MLM Programs - Which are good? Which are bad?

Hello,

Hope this finds you well.


I am somewhat new to the Affiliate space and looking at my options for campaigns I can run. I’ve come across several MLM programs, and trying to figure out which programs to avoid and which I should run.


I’ve read many things about scams and don’t want to start off on the wrong foot. Any companies, offers, or networks to avoid, please help.


Any information would be great.

Thanks!
Wes

 

You are correct, there are a lot of scams out there. So, look for companies that are more "customer centric", focused on customers, rather than focused on distributors/associates/reps. Having a large customer base will sustain your business in the long run, as distributors seem to jump from opportunity to opportunity.

Also, many of the "distributor first" MLM companies have a larger upfront signup fee, and are the ones being sought after by the feds. (For example, look at the mess Vemma got themselves into.) Before joining any business, research the company and the people behind it.

 

Hi Wes,

As Jeffrey has stated it is always best to do your due diligence when looking at MLM companies. I have got burned in the past with "businesses" and as such always look into the company and ask questions in order to satisfy myself with what they are offering is legit.

Pleased to say that after 2 years of working online I have now found what I believe to be a decent company.

Wish you all the best
Kev

 

Welcome to the forum Wes,

The age old question, and you will get thousands of suggestions, but to keep it short and to the point, never fall for the money hype, these never last, and you will almost always lose your money and reputation. Always focus on a real verifiable product or service which the majority of prospects are already using. This is called transfer buying when you get someone to change from one company to your company when offering the same product or service. This is the easiest way to get started, don't waste your time trying to sell a no name product or service that no one heard of before. This kind of sales is the more difficult, and newbies need the path of least resistance.

Choose a company which had products or services you already are paying more for elsewhere, we all need to be a customer first so you can promote the product or service based on personal experience. Always target money saving businesses, especially in this long long recession. MLM is a great model if you choose wisely, and like everything, it is up to you to succeed.

Success to all,

 

There is nothing wrong with MLM! But most people just dont like recruiting. You have to worry about losing your rank or not even recruiting people at all. Thank god i found a program that you do not need to focus on recruiting to make money!

 

Hi You need to like and use products yourself and believe in them to promote them well. Im with an Eco friendly company as I buy those products anyway and I only buy cruelty free products really. I didnt have huge start up costs and really enjoy what I do , you get out what you put in, so have to be willing to promote products and company. Hope you find one that suits you just research loads ,I did

 

The beauty of mlm is that once you find a product you love, or can believe in and start building a team, there is no limit to what you can make financially.

I like to do affiliate marketing as well as that doesn't require recruiting, and you also get paid many times over on a days work. There is a learning curve to both, but just keep searching and you will find your true fit and passion!

Cheers!

 

Hello Wes! I am so glad you asked this question. When I first began my MLM journey years ago, I went into it blindly without thinking about what really goes into this business decision. Here are some quick tips you might find helpful!
1. Find a company that you love. You love its products and you love its message.
2. Check out the founders and who makes up corporate. Are these amazing, qualified people that can get the company through ups (massive growth) and downs?
3. Decide if you want a party plan model or not.
4. Check out the compensation plan and what consultants get paid.
5. How long has the company been in business? Most MLM companies go bust in 4 years or less. Keep that in mind.
6. If it is too good to be true, it probably is. MLM is hard work. Don't let anyone tell you it isn't.
Happy MLM hunting! You are so lucky that you have so much choice!
Rachael Gorbutt

 

So in reading through the replies, I see that several responses referred to MLM. MLM and Affiliate marketing are a bit different. In MLM/Network Marketing, the company usually has a set of products that they offer to the general public. Distributors ( IBOs) usually purchase products to stay in business and they try to sell the products and to recruit others into the MLM. I've heard a lot about MLM scams but have been lucky enough to only be involved with legitimate ones.

Affiliate marketing on the other hand is where you get to sell the products and services of others and just receive a commission without having any monetary commitments to the organization and without having to recruit. In Affiliate marketing you don't purchase products to stay in business - there is no auto-ship. Your job as an affiliate marketer is to expose the products/services to as many people as possible and you receive commissions when a specific condition is met - usually a sale being made.

