Hey folks, I gotta serious question I’d love to ask you, and hopefully you will be kind enough to share your thoughts in the comments below. Now, I’m not going to mention exactly how I feel about MLM, because I don’t want to skew the responses in any way.
But I’m super curious what your feelings, reactions, or experiences with MLM or Multi Level Marketing companies?
Obviously lot’s of people just think that all MLM’s are pyramid schemes. Others swear by the effectiveness of the multi tier payouts. There is a lot of mixed feelings.
However, I’m very curious how you personally feel about MLM’s?
Please let me know your impression whether or not you have any experience or not. I’d like to hear from people in MLM, and those who would never touch it.
In the next day, I’ll tell you my opinion and we’ll see if it matches the overall consensus of the group.
So go ahead, let us know your opinion about MLM’s!
Cheers,
J-Mo
I think it depends upon the product or service. I have seen horrible mlm’s that die out and fizzle. On the other hand I have seen family members make a living from mlm’s.
In th 1980’s I used to get all kinds of MLM offers. I think theyre OK if you know what your doing. I don’t know what I’m doing with those things so I steer clear. Jason, if you figure it out drop me a line!
I think that any business model has to fit the person. The problem is that with anything typcially being sold that are biz ops people want the easy way and don’t want to work. I think MLM’s in many cases work for the people who work at them. I like the idea because they still aren’t working for the man. 🙂
Personally I stay away because its not my thing in the traditional sense but affiliate commissions in tiers to me are nothing more than an MLM. MLMers are affiliate marketers. My 2 cents
Hi there Jason,
MLM – well depends on what side of the coin your on. e.g. if you start your own company and are looking for an effective way to distribute the product it can be a good way assuming the product is right.
On the other side though for consumers most MLM products and services are over-priced (IMHO) as the funds to pay all the levels deep have to come from somewhere.
I know all the die-hard MLM’ers will say yes but we don’t spend money on advertising and it’s given to the distributors etc. but in my experience you can generally get very similar products at 1/2 the price at the local store!
MLM is totally geared in favour of the ‘company’ as they don’t care how many people drop out after paying their joining fee, start-up kit and the rest of monthly minimum volumes etc etc…
Most of the time there are a small % of MLM’ers who are making the real money and the rest are dreamers hoping of some day being like the successful few and in the meantime spending a small fortune trying to do it on the products and promo stuff while pumping their family, friends and everyone else they know until they wake up one day ‘friendless!’ and with their family abandoning them!
That’s my scope on MLM 😉
I’ve seen quite a few MLM horror stories, and I wouldn’t touch one with a ten foot pole!
Maybe I’m generalizing, but I’ve never talked to anybody with a real success story that would counteract all the negative experiences I’ve seen close by.
Hi Jason,
First off, please catch some tasty waves for me for I am landlocked and without board;(. You pose an interesting question on whether MLM, or Network Marketing is a scam or not. I think that depends on the company, the person involved and how the company views itself. The days of hotel meetings and desperate BBQ’s that turn into biz op meetings are dead and with it the bad press that Network Marketing is a scam. That being said, there is a new day rising out of the darkness and shedding light on the prior limitations of the industry. It is a New Age of Internet Marketing.MLM is the way to leverage yourself to the hilt within it.
I ve been asked to join many mlms and seen many friends & family try, and I mean seriously try to make a living with mlm. Of the 40 odd people who tried NOT EVEN ONE made it. Some of them even attended seminars abroad and spent lots of their own cash thinking it would come right. It did nt. Maybe its dirrerent in the States and Frank Garon is into it and makes tons. Maybe “the money is in the list”. I dont want to waste my time peddling stuff where there are many more losers than winners.
Think about the biz module for a moment….
An MLM biz module is great from the company…. Not so great for the distributors.
And here’s why…
There simply is not enough equity for the distributor to be rewarding in selling the products themselves. The way to make the money is recruitment.
…. and the only way for new recruits to make money is for to recruit…
… and so on…
But the problem is the system can’t stand on it’s own 2 feet without continual new recruits.
You do the math…
In a system like that plenty of people are going to fail.
For you to succeed plenty of other people are going to fail.
Now what kind of business is that?
