Business & Finance Advertising & sales & Marketing

Real Talk - Why Your MLM Maybe Holding You Back (Financially)!

There are many reason why people fail in this industry...
lack of effort is one of them.
Why, because most are (enticed) "recruited" under the pretense that it only require a few hours of work.
Of course, after a few attempts with little response they are ready to quit.
On the other hand, MLM type companies have many other issues as well.
Before I begin this article, I want to be perfectly clear, This is not an attempt to undermine or put down MLM as a home based business opportunity.
Again, I like to add that I am in no way attempting to denounce nor promote MLM.
Merely, providing facts I can confidently write upon.
I have (in the past) marketed some of these companies and would most likely (under the right conditions) market some in the future.
*These usually pertain to products or services that will benefit your online business!* With a number of years actively participating in this industry.
How you intake the info can surely be up for debate.
Please feel free to reply, comment and discuss any issues.
See, what a few marketer in this industry do not understand is that many of the techniques use to promote Mutli-level type businesses can be use to build your legitimate online business.
However, these are some real solid facts based on a number of years that I have spent..
..
dealing with, participating in & research of multi-level marketing companies.
Once again, this is not a blog, that is meant to degrade multi-level marketing, but as an aid to those who maybe looking into, or wondering why they are not succeeding in their multi-level marketing business.
First, over the years, there have been plenty of people who have made plenty of money from multi-level marketing companies, Truth is.
the basis of the multi-level structure is that of traditional business model.
A typical corporation will have a CEO or President at the top, then their directors, the directors have their managers, and the managers have their supervisors, and the supervisors, or foreman have workers who do the work! The structure of multi-level is at best, build upon this platform.
A crude platform.
But, today, i am not here to discuss in-depth multi-level marketing structure.
Whether the inherent risk/facts that are embedded in most multi-level marketing companies! Some real talk when it comes to marketing these multi-level companies.
Realize, that many of our societies infrastructure incorporates some form a pyramid style structure.
Lets see...
the military, Army, Air Force, our government In an traditional supply chain structure it operates like this:
  • Manufacturer
  • Distributor
  • Wholesaler
  • Retailer
  • Customers
Each step adds expense to the final destination...
the consumer In Network (Internet) Marketing the structure operates like this...
Manufacturer (supplier) Distributors (You) Customers (the end user) See where the middle-persons are eliminated, cutting the cost/overhead.
These customers, represent a targeted market that you the distributor must penetrate.
Running your online business so that it becomes profits, is where most MLM companies structure make it nearly impossible to achieve.
Why...
? Well, you have heard that famous quote...
"it is a NUMBERS game!" Well, you best believe that.
It is the numbers needed to stay ahead, that does...
become an issue.
A sort of built-in self destruct mechanism.
In my first months of market online as a real business, meaning that (after research) I understood that money could be make with hard work & effort.
I began using the trainings, paying for online/offline advertising, buying leads trying to convince prospects to join my businesses.
The income from commissions was still less than my R.
O.
I.
(Return On Investment).
I was truthful in my presentations, careful not to hype products or service excessively ( I am too, turned off by this types of advertising myself), willing to build relationships etc.
, yet I kept losing my clients.
The harder I seemed to work, just did not seem to stop my roller coaster ride in building my multi-level business.
There is a reason for this.
Now, this was a few years ago.
I have explored & learned! With 2-3 times more of these multi-level type businesses out there and more popping up every month.
Seriously, the odds for an individual to achieve financial success is against them straight out the gate.
For one,most of these multi-level marketing companies are not defined nor regulated like say, franchises are.
These companies can be established without federal or state approval.
There are no federal law specifically against multi-level marketing companies with many of them in fact being nothing more than an pyramid schemes in disguise.
Not all but many are floating around out there! Multi-level marketing like pyramid schemes, generate income from those continuous influx of new distributors at the bottom that goes to the top that profits those and their sponsoring corporations.
Fact ~ that one of the larger multi-level, Amway, of all their distributors it only produce 1/2 of 1% of basic "direct" distributor level, with an average income from those Amway distributors being about $40 a month.
Where do you think the other 99 1/2% when to.
