My Experience in MLM Contrary to Myth

[Justice44]

I am writing this to respond to some of the misconceptions about network marketing. I believe network marketing is an excellent opportunity for people who have excellent marketing/selling skills or those who strongly desire to become great marketers. I sincerely want people to simply consider MLM at least as an option to solve their financial problems, regardless of what company they decide to join.


So let me first respond to the rumor that network marketing is a illegal pyramid scheme. It is said that all that in MLM systems, one is primarily compensated for recruiting members. From my experience, this is not the case. From my understanding, people who are recruited need to generate significant amount of sales in order for the recruiter to be compensated. This why I look for individuals who have established strong marketing, selling/promoting skills and a belief in my services. This recruiting approach is similar to a talent scout who seeks talent for music.


There are plenty of authors and experts in this subject who can further explain the myths behind network marketing. Tim Sales is a millionaire MLM entrepreneur who has made several articulate videos debunking many of the myths behind network marketing. He is not associated with my company and he is not a distributor of my services, but from listening to him, l find him very insightful. Here it is:


http://www.youtube.com/resultssearch...rch_type=&aq=f

I plan on writing several posts and threads about MLM. I will share information that is clear and concise and written by experts in the field. Again my intention is not to persuade you to join a company that has an MLM element; it is to provide you with information that responds to many of the myths surrounding MLM. Perhaps some of these myths are preventing you from joining a business opportunity that was shared with you currently.

[byzantium]

*groan*

Just what we need, yet more brainwashed MLM zombies to break out of their pen and regale us as to why pyramid schemes really really do work despite the laws of physics. Is it getting sort of crowded in the MLM forum again?

A real business doesn't need a 2 inch thick binder for a compensation plan. It has a fairly simple one: sell product, get paid, pay your debts, then bank the rest. MLM has all sorts of gizmos to explain that a pyramid scheme really isn't what it appears to be. Well, if America can elect a communist President on the slogan of "change", it can believe in pyramid schemes.

Any "business" that costs you money up front to buy product which you then use to recruit people to buy product up front from you, so as to create the appearance of selling tons of product when in fact it's all wasted, is NOT a business. MLM only sells product because everybody is buying product to recruit others. Does ANYBODY know anybody who uses ANY MLM product regularly because they like it, outside of cosmetics? No. The company sells the product, then washes its hands and tells the "distributor" to sink or swim with essentially useless junk. The product is just there to make a pyramid scheme look like a business, in the same manner that the old Make Money Fast chain letters tried to look legit by claiming they were "selling reports" which did not exist.

People just churn from MLM to MLM, quitting one and trying another, but never getting anywhere, spending thousands chasing wealth which does not exist, and getting deeper every day into the MLM cult mindset. This property of the human mind, to keep doing what you're doing in the hopes that the result will magically change, is what Nigerians use to keep their marks sending them money. It is also one definition of insanity.

[Justice44]

*groan*
A real business doesn't need a 2 inch thick binder for a compensation plan.

My compensation plan is actually one page. Sorry you have been introduced to MLM opportunities that have 2 inch thick binders?

It has a fairly simple one: sell product, get paid, pay your debts, then bank the rest.

I agree for the most part, but I don't get how MLM is more complicated than that. The big difference is that in traditional business, you need to invest thousands of dollars. Most of these businesses fail; I don't see people saying that starting your own traditional business does not work. I doubt this will convince you; I'm just sharing my opinion. Did you quit MLM after failing to make a million dollars per month? I am just curious.

MLM has all sorts of gizmos to explain that a pyramid scheme really isn't what it appears to be.

MLM is not an illegal pryamid, just like captialism is.

Any "business" that costs you money up front to buy product which you then use to recruit people to buy product up front from you, so as to create the appearance of selling tons of product when in fact it's all wasted, is NOT a business. MLM only sells product because everybody is buying product to recruit others.

You know that is funny. Many MLM marketers suggest that you build your personal sales before you start recruiting. From my perspective, it makes no sense to recruit people simply to generate commission off their products. You want to recruit people who can sell, market and promote. BTW As a recruiter, I am not looking for others to recruit others. Actually, I am looking for businesses owners who have clients that would desire our services.

"Does ANYBODY know anybody who uses ANY MLM product regularly because they like it, outside of cosmetics? No."

Actually I know people who use MLM products regularly. I just met such a person yesterday. She actually was a customer years before she became a distributor. Sorry, your perspective does not fit my perspective.

Have a nice day. I am sorry if I offended you.


Thanks for your opinion.

[Bigcdawg23]

Byzantium,

As a matter of fact, i'm in a networking marketing company that has three products that are absolutely changing lives every second around this world. People are not convinced or brainwashed to buy these products, they're actually purchasing them because they're helping with everyday problems people are facing. Why wouldn't you want to consume an all natural product that helps with different health issues, rather than take bottles and bottles of prescription medications that doctors assume you're going to be on for the rest of their lives! Especially when the majority of these prescriptions say right on the bottle that they are harming your body! In my business the majority of people become part of it to consume the products, once they get the results they're typically VERY interested in our lucrative compensation plan!

[Gopal Dev]

Network marketing is definitely not for everyone and yes, there have been horror stories in this industry, but no more than any other. MLM is admittedly an unorthodox Business Model and throughout history people have been afraid of what they do not understand, leading to uninformed stereotypes.