You make your paycheck on the backs of the failures of others? They MLM company generates its sales on the basis of recruitment, not on the merits of the value for the money the product may deliver.
I don’t know about you, but me… my philosophy on biz…
EVERYONE must win. Everyone from the smallest customer to the largest vendor, to the community, to the environment…
… All that the business touches should win and benefit in some way.
If the MLM program is structured so that only a few people win then I would suggest to you stay away.
If the lowest level transaction, meaning buying the product at the retail level does not pay enough commission to the newest distributer to make it worth their while stay away.
If the product sold at retail price does not deliver that much value to the consumer on the products merits alone (not the right to sell it later on) stay away.
Depends on if you’re talking about a “Multi-Tier” affiliate scheme or a traditional “MLM”.
You use both terms above. If the scheme is truly designed to primarily promote a “Product”, and the tiered payouts are reasonable and mathematically possible…and your success is not dependant on selling the biz opp, then they can work, and work well.
However, if the only “real money” is in the selling of the biz opp to others, like virtually *all* “traditional MLM’s” then they are literally designed to fail- it’s a mathematical certainty.
I have tried MLM opportunities in the past and wasn’t very good at it. I mostly spent a lot of money on product that I had to give away. Most people are wary of MLM’s due to bad press and I find that even if the product is good, the barricades people throw up at MLM’s are usually extremely difficult to overcome.I stay away from anything that is MLM face to face selling now. Targeted affiliate programs on the web are the way to go. That’s my 2 cents.
I have participated in several MLM’s. Some with success and others – oh well. For the most part I think MLM is a great concept. HOWEVER, I hate to see the families that will hang on in hopes of making a little money while continuing to pay too much money for a product that everyone of us can live without.
I guess I just hit my hot button. In order for the company to make it they have to put toooo much mark up on a product that none of us really need anyway.
And one of my largest pet peeves is that people are told BEFORE they join that they will get help marketing BUT they don’t. It appears that this market place is full of people that over promise and never deliver.
I wish I could tell you more without holding back. [ha! ha!]
It really does depend on the business and the company. I have stayed away from MLM companies in the past, but am now involved with one that is really working.
It is a health and fitness company, and I have already lost weight in using their program and products.
In fact, I am currently putting together a blog with an MLM expert who will be explaining how to do due diligence on MLMs.
Multilevel is difficult and ineffective for most people. In other words, MLM does not work for the vast majority of people. It is especially horrid if it involves pestering friends, relatives, or strangers people in coffeeshops or wherever and trying to take them to remote pep-talk meeting places and having to pay to attend such BS. But, at the same time, distribution of earnings in most traditional systems are disproportionately geared towards the top earners. Life is tough, unfair, and unjust. That said, there are actually some products offered by MLMs. Personally, I would stay away from any MLM (such as Quixtar/Amway) that makes most of its money from selling how-to-do-well-in-the-MLM materials and tickets to MLM meetings rather than from sell actual products. Basically, with few exceptions, MLMs suck.
Hey J-Mo,
Here’s the thing with me…
99.9% of MLMers do their business wrong.
There is always going to be the 2% that know how to speak or sell and have the inherent skills to build big downlines…
The rest that don’t suffer… Because they try to do what the 2% do.
Here’s the solution in a nutshell…
MLM by itself is not a business.
It is only a business for its owners.
With that said, it doesn’t mean there isn’t money to be made.
How? Your MLM opportunity is just another revenue stream. And it is on the back end. Never put it on the front end.
MLM is a mentality that has to be destroyed.
Approach MLM as a Marketer, and you will do fine.
Could go on, but I think I’ve said enough.
Cameron
p.s. Uhhh, just for clarification to some comments above. There are a lot of losers in any make money opportunity whether it be MLM, direct sales, information marketing, so I think that excuse is bunk.
While there are a few legit MLMs, the bulk of them seem to be a way to make a nice person into an obnoxious, slimy one. The word that instantly comes to mind is “Yuck”!
On the upside, some of the cheaper ones seem like a good way to help people leave the job mindsets. MLMs are more joblike than business-like, but at least they usually have a little bit of business sense in there somewhat that can be used later.
