Please share your thoughts, experiences and ideas so that others may have some ideas before joining.
I have been involved in 2, one in the 80's and one in the 90's. The first one I have to admit I made some money off, however if I had put the same amount of time into my main employment I would have made twice as much.
The second was altogether different, after months of negotiation and hard work I secured a contract with a large multi-national company totalling £18million which afforded me a very good profit indeed, after hearing this my upline decided to contact my customer with a better offer, this disengaged the customer, it disengaged myself from the company and it disengaged my downline.
After reporting the matter to appropriate authorities the DTI shut the company down, it never started again in the UK however the product can still be brought in Europe.
This was of course a bad experience with a bad company, I have deliberately withheld the name of the company for legal reasons and the fact that the people who owned the company are some of the richest people in the country.
My advice would be to find a product yourself and go and sell it with all the vigour and hard work that you would have to put into one of the MLM schemes.
After trying several MLM's with very good products or services I have decided never to involve myself in one again. The reason why is simple. I am not a salesperson. No matter how much someone tells you that the product or service sells itself and that you are doing your friends, family, neighbors, and strangers a favor by telling them about it, the truth is you still have to sell it to them. I hate selling. I hate imposing on people. I hate offending my friends by what they perceive as taking advantage of their friendship to try to make a few buck. This is why I don't like Network Marketing or MLM's.
Thanks for sharing your thoughts and experiences Eric. I find it very useful. How long have you been involve in this kind of business? I hope you don't mind asking this thought.
Thank you, Eric. My thoughts exactly. I see those so-called "friends" coming and I want to run and hide. It is definitely an imposition. I don't even let my kids take their school fundraiser packets around to the neighbors.
Because most network marketing/MLM schemes rely on you selling to your friends and family.
Even if you don't put pressure on them, friends and family feel obligated to buy from you because of your relationship. If you're too enthusiastic, you'll find friends start avoiding you because they don't know how to say "no" politely.
Besides, the commission is usually low for the amount of work involved. You only start making money when you've managed to recruit people to sell under you - and again, that means pressuring friends and family to join.
Selling to friends and relations is not the same as selling to the general public. Friends and relations may buy your stuff just to help you out..not because they want or need that item.
Most people will not buy something unless they already had half a mind to, and wanted such a thing in the first place. Even an impulse buy has a seed of prior contemplation. Virtually everything we buy is ultimately an emotional decision, no matter how much level-headed research and comparison went into the buying decision.
The biggest single reason is the the success rate for new members is SO abominably low. In practice the upline is living off the efforts of the downline while they go broke, or least spend time and money to the point they just drop out when there's nothing coming in.
I've been in several, I've met the "Emerald" (or whatever) people and I've seen the numbers of people working their butt off for no return to support that well-to-do upline. An upline that often makes most of their money selling trashy motivational speeches to the downline in place of actual training.
They generally fail because everyone wants to be the upline, and thats what MLM schemes sell. They don't say 'hey work your butt off for 5% commission on $20 products' because no one is going to do it, they convince people to join by using the promise of 'no work' because they tell you you can succeed by getting other people to sell for you.
In the end though, nobody sells products, everyone is trying to find other people to do the selling for them.
It's why very few MLM's succeed, their focus is on the recruitment not the selling.
People don't like them because:
A: Some people use unscrupulous tactics, tarnishing the name.
B: People like the ones in this thread spread misinformation that others regurgitate without having actual knowledge.
MLM or, direct sales companies are the best business in America. Don't agree? Ever heard of Pampered Chef? Amazing line of cookware, most owners of their products are in love with said products, and not because of the price tag - but the quality. Warren Buffett owns the company. And guess what, it's MLM - just like Amway and Mary Kay.
Ever seen those pinkish Mary Kay Cadillac's? I know somebody who started with MK not long ago, and is already close to earning her free car.
Then there's Amway. A name many people run and hide from - but their products (for the most part) are amazing. I use their cleaning products and they work better than anything on the shelf, and when using proper concentrations, the cost is right in line with the better cleaning products on said shelf. Unfortunately, you get the people in this company who invite you over for "dinner" then throw the sales pitch...so people talk trash about the company.
Recruiting people helps you make money. Selling products also helps make money. But unlike what some here would have you believe...you can not earn anything if you don't sell products, no matter how many people you recruit. This is a government regulated rule.
Why do so many people fail? Because they expect to get rich quick with no work. It requires a LOT of hard work, a LOT of effort, and the ability to sell to people who aren't your family. The people that fail talk trash about these companies, because if they can't do it - it must be bad...right? So they make up stories about how they lost everything and now they live in a tent, etc etc. In truth, the overhead is low...and even the worst salesman can't "lose everything" while attempting this business.
That is why.
In truth, they are great businesses that offer amazing opportunities for driven people that wouldn't otherwise have the resources to achieve what these companies allow. Even if in failure, there is something to be learned. If somebody came to me and asked if they should give one of these companies a try, the only reason I would tell them no - is because I hate them.
