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
WOW..what a response on MLM’s
Lots has been said and I agree with most however here’s my story.
If not for MLM and the BIG Amway introduction many years ago I don’t think I’d ever gotten on a PC and I highly doubt I’d be in marketing of any kind.
Always wanted to make money from home but had no idea how or where to start. MLM gave me some insights and taught me some great marketing when I had no idea it was happening.
I’ll leave you with this thought.
Years ago Success Magazine, when it was still being published, did an article on Dexter Yager one of the top Amway dudes ever.
I had my first real big Ahhh HAAA moment when Dexter revealed where most of his earnings and profits where coming from.
If I recall he had at least two other companies that tied in with his Amway biz and guess where he was making his money?
TOOLS & Tapes as if I remember they were called.
Translated another way my fellow marketers they are….
INFO PRODUCTS!!! 🙂
Jim
Jason – J.D. THAT’S HEAVY MAN very well articulated!
Steve Johnson I think you’re dead on.
This all hits at an interesting time because I was prospected on, first time in gosh maybe 8 9 years this last week.
I’ve not looked at the company yet and not sure if I’m going to but it would be interesting to see how things might be different approaching MLM online as opposed to doing all the home shows. LOL
good stuff everyone
I’ve got nothing against MLM’s although, like anything you have to choose wisely.
I have tried a couple and they were not for me but I have seen and met people who have done from well to extremely well from them.
I see some people commenting have said that the people at the top make all the money and the people below don’t make anything. Simple answer to that, move to the top.
You can get higher up the chain than your sponsor, well you could in the companies I got involved with and I have seen it happen.
Like I say though, it wasn’t for me.
I know a few people who do great in MLM. Mid six figures to seven figures great. They all have stellar ethics, proper business practices and outstanding marketing skill.
And that’s what most people get wrong about MLM; they just try to wing it, and their approach gets skewed along the way.
If you want to go with MLM, even in a small way, make sure you pick a long-standing company whose products you love. Everything else is up to you anyway.
As an aside, most people don’t get that you actually need sales copy to sell MLM products online, nor that you can use the Internet to manage the relationship with your downline.
(I’m not currently involved in any MLM, just teach marketing to a small number of people who are.)
Hey Jason,
Like this…As in any industry there are the good, bad and the ugly.
That said, having traded all sorts of physical goods for years, I was always super skeptical about anything that had to do with what I imagined to be almost a sect.
Used to see adverts pasted to traffic lights etc…
Well one day a friend in business showed me a company and it’s model.
I took it apart, analysed it ,had my accountants look at it, saw that the company was legal, ethical and fair with the sky being the limit as to what on can earn.
I set to work. After 2 years I was getting monthly enough to pay mortgage and all insurances.
However…I Was Exhausted!
When my girlfriend asked me why I was so tired,and after thinking about it, I realised that I was exhausted supporting people who did not understand that a business is a business and you get good days and bad ones and that if you want a business to work you need to be consequent over a certain period of time.
In other words if you do not a find at least three people committed to really work in league with you over 2/3 years, with all the daily ups and downs, it is very difficult to get beyond where I got to.
In all my other businesses over the years it was down to me.
I was not dependent on others and their moods.
What I did not have with those businesses was a passive income.
I must have spoken to getting onto 1000 people, and sponsored, nearly 100.
From that experience I learned about Referral Marketing but figured there had to be a better way.
Instead of going after people…having people come towards me.
At that time I knew nothing about Internet Marketing.
Now I do!!!
Now amongst whatever else that I will do on the web I will have a site, when I am ready, to promote the company and compensation plan of the company that I worked with, BUT I will only work with people who come towards me and at the beginning I will have some sort of a test/exam and a big warning sign “this is not for everybody…Are you prepared to learn, to work and to give 2 to 3 years…”
Anyway that is my take on it!
When I see some of my upline (who make between 10,000 euros and 120,000 euros monthly) and talk to them about the web and web 2.0 stuff there eyes glaze over and they are certain that I have lost it completely….
What ya got up your sleeve Jason???
I believe, if it is done right, mlm could be a very effective business model. As long as the product, or line of products, are the main focus. Too many mlms only concentrate on recruiting new members, they forget that somewhere someone has to buy a product for a cash flow to exsist.
I feel that there maybe good mlm companies out there, but I have not run across one yet. My only experience with the mlm world was with Amway, and even 12 years later, I am still trying to wash that taste out of my mouth.
I do believe that there probably are a few mlm co’s that work I haven’t come across any though.