I’ve also heard that MLMs can be great for people who’ve been through 12 step addiction programs (for alcohol addiction, etc.). In a 12 step program, you run through the steps over and over, because you are never “healed”. Same thing in MLM. You do the same stuff over and over, and you’re never healed… you’re always addicted to the wheel 🙂
Now I’m an American. Here in California. Those views may have something to do with that, since I’ve heard from both a girl in the midwest US and a male friend in the UK that MLM isn’t the naughty word there that it is here. I think these systems may be better fits for certain personality types and localities.
MLM itself isn’t a scam – it’s a viable business model for the right person (assuming the company is on the up and up).
What is a scam is the way many people present it. Despite what many people who are involved in it will tell you, it’s not easy for everyone to do. You really need to be able to sell face to face, or over the internet if that’s how you promote it.
You need to sell the product to people who will use it (which is sometimes hard since as a previous comment mentioned, many of the products can be found cheaper elsewhere) and you need to sell the opportunity to people.
Selling the opportunity is not always easy if you tell the whole truth, and this is where some distributors cross the scam line.
I think once you know how to market it can be a winner, I’ve seen it time and time again. I’m sure you saw it with Ty’s program.
The problem is most people just getting into it, have no idea about business or marketing. They are sold on the dream and how this is the best product in the world. Simply put, if you have a SYSTEM and know how to market, and can train and teach your people an easy way to drive traffic and leads… you can earn a substantial amount of money. A large amount of money.
Old School MLM:
Go and talk to friends and family at the local Denny’s.
New School:
Drive traffic through social media, myspace, facebook, youtube, and take direct marketing principles and apply it to this model. Train your people using camtasia, offer a community, and simple and effective ways to drive traffic.
There’s some buZZ in the IM world about MLM lately.
Obviously, something is about to pop.
The transition is happening with internet marketers.
– Chris Brisson
Oh… I didn’t forget about you J-Mo. I’ll let you know when the check goes through and send you an email. 🙂
– Chris
MLM is an outright scam. Only the original promters make anything.
I have heard and read where any number of the original promoters have ended up indicted and then conficted.
MLM is a fast track to prison under the federal RICO statutes in the US.
So much of what is peddled on the Internet period is racateering anyway you want to cut it. Most of it operates on the bigger fool theory.
There just aren’t enought people in the US Justice Department to keep track of all of the scams and the players.
Theye are too busy getting ready to have to deal with all of the fraud in the mortage business. People are going to go to jail there but not connected political insiders
It ROCKS IF:
– you someone build relationships (most people don’t realize the product is NOT the companies product, the product is PEOPLE. people think that you can build a long term residual check by just sitting behind and never building a community. people that do this normally jump from company to company every 6 months – a year.)
– you find the right company (solid backing & management)
– you find the right people to work with (especially if you’re an IMer, partner with someone/sponsor that as you drive the traffic to lead pages, someone builds relationships to close the prospects)
– you have a duplicatable system that encompasses technology and still builds relationships (people have tried but still haven’t accomplished this…YET shhh….)
It SUCKS IF:
– you find the wrong company and just join it because a “big marketer” joins it…(throw up)
– expect that doing 100% online MLM works without relationship building (you can do this many ways)
– wrong product – there’s 7 Multibillion Dollar Network Marketing companies and most of them revolve around “Wellness.” should tell you something
– wrong system – “hey guys lets put together a lead capture page and drive a bunch of traffic and so seo and lets just sit back and watch the checks come in… – this is what you see these days for the most part
Network Marketing ROCKS IF you do it right.
Perfect Formula is:
Strong Network Marketer + Strong Internet Marketer Team Up = Long Term Residual Income that create something Duplicatable for the average person….
OH and BTW – it doesn’t hurt if your company gives you a FREE BMW…
Check out what Simon Leung just put up last week.
http://FreeBimmerClub.com (shameless plug)
Guess what, I think Chris Brisson explained it all in detail.
MLM should be considered one of the new age of Internet Marketing right now.
It should be no more MLM,
but just networking.
The days when you need to pester people face to face — that’s off.
Now the Internet allows you to do the only RIGHT way.
MLMs work best for whom? Usually, the ones who can gather mass leads.
Again, for others Chris explained them clearly enough so there it is.
