Why Is MLM So Hated?

[nocci01]

Dr Pepper is my favorite soft drink...anyhow...back to MLM

Most people don't have a clue how to be successful in MLM. The last person I would prefer to sponsor into my business is a sales professional. They can go out there and sell and sponsor like there's no tomorrow...however, their team never sticks around because the build too fast and don't teach their team members how to succeed. MLM isn't about selling to a whole bunch of customers or sponsoring tons of distributors. It isn't about getting rich within a few months...although some people get to the big money in a few months.

Look...if you can earn a six figure income in MLM within 4 years...that's a pretty quick time if you ask me. Most college graduates don't even make over $60,000 a year.

MLM is about a getting a few customers...sponsoring independent distributors and teaching them how to do the same. If anyone here knows anything about math...there's a huge difference in numbers when it comes to the MLM industry (Network Marketing).

If you sponsor 2 people that each do the same...while they all acquire just a few customers...on your 4th level of distributors, you'd have 16 distributors (32 total). If each gets 2 customers...that's 64 customers total.

If you sponsor 3 people that each do the same...your 4th level would have 24 distributors (48 total)...2 customers each...96 customers total.

Sponsor 4...4th level will have 32...(64 total)...2 customers each...128 customers...

***The difference in sponsoring 1 extra person grows substantially when you get down to level 7 and beyond. That's called leverage. It isn't about sponsoring everyone you come within 3 feet of...it's about a acquiring a few customers and sponsoring a few distributors and teaching them that the magic isn't about sponsoring everyone you know right now...it's about long term development and staying the course. All you have to do is read a book by Don Failla called The 45 Second Presentation to understand how MLM really works.

So many people could benefit from our industry but unfortunately will live their entire lives whining and complaining...and criticizing this industry. Wake up people!!! Bashing an industry that could be the answer to all your problems won't help you. Next time you think about the crap that you have to deal with at your job...just remember...criticizing an industry that has allowed me to work from anywhere I want isn't going to make your boss or cube city job go away. If you're not happy with your life...change it...Jim Rohn (one of my mentors) says you're not a tree...go do something about it.

Criticizing won't get you very far...won't get you where you want to go.

Good luck!

[Successfulfrog]

This is my opinion. Many middle aged people have failed to achieve their financial goals in life or if younger, are not willing to put in the time and effort it takes to create a successful business and a large income. So along comes Mr. MLM who says that if they just sign up 4 people and they sign up four etc, they will get rich. These people do not realize that marketing a product is the same as any other business. It takes time and effort and perseverence to create a sustainable income. Plus the product they are trying to sell must be something that is state of the art, or something everybody wants or needs. It should be consumable so that they want it over and over again, not just once. The company should also have an excellent compensation plan that pays out at least 45% of the product back to it's distributors. Plus the customer may not be the type of person to make a go of this business. Thus the customer who thinks he too will get rich quick like Mr. MLM (who may or may not be rich him/herself) deludes her/himself and in a short time finds that he/she is not making the money that was "promised" to him when in fact it was the customer's fault for not researching the company, the MLM industry or even their own capabilities. Many times they have had a bad product as well. So they network with their friends and soon the whole community finds out that "Joe Blow" down the street had a bad experience with "A Company" and "Ya, well, it's one of those Pyramid schemes. And there you go. An angry person who hates MLM. Incidentally, did you know that there is a Direct Sellers Association who is there to protect us from bad companies? Pyramids have been illegal for many years so why do people still talk about them? If you have doubts check to see if the said comapny belongs to the Direct Sellers Association. Have you ever stopped to realize that in ALL businesses the guys at the TOP are the ones making the most money? Ya. I noticed that in MLM's, the good ones, (and there are some) every person who starts up has the same opportunity to make alot of money. It is all in what you do with it. I belong to a company who sells it's product through network marketing business model (which is being taught in Universities now) and I am proud of this company. They are endeavoring through science to provide products that will eliminate the amounts of parabens we are absorbing through the products we use off the shelves of most stores. I consider that a help to human kind. I am bringing quality of life to people and I choose the people I want to be my customers. I will surround myself with positive fun loving healthy people who want to stay that way. And if someone needs help I am there for them too. Life is good.

[Successfulfrog]

Hey Nocci01, you've got it. Just a note:
Network marketing used to be about getting as many people as you can and thus the mortality rate leaving a wake of disgruntled people behind you. But now there is more teaching about how to support your group so that you can all benefit together. It's slower but alot more stable. Plus why are you in there anyways. I'm here to make people's lives better.

[monchi]

Why is MLM hated so much here by entrepreneurs, I consider my self a smart person and I am always thinking of ways to make more money and I see MLM a great opportunity if done right. Because like any other business if you have a good plan you can succeed, and for the people that hate it so much if you compare any other business you will find everything is the same. What is the percentage today of small business that fail ????? and do they ever make any real money except for maintaining the owner and workers income - same as having a job except a lot more responsibility's. And I think corporations are big pyramids they own you, your family, and the world where most people cant afford a vacation. Their profits increase and are pay stays the same, and these very few people control all the billions and trillions so we are all in a pyramid at the button.