John
I believe in the concept, for distribution purposes but it will only work for me if I truly believe in the product enough to tell everyone I meet about it. That’s my problem. I can’t constantly be talking to people about a product to get them to sign up. And that’s the only way you can be successful. It also has to make sense to the people you’re talking to. SO it comes down to having a good fit. The program I’m involved in – you make money (you don’t get rich) from what you’re already doing. You do nothing different, and you support a worthy cause of your choice – even if it’s your own pet cause. That I can tell people about because it makes sense.
ditto to the “It depends…” sentiment. What I have seen with most, is that the quality of product/service varies and most of the time and it’s usually it’s a ‘magic pill, potion or lotion’ that they’re wanting to sell.
If MLMs would come out with something more real that people wanted or needed (other than something they could buy at the local store or health food store) it would do them well. Honestly how many 50-60 dollar a bottle berry juices do we need? Soap anyone?
Also, I think the strange part, is that most of these organizations really need you to *drink the koolaid* to make it with their organization. It’s a very interesting culture to say the least.
That being said, the business concept & model is very interesting and sound imho.
– Sean
Jason:
Since writing my diatribe last night I realized that I had failed to include one very powerful point that is little known about the MLM industry. Over time, understanding of this is slowly rising to the surface.
In the early days of Amway, the company was struggling somewhat and basically doing OK, but certainly was not experiencing significant growth. The founders of Amway, you know their names, came in contact with a psychologist with an interesting pedigree. They were impressed with his tremendous insight and understanding of the behavior of people as well as formal psychology. They also found that he had a great understanding of consumer behavior. They retained him to do some work for the company primarily relating to consumer expectations.
As his work progressed, they were shocked when they discovered his almost mystical understanding of the behaviors that drive MLM participants. Soon he was totally engrossed in developing systems and methodologies to appeal to and attract MLM prospects, to influence, control and motivate their behaviors, and to create both social and financial reward systems. He simply understood human dynamics better than the founders. While never a direct employee of Amway, their corporate pilots knew by heart the route from Minnesota to his airport. If it were not for his efforts, Amway and most of the other MLM’s would not have made the impact that they have. The last statement is true as most MLM’s are fashioned on the fundamental MLM principles that were established by Amway and that made them such a success. Unfortunately, much as a gun can be used for both good and bad, his good work over time became distorted and predatory by greedy people.
Who is this individual and what is his background. His name is Paul Conn and today he is President of Lee University. He is a very well respected and exceptionally talented and capable executive, now following his heart and doing what he loves to do. Conn has an undergraduate degree in religion and has M.A. and Ph.D. degrees in psychology from Emory University. Additionally, he spent three years at Harvard University as a postdoctoral Visiting Scholar. He was reportedly on the short list of individuals being considered for President of Harvard a few years back, but he withdrew his name from consideration.
You might find it revealing to note his undergraduate degree in religion combined with his advanced degrees in psychology. That may help some to understand the emotional parallels that exist in both evangelical churches and MLM organizations. Many of you may have actually heard others make comments to the effect that MLM meetings have an almost “religious” fervor to them. Basically, the two tap similar emotions.
The association with Amway has served him and his university well. One only has to look at the size of the contributions by the DeVos family to the university to begin to comprehend their respect and appreciation for his contribution to the success of Amway.
That, my friends, is the rest of the story………..
J. D.
—>>>To each their own
sums it up for me…
Its more the MLMer, or IMer for that matter, than the company or product.
Hi Jason,
I am left cold with MLM (and gambling. They are both in the same box, although I did try MLM).
A great waste of time, resources and emotions.
Statistics show that only 5% of people become successful with MLM.
It relies on sales ability. You might be good and be able to get a good done line. But the secret to success is getting your down line to do the same thing.
Statistics state that only 5% of the people in the world consider themselves as sales people.
So getting your down line to create their own down lines is like pushing shit up hill with a pitch fork, in my opinion. lol
Regards
From Patrick
MLM compnies have to overprice products to support the operation. While there are a few product based MLM, almost all of them sell a questionable business opportunity in order to hook people into buying overpriced products.
With the millions of opportunities in affiliate marketing and blogging and all the other internet marketing choices, who needs to be offering a product that has allready ripped off 99% of the potential market?
Was it Will Rogers, back in the ’30s, who said “……there’s one born every minute!”?
Damn Jason… you sure do know how to stir the hornets nest and get people to respond! 64 responses so far.
You Kerned it up!
It is a waste of your time… it has a terrible stigma… the ONLY people that make it big, are the people who start them… there are far superior methods of marketing than this shite.
mlm=the new social insecurity.
Happy to share my views Jason!
