Economy and MLM

Discussion in 'Network/Multi-level Marketing' started by BHP, Oct 21, 2009.

  1. BHP

    BHP New Member

    How has this economic slump effected your mlm recruiting? Is it harder to pull people into the whole 'pay to play' when people don't have the $$ to pay? Or, has it made it easier - promising people an extra easy source of income? Just wondering...
     
  2. joanpeterson

    joanpeterson New Member

    I have not noticed any decline during this economy. In fact, it makes people more charged up to find alternate sources of income.
     
  3. BobFirestone

    BobFirestone New Member

    Overall the economy has helped. The downswing has shook a lot of people out of their comfort zones and made them reevaluate what's important. This isn't new it happens just about every time the economy has a down cycle.

    The price of entry into most MLM's is such a low barrier. People who are serious can come up with a couple hundred dollars.

    If someone is really, really desperate and won't take no for an answer I can show them how to start for $77.88 & $32.94/mo.
     
  4. FreeCashMan

    FreeCashMan Well-Known Member

    Marketing to build your business overall hasn't changed but there are certainly more people looking for a means to make money from home.

    However, some need to understand that you aren't going to build a home business successfully overnight or instantly. But consistency and dedication can certainly payoff.

    The sad part is that too many people wait for a crisis to hit before they act to do something for themselves to start making their own money.
     
  5. BHP

    BHP New Member

    Are you @#($&* serious?? It's helped!!??? I thought people were smarter than that... If you can sell people on $80 up front and $30 per month DURING A RECESSION (when 97/100 people wont even make their money back), you are a AMAZING salesman!! Congrats!
     
  6. BobFirestone

    BobFirestone New Member

    YES I AM @#($&* SERIOUS!

    When times are good people are not open to change. When times are bad they actively seek change.

    In good times change is viewed as risky and the potential to lose what is currently OK is larger than what could be. When times are bad change is opportunity. Where there is pain there is the potential for change.

    The bottom line is MLM is straight commission sales with the ability to earn commission overrides for bringing in other people who sell. What % of people do you think succeed in a straight commission sales job?

    I don't know what your relationship is with money but $80 to get started & $30 a month is not a lot of money.
     
  7. BHP

    BHP New Member

    If MLM was straight commission, it wouldn't be mlm. You MUST recruit, and bring in other people to sell. If you are looking for a job that is straight commission, there are plenty out there, with better returns than any mlm offers.

    For someone who devotes his life to network marketing, mlm will work. However, for the average person wanting an extra source of income, it is NOT a viable option for most. I'm guessing most people in a recession are fitting into the latter category. Are all of your recuits making massive money? Thought not. Are they even able to make enough money to cover the $30 per month? Are all the people they recruit able to do the same? Thought not.
     
  8. newpage

    newpage New Member

    Business is way up now, as a result of the economy.
     
  9. yahia

    yahia Member

    I don't do MLM anymore, but I noticed a recent decline in the two I've built before I dropped it.

    I would say, those who are already in unseccussful MLM would drop it and seek another business model to follow, while those who'd never done MLM would try it hoping for a break.
     
  10. yahia

    yahia Member

    Speaking about the opportunity

    If you guys are into MLM and are OK with cold calling, why don't you cold call during the day while those who work are already at work? If someone picks up he/she's most probably unemployed. Those would convert higher than if you do cold calling in the evenings or in the weekends. If you stress on the low price, the realistic potential, and the support you'll be giving (better be telling the truth [​IMG]) ...

    Just a thougt.
     
  11. Gmaud

    Gmaud New Member

    If anything, I think in the present ecomony it is easier to get people to join and take a chance....they couldn't be any worse off. MLM is a hot opportunity if you are serious and most of all Positive and hardworking!
     
  12. BHP

    BHP New Member

    Wow - in a bad economy, people are spending their money on mlm. Amazing. "A fool and his money..."
     
  13. yahia

    yahia Member

    BHP: "A fool and his money..."
    As I said, you'd better be telling the truth. The new FTC regulations extend to MLMers as well.
     