For one fact:
Many people will begin changing their perceptions towards Multi Level Marketing soon with Social Media.
Those that takes the opportunity now, well, let’s just say they have a high chance to become the 2%. 😉
Yeah one more thing I had to emphasize.
In the end, it comes down to one thing.
If you’re GIVING VALUE to others doing what you do, do it.
MLM itself isn’t necessarily bad. The problem is that
most people get in when they don’t have enough money in the first place and sponsored by others that really can’t or are NOT interested in teaching them. I know from 3 tries that is what happened to me.
As soon as you join you are in competition with your sponsor and everyone else. Unless you sell a big ticket item you need to have a small country in your downline.
Even with a “system” you still need to communicate with people. Even with the reverse funnel people still fall out of it. 3k and 300 per month is a chunk plus advertising. Some better start making it quick. Like anything, time or cash to get it rolling and probably a fair amount of both.
What is the next thing about to be promoted here as we test the waters?
MLM Sucks!
Why?
The Initiator Gets the Cream/Big Cheese!!!
And,
the few hot-shot sale aces,
that do develop from the
lower level networking,
get the rest of the cream/cheese.
Sure there have been some big movers:
PrePaid Legal, Amway, Melaleuca, and more
that are still around.
Look at them closely and you will find…
It’s the initiators that get the cream, OR
a hot-shot ace dealer with members under him.
And usually they are pushing a product
that they ALWAYS have to push.
That means they gather
other or new members
to either replace
the one’s that leave
or motivate/push the
newbies onward until they break.
I am not interested in
doing that to my friends.
I am not interested in
wasting my time
with that sort of strategies.
I’m involved in an MLM right now .. with no success.
But I know that this lack of success primarily comes from me not taking action properly, not stretching my limits and not working the business consitently and professionnaly.
For the same reasons I don’t have succes in Internet Marketing (yet 😉 … will not drop the bone though).
MLM can be a scam when thruths are not told. And that happens easily when you recruit unqualified reps and want to keep things simple / duplicatable.
Done correctly MLM is about GOOD CONTENT (quality products) and GOOD RELATIONSHIPS (marketing, list) … and in that its’ got similarities with good Internet Marketing! KNow Your Customer!
I like the pesronal contact aspect of MLM, and in the concept the fact that relatively unqualified people (besides the needed good peole skills) can step up, stretch theit limits and embrace an opportunity with high income potential without spending years in college or having to find out “why Google doesn’t love me”.
I try to combine MLM and IM.
So far I’m in the 95% that don’t make it
Moving towadrs the 5% that got it and DO it!
MLM aka Network Marketing can be what you make it.. I have been in a few dozen over the years and to be honest I did learn a lot of great principles that would help me in later endeavors but I also learned how many people took advantage of the little guy… With that said even though I had been beaten up in it I have made great relationships and actually the folks that I have met through the years are now part of my team in what I am doing today online…
I have always been for the little guy, I know how it feels to be taken advantage of or let down and I always am upfront with my team and/or client. I want their success to be realized. Lots of folks said MLM Sucks I dont think it sucks, it all depends on what you do with what you have..
Affiliate Marketing is just a new wave of MLM getting paid as an affiliate is another form of residual income isnt it? Anyway thats my take on it, what Im involved with now is not me just pushing some lotions or potions but actually helping others to learn how to become a success in their own homebased business no matter what product or company their promoting.. Stay as cool as even Jason, RJ
I have been imvolved with a few MLM companies and have seen some success with MLM. I joined an automated MLM system last year (similar to Carbon Copy Pro that you have advertised at the top of your site) and made a few $3,000 sales for a travel membership with the system simply by driving traffic through the system. However I got in reasonably early and now it seems people are just joining the best internet marketing guru who has joined the system.
So effectively all the people that I drive through the system are searching around and joining an internet marketing guru who has some sort of great offer.
In effect I think it’s a lot easier when you get into a company early and can promote it on a large scale before the masses do.
Otherwise, it’s quite hard to make decent money unless you’re a very good internet marketer(someone well known with a list will obviously have a big advantage).
Mlm is the biggest scam online. It was the biggest scam offline.
Millions have had their hope and dreams destroyed by mlm.
