I realize that most people who read this blog are MLM professionals who have reached a high level of success. I just felt like I needed to write after reading a recent comment written in a business networking Facebook group bashing the industry. I like to get junk off my chest.
I need to dispel a common belief of the network marketing business model. I've read in many blog posts where the misinformed insist that few people benefit from the work of the masses as in the form of a pyramid scheme.
Based on the failure rate, the majority of people involved in direct sales or multi-level marketing or the many other names it has been called, network marketing has been deemed "a scam".
Most people fail at any endeavor that requires work.
Why do you think that is? Is it common for ANYONE to fail in ANY type of business? Look at the real estate profession. Did you know that 90% of real estate agents quit their first year? I wonder why they quit. Still I wonder if the percentage of those who quit even sold a home that year.
After investing all of that time and money into getting their real estate license, it could be inferred that getting a real estate license is a scam. Hmmm. Does that mean being a real estate agent is a bad business choice? Certainly not! My conclusion is that people quit things. Most people fail at any endeavor that requires work.
As a cyclist I like to make comparisons of life with riding bikes. If someone buys a brand new bike and lets it sit in the garage and collect dust, are they a cyclist? Or are they merely a bike owner? There needs to be a distinction between the two.
When I ran my first marathon, I joined the elite. I like going against the odds. I learned that 0.5% of the US population has run a marathon. So, when I completed my first Ironman triathlon I joined another elite group that includes only 0.01% of the WORLD population. And I've done 3 so that is 0.000-something. I love beating the odds!
So, when someone says the majority of people fail... I am NOT the majority of people! And you reading this right now, you're not the majority either. That's why you're here reading this blog!
Does it count as quitting if you didn't even try?
But back to normal people, let's take into consideration the low cost of entry. Let's say it only cost $100 to start a multi-level marketing business. If that person decided to never order one of the products or services from that company again, they are labeled a failure. They got scammed. They lost all of their money! Really? They purchased $100 worth of products that they probably used. If they purchased makeup or laundry detergent, did they really get scammed by consuming the product they purchased? Most companies offer a money-back guarantee. And does it count as quitting if you didn't even try?
I must note that not all multi-level marketing companies ARE legitimate. There are hundreds if not thousands of MLM companies with new ones probably starting every day. That's why it's important to research the company you're dealing with. On the other hand, there are those wanting to get in on the "ground floor" of a new opportunity. In most cases I'd imagine that there are many who are trying to get rich quick or are fueled by greed.
I am a distributor of a network marketing company. When I started, the company had been in business for 23 years. It is referred as a legacy company for being in business that long. When I bought my "starter kit" it included consumable products that I used. If I didn't like them, I could have returned them. So far, was I scammed?
They have an auto-ship program where you earn reward points for purchases. That's funny, my credit card company offers reward points too. I earn 2% back on purchases that I can redeem for products or services. With my MLM company I earn 25% back in reward points. Yes, 25% back.
But you might be thinking, "Auto-ship? You are forced to buy products every month?" The program is optional. I don't have to buy anything if I don't want to. And I can cancel or restart the program at any time. Is that a scam?
Let's imagine that my company only had 3 products: toothpaste, toilet paper, and bath soap. These are consumable products. I use those 3 items every day. I need to reorder when I run out. Last I checked, Kroger or Tom Thumb doesn't pay me for shopping there. So, I order on auto-ship because I earn reward points on stuff I would've bought anyway. If there is a Recession or Depression, I will still order that stuff. Is it a scam if I'm ordering products that I need and would buy even if I wasn't in an MLM?
Because I have enrolled other people into my network, I earn a bonus check for making a minimum purchase. And because we have more than 3 products, actually over 600 products, I easily spend the minimum to earn a check.
What if it was made out angels' wings and every wipe was a heavenly experience?
I'm going to throw out a pretty far fetched scenario... What if the toilet paper cost me $50? First, that would be outrageous. But what if it was made out angels' wings and every wipe was a heavenly experience? Still, the cost would be outrageous. But would it really? I get the stuff for free anyway because my check exceeds what I pay. I get products that I use regularly for free. Scam or no scam?
I see people complaining about the cost and saying they can find the product cheaper on Amazon or Walmart or wherever. Are you kidding me? Cheaper? Was it cheaper than free? I hope I am getting that point across.
I know MOST network marketing companies rave about their compensation plan and how it is easy to earn a fortune. "The product sells itself." Or a desperate distributor may make outrageous product claims to recruit more members. I get it. Hey, I've been there!
This business is not to create a financial burden for yourself.
My goal for new distributors is to get your products for free. Let's focus on that before we talk about buying that Lambo and your new beach home. The point where you get your products for free is what I call the "break even point". That's where you're not spending money you don't have or operating at a loss. I actually tell people to stop buying stuff if they don't have the money. We can work out a strategy to earn a check. That's what I'm here for. This business is not to create a financial burden for yourself. You can see by the amount of volume you have if you will earn enough to cover the expense.
The point of network marketing is to MAKE money. Remember that! And if you're not making money, there are 3 reasons why:
- You're not teachable. If you are not learning, you are dead.
- You're not motivated. Fear can paralyze you. So can laziness or complacency.
- You don't have a plan. Seek help to get some direction either from your upline or a competent business coach.
If you want to tackle these 3 issues, get started with the FREE 10 Day Online Recruiting Bootcamp. You have nothing to lose and everything to gain.