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.
Public Comments
- Correct - and it is actually a pyramidial scheme. Only the ones at the top are making the moola. You know, the ones on the infomercials????
- Here you go again. Have you not already made your point? There is no single respectable person doing this type of business anymore becuase it got popular enough over the years that just about anyone aside from scam artists know that it is a waste of time. Yet you keep posting stuff like this and I keep having to be reminded of it when viewing the small business questions. I think you made your point, move on.
- Ask Warren Buffet, he purchased NM company. Call him stupid I guess. Everything spelled out above is what you assume MLM/NM is all about, (assume being an acronym for making an ass out of u and me) then you may know a lot about RE investing however you show surprising ignorance about NM. True entrepreneur investigates before he/she airs its brain in public forum.
- Hi again Marcello, I would love to respond to your question. It seams as though you have already formed your opinion. Here is the correct answer... No, MLM is NOT the least entrepreneurial of all business models. You do know it is a business model right?....... Do you understand the meaning of entrepreneur???? Here is twos definition from Websters New World Finance and Investment Dictionary.... entrepreneur Definition A person who starts his or her own business. The entrepreneur assumes the risk but stands to gain the profits. The entrepreneur may continue to operate the business, or may decide to sell out to a larger competitor or sell the company to the public in an initial public offering. entrepreneur Definition A person who starts a business from scratch. The risk, as well as the possible reward, for an entrepreneur is very high. Funding for the business may come from personal funds, cash advances on credit cards, or loans from friends or family. If the entrepreneur has a technology-related business, he or she may look for funding from angels, who are wealthy investors who fund start-up businesses, or venture capitalists. So, to cut you a little slack. Yes, some of the participants in mlm are the least entrepreneurial and that is because of the hype that attracts them. So now that you focus on the ways that don't work in MLM.... Let me ask you this. Didn't you get your answer one year ago???? Or did you answer it then too?????? Let me remind you again....http://answers.yahoo.com/question/index;_ylt=An0cgrpsGHPCCAqbcEBa1uzty6IX;_ylv=3?qid=20061117164746AAezvzK Now, Marcello, are you part of the problem or part of the solution? What do you have to offer? You seem to be knowledgeable but lack integrity. You wish to speak, yet do not allow contact. Do you wish to use Yahoo Answers as your soap box???? Isn't that a violation? Can't you just give your advice to those who seak it? Do you think that Scott L cares what you think about MLM and Amway when he asks a question in Geography? http://answers.yahoo.com/question/index;_ylt=Amu0R2pY83DP2.naFqg2j8Xsy6IX;_ylv=3?qid=20080122122108AA8cK1D&show=7#profile-info-cLyWHT6Zaa What more do you have to say about MLM that you haven't said already? You seem to recycle your questions. 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I would challenge you to lower your chest and do something positive with your life. You claim to hold your morals high yet blow the horn of a hypocrite. Don't let me forget the fact that you don't stop at yahoo answers http://smallbusiness.yahoo.com/r-answers-a-20061117164746AAezvzK-k-Vacation+Network Marcello, You may have saved a few from failing in MLM. Maybe... But what did you offer as a solution????? I challenge you to answer my question......
- I've an different opinion from most. So pardon me. Most millionaire or I would say successful business entrepreneure recommanded NWM although they didn't do it in the past. This is so because of Leverage. If anyone can't even do NWM, forget about biz. NWM differs from MLM so kindly separate this 2 issue up. Some are doing direct sales, etc, there's a wide range of diffination up there. Primary sales target to ones family members I would say that, that particular networker is just nothing but a salesman. If the network buys more product than they sell, they just wanna get the % out of it. Just money nothing else. If you view that this all issue of NWM is only about the few that succeed and most doesn't. Ask yourself why do 5% of the ppl are rich and the rest are not? Is the same logic. Biz of a particular specialty for eg, cars/ HP dealers. When their biz crash they won't blame that cars can't be sold, Handphone can't be sold! But only when they failed in NWM then they blame this and that. Don't you feel naive over it? "If you think you can or you can't Either way you're right!"
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