And think about this ( if you do any amount of research or even just looking for a business) You are likely to find these businesses with at least 10,000 other distributors who are trying to make money just like you.
Which brings upon another fact...
Market saturation! Market saturation - Point at which a market is no longer generating new demand for its products or services.
A result of competition, decreased need.
Not enough targeted consumer The simple fact is that even the most successful products will have partial market penetration.
Not everyone will buy say a PS3(Playstation3), some will buy the Xbox! Not everyone will buy GMC cars some will buy Toyota.
Simply by the numbers alone: Let say your business needs to employ/recruit 5 people & that 5 needs to employ 5...
so on and so on! LEVEL New Members needed 1 ~ ~ 5 2 ~ ~ 25 3 ~ ~ 125 4 ~ ~ 625 5 ~ ~ 3125 6 ~ ~ 15,625 7 ~ ~ 78,125 8 ~ ~ 390.
625
9 ~ ~ 1,953,125 10 ~ ~ 9,765,625 11 ~ ~ 48,828.
125
12 ~ ~ 244,140,625 13 ~ ~ 1,220,703,125 Yet, these companies have 10s of thousands of distributors.
Is there a cut-off when enough sales people are hired? In a traditional business, there is someone that says, "Ok, we have enough, let us stop hiring people at this point.
" But in most multi-level, there is no way to do this.
These multi-level companies continues to saturate the market.
Out of control by design, this will eat up the money, time, credibility, and entrepreneurial energy of well-meaning people who joined merely to supplement their income.
The business is primarily in the business to continuously enroll distributors with little focus on products or services retailed to consumers, unless it benefit that company.
Things like leads, auto responders, splash pages etc.
, ( Which again does what...
help top level participants).
BIGGEST misconception about multi-level in it can be in your spare time.
As a business, it offers the greatest flexibility and personal freedom of time.
A few hours a week can earn a significant supplemental income and may grow to a very large income making other work unnecessary.
Come on, now I understand this business of advertising...
Example: You go to one of these fast food joints, We look at the menu, and boy those pictures make you want to eat that picture.
When ever has you burger, sandwich ever come to you looking like it does on the menu? So yes, there is always a bit of hype (exaggeration) in advertising, commercials.
This is or has been acceptable.
Multi-level marketing companies or their inexperienced distributors can over hype their campaign.
Decades of experience involving millions of people have proven that making money in multi-level marketing requires extraordinary time, commitment as well as hard work, effort & persistence.
Which is WHY people drop out of there business.
It is sad that 90-95% of all home businesses (MLM and Network marketing) fail to produce a substantial income (if any income at all).
And this is well documented.
The remaining 5% are considered to be the home business or internet "guru's" who make ALL THE MONEY! Top level participants Most people begin and end their multi-level business only talking to a few family members and friends.
That is the extent of their lead generation.
Their effort to run a business.
Any serious network marketer or business owner cannot build a sustainable income like this.
Truth is these guru's can claim they built their massive organization nearly over night, however, it took them years of building teams (list) through affiliations with numerous other MLM companies.
After years of building relationships with hundreds or thousands of distributors, these top producer can switch companies, contact their downline (list)..
...
and have, what seems like an overnight success.
Hence, where you get those ads "You can make X amount $$$ in X amount time.
" They leave out the fact that if you are just starting out, you, too need to build a sizable downline, aka LIST! Choosing the wrong product, a weak compensation plan, the wrong team or the wrong lead generation system are other reasons why you could fail in these multi-level and network marketing industry.
Strategic planning, organizing and goal setting are all major parts of running a successful business, whether at home or in a traditional business.
The exact nature of your online marketing activities will depend on the following commitments: - What do you want to achieve? - How are you going to achieve it? - How much you are willing to invest? - Are you willing to dig in and work hard towards your goal/dream? Understand that most home business entrepreneur and network marketers are ALREADY in business for themselves.
They already have a business opportunity, or affiliate program, and do not want to hear about yours.
So, try not to spend a lot of time & effort in that direction! Unless of course, this is your targeted market.
Hope that you find this piece of value to your online endeavors.
Also remember to really focus on the basic of marketing online.
When you take care and have a solid foundation of the essential working of marketing online.
Many of the pitfalls can be avoided.
Find your own groove or niche, that is how a true entrepreneurs succeeds.
Think outside the box.
If you need and want to work successfully from home/online you have got to be willing to adjust, work hard and stay informed.

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