ARE MLM'S DEAD?

I don't think MLM's will ever truly "be dead". I do think however, that CERTAIN MLM's die. Every MLM company has a life span. It begins as the "formulation stage", then moves into the "growth stage"(this is the make or brake stage with the addition of more products and sevices, and also more financing). Lastly it moves into the "momentum stage" generally this where the company grows between 15-25% a month. This generally lasts from 3-5 years and then it evens out. This is generally where if new people come in, they probably won't make much money. That's why it's crucial to enter an MLM just before it hits the momentum stage. This is generally where people's checks usually grow by leaps and bounds. That is why it is crucial to stick with it, when getting in at the beginning. Most MLM's take at least 3-5 years to see big profits. Unfortunately most people want immediate gratification, so in that case MLM's are not for them.

DHL

IMO the thing that puts a lot of people off joining an MLM company these days is "autoship".

People increasingly and correctly look at this as just a form of buying your check.

When you look at some companies' total sales volumes and then work out the autoship, it becomes obvious that they have almost no retail customers at all. The only people buying the products are their own distributors who are doing it as a business opportunity, and buying some each month because otherwise they don't get paid!

Give the state of the economy, enormous numbers of people are looking for a way to make some extra weekly or monthly income, but they want to get into something with only a tiny initial cost and no regular monthly outgoings. And rightly so, too. That was the basis on which I decided what to do, and I'm very happy about my choice.

For the last 15 or 20 years these MLM companies might have got away with "autoship" to conceal the fact that they have no retail customers, but in this economic climate they can't still do that and many will get into trouble real soon.

Agreed,

Autoship usually scares the mass majority away from MLM, I don't like to be forced to make purchases on monthly basis. What does this tell a new prospect? In my opinion, if you are forced to make a purchase before you are paid a fair commission for your sales, then I would think company is worried no one would be purchasing products without the income opportunity. Could this be the case?

Every compensation plan that forces a purchase to force feed the sponsors income stream, which is another issue. I have no problem with product purchases if I would need them or want them every month, but shouldn't this by up to me, not the company. Some will not allow more than retail sales profit unless you are on some level of autoship.

I can understand why a company does this, but I feel if the product or service offers true value and quality, wouldn't everyone be purchasing it every month anyway? I guess that is why I only research those companies which do not mandate autoship. I would rather see a progressive autoship requirement, say in three months as long as you are working business. Sort of a qualifying period to allow people to get up to speed marketing without burden of mandatory autoship.

Since most people fail to even break even in first three months, I think allowing maximum commission is more important to offer in first three months, and without autoship. Think about it, would you rather have a person quit in a few months, or stay in for the long term? The incentives in most companies are reversed, I feel more should be paid to the new distributors, three months, and this would provide everyone who starts with more motivation and better chance to make it for the long term.

Offering a 10% retail profit for starters is the reason so many fail and quit after a few months in many programs. I would be happy to earn less commission up front if there was a better chance to see my new distributors stay involved longer. Very few think of long term, and this bothers me. You have to put more money upfront for new people in my opinion.

That is why I never liked the 1-Up or 2-Up deals, and now I see a 3-Up plan, so ouch, talk about short term, few even sponsor more than one, so you see the problem. If you have to give away your first customer purchases, this is not going to help the average person, but it does favor the so called heavy hitters. Now I see modified plans which are a step in the right direction to solve this problem.

After years of passing up all the 1-2-3 UP programs, I do see the value in a modified 50% split 2-UP which is working better than I ever expected. I am always open to new compensation plans for I know many just are not designed for the average person, and their are far more average people looking for a few hundred more a month than the ones who are super salespeople. I like to see the little guys and gals favored over the heavy hitters. lol

Good luck to all, Mike

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Hi Alexa,

I'm in one of those big MLM companies, but there's no autoship requirement, but there are some other elements which could be improved.

Starting up a business for anybody can be scary, especially when its done on the "credit card". I went down this path and on retrospect it was not the right choice for me, but I take responsibility for that action.

So there in lies a big problem for me, how can I endorse "big front end expenditure" when I don't agree with it.

Well the answer is I do not. Whilst the company has fantastic products the "strategy that I was asked to promote" did not dial my number and at the end of the day I'm now doing it my way and bucking the trend.

To give you an example, I now have "prospects" texting me in response to offline FREE advertising.

People find it easier to text me than call me. Once I get that Text I know I have a "direct response" to my offline advert, it's great.




Aaron Riddell

Excellent comments and I agree with the points. Yes this marketing model is hard work but I wanted to respond to this post:

The problem with MLMs is that people who join later are at a disadvantage.

I think it is the reverse - getting in on the pre-launch is an advantage. Finding out about what is out there, is it ethical, who is the leadership, what is the compensation, how is the technology, is the product valuable, how is my passion. . . . that is the challenge. So when I was told about one from one of the sources, I joined an MLM for the first time.

Clearly, if I joined, then MLM's are not dead!

Good points,

Like most business entrepreneurs, they have to fail before they will succeed in a business. It is part of the process, just ask any successful business owner this question and it will help you prepare to fail, which in turn prepares you for success.