The problem is the model itself.
The stand alone model is the best way to make money on the net.
Jason, if you promote any mlm op you know good and well that the vast majority of people won’t make a dime.
Don’t do it Jason!
TL
I am an MLMer. I do not do business the way my upline wants me to because it doesn’t work for me. I use the web and basically I’m doing IM. There are several models to do this out there. Most of them work if you work them. That is true of any system. You have to Work the system.
JB
LoL Jason’s about to rock some people’s minds!!!
In my experiences the people who hate the MLM’s or better called Network Marketing industry – Are either the super neg people who will never do anything or have never stuck with a program long enough to see the fruit.
On the flip the people who love it are the ones getting rich with network marketing or just signed up and are still in that “Newbie Passion” mode.
Personally, I believe it to be one of maybe 5 top business models ever invented. People can say all they want but network marketing makes more millionaires faster then most other business models.
Go watch “Brilliant Compensation” a documentary on the network marketing business model… You’ll fall in love!
P.S. Why are guys like Robert Kiyosaki, Robert Allen, Donald Trump, Russell Brunson, and Mike Filsaime in network marketing companies? These aren’t stupid people!
Wait for it folks — there’s a pitch for Reverse Funnel coming up!
If done properly and are run by good people then MLM’s are great. If not then they can be a very horrible experience.
Hi Jason:
Ethically, I have no problem with MLMs as long as they offer a real product.
The problem I have with them is that they rely too much on the people under you to do the work and let’s face it, many people are too lazy to put in the effort and thus don’t.
The AFF stats don’t lie. The average retention in any MLM is 90 days and then they’re gone, no matter how much training you give them or how hard you worth with them. I know. I was in MLM in one form or another for almost 5 years and while I was always able to recruit and train, I could never get people to stay no matter what I did and I could never get anyone to duplicate my success.
Therefore, I feel after 5 years of beating my head against a wall, it’s just not something I wish to bother with anymore, though I have no problems with others going for it.
I hope they had better luck than I did.
Sincerely,
Steven Wagenheim
Hey Jason,
I used to do it for over ten years but got burned out and it wasn’t because I didn’t have enough belief. However, MLM can be a good industry to be in but they have not caught up with the new technology-the internet. MLMers still have that old school hard knock attitude way of doing business. Which is frankly outdated and still hemorrhaging within and outside the industry. That is unfortunate!
As many of know, beau coup money can be made “IF” the MLM industry will tap into Internet Marketing and combine both models into a tsunami of success. If they did this there would be no reason why anyone could not have some legitimate success. It boils down to MARKETING and RELATIONSHIP MARKETING-building people. It’s a case of the blind leading the blind-folks who don’t understand marketing nor do they know how to teach it. A bunch of motivational and belief hype that carries you only so far.
I would recommend folks read Ann Seig’s “7 Great Lies of Network Marketing” at http://www.therenegadenetworkmarketer.com-not an affiliate link.
Peace,
Maurice
p.s. Any business can be a scam look no further-ENRON!
Sorry ya’ll its http://www.therenegadenetworkmarketer.com
Peace,
Maurice
I agree with Shane above.
And the products do seem to be over priced and the amount of time to commit to making the thing work. Most folks are not salesmen and do not want to be.
You almost have to do their work for them to make it work at all. and If you every quit, not involved and keeping your line motivated, so does your income.
I feel that is taking unfair adavantage of a lot of folks by selling them pie-in-the-sky i.e. pretty much something for nothing.
A scam artists scam 🙂
Justin
JMo…
If you think about it… all it is… is affiliate marketing taken one step further.
That said… it should be legit… but it never is.
I wouldn’t call it a “scam” per-se so much as I would call it an implausible, ineffective business model.
-Kyle
PS: I’d like to talk to you again as I’ve taken action on what we spoke about earlier this week.
I had always heard lousy things about MLM. I mean eons ago when I was still a kid.
I enrolled in a major new launch last Summer, and have been soured, maybe forever, by the experience.
It was a rough launch by some major players in MLM.
So far I’m out a nickel ($550), and plus zero.
If it was from a guy like you whom I trust, I would try again.
