What's wrong with Multi Level Marketing ?
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The answer to the question in the title probably isn't what you think.
The actual answer is: NOTHING
Yes I know MLM usually gets a bad rap.
Let me explain why this happens and what people in the industry can do to help overcome this issue which should have been addressed more strongly many years ago.
The first source of the bad rap that MLM gets..
The first source of the bad rap stems directly from a misinterpreted association with organizations classified as pyramid or ponzi schemes.
These schemes
only resemble MLM or Network Marketing in three major aspects. One is
the fact that they all have multi levels. Two is the fact that the
network matrix or downline takes on a similar shape (hence the phrase:
pyramid scheme). Three would be the fact that all use some form of
leverage to build income.
The basis of those schemes is that
they do one thing. They make the originator tons of money
automatically. In fact the originator will always make the most money
no matter what the downline members do. MLM is not based on this
concept at all. Anyone that joins an MLM company as an independent
distributor is given the same opportunity as their upline. So if you
become more successful than someone that started before you, you can
potentially make more money than them. There's reasons why some are
more successful than others but I'll cover that in another
article.
Another thing to look for as a tell-tale sign would be the fact that MLM's promote an actual consumable product line or service. Most schemes don't even bother with that because they are not backed by true companies. In most cases "cash gifting" is a scheme. There are a few guidelines that some follow that make them legal but unless you know what they are don't even bother joining them, unless of course you enjoy getting caught up in something illegal. Most operations get shut down within their first 2 years.
The second bad source..
The second bad source creating the network marketing industries bad rap stems from those that have attempted their hand at MLM and failed.
This is a very critical topic that must be discussed because it has and will end up affecting a lot of people directly or indirectly.
So in other words.. this goes out to those that have failed, those that may fail in the future and those that have heard about others failing (and therefore create some of the negative hear-say that's been going around).
All in all.. unless you know why people have failed in this industry it's wise to not show your ignorance or jealousy for those that are making it for that matter. Negative opinions often sway other peoples decisions to possibly make their lives better for themselves.
The bottomline is people fail because of many aspects. By no means is MLM the only thing in life that people fail at but in the end it just about always comes down to the individuals effort and performance.
Here's a few reasons that pertain to this industry:
Let's start with motivation. How many failed at being productive while attempting to build their business ? How many just sat back and waited for the money to pour in through other peoples efforts ? How many thought they would get rich quick and when that didn't happen they just quit ? The answer would likely be many from what I've seen.
Let's talk about education/training. This could get complicated. Failure in this area can come from different directions but it's ultimately each distributors responsibility to make sure that they learn as much as they can whether it's through there sponsor or on their own. Trust me most people don't even know how to properly market this kind of business so how can they expect to make anything of it (more on this as well in a future article).
Before moving on I'd like to point out a quick analogy. Let's say you wanted to be a doctor.. wouldn't you have to go to college to learn that profession ? We all know the answer to this. Well to be successful in network marketing or anything else, don't you think it would be wise to put in your time and get the proper education and training ? Again we all know the answer to this.
It's just funny how we all know that MLM opportunities are a personal business for individuals but so many of them don't treat it as such and then wonder why nothing seemed to go right for them and then turn around only to badmouth the industry.
OK here's some additional information that could be helpful:
As a rule of thumb.. if your team or company doesn't provide you with a top of the line system that helps train, promote and track prospect activities, you may want to back out unless you're already having great success. Another one to remember if you're in your beginning stages.. if you have a lame sponsor.. back out and come in again through someone else that appears to have the ability to guide you to success. Do your homework at all times or get with someone such as myself that can help you find your beginning.
Most companies tend to go with long term trends and usually market products that people want, so usually this will never be the case for individual failure but it is something to keep in mind when looking for an opportunity to join that provides longevity.
Educating the public can help bring prosperity
Before I end this I want to remind everyone why people join companies that provide us with the MLM business model.
The main theme of this business model is that it creates residual income through leverage. Once large enough, that residual income gives us freedom that we would most likely never attain elsewhere. Of course this income grows through time to a point where we could potentially be extremely wealthy on top of being able to survive without working a job or a set amount of hours anymore.
There are plenty of other perks that come with the territory but it's the residual income and unlimited income potential that are the pinnacle of why we do this.