The people on the top are the only ones that make money ?????? an entrepreneur out of everybody should understand why, and that's because the person on the top worked to get there so why cant anyone else ? and about the pyramid thing how many mlm company's are still running after a whole decade ? How many have had to shut down because they ran out of people to sell to ? none that I know of.

But I see network marketing as a real business opportunity because if you treat it like a business you will make money. But I agree most people in it are there because they were told about all the good stuff but never told how much work it is too, and that is why there is no much negative stuff out there. Most people in the world are going to be dreamers and not doer's no matter what, so even if they tried a network marketing company but did not do anything to succeed how is that mlm fault ?

I am forming a team of network marketers promoting for MonaVie this is a great product (on the news all the time, what other product does that ) Even a greater entrepreneur than all of us has tried the product and said how great it was (Summer Redstone ) and even bigger entrepreneurs recommended network marketing because of the business opportunity (small investment compared to the returns IF YOU WORK FOR IT)

Donald Thrump recommends network marketing and watch this video it really helps out on point of view
YouTube - Rich Dad Poor Dad ** Robert Kiyosaki on $$ Direct Sales

visit my business center and more will be explained but I am focusing on people that are willing to work and help others because that is how you get to the top and make money, its no secret, its no scam, just like any other business.

http://welcometothegoodlife.com/content/view/67/116/

[remipub]

If any of this has already been offered up in this tread I apologize ... I just don't have enough time to read all 300+ posts here!

But I did stumble upon a very interesting and informative website some time ago. This gentleman has done extensive research on MLM businesses - their viability and the business models. His conclusions are pretty much all negative, but he is not just speaking from opinion, he includes statistics and case studies to make his case. Now I realize that no matter how much evidence a person puts out, there are always those who will support a concept no matter what - so I'm not trying to convince anyone with this post, but for those who honestly and objectively want to learn more about MLM opportunities, it might be a worthwile resource:

Truth on MLM or Network Marketing

[teenbizcoach]

My experience in hearing people pitch is that I think that the vast majority of the people in the 'downline' often have old school sales mentality bc they were taught by an old school sales head (although I don't believe that was probably the vision of the original founders). I have found that the majority of MLM don't prequalify people upfront to work in their group or build relationships first. i.e. being all gung ho like they just earned XYZ dollars or will be retiring from their job and firing their boss in 6 mos....uhhh no. Love the enthusiasm and having the faith but that is a dead giveaway that you are a n00bie!!!

New people tend to be more money driven than solutions and value driven. Instead of focusing on how they will help the customer they focus on how much money they will make. If you can't do the first then it makes it difficult to do the latter. The best salespeople know this. And when it doesn't happen for people quickly or the answers or customers don't come easy and their relatives don't want to buy from them that is when they believe it is a scam and start working on the defensive instead of offensive. I think the people who have the most success in MLM and network marketing know how to build relationships, sincerely help people solve problems and understand the overall strategy behind it.

Note: My experience comes as a former salesperson in a very competitive industry in which I had a lot of success (of course it's relative), however, I am not a MLM or Network Marketer...so don't think I am endorsing the industry or anything.

[TrinaG]

MLMs are not all the same. I've been in several, and studied MANY. The pay plan, products, reputation, ongoing expenses, management, reputation - it all has a huge factor on whether I like a company. I love the MLM concept, but there are some companies you couldn't pay me to be part of.

Why I like the overall concept comes down to: leveraging to earn $. Nowadays, I only join companies whose products I will personally consume and not need to stockpile or sell to my friends/family. Some products I do really love and if I think they could benefit someone, then I'll mention it to them. But that's my personality - I'm not going to sell something to someone who doesn't need it to put $ in my pocket. (That sounds a lot like a typical sales person, hey? The industry matters not - life insurance, cars, real estate....)

Businesses have compensation plans that are MUCH improved over the age-old Amway gigs, but still have the Amway/Quixtar reputation. With any business, if you don't know what you are doing, have crappy trainers, or the business is more about selling you training CDs, websites, advertising and Videos - then your chances of success just went down the toilet. But wouldn't your greasy burger franchise fail just the same - crap in, crap out. You've got to be a student of the industry (not just your own company) and learn the trade. It's no different than any other job you want to have some level of success in.

Ever been to a chiropractor? Been to several? (Another debatable topic - sorry for the comparison) They can be as different in their techniques and theories as the snowflakes. So are MLMs. If you are generalizing and stereotyping, you are merely showing your lack of knowledge. Best to say nothing. Just because a certain company may not have worked out for you or your Aunt Tillie, doesn't mean the person and the company were a good fit. Like any job, it takes some trial and error to find what suits you. And you constantly learn new skills to apply to the next venture.

ETA: Was just going to add that nowadays, I focus on networking with like minded people who are the true product of success. When people are the product, the specific company you join with matter even less.

