The Problem with Multi-Level Marketing
What's so wrong with MLM? There are a lot of people who won't get involved with MLM plans because they lack the deep down enthusiasm that's needed for the long term in a MLM environment.
A lot of people who want to try a product being sold by MLM sometimes get turned off because of the "networking/business" aspect of MLM. Why can't I just be a consumer without becoming a "network" participant, without being assigned to a marketing level.
MLM businesses can be better off if only they advertise their product and have less emphasis on recruiting their downline.
In fact, I never see advertising for products, just the invitation to join someone's downline. It's because most MLM organizations are set up with "money" being the deriving force in their business.
They make more money by recruiting people into the program and the purchase of marketing materials and sales aides. While this is not true with all MLM companies, it is true for most of them.
Did you ever get one of those announcements in the mail for free tickets to a seminar that claims to set you up in business? Have you ever attended one? Well let me tell you, the speaker is trained to push and motivate their audience. Most people are hit with such a sales pitch that they almost run each other over buying the starter kit for $349.95 at the end of the meeting. Then, when they get home they want to shoot themselves for buying something that still doesn't put them in business. It's sad for the average guy or gal who really just wants to make some honest money in a business of their own.
Wouldn't it seem logical, if someone put together a catalog of products that other people could purchase WITHOUT joining into a MLM program? In fact, they could generate some sales for their products instead. What holds them back from doing so? It is the fact that the organization wants people to sell the $349.95 package today because the $5.95 order for the product itself doesn't make them any money?
Please understand that I'm not talking about every company out on the market. Watkins, NuSkin, Nutrition for Life and Golden Pride/Rawleigh each have catalogs of products you can buy without joining their program. The only problem is that you don't see very many ads for them. Instead you find ads that state "Make money with me and increase your income." or "Earn a new car within the next 24-hours!"
Back in the 1940's if you picked up a mail order magazine you saw REAL products you could order from REAL people. If you wanted a saw blade for your saw, you sent in a check and ordered one. You didn't join downlines to sell the saw blades to others in your area. Now, if you want a blade for your saw you'd have to either wade through so much hype and bull that you may never find one. Instead, you just rely on Montgomery Ward or Sears.
See people, money is being lost in the regular world of mail order simply because their are no REAL ads being run for REAL products. Pick up a mail order tabloid and you'll see immediately what I'm talking about. Why is everyone selling everyone else's stuff? What happened to our individual creativity? Most of the answer lies in the fact that so much hype is being pushed on the general public it is ridiculous. People come on TV and tell you that you can make millions of dollars by running tiny little classified ads. They show you scenes of people relaxing on their yachts and making huge bank deposits. Society makes the mail order business world look like something easy, carefree and non-tiring!
But perhaps, if I purchased a REAL product and loved it so much I might be enthused enough to join the MLM concept later on down the road Wouldn't the ultimate goal of building a downline be accomplished also while at the same time selling the product?
Just what are all those thousands of programs and solicitations spreading a swath across the country...called "Multi-Level Marketing"? Well a good portion of them are nothing but chain or pyramid schemes, some completely illegal.
Master these concepts and it is time for you and your downline to Celebrate
It seems that just about everybody is jumping on the Network Marketing Band Wagon due to the success of some major players like Amway, Mary Kay Cosmetics, Herbalife, Fuller Brush, Watkins and scores of lesser known companies.
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Multi-level marketing is a fancy name currently being used by some companies in an effort to do two things:
After 7 years in business I still read almost every piece of mail I get. (I guess that shoots down those rumors and detailed instructions from people on how to get your envelope opened since I open them all.)
If you are promoting a MLM program, your ability to generate quality leads to help your newly sponsored people is perhaps the most, single important challenge that you have to conquer.
The idea of using a multi-level marketing program to produce extra income - to attain financial freedom - has taken North America by storm!