  14. Interesting,

    When you look at the whole industry, I assure you, most are down dramatically in a recession as bad as this one is with unemployment technically at over 17%.

    Sure, more people are forced to explore income opportunities, and since most people are already broke and with millions unemployed, it is a dual edge sword situation for sure.

    More looking for home businesses, but even more giving up on MLM which is contributing to the massive attrition in the industry, as in, people not able to afford their mandatory auto ship purchases.

    If you don't think this is true, just check all the public MLM's which have to file financials with SEC, the one that blew me away was USANA, one of the long established in the MLM nutritional industry which I am sure most have heard of.

    When examing recent 10K filing, I was amazed at the fact no one was earning more than $336K a year. Granted, not bad for most, but in the over hyped world of MLM, the land of the million dollar earners is not like it use to be in better times.

    Many will say they are doing better, but having been in this industry for decades, I have seen my revenues drop like a rock over the past couple years and why I have shifter my portfolio to only recession proof businesses, those which offer true verifiable value.

    In my search to replace lost revenues, I research them all, and very few actually meet my new guidelines of no to low cost, minimum monthly purchasing requirememnts, plus I focus on what people are already purchasing elesewhere for more, like regular name brand merchandise, telecom, groceries, nutritionals and health care products and services, things people need and want, not have to be sold on.

    Times are changing quickly over the past year, so purchasing overpriced products with inducement of income opportunities is over. Just ask yourself, would I purchase a product or service if not for the income opportunity? If not, then don't bother, no one else will want to purchase them either. Without retail customers, you are going down the wrong trail.

    Good luck,
     
  15. residualcash

    residualcash New Member

    People are in a rut and looking to make cash from home. I think mental sentiment is some people's biggest set back.

    There are more people looking to seize the work from home opportunities, just not as many with much money to spend. That is why having the right priced entry point for opportunities is where many are excelling at now. Have opportunities with $100+ monthly residual autoship or pay is not it. But $200 or less entry opportunities are fine, and lower monthly residual opportunities.
     
  16. Actually you need right MLM tools to boost up your MLM economy.
    So you have to choose a parent company that provides you right MLM software.
     
  17. RICH4NURICHE

    RICH4NURICHE New Member

    Things to be considered- not all network marketing companies have autoship requirements. That's one of the reasons i got involved with the one i'm in. It is an option, which i believe every customer should have. As far as the cost for signup, it should be considered just like the cost for membership to Costco or Sam's club. I also believe everyone is affected in one way or another. The negative stigma of the mlm industry is still getting in the way. Much still needs to be clear. The pyramid for example, was a useful presentation tool, but does'nt really pertain to the network structure. It is more noticeable to traditional business and government models, even family trees. It was over used and eventually became a tool for associating the model or structure to a scam. It's going to take some time to undo the damage done by those who either did'nt know better and/or who were down right unscrupulous. We must persevere!
     
  18. yahia

    yahia Member

    You know what ... You are right RICH4NURICHE. The damage done by scammers and newbies (trained by scammers) is so deep that the whole industry became framed as "scam".

    And I do believe that the network marketing as a marketing method is going to be adopted by more and more companies in the future because it has the highest ROI. And network marketing will be a life style.

    Imagine that everything you need to survive (food, shelter, medication, education ...) goes MLM. Some people will get rich out of it, while newbies will get motivated to recruite new people in this new life style so that they get their free living.

    About the autoships ... I don't know. No autoships means less money to be made per referral and a lot of inactive downline.

    Ad FREEBUSINESSES said, if it is something you buy anyway, why not get it shipped to you monthly?
     
  19. Tech Maish

    Tech Maish New Member

    I am totally agree with you. PHP
     
  20. talfighel

    talfighel Silver Member

    It has actually made more people get in because many of them are just sick and tired of being sick and tired.

    Believe it or not, this is the best time to get into MLM because there are a lot of people who are getting in and doing what ever it takes to succeed.
     

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