If I have a network of a hundred people who know, like and trust one another, and we all are MLM minded, then we can cumulatively join any business and be in profit. And then we join another business, and another.... multiple streams = security. If one goes belly up - who cares! We still have our network that will go anywhere we want it to. Definitely cannot say that about brick and morter operations. If your investment bank employer goes under, you can't get all your coworkers together and jointly go to the other investment bank down the road. You have little vested interest in anyone that shared a cubicle wall with you. But in MLM, I can make the choice to be of value to anyone I choose and earn their mutual friendship which can have lifelong benefits.

Fun, fun!!
Trina

Cheers,
Trina

[freedomawaits]

Here's the bottom line. Do you want to keep working for someone else or make it on your own? Sure, there's some MLM companies that are a scam. Then there are some really good ones. Most people go about marketing their businesses in completely the wrong way. They also go after comapnies selling potions and lotions that people run from when they see. Don't get me wrong, some of the products are outstanding, it's just that people get scared when you approach them with that stuff.
Anyway, you have to do yuor due diligence and find a place you feel passionate about. You want to really feel you've found a home, and you want to really feel that you are truly helping others. That's the key. Don't focus on yourself, focus on how you can contribute to assisting others.

[thetrafficdriver]

It always requires recruiting your friends, family or whatever poor soul you can find walking around your local grocer to make it work.

[Bgdavid]

Oh boy... that's a dim view of the world around you Traffic, you'll not attract much with that in any business world.

Working with with people worth in the tens of millions dollars, one thing that I have found is that they are always open minded and willing to help others in traditional and ...the dreaded MLM arena.

Oh my God did you say soap or vitamins EEEEK run for your life. Mean while they are extremely blessed, as are others, because of their dedication and WORK in the companies that they are involved in.

MLM get's the bad rap from to much hype. The shysters exploit the get rich quick scenario (impulse).

Unfortunately many folks do not wish to risk anything to move ahead in today's society.

I'm sorry, if you wish to gain, you must feel the pain. There are so many that say they had made riches overnight, but they do not reveal the true story of how they anguished over how to pay bills, how much time they spent or how much money they lost until they finally started getting ahead.

They will not tell you all their secrets, why should they. They poured their own sweat into to building success and more power to them. What they will do is point you in the right direction, if you will listen. It is up to YOU to show the initiative to move forward and progress. As you become "progressed" you will understand, enlightened and more will be revealed when you can handle it. You will get what you deserve, universal law.

It is up to you to perform due diligence on anything you become involved in (personal responsibly).

[rejoice]

threads like this make MLM so hated

[Bgdavid]

Thank you rejoice for your profound statement and contribution to the thread.

Please come back when you can dazzle us again.

[timingiskey]

Some MLM companies are a scam and some are not. It all has to do with their structure, ethics, and compensation plans. I am 23 years old, and after in depth research I started working for a network marketing company which is experiencing enormous growth at this time. After a public announcement in the upcoming months, which all active marketers have already been informed, this company WILL become a household name. I have already positioned myself for financial freedom with an income stream I still cannot comprehend. It scares me sometimes. After only a few short months, I have replaced my income and earn a 5 figure MONTHLY check, which will increase exponentially! In order to be successful in such a business you MUST have a vision and the desire to succeed. The only way to fail in these businesses is if you quit. I thank Robert Kiyosaki for teaching the proper mindset it takes to achieve my goals.

I'd be happy to expose the information about this company to anyone who asks. I don't ask anyone to commit to anything, only to consider something.

[Krav1]

Hey everyone. Just stumbled upon this site. I think it's a great resource for those of us trying to get ahead.

Here's some thoughts on network marketing that may or may not have been addressed in some earlier posts (there are too many to read on this thread).

I was very skeptical of getting into an mlm due to the reputation that precedes these companies mainly due to illegal or unethical companies in the past. However after examining some of the new mlm's, I was convinced that many of them offer good sustainable products with an aggressive compensation plan.

The reason so many people fail at them, is the same reason why it is also so appealing. Because basically for a couple hundred dollars, some less, some more, anyone, qualified or not can own their own business. Many people expect to sign others up left and right then just watch the cash flow in.

Though the business plans are relatively simple, with little overhead and start-up fees, the business itself takes determination, discipline, tenacity and good relationship skills. Also, being part of a good team is essential for knowledge and support.

My wife and I both have full-time careers and are involved with two network marketing companies. Both have great products and aggressive comp plans. It enables those of us with hectic schedules to create additional streams of income without having to go back to school, put a lot of cash down, or take a second on our mortgage.

[Bgdavid]

HI, I was in a MLM once and found only about 5% of the people made any money to speak of. I found cash gifting to be the best and hotest thing going today. So I joined the hotest one one the net with the best conversion rates. email me if you would like more info.

mhansen...there is a cash gifting thread that is more appropriate for your solicitation.

I am in cash gifting also, but this is a MLM thread. We understand that you are excited.

OOOHH MY GOSH I'LL GET CASH TO MY DOOR



Why not post your progress in the gifting threads and let us know how you're doing.