Thank you @ Matt Forte, you hit it right on the nose. Sometimes people expect the money to fall from the sky. Everybody wants to get rich but nobody wants to Work for it. Instead they search for ways to make money online, they start dishing out money on different programs but to no avail. Then that's when they get upset and start bashing MLM/Network Marketing.
Truth is, most times happiness requires some effort. So we should stop complaining about what we can't do and focus more at what you're good at. Put it in motion and let it work for you.
@Matt Forte, I appreciate your defense and clarification of MLMs. I too think the products are, on the whole, excellent. The training the representatives get is also excellent. I have seen MLM work for so many people. I do have one beef. I think - because of their success - they should come out of the closet more. Amway, or whatever their name is now, still doesn't invite people to hear about "Amway (insert new company name). That teaches the prospect to carry some shame with a venture that may work well for them. I'd like to see all the MLM's come out of the closet and declare their success. I am not participating in any kind of MLM but have had experience in the past.
I don't agree.
There may well be some excellent products offered by some top quality MLM's. However in every single case, when I've looked into an MLM scheme, I've discovered that they're liars. It's not the recruits who give the scheme a bad name - its' the MLM company itself which encourages its recruits to lie, or at least lie by omission. If their products are really so good, why do they have to teach their members to play tricks?
As Marcy points out, Amway members are told to deny that it's Amway. There is a MLM in Australia which is Amway under another name, to try to get away from the stigma (I forget its name).
I tried selling Avon for a while. I met women who were doing very well selling Avon - and good for them. In most cases, they were pretty brass-necked, outgoing women with a big circle of acquaintances. I'm not like that, and I suspect few Hubbers are - writers tend to be quieter, less confident people.
If you don't have a workplace, mothers' group, hobby group etc to start off your MLM network, you don't have much chance. Why would someone buy an Avon moisturiser from me, and wait a month for delivery, when they could get online, buy a superior brand cheaper and have it delivered tomorrow?
At the risk of sounding snobbish, I can see how MLM operatives could still be successful in poorer areas where people are not well educated and don't have access to the internet, so they don't know any better. But in "yuppy" neighborhoods, forget it.
I agree, Marisa. It's not that the products aren't quality, it's that they have to jack the prices up so that every level of the pyramid can get their cut. I'm sure Amway floor cleaner and Avon moisturizer are great products, but when I can run up to Target and get a bottle of Pledge floor finish for $6, why should I buy the Amway version for $20?
Marisa - I don't think you sound snobbish at all. Many of us are offended when a friend or coworker tries to prey on that friendship by selling us something, or (worse yet), by 'recruiting' us into the business. I have used many of the products over the years, so I am not complaining about the quality, etc. - it's almost impossible to have lived in the USA for the last several decades and to not have some Avon, Tupperware or whatever around the house.
But, as SmartAndFun points out - those products have often become extremely expensive compared to other brands we can get by dropping into WalMart, or whatever. And, who has time to give a 'party' for plastics or make-up these days?
Overall, though, my biggest aversion to those plans is the dishonesty I have seen in some of them. Some of the more recent plans are for selling various forms of insurance, and the victims (er - sales associates?) are coaxed into spending up to $20 a pop for the leads (for ONE lead), and are told they can only succeed if they 'follow the plan' and take training courses (for $100 and up).
One MLM program was shut down because it actually had no product - all it really sold was enthusiasm and 'training' sessions (including some that were in exotic places). Some of those people are now doing yet another MLM that tells people they can get rich by selling mortgage insurance. AND - they create mailers that look like they're coming from mortgage companies (they're not). All anyone has to do to put those together is to go to the deed records and get the name of the lender, and then trump up a 'business letter' that looks like it came from your mortgage firm.
I have read coverage of Mary Kay that suggests they actively prey on new seller's naive over-enthusiasm--and end up making money from them, not the end buyer. IMHO Mary Kay is not a company I would use as an example of a good MLM. They seem to exploit their reps. Avon seems a tad better as they don't so aggressively push reps to keep buying even when they are clearly not selling through.
That's how it works. My brief stint in Amway made no bones about it; sell products only as necessary and spend the rest of the time looking for young, naive couples that are in need of more income.
Work it right and you can sell them some useless motivational tapes and even earn some from their sales before they quit the business. They key was to stay away from older, experienced people - they are too questioning and not naive enough to swallow the sales talk. They also won't stay in it any longer than the minimum to figure out where all the money is actually going.
OnPoint had an hour radio show on MK when a special report came out in Harper's Bazaar, i think.
Here's something they don't tell you about MK... NEVER EVER wear pants to a MK meeting. Apparently, if you do so (even if it's just internal meeting, and you're rushing there from work... etc. etc.) you'll get scolded by senior reps / uplines who will guilt-trip the heck out of you about it's a tradition (apparently the founder don't like pants?) and if you don't follow it you clearly have some authority issue and don't want to succeed and some cult brainwashing crap.