The point is we can do better, reach our dreams faster and share our opportunity with more people out there by causing a positive movement in which we educate as many people as possible with messages like this one.
Let's try to correct those that keep giving our industry a bad rap through their shear ignorance and also show individuals that had previously failed that maybe it wasn't entirely their faults and that if they had received proper training and guidance they would have stayed in their business long enough to see the sun shine through a few dark clouds.
It's sad but true.. statistically speaking, roughly only 65% of new distributors make it past their past 90 days in business and the level of attrition only gets worse from there all because so many see no reason to stay in.
Education and application usually get positive results.
So if we all do our part to get information like this out there from day one so people know what to expect and look for, then we could drastically improve the chances of growing this industry and our individual businesses.
No matter what, it's the way of the future so let's make the most of it.
Feel free to post variations of my article anywhere you think it fits best.
Let's get the good word out !
Bill Strauss - The Internet MLM Trainer
billstrauss@ihelpyousucceed.com
WWW.IHELPYOUSUCCEED.COM
(772) 708 - 3969
For More Info On Network Marketing Training
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Comments
Hey whats up Bill,
Great hub brotha. You've got some killer content on here. I couldn't agree more with your point about how many of those who have a bad experience in MLM end up spreading some horrible word of mouth about the industry.
I personally believe that if we continue to do attraction marketing the correct way online that we can change the bad stigma that shrouds the MLM industry and turn it into something very positive like Amway's rep.
Thanks for sharing bro.
very nice work
i think u will like my hub on credit cards do share ur views
http://hubpages.com/hub/CREDIT-CARDS420
Hi Bill,
Thanks for sharing. I've been receiving alot of "skeptical" reactions from people when promoting my product. "Is it MLM?" "No! I don't want to be part of the pyramid scheme" and stuff like that.
With your information above, I'll be able to correctly educate the people around me. =)
Cheers,Liting, Singapore
good article
Hi Bill,
Great post, I agree with most of what you say. People who give MLM a bad name actually fail to realise they do MLM everyday of their lives. I mean they must recommend products and services to family and friends right. Also if you work a JOB it makes sence that the person at the top of the company makes the most money and their is only one of them. Everyone works in something that when drawn out will look like a pyramid.
The only thing I will say is Icould not care less about the idiots who give MLM a bad name. They will spend there lives working for someone else and retire broke.
Looking forward to reading more of your posts.
Tristram Lodge














Bill Strauss says:
5 months ago
I just want to say thanks to all that have commented so far.. especially Tristram, Li Ting and Matthew because you guys are involved in the industry !
I've written a few more hubs since posting the one above and I have ideas for about 20 more hubs on the back-burner but I've been studying more material and working with some really interesting people lately, but there's one thing I would like to add to what was said in some of your comments (which again I agree with):
If people continue to market in an incorrect way, the bad rap will just continue growing. It's already to the point where most others turn away if your profile includes mention of network marketing and MLM. And of course spamming your site links is out of the question.
It rarely works and the people that submit contact info are usually not all that qualified or not considered to be "go-getters" as I'm sure you've found out in the beginning of your journeys. Not to mention when they see that you're marketing like that and they think that's the what they will have to do.. they get turned off and their visit to your page equates to nothing.
The right way to market is through YOURSELF, not the company, opportunity or product. Marketing made simple consists of a person that markets an improved version of themselves to others they come in contact with along life's path.
If you can make yourself more likable, caring and trustworthy to the people you attempt to build relationships with.. the amount of success you can have is endless.
So just be friendly and show great interest in the people you try to make friends with (potential prospects) instead of it always being out YOU and what you want or need, and I promise people will be attracted to you almost for that reason alone.
Any knowledge of advanced Internet marketing techniques that you know and can teach others once in your business will be a bonus but not necessary for them to know or use in the beginning. I believe in teaching others about people, psychology and relationship skills first.. then the other stuff afterward.
My point is that anyone can be a successful marketer if they improve themselves first and then lead with themselves.
See you guys later. Take care for now :)
Your friend,
Bill Strauss
PS - don't forget to use passion and enthusiasm when dealing with others.. believe it or not it shows.. even through email and Internet chat sessions !