MLM was deemed "legal" means what exactly? Selling lemonade on my front lawn is legal too! Whoop-d-doo. Besides, I made no comment in regards to the legality of MLM. The fact that you asserted such a claim is merely stawman argument style. Typical MLM banter. Where are these thousands living their dreams? Why is there never nay evidence of the countless so called MLMers living richly. Its a shame and the few who get rich off of recruiting countless others who do little amounts of sales should live in shame. The industry is indeed happening providing further evidence that a sucker is born every minute.
Is there anything more hypocritical than when someone in MLM / Network Marketing says...? ...that you are the negative person for speaking poorly about the MLM practices when you consider some of the absolute atrocious lies people in MLM use to convince people to join up with them. Someone had written a great point in here about the fact that if you are going to use talks of all these great incomes that MLMers are making but refuse to back it up with evidence, then you are essentially being a fraud. This is common MLM practice! Its so interesting to me that so many people in MLM think I am the negative one when I merely point out some of the VERY DECEPTIVE practices used in MLM. And this is only one example among many.
Have you ever had a great experience with a network marketing/mlm company? Please do not name your product or service or advertise, but if you could share a truthful and positive experience to reinforce that network marketing overall is a great business, it would really help people to see that network marketing is a sound method of earning money. PLEASE DO NOT ADVERTISE... Explain your success with network marketing/mlm
Help, need some answers for my Network Marketing/MLM business!? I am involved in a company where all the numbers line up well, I really enjoy the products and services (used them before I ever got in the business side) and I am beginning to sign up people. The issue I am having however is that the opportunity is presented where I stand to do really well by signing up only 3 people in my downline who also do the same for 7 levels deep. Here is the problem i see...for this to work, those people on my 7th level must all have the same opportunity as I do, and their 7th level people must have the same opportunity as well. Well, at my level 25, using a 3x3 matrix, that requires over 847 million people!!! So, that is never going to happen...so it seems like ALL Network Marketing/MLM Companies have this same problem that the opportunity can not continue to grow and are destined to fail. Help me understand how any Network Marketing/MLM company doesn't have the same problem? All answers greatly appreciated.
Why does MLM network marketing seem to work opposite of how businesses should? 1. You never hear people getting bulk discounts (the bigger the bulk the lower the price), which is the best way to market and sell a product. You also don't see drop shipping (where factories do the work as long as a sale is created), rather, you have distributors forced to pay a fixed monthly fee whether they sell or not, putting the burden completely on the marketer, not the manufacturer or consumer, the other necessary components of a trade. 2. Marketers are encouraged to recruit their own competition 3. Marketers push people to buy what they don't need at a price they normally don't like, rather than let people beg for the product and compete over pricing it as low as possible 4. Despite what employers tell you, MLM does NOT give you control over your own business, you have no say over pricing (unless going up is considered a say) 5. As mentioned above, traditional production and marketing works when a good product is begged to be sold by consumers, and consumers beg to become a distributor. MLM does just the opposite or how a natural market operates. 6. MLM preys on greed, guilt, and encourages people to hunt their close associates. Traditional businesses understand worst case scenarios, market saturation, supply and demand, voluntary exchange, MLM seems to ignore reality altogether by giving false promises. 7. Does any serious business school teach MLM as a viable business model? Or is there a conspiracy in the mainstream education to stifle alternative theories of economics and those who don't do MLM are brainwashed into believing that only traditional businesses work? 8. MLM always talks about a hidden secret breakthrough that'll be the next best thing. Now if this was remotely true, shouldn't rich people have joined, invested and beat the average Joe? If something is promising, why isn't it attracting money, rather, it's attracting ignorant suckers?
What's with all these MLM and Network marketing ploys lately? As in why are there so many get rich quick scams out there? Some are legitimate and I've checked one out name omited for legal purposes. But some people get this idea of oh that's another one of those or this or that. Why? I'm sick of all these too good to be true crap offers and I want a real one that I can run with and make some real great income. I know of one but are there any others?
Network Marketing/MLM! What do you think? A pack of lies? Found some fantastic answers about MLM on this sight...just joined by the way. I have been in MLM for 5 years but would love some answers. Despite the success I have had I'm beginning to think it might be a time for the whole industry to change. After 5 years in I have recently come across some info that sugests I may have been lied to...quite a lot actually. I'm a big boy and can handle that but it appears I may have been duplicating(Good MLM word) those lies to a lot of other people...not good. Anyone care to share the lies they may have been told.
I have been wondering where to get good Network marketing software[mlm] to develop my online customised mlm? I need this network marketing [mlm] software to customise it to my needs.Is going to be a refereral type and some benefits for members as may be determined by me and instant payment system for the members upon registration using e-gold interface.Please i need a situation where the spillover from downlines will end at level 3 from the major upline.The software should be able to be controled by me and administer the members from the panel,delect any account that violates the rule of the organisation.Should be able to accomodate as many as possible members and other interesting features.