MLM of itself is not a scam but companies built with this model sometimes are. Most are on the up and up… though when you look at the tiny commissions many distributors earn it becomes clear that some of the compensation plans are “weighted” towards the “heavy hitters” – those who understand leverage and the psychology or recruiting, retaining and motivating a sales force.
Professional-level people can be rewarded with a professional level income. There have been many lies told, no doubt.
The truth is that the network marketing (which includes compensation plans other than the Multi-level types) is an industry and a business that is what you make of it.
If you really want to understand what network marketing can and SHOULD BE, Jason, I recommend you read John Milton Fogg’s book.
I have made most of my money in the industry not from monthly “autoships” of products like vitamins, but from big “up-front” get-paid-today programs. That doesn’t mean that the MLM programs don’t have potential – just that I have made money with pay-plans that work on ONE-LEVEL. The similarities to MLM are enough that I consider it all to be one industry – network marketing.
I hope this helps. I try to serve the industry and awaken people to the real potential of the business model which, when practiced with maturity, is pretty amazing. I can be reached by phone at 310-359-8494.
If ya ain’t got a list, you’re going to end up pissed.
I’ve been watching MLM from the sidelines for the past 7 years in particular on the Internet.
I personally think it is an interesting model, but one that does NOT work for the vast majority of businesses witha legitimate business model, products and services.
We spent some time looking at the pros and cons of creating an ethical MLM payplan for our Cagora Community Network (the next wave of Social Media and Social Networking that is Community focussed– shameless plug to check out how we have set things up so that we get some of the upside revenue opportunity that MLM offers without being MLM http://cagora.com/earninfo)
What I find interesting is that in growing a network MLM offers some appropriate aspects to encourage people by rewarding them for supporting the people they refer to the business which a single tier affiliate program like ours does not incentivize.
Unfortunately all the PAY to Play MLMs have destroyed the reputation in the wider community. People now have a prejudged view and often are not open to listening.
By pay to play I mean, why should you only be eligible to earn if you buy products. That is how the vast majority are structured and people get in so they can earn rather than because they want the product. Contrast that with free to join and earn commissions and that sales happen because people want the product. To me in theory the latter has benefit and should work.
BUT….. the legal aspects of needing to registering MLMs in various jurisdictions (we consulted Gerry Nehra one of the leading mlm attorneys and found it is an expensive nightmare) and…
THE HUGE negativity from 95% of the population made it a really easy decision not to go with an MLM model.
Before I went into internet marketing, I was involved in several MLMs for nearly 7 years and sadly, it didn’t work for me.
My main gripe is that I’d have to pay each month for products that I still have or don’t need just to stay in the program and maintain my distributor status.
As a result, at one point, my home was filled with health products and what-nots – more than I could ever consume or sell fast enough.
I was also not the weekly-motivational-meeting type and hated having to go for those motivational talks and stuffs.
My upline was also the sort that made us knock on doors and talk to strangers to recruit downlines or sell the products.
Family members and friends got fed up of me trying to peddle the MLM products to them and in the end I decided MLMs were not suitable for me.
I’m not saying all MLMs are scams but I’ve been burned numerous times by overpriced products, companies that exist for only 6 months then disappear, defective products and uplines that trick us out of commissions as well as bad companies that don’t pay up when the money is due… 🙁
MLMs may work for some folks but not for me.
Nowadays, I’m totally into internet marketing.
I find internet marketing to be a better choice (for me) as I don’t have to stock physical products, be involved in product / motivational seminars or downline meetings. There are no uplines or a parent company shadowing my business … I am truly my own boss …
Internet marketing is also a more creative process for me because I build my own websites and products. I simply enjoy IM and I wish I had started out back in 1998. … :p
I’ve done it before, and here’s my thoughts on it.
It’s not necessarily a bad business model, but the majority of stuff being sold by MLM companies are worthless and a rip off, at least comparing it to what you can get otherwise.
I tend to agree with the late Gary Halbert when it comes to MLM… it can make otherwise rational people stupid… much like a pretty woman.
It tends to attract scum, and that’s the main problem.
In addition, most MLM companies are great at getting you all worked up with no where to go. Great at motivation, but give you crappy marketing techniques, etc.