The term ''pyramid scheme'' has existed for years now because there have been MLM companies in the past that made money solely on the sale of recruitment tapes, brochures, Cds etc...so in essence they were selling an ideal, and not hard facts based on real success. Only the heads of those companies profited while everyone else lost money on these false promises. Their actions were reprehensible and it put a black cloud over network marketing.

Not every MLM company functions this way and not every company sells useless products you would never use. There is one marketing telecom services that we all use, and new technology many of us will be using in the very near future. The compensation plan is straightforward and it offers the potential for residual income in a recession-proof business. MLM has been around for over 50 years and has been proven to work for those who work consistently at it. It is by no means a magic bullet and anyone thinking it is should run away screaming. That also propagates negative stigmas. If someone jumped into a business and didn't do any work, or, quit prematurely, of course they would fail. If this person then wrongfully puts all the blame on the MLM company and tells their friends their biased account of why they failed, bad word of mouth will inevitably spread. This happens quite often and much of the time it is inaccurate.

Besides the traditional corporate world is not free of improprieties. In fact the world's most successful companies can all be considered to be pyramids where people at the top make all the money. You have to look no further than any Fortune 500 firm (CitiGroup, GE, IBM, GM, Microsoft, ExxonMobil, Boeing, Wal-Mart, Pfizer, American Int'l Group, etc…) where the Chairman, CEO, VPs and Board of Directors sequentially squander the bulk of profits while salaried employees work hard, get taxed to death, and make the select few at the top rich while struggling to stay afloat. In extreme cases like EnRon and more recently Freddie Mac, Fannie Mae and a host of others on Wall Street, many hard-working people lost their entire savings while top executives continued to collect their multi-million dollar salaries and bonuses after the companies claimed Bankruptcy. Painful examples of “the house always wins”, and the house is indeed a “pyramid”.

Just seeing things from both sides as anyone seeking the truth should. Cheers!

Gopal (The Musical Mad Scientist and Entrepreneur)
The v-Fusion Group

[Justice44]

Network marketing is definitely not for everyone and yes, there have been horror stories in this industry, but no more than any other. MLM is admittedly an unorthodox Business Model and throughout history people have been afraid of what they do not understand, leading to uninformed stereotypes.

The term ''pyramid scheme'' has existed for years now because there have been MLM companies in the past that made money solely on the sale of recruitment tapes, brochures, Cds etc...so in essence they were selling an ideal, and not hard facts based on real success. Only the heads of those companies profited while everyone else lost money on these false promises. Their actions were reprehensible and it put a black cloud over network marketing.

Not every MLM company functions this way and not every company sells useless products you would never use. There is one marketing telecom services that we all use, and new technology many of us will be using in the very near future. The compensation plan is straightforward and it offers the potential for residual income in a recession-proof business. MLM has been around for over 50 years and has been proven to work for those who work consistently at it. It is by no means a magic bullet and anyone thinking it is should run away screaming. That also propagates negative stigmas. If someone jumped into a business and didn't do any work, or, quit prematurely, of course they would fail. If this person then wrongfully puts all the blame on the MLM company and tells their friends their biased account of why they failed, bad word of mouth will inevitably spread. This happens quite often and much of the time it is inaccurate.

Besides the traditional corporate world is not free of improprieties. In fact the world's most successful companies can all be considered to be pyramids where people at the top make all the money. You have to look no further than any Fortune 500 firm (CitiGroup, GE, IBM, GM, Microsoft, ExxonMobil, Boeing, Wal-Mart, Pfizer, American Int'l Group, etc…) where the Chairman, CEO, VPs and Board of Directors sequentially squander the bulk of profits while salaried employees work hard, get taxed to death, and make the select few at the top rich while struggling to stay afloat. In extreme cases like EnRon and more recently Freddie Mac, Fannie Mae and a host of others on Wall Street, many hard-working people lost their entire savings while top executives continued to collect their multi-million dollar salaries and bonuses after the companies claimed Bankruptcy. Painful examples of “the house always wins”, and the house is indeed a “pyramid”.

Just seeing things from both sides as anyone seeking the truth should. Cheers!

Gopal (The Musical Mad Scientist and Entrepreneur)
The v-Fusion Group

Hi Gopal and Bigcdawg23. Thanks for your comments.

I would like to invite you to join the "MLM for Serious Network Marketers" thread. Please click:

Ryze business networking


Have a nice day.

[SOCMiles]

The water purification system I use at home (and swear by) is from the Network Marketing Company Nikken. One of the fastest growing companies in Japanese History. Their Pi Mag water system produces living water, which is the best water on earth.

All of the natural soaps and lotions my girl and I have at home are through Network Marketing companies. I enjoy essential oils, which I obtain through a distributor of a Network Marketing company.

And I earn my income through a Network Marketing company.... In fact, our company had record growth last year while one of our two major competitors (a traditional business) reported losses, and has been laying off people.

It is a different paradigm. To compare traditional business and legitimate Network Marketing is the whole apples to oranges cliche. Network Marketing offers me the opportunity for Lifestyle Design.

I would love to show any business person what I do. I'm in the greeting card industry, and we have refined the process of sending greeting cards through the mail to the point that it requires independent distributors to show people how easy it is! Maybe Network Marketing would make a bit more sense if I could show you how it works for me.

PM me and I'll give you a free card.

[TylerBakerllc]

There are several legit network marketing companies. It just doesn't fit my business model. That's not to say that you can't make money with it. If the shoe fits, wear it.

It's a numbers game as with any other sales venture. contacts=prospects=sales (rough cycle breakdown, i know!)

-Tyler