If MLM / Network Marketing is such a brilliant marketing model...? ...why don't you see any MLM companies competing against any of the largest retailers in the world. You hear all the time (and have been hearing for 25 years) how MLM will take over how sales are conducted, yet is there even a single MLM specific product that is considered mainstream yet? Do MLMers still beleive this? Mr. Diamo - What is funny is MLMers who come in and COMPLETLEY avoid the question. Gee, I wonder why. What a crack up these statements are. How naive are you? More millionaires from MLM than RE? Even the most naive MLMers don't buy that line...although, then you came along. LOL. Donald Trump endorsing MLM. That is ripe. The guy gets paid to speak at conventions...he gets paid to do a lot of stuff. The guy is a real estate billionaire and would not touch MLM with a 10 foot pole. You morons buy into that stuff hook line and sinker. Too funny. Thanks for the chuckle. ___________________________ To my stalker who can't keep to 1 name: There is not a single MLM generated cell phone company in the top 100 companies worldwide. The creation of VOIP has nothing to do with MLM. Don't let the facts get in your way though. MLM using a product that is already mainstream is just entering hte market, not an example of it producing something that stands out in the market. The developers of VOIP had nothing to do with MLM, and just becuase some MLM companies market it does not make it thier product. Let's also not forget, ACN is very far down the list in terms of retailers of VOIP, cell, phone, and all thier services. If the model was so brilliant, they would be near the top. Point made.
Despite MLM/Network Marketing claims.........Is MLM/NM a great business option??? One of the greatest misconceptions in this industry is true business ownership. Many claim that MLM/NM is the best option for owning your own business and attaining real economic independence. Distributorship is not true self employment. Participation requires rigid adherence to the 'duplication' model, not independence and individuality. MLM distributors are not entrepreneurs but joiners in a complex hierarchical system over which they have little control.
Is there anyone out there who was in MLM/Network Marketing but wised up, got out, and now runs a real business Just wondering how many people that get duped into MLM yet manage to get out and then go on to start a real business are out there. *** For those in MLM that will inevitably insist on answering me calling me names, this question is obviously not directed so save your time and move on. *** This is classic! All the people who answer pro MLM in here thus far also have a number of MLM spam answers!!! Unbelievable. Just check the profiles. Gimme a break, the question specifically said non MLM people...people who have gotten out. Is reading no longer a prerequisite among MLMers now as well? Good grief! Comparing MLM to a franchise has already been discussed and debunked long ago. If you don't want to take the time to research the difference and enjoy going coasting thru life on a wage of ignorance, that is your choice. As for those who feel the need to assume I failed in some MLM business, read my profile. Never have I claimed any involvement with MLM nor would I have any interest in your spam, so get over it. If you can't answer a simple question without carrying your heavy MLM bias thats fine, but you are not fooling anyone. So if you have spam in your history or you have answered only 1 question (new sign up? right) then get lost.
MLM/Network Marketing??? Why do so few make a profit in this industry? Is it effort or design? All pay plans require a substantial amount of recruits/customers to make a significant amount of income. Occasionally some new recruits are so talented and aggressive they do build a modest downline network below them. They are anomalies because mathematics require that the system can only support a small number of financial winners. If a thousand downliners are needed for a distributor to earn a respectable profit from this system, those thousand will need one million more to similarly support them and that one million will, accordingly, need one billion! So many participants justify the failures as lack of effort. Mathematics show that if "efforts" were maximized the business would collapse through exponential growth. Does this not show failure by design?
Is MLM / Network Marketing the least entrepreneurial of all businesses? Considering that... ...you don't need any business savvy, knowledge, experience, or education to join. ...you are never asked to examine your market other than to accept one liners about the global market demand ...your primary sales are to yourself and your close family and friends ...your whole network buys more product than they sell ...the whole basis is set up so that no individual should ever have to do enough sales to support themselves ...you need to be enticed emotionally to do the business by being shown all the things you can buy like cars, vacations, homes, etc. (aka, people enter on hype, not on financial assessments). bravo Raynlim – you have at least tried to address some of the question which is much more than one usually gets from the average MLMer. You have added some percentages that are not fact. There is a higher number of people considered rich in the US than there are considered successful in MLM. One only need look at the details of any of the public MLM companies where not a SINGLE one has an average annual sales/rep over $1000. Those are facts and can easily be found assessing public records…so it you chose to throw out statistics, at least be honest about it. I am sure they are saying numbers like this at all MLM get togethers which the naïve eat up. You seem to be suggesting that MLM and MWM differ because some involve direct sales. I would venture to say if a company is set up primarily doing direct sales than it is a sales position you are buying into. I have the utmost respect for anyone making a living in sales. Let’s not kid ourselves though, the definition of MLM and NWM involve having down lines also involved in sales…and THAT is where the issue arises. You cannot hide from the fact that no matter what label you would like to use, the basis of the problem is the emphasis on recruiting over personal sales. While I am certain there are many weak minded people who blame their failure on many things, this still does not negate the fact that an exponentially driven model of recruiting is impossible. There is not a single MLM or NWM plan that is not based on rewarding for recruiting (else it would not be MLM/NWM). Thus, what people use to blame their failure on is irrelevant because the system is flawed. “If you think you can or you can’t wither way your right.” Try using that logic to run through a brick wall. This is merely a ploy by the intelligent folks profiting from the masses joining MLM used to keep MLMers going when they are up against difficult times. While I do not expect everyone entertaining a business opp to require a psychology degree, it IS important that the masses understand some of the dangerous tactics being used by the leaders who put out quotes like this.
Why do people in MLM (Network Marketing) never address the math issue of exponential growth? All the hype that MLMers use to promote thier industry is on the growth factor of recruiting a larger and larger downline. Why will none of these MLM people ever address the ridiculousness of the growth they profess...specifcilaly that even a 3x3 matrix exceeds the entitre population of the planet in less than 30 levels. Most of them only seem to think 7 to 10 levels deep, but never consider that all those people on the 7th or 10th level will also need to recruit many levels deep or else they will never stick around. Are people in MLM just trying to make a quick buck cashing in on the pyramid or are they really this oblivious/naive?
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