Not to mention the downline dummies syndrome (DLDS) TM. You know, pester all your friends till they give up and join. Then you end up in the NFL club (no friends left).
I usually just distance myself from people I run into that are involved in MLM, because they are usually self centered and are not looking for my best interest (when it comes to business).
I also find it to be a troublesome business model. If 1 person leaves (and their resulting downline) then your business collapses. Not a secure business model in my opinion. Plus if you know how to market, you can make a ton more money just selling the stuff, instead of trying to convince someone to try to convince someone else, to try and convince someone else to join your “biz op” program.
Been in MLM before… I’ve seen it all in MLM. It’s the worst long term business model I’ve ever seen.
Jason:
Great topic and a lot of good comments so far. I could write a book on this…….but, here is the short form.
MLM will be with us forever because it feeds on the kernel of greed in all of us. The leadership of MLM programs know how to use that kernel of greed to cause us to overlook the lack of a fundamental value proposition. Massaged enough, our greed will short circuit most of our logic, reason and common sense. We do things, not because they are the right things to do, but because of the perception created that it is what we should do to be successful. Great pains are taken to define success and to create visions of what it should look like. Emotions are primmed and tapped into generating largely unrealistic expectations and false hope. Soon people are chasing what they think is success, but in reality is a mirage.
Generally, when it is all over and the individuals cease being a part of an MLM program it takes a while for them to clearly understand in their head and heart what has transpired. Those who do, won’t do it again. Those who don’t, will often repeat the process time and time again. The latter individuals could be characterized as being addicted to the social dynamics. Almost like the mass of people hitting the casinos and losing in the long run. The experience, however, is compelling and seductive.
Those individuals who win in the MLM game understand the lack of value proposition from the outset, even while they are aggressively promoting the cause. They simply focus on the process knowing almost instinctively how to play the game, and that is what it is to them, a game. They fail to recognize clearly, or suppress and rationalize, their role in the negative impact on others. Reinforced rationalization is rampant with the MLM “in crowd”.
The lack of value propositions in MLM companies is clearly evidenced by the almost total lack of product brand recognition by the public . The consumer at best may recognize the name of the company, but not the names of their products. Try and think of an MLM product brand name of an organization that you have not been a part of. Almost impossible!
Like casinos, bookies, race tracks, etc., I believe that MLM companies need to be closely scrutinized and tightly regulated. I hate to say that because I am a fierce believer in the free market. However, it appears that they are run on prolific amounts of hype and bullshit, smoke and mirrors, deception and distortion, and basically are harmful in that they feed on people.
MLM’s don’t sell products, they feed on people and their dreams. And, given a modest amount of time in business, they will leave a trail of shattered people and shattered dreams in their wake.
Hey J-Mo.
The way I look at MLM is like everything else – there’s money in it if you put the work in.
That said, 99% of people who get involved in it don’t try and do their own thing – you see the same ads time after time.
If some of these people learned some basic copywriting skills, I’m sure they’d make more money.
Pyramid. The guy at the top (website creator) makes out like a bandit by leveraging his entire membership of afiliates promising them payouts with unrealistic downline levels that 95% will never achieve. Dowlines are projections that rarely are based in reality. The internet is like one big giant pissing contest to see who is the best bullshitter and hype artist, who can convince the most people to buy into their program.
The winner is always a master of bullshit. He’s mastered the art of convincing others to part with their money and work for his benefit only.
This is MLM. This is Internet Marketing.
http://www.thegaryhalbertletter.com/Newsletters/zdla_multi_level_marketing.htm
’nuff said!
Lots of great comments. When coming from a IM perspective, it really shouldn’t be called MLM at all – that’s OLD NEWS. A friend of mine (who made 30k per month in IM, while PASSIVELY doing 200k a year on the backend in MLM) had it right – and this was years ago. He called it “Direct Networking” and yes, there IS a book – 200 pages. Ahead of it’s time!
The problem with nearly all mainstream MLMers is they don’t get the net side of things. I once watched an IM presentation to 300 MLMers. Every last one walked out of that seminar with a glazed look – “what the HECK was he talking about in there?”
As long as you don’t join some “here today – gone tomorrow” networking oppty, you can DOMINATE with a little IM magic…it’s not even a fair fight.