You have to start some where, and no matter how careful you may be in choosing a business, you still could fail, but one lesson you have to learn is to never quit. Most who fail quit before they even begin, so stay the course, and you will find financial freedom.

Success to all, Mike

Does anyone know the name of an MLM that recently came out with an anti-aging skincare line? I was reading about it on this forum somewhere but can't find it now. The product was make with anti-oxidants. It sounded good. Seems like it began with an A.

Thanks.
OH....I've been in MLM for about 25 years....began with the big "A" word. I was even with Coastal! I found one I'm sold on, very affordable....but you need to be patient. Most people want it right now and quit when they get a few "No's".

And yes, it costs more that most would like to admit. You spend quite a bit on advertising. There are lots of free sources around but most are very time consuming. I've tried them and I just don't have the time.

happywife: I've never been a big fan of MLM's either, but I must admit I am about to join one in a few months time as a joint venture type of thing with a friend of mine who has been involved in a health related mlm for about a year.

My side of it is going to be to sign up under her and then build a content based website relating to not only the products but also related conditions. She is going to do most of the one-on-one follow-up with the individuals.

Wow happywife... you seem to be a pretty smart cookie. I always tell prospects who don't like "sales or recruiting" to do the same thing, just in the other way around. That's awesome; finding a way to capitalize on an opportunity while minimizing the amount of "grunt" work you have to do.

Are we taking notes class? lol

The MLM/Network marketing industry continues to grow and gain legitimacy. More and more "traditional" business people are getting on board now, as they are beginning to understand the power of leveraged income and word of mouth marketing.

As for other "internet marketing" ventures, I'd caution against them. With mlm, you can market online or offline; the choice is yours. Go with some other plan, such as affiliate marketing, and your only option is to promote online. Getting your website seen is truly like finding a needle in a haystack. You can spend a ton of money on pay per click ads, banner ads, and search engine optimization, and still not make a cent.

But you can be close to broke and still make money in mlm if you're willing to get out there and talk to people!

Hi folks,

Well it's the new year and the MLM Company I am associated with is still in business and making money. That means many thousands of independent distributors are to.

My point is if you find a way to get past the biggest barrier, that is YOU (and in my case ME) we can all succeed where others fail.

Have a think about that and let me know how you feel now?



Aaron Riddell

The hardest part for me is to approach people that are not family and friends. I think once I get passed that my mlm should succeed. But is it a hurdle

changemylife: Essential Question: Are MLM dead?

Defnitely not....People are dead. They lack the desire to make the MLM business work for them. People just don't get the information once they join these different businesses. What I mean by this is that they don't learn how to market and brand themselves. Marketing and branding yourself is the key to making it big in any type of internet marketing or MLM business. Let's say for instance a certain somebody was involved with a certain MLM business. And whenever you searched for information related to that particular bussiness on the internet and you always came across their information (videos, articles, blogs, etc)......chances are you are going to try to contact that person and get more information about the business. Then if you like them, the business, and you are serious about join the business or buying products there is a high possibility you are going to join or buy your products from them.

Good points,

MLM products come and go all the time, it is a very crowded industry after all these years, so you better have a great product if you hope to make it in any MLM. It is not the system which is dead, it is most products that are dead in market, especially since recession has hit harder than most thought it would.

If you find a great product at a fair price, then you have a chance, but if it is not recession proof, the odds of making it in MLM is very remote. We all know prices are usually higher with MLM products, and auto ship is another issue which puts pressure on a newbies budget, so it better be a product people really need and use on a regular basis to have a chance.

I research them all, and no doubt, some are more recession proof than others, and this is what I now focus on 100%. Simply ask yourself what you are cutting back on with your buying habits or with budget. Whatever these items are, then stay away from them as a business is my best advice. Having a diverse portfolio is only way to survive a recession, never mind thrive through one.

Success to all,

rcerrone: The hardest part for me is to approach people that are not family and friends. I think once I get passed that my mlm should succeed. But is it a hurdle
I know exactly where you are coming from there with that comment. Have a close look at your product or service and the other leaders in your Company right now. And ask yourself this question?

Does the product(s) or service AND Leadership make you excited and passionate to be a part?

What is your "gut" feeling on this?

If yes, great you are in the right place.



Aaron Riddell

cheryljones: People are getting wiser about mlms. They've joined the high priced ones on the promise of making money and after a couple of months with no results, they quit because they can't afford to continue. Companies are being forced into making payplans that favor the reps. People are getting smart as "mlm consumers."
I fully agree with you my friend. The new MLM companies are more REP oriented than before (you can always have a look at the marketing plan before you decide to choose). And of course if they are combined with high quality products which are also highly consumable, then there is no way to fail. Of course once you find the MLM you think will suit you you MUST follow it for a long time and NOT change in between.

It would be also advisable to look also european MLM (which can be managed from alla around the world). According to my oppinion these companies are less "aggressive" that the USA ones and are more human when it comes to supporting the distributors and their teams!