Too many 'new' MLMs are pyramiding schemes that require money from new members for training, sales kits, supplies, books, leads, and special meetings with the big success story people, etc. They're designed to work people into a frenzy of 'I can get rich' enthusiasm, and as has been mentioned, the success rate is very low. In fact, many of them have only one layer of success - the founders.
Amway literally trained its recruits to lie when someone asked whether the 'opportunity' they wanted to share was Amway. The pat answer was, "Now really, would I ask you to sell Amway?" (Well, yes, you would.). Another scripted answer was, "This is a different company (as in, their own Mom & Pop thing); Amway is just one of the products we handle."
Most people want fast and passive money, and that's why they join MLM companies. However, they do not notice that according to statistics,So they failed to do MLM
some of people say that MLM is a direct selling method, which sounds good but actually, it is a little bit contradictory.means their is a negative thinking of them.
This is the thinking of people that's why the did not join MLM
There is a reason many Multilevel Marketer's are failing
They are falling for the HYPE Programs
If you have been in multilevel marketing for a year 2 pr 5 years or more and you just signed up for another program 2 weeks ago, 2 months ago that is in pre-launch or just opened 4 months ago and have crazy names like...
"You Get Paid Fast Kash Easy" ,
"Easy Millions Money",
"Hype Hype Money Now",
"Get Rich Next Week",
"Million dollars in 60 Days".
Then you deserve to "Fail". The programs are just praying on peoples Greediness and Naiveness.
THERE IS NO GET RICH QUICK... You will have to go to work.
MAKE A PLAN THEN STICK TO THE PLAN FOR (1) YEAR, (2) YEARS, (3) YEARS AND MORE...
Just because you now can own your own business you must use wisdom and there are "NO REAL BUSINESSES" for $5.00 one Time, Free Enrollment. $25.00 one time, $10.00 a month. IN LIFE YOU GET WHAT YOU PAY FOR.
You are self employed and you must use critical thinking Common sense thinking and understand The Math In Business. if you want to make "Profits"
Understanding that Business is about Profits is... The Basics of the business.
Penn & Teller sum it up quite well:
Warning: Contains nudity, even at the very beginning, because they aired on Showtime and they sure as hell weren't going to not take advantage of that fact.
That's about it really.....................................
1. Because they are not your target market
2. Because they've had bad experience in the past
3. They think it is illegal because of propaganda
A good exemple is:
You will never meet rejection about the business model when you speak to people who read Rich Dad Poor Dad by Robert Kiyosaki
Isn't he the guy who was successfully sued for $24million by a former associate?
He was sued by the Learning Annex, those seminar people all over the country. TLA did a Kiyosaki keynote seminar in Madison Square Garden way back when RDPD was fresh off the press, with intention of doing a multi-year deal. Kiyosaki (then operated under "Rich Global LLC" basically stole their op plan, then went out find found some other company to do it cheaper. TLA sued, Kiyosaki started operating under a different company "Rich Dad Co", left a few million in the old company and left it to die while using every tactic to delay TLA's victory to make it a totally phyrric victory because Kiyosaki knows TLA won't get a penny personally. The few million left in Rich Global probably won't even cover TLA's lawyer fees for the past 10 years.
The sad part is Kiyosaki actually bragged about it, as he claimed Rich Dad taught him that Rich people protect themselves from "Robin Hoods" by setting up asset protection corporations (which are just few pieces of paper).
http://amlmskeptic.blogspot.com/2013/12 … ng-to.html
Kiyosaki was in Amway, and made many motivational tapes with Bill Galvin, a diamond level Amway rep. Never hear him talking about it, eh?
http://amlmskeptic.blogspot.com/2013/12 … -with.html
MLMs are con jobs, plain and simple. If you are attracted to the concept of these scams you are either financially illiterate or plain greedy. Think about it: if the MLM products are as good as we are told they are, how come they are not in the mainstream supply chain? Good things sell themselves without advertising.
Interesting comment. In my youth I was recruited into one of these messes, and was trained to always look for young people, preferably without a college education. Because, just like me, they were "financially illiterate". Older people had learned better than to believe the crap spouted by the typical MLM recruiter.
I have not been a victim of the scam but I can tell you of many people who have wasted their time on money on this rubbish. Just like pyramid schemes, these MLM scandals go through a phase of popularity>unpopularity>popularity. This post is an example: after 8 months there is a sudden burst of interest. it will die down when another bunch culpable individuals will be roped-in in a vicious cycle.
Of the several hundred people involved in a MLM that I knew or met, there was exactly one that made substantial money from it, and one more that made less than I make here on HP (although to be fair that WAS 40 years ago).
The others ALL lost their shirt in the attempt to get rich.
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