MLM — I have no interest in that concept at all. “Uplines” and “downlines”, re-entry and all of that MLM stuff makes me wonder about the sustainability of the sales model. Personally I have no interest in “recruiting” others into MLM.
And I find it strange that I get a call from someone I know after a year or more since I last heard from them. First there’s about 1 or 2 minutes of niceness, but then it’s straight into an MLM pitch, which is too slick and scripted for my liking. Ugh. Be my friend, not a recruiter.
If I like a product, I just want to buy it, not enrol into some autoship program or have a need to start my own downline.
I want to be the company with the product, or one step from that … not several levels down in some tiny proportional profit share.
To me, there are better ways to earn residual income than MLM.
Regards from Dean
Wow! What a storm. Gotta say, I agree with the many who said it depends on the company, depends on the person.
Fact is, the 95% who fail do so either through lack of training or their lack of gumption. So many people won’t touch anything that isn’t handed to them on a silver platter. And it’s not just in MLM, it’s in all business.
That’s why so many other businesses fail – people think the business would be great to run, but when the reality of the hard work sinks in, they cave in and quit. And go to work for someone who is willing to put in the time and take the risks.
And that’s my 2 cents worth.
I used to be in MLM, and had some degree of success ($10K+/month). I got out of it because it’s mostly dishonest…
Telling your downline to pretend being successful, so that their prospects will become the next sucker…
Telling prospects that there is no competition for this product…
Telling prospects they can retire in 2-3 years if they work hard…
Here’s a great article about that touches on this:
http://www.jamesbrausch.com/honesty-is-more-profitable-than-dishonesty/
If MLM is so great, then why do 99% of people fail and/or go from opportunity to opportunity? Why do 99% of MLM companies crash and burn?
Cheers,
Jim
Hey Jason,
Interesting topic, I did get started in an MLM about a year ago and have been amazed by the result.
Being a complete sceptic about this stuff It’s taken me about a year to get fully involved, but from a business perspective it ticked all the boxes that I look for when buying a business.
Anyway I wont hype on about about it but, check it out and I’d appreciate your view on it.
Cheers and take care.
If your interested check out.
http://my-monavie-juice.com
Scott Patterson
I love the idea of mlm. Long before the internet it was a way for someone with little or no business background to reach financial freedom.
Unfortunately, like all businesses, most fail. And because mlm takes even less of an investment, money or otherwise, it has even more failures.
But those failures are not because of the business model. In fact many of those “failures” become excellent customers – assuming the products are good, fairly priced and not just there to try to make the opportunity legitimate.
I generate income from multiple level affiliate programs and they are not really any different than mlm. Just not as many levels.
I also help other people learn how to make money online via those types of affiliate programs. So while most people would NOT call that mlm, in a very real sense, it is.
Even what you are doing with a number of your programs (as I understand them) is very much a multi level business model.
Albeit quite different than Amway, Melaleuca, etc.
So if someone asks me – do I approve/like/support mlm/network marketing.
Yes/absolutely/Yep!
And this has been my 2 cents worth
To YOUR Success
Tex Gshwandtner
770.881.8344
Online Coach & Craigslist Dominator
http://TopPWF.com
Not a scam – nope.
The only issue I see is that advertising makes it seem easier than it is.
But do you really think you can join a company, not invest any $$, not learn how to market and not learn how to talk to people and then make six figures in 3 weeks?
Pull your head out.
And as far as the wussies who yell “Pyramid Pyramid” Geeze get over it – life is a pyramid. Corporations are a pyramid but they make you beg for a raise and don’t let you share the profits.
Stop crying foul and go on with your life.
I’m not in MLM but direct sales – I like BIG commissions. But I think the model is good. just do you due diligence.
Val
I think MLM is mostly unethical:
– big commissions for those above one raise the price. Normally you can get better products for less elsewhere
– it is easy to lie because the MLM company doesn’t say anything, just the person tells you lies. When you ask they say that maybe that person has not got it right…
– one big plus for the MLM company is your address book: once you have ruined your friendships for MLM they let you drop. Easy marketing: you sell them your friends…
I am not in MLM, but I know some: most cannot get a decent profit out of it but ruin their friendships, just because they have to sell something to live…
THIS IS A MUST
LISTEN (represents my feelings)
http://www.clickcaster.com/items/12-29-2007—interview-with-dr–jon-taylor-on-multilevel-marketing–mlm
In my opinion, MLM are a waste of time. I recently changed my mind. I found FHTM or I should say it found us. The reason this one is different is because you sell nothing! You basically get paid for using what you already use only you cut out the middle man. This has proven to be very profitable for many. We are very excited about it and plan on retiring on this.I would love to share if anyone is interested. lw3562@yahoo.com