It's actually pretty easy to avoid scams with Affiliate Marketing because there are companies who screen the programs for you, Click Bank, JVZoo being two of the most well known.

Hope this helps!

 

Hey

Being completely honest and transparent. MLM companies are currently a legal business to own/participate in, which is a good thing. As you know many people have made a lot of money and more importantly rely on this as an income.

Anyway, you may not be aware that there have been several cases where MLM companies have been taken to court. why... some work very similar to a pyramid scheme.

This is why you must choose wisely.

Couple of ways that I would check that this is a sound business that is working as an MLM not a pyramid scheme:

1. When you approach a member who will recruit you... see what they focus on. If they tell you that you must only security other members, beware as this may be a sign that they are crossing the legal line.

2. Another biggie - see how long they have been going for. The longer the better it shows that they are probably doing things the right way.

3. Finally, I would run a Google search to see if they have been in any legal trouble. An example would be Herbalife
http://www.bloomberg.com/news/artic...wins-dismissal-of-belgian-pyramid-scheme-suit

Luckily Herbalife came out fighting and won the case... but you should consider before joining.

Anyway... if you have any more questions, please let me know. You can find me in most places online

All the best

DavidjHorne

 

If you are looking for stable passive income you can pas to your kid or grandkids, then I would suggest to check few things.

• the company should be on the market at least 8-10 years
• should be publicly traded (you can check wether the company is financially stable. With privately held companies you cant check what they say)
• should be member of www.dsa.org they oversees network marketing companies if they are legal, provide customer service, have fair system etc...
• they have products you like but also most people around you can use. (online video conference is not for 95% people you know, weight loss products are not for people who are not overweight etc..) The product should be unique though and should have quick results
• compensation plan should reward you for all your efforts. In many companies they have a lot of requirements you have to do in order to get paid. Also they will wipe out all your points every month if you don’t qualify for commissions.

 

Hi Wes,

Am new to MLM too! But I did some homework before getting myself started and these are the few pointers that I have considered before joining, hope it helps!

1. What is the product (s)?

This is the first question you'll want to ask. It should be something that you would purchase even if there wasn't a business opportunity attached to it. It should be a consumable type item. Something that is used up and re-ordered. This means repeat sales and increased profits.

All legitimate MLM opportunities have a real, solid product(s). If they don't -- watch out! The money will be made only by recruiting others which borders on being illegal.

When choosing a network marketing company, it is dangerous to choose one that has only 1 product. Because if something is wrong with this product, then the organization would collapse. Don't choose a company with only 1 range of products. For e.g. a company that sells only cosmetics. There has to be a wide variety products to cater for different people, different age groups and different needs.

2. How long has the company been in business?

Many new MLM companies go out of business within two years.
Usually due to mismanagement and poor cash flow.

There is a growth curve that most companies go through. You want to get involved with a company that has solid financial and management backing.

3. How profitable and easy is the compensation plan?

This will be where your income comes from. It must be fair and easy to understand for it to be successful. And must be tied into the sales of the product not just recruitment. Look for at least a 50% total payout depending on the level you're at.

4. What is the start up cost?

Most MLM businesses cost less than $500 to sign up and get your kit. This is because of regulations in a number of states. Just because it's more doesn't mean it's bad. But you'll want to justify the cost. Ask what you get for your money.

5. What support systems and training do they offer?

One of the reasons to get involved with a turnkey business is because you can plug into a proven success system. You should have the most experienced distributors teaching and helping new recruits get started. Do they offer seminars, tape courses, conference calls, web site support etc.? And for a reasonable price?

Take the time to learn from the best. You'll succeed much faster and with less time and effort.

 

Free business opportunities are the best to start with for many reasons, and with thousands of MLM or network marketing affiliates, whatever you want to call them are all similar in the end, they are designed to allow you to earn commissions for your sales. The compensation plans are usually similar as well, but what one calls each is up to them, most have a structure of multi level payouts, so in most cases they can be referred to as MLM which is network marketing as I see it.

Free takes away the risk of losing money, lets a newbie get their feet wet and a little experience first, very important as I see it. I choose value oriented businesses which everyone is a customer for they are usually paying more for same product or services, so this makes sales much easier for newbies to sell. If you can save a prospect money over what they are using already, it doesn't get any easier, and when the business opportunity is free without any purchase required, and then the new customer sees the savings, loves the products or service, then they will be motivated to refer others, again, the easiest way to build a business, need, savings, income opportunity, in that order.

