General info on Multi Level Marketing

A good idea is to make sure any MLM you join is a member of the DSA. They make sure that any member companies are legitimate and are not a "pyramid scheme". With today's economy, many people are seeking employment through MLM's, and are finding a great deal of success!

Great article, I just recently join mlm business and Im just starting to get understand a little bit more each day.

Interesting,

A lot of good input found on this thread, but the one commone thread is you have to work hard, stay with it, not just picking the right MLM company. Everyone will have a different opinion on which company is the best, or which strategy is the best, but the one thing we have all learned is true, you have to work it and stay with it to make it in this difficult industry which sadly is over hyped and often underdelivers.

Success to all,

Hi everyone,

I think the number one problem in MLM is getting others to join. Any of you can say that I'm wrong, but wouldn't the best way to recruit people into you business is, of course if they trust and like you, buy also if they believe that you can SHOW them HOW to succeed in it as well?

I have a good amount of people who do like and trust me but I am still having a hard time getting them to join. I would ask subtly to them why they wouldn't join.

I would get responses like, "I just don't think they work" or "I love the idea, but I don't know how to market or talk to other people".

What I got out of that was that maybe they don't think that network marketing is all bad, but that they just don't believe they could do it.

So I think maybe that it's better to approach potential prospects with a system a place that will help them succeed, instead of the old 'chase your cousins and uncle' method.

Thoughts? I'd love to hear what you guys think

An important benefit of network marketing is that for little or no capital you can create a small business which allows you to begin to take advantage of certain appropriate tax allowances. You might be able to claim allowances for a portion of your home, computer, car, travel, etc.
Network marketing is fast becoming the single most powerful distribution growth area in business today.

Interesting,

Most people are not entrepreneurs by nature, and this is why most people have jobs, they would never step out of their comfort zone. This is sad, but true, most are not suited to work on their own, never mind most are not salespeople, and if you are considering MLM, you had better face the fact that all legitimate MLM's requre the sales of products or services.

Just as in any sales business, most fail, and this is also true with MLM, because it requires sales skills, if even basic ones. Another issue is the reject ratio, unless you have been in sales, you will not be prepared to deal with rejection, and this is why most people quit before they even begin. No one likes the hardell, as in auto industry, home improvement sales, etc., these are tactics most reject, and sadly, most MLM's require a hardsell tactic when pushing overpriced me too products which is typically what you are required to do.

Having seen it all over the years, one thing I have learned is you cannot expect job oriented people to excel in MLM or any sales position. The world is full of quitters, and this is the biggest problem in MLM, unless a person is educated on what to expect, rather than the usual get rich quick B.S. which dominates the MLM industry, you will fail. All businesses take time to build, and you must stick with it, not quit, this is the first lesson you need to learn, think positive, you never know when you find a diamond who will earn you residual income for life, it happens, but only if you don't quit.

Success to all,

The word on the street,lol, from my personal friend is "wowwe" is taking over the video/audio world. No I am not a distributor for this company but i know a few people who are involved if you would like more information. Video has become a HUGE source for networkers to share information with their teams.

I have to say this is a great informative post about trusted MLM companies and pyramid scheme. I am involved in an MLM networking business thats expensive but is a trusted business. It has a great compensation plan, great monthly autoship products and I have great sponsors. I am in the process of creating a team.

MLM are compared to pyramid schemes and a dew of them are and give network marketers a negative image. MLM has a pyramid type set up but instead of the top person making all the money each new member is the top of his own pyramid. Sure the first person in will still benefit but everyone else will benefit also.

Exactly, Jared! It is a great business model and you receive lots of help from your upline, district sales manager, etc. and are part of a team. I think that sometimes people mistake MLMs for things that they are not and just need to research the internet as well as any company they think they might want to join. It can be very lucrative, successful, and rewarding!

Interesting,

Unfortunately, the negative aspects of the MLM industry are difficult to erase from a prospects memory banks. Most have a negative experience behind them, or they know someone who has, and since most fail, it is for good reason the biggest obstacle in any MLM is overcoming this negative industry image.

Having seen it all, and all the strategies to distance themselves from MLM negative reputation, like Mel claiming they are not MLM when they are, you have to wonder why this decision was made by corporate, it is because of the negative baggage the word MLM carries.

Then we saw Amway, the biggest and one of oldest MLM's in industry, and they went so far to change their name to try and shake the negative MLM baggage which was weighing them down for years with little growth. That may have fooled some of the people, but it didn't fool most, and sadly for Amway, the Quixtar name got hammered too as a negative, now they are back to Amway after about a decade of tryng to distance themselves from the Amway name.

Given the facts above, if you are not a good well trained salesperson, you will probably end up quitting in less than three months given the fact most will not be able to overcome the rejection involved in the MLM industry. This is the biggest obstacle for newbies, they do not fully understand the industry or shall we say, the good, bad and ugly of the MLM industry.

If you don't understand it, and the history, you will fail, it is as simple as that. Having researched them all, what I have learned is this, stay away from the get rich quick hype which is part of the MLM industry, the bad and ugly part as I see it. Look for the good in MLM, leverage, easy duplication, products or services which offer real verifiable value is the best programs to target.

What I see working is to avoid the MLM hype type businesses entirely if you are a newbie. It is not easy to explain why your MLM is not a pyramid, the typical resistance you get from most when you approach a new prospect. And sadly, most cannot even explain what a pyramid is, so they are lost and stumble trying to explain why your MLM is not a pyramid. Anyone been faced with this situation? lol

I have been testing a new approach, and since the affiliate industry is exploding, and since it does not have the same negative baggage attached to name, it is the secret to success for the industry of direct sales, leave the multi level talk out of marketing materials, focus on the product, value, mass appeal, ease to duplicate, in other words, keep it simple stupid, no offense. lol

With no mention of MLM I am seeing a far greater response rate from my advertising. It is an easily verified value compared to competition, it is something everyone is familiar with, same name brands as the big boys offer, but we offer it for less, much less. Given it is an affiliate program, no negative issues of MLM have to be explained, and I love this part. Compensation plan is easy to explain and easy to understand for newbies, you refer two, you are all through, if you want to earn more, refer more, simple. Amazingly, the question of is this MLM never comes up, and this is the key to success for newbies.

The leverage of MLM is still built into program, but it is not in your face MLM like all the others with their circles on a blackboard demonstrations. I have seen enough circles on a blackboard to last a lifetime. lol Leverage is critical to your success, and easy duplication is what you have to have to succeed. Everyone understands duplication factor, building a group, leverage, so focus on these attritbutes and stay away from the MLM hype is best.

Success to all,

This is great information! I'm new here but started with this thread. I just read the book, The Flip Flop CEO, and got a great, real-world perspective on the network marketing industry and the myths surrounding it. It's a quick, easy read! It's not available at bookstores, but is on Amazon, Kindle and through their website.

Great information.