Success to all,

 

I totally agree! Excellent advice.

 

I find it is very difficult to sell anything with Zrii...I have been one week, and spend hours in facebook try to advertise, but nothing has come...whats your suggestion?

 

Welcome to the forum SuperFanldol,

As difficult as it is to get started, the first and most important lesson is to never give up or you will never see success no matter what product or service you are promoting. The first few weeks of no results usually spell the end for most newbies to the online marketing industry. People get hyped up on company and think they are going to get rich quick and this is never the case no matter how good your product or service is. When it comes to health and supplement related industry, this I have found is the most difficult for a newbie to sell online or offline given the competition is huge, and when marketing a low name recognition company, it is even more difficult.

So hang in there, most who fail are those who quit just a day before they may have recruited a powerhouse marketer, so always remember this lesson I learned long ago, don't quit. Facebook has been a great marketing tool over the years, but like all marketing, what worked yesterday does not mean it will work today, never mind tomorrow. When it comes to promoting supplement companies, what makes it difficult is most will not feel the results from using products for months, if ever, and as one who has evaluated hundreds of supplement companies over the years, I can only point to a few which I saw results with personally, so focus on the one product in Zrii which works for you so you can share your story. It is easier to focus on promoting one product rather than a full line, another lesson learned years ago. Forums like this are what I had focused on from start decades ago, but even forum posting is not as effective as it once was. Just look at the drop off in posts over the years to see the evidence, so again, what worked yesterday does not mean it will work today, never mind tomorrow, so never give up.

Happy Healthy and Wealthy New Year To All,

 

Hi

Thanks for your message...unfortunatly, I just has been learned some more depressing fact, I don't know if my sponsor deliberatly has hided this thing from me or not, I discover that I need to pay 100 USD each month..I don't know about this thing before, felt very discouraged...I start doubt about the ethics of Zrii business as any other MLM, thier business is a suspect...don't you think so?

 

And this is the perfect example of buyer beware. Many programs require an autoship product purchase every month to be qualified for commissions, so unless you need the product every month, I would not be participating in the autoship option which is the reason so many quit in less than three months. If you cannot see yourself breaking even on what you have to spend in three months, then you see why 99% quit if the product is not worth the price. Only you can make that decision, but I would want to have a few sales under my belt before committing to a monthly autoship, even if you cannot earn commissions on your first few sales, it is a better way to evaluate the response of others using the product. As stated earlier in first post, most people can not tell if a product is working as promoted in months, if ever, so again, only you know if product is working well enough to pursue promoting it. Tough decision, but I personally do not like forced autoship programs, especially at $100. per month in this down economy. It would have to be a super product to make that commitment or I had built my business up to a few customers to offset my expense of having to be in the autoship option.

Check carefully, it is illegal to force a purchase each month, it has to be an option, usually limiting your commissions, but you can still make retail sales and get paid. As I see it, you do not have to commit to monthly autoship of $100., so don't always listen to sponsor for they will tell you what is not true many times, and obviously, they do not earn their commissions without your purchase, so read your terms and agreement over listening to your sponsor.

Happy Healthy and Wealthy New Year to All,

 

Thanks

is it really illegal to force purchase? I am staying in Malaysia by the way, don't know if their law allow this thing?

yes unfortunatly it is a forced purchase, I check accidently my account, and found there is small message below my picture saying next billing on 17 januray, so I asked my sponser about this, they said that I need to purchase the product, unless I will be inactive, not even limiting commission, if I didn't buy their products in 3 months, my account will be suspended!!! what a nice company and deal...irony

I don't even know that 99% quite haha...Zrii seems have bad reputation but I wasn't aware about this

 

I took the time to read agreement, and you can cancel autoship option, there is a free option which again is required in most countries, including Malaysia, so yes, you will not earn override commissions, but if you have no others in your organization, then it makes little difference other than to you sponsor and upline, so simply cancel your autoship and you are simply in a non active position after three months, so you can make a better decision then based on those you may have in your organization. Just make sure you cancel order now rather than wait until day before your billing date.

Good luck,