According to W
downlineikipedia “Multi-level marketing (MLM) is a marketing strategy in which the sales force is compensated not only for sales they personally generate, but also for the sales of others they recruit, creating a downline of distributors and a hierarchy of multiple levels of compensation. Other terms for MLM include pyramid selling, network marketing, and referral marketing.”

There is an incredible phenomenon that occurs when others realize you have a lot of followers, fans, people in your ‘circle, and connections from years of work. They approach you with every MLM known to man with a slightly different approach to trying to get you to sign up and sell for them because you have a list of people. Remember the definition,’ the sales of others they recruit’. It’s like recruiting for war, here’s the troops, the weapon and the strategy – now go forth and fight.

Unfortunately most of the world falls into two distinct groups those who want to sell and those who don’t. I know a lot of people in the MLM field be it Primerica selling mutual funds, Dubli promoting auctions and online products at a discount or Melaleuca selling healthy household products. The common threads between them all are simplistic in the manner they generate excitement, sales and ‘recruits’. The recruiters believe in their product, this is a prerequisite, unfortunately they try to sell the product to the rest of us by exhorting the virtues and trying to convince us of the value of selling the product to others.

Some will call it Network Marketing, they are still trying to sell you products or an idea through referrals and/or relationships you have built over time. Word of mouth is a powerful tool for marketing because in recent years trust factors have zoomed because of social media. People more than ever trust friends who suggest something to each other. One of my problems is I think if you believe in and sell the MLM model perhaps you should diversify and sell more MLM’s than the one most do as a sideline. I’m thinking that the hard sell approach to MLM/Networking selling is making people lose patience with the process and they are getting fed up with being bombarded with yet ‘another MLM scheme.’

How about this as a novel approach selling the product as a solution to your needs and requirements. What I mean is instead of selling me Melaleuca products through their classic (and proven) health model why not sell it as a tax break for the common people. I have a close friend who only has two customers under her as ‘recruits’. They don’t want to sell any more than she does but they like my friend love the products. She earns a commission every month from these two people of about $60. Yikes that is not too exciting right? Well last tax year she got $4000 back from the government because her business generated some money ($720) but she wrote off her auto, part of her home for an office, etc., etc.

My friend will probably never proceed past the point of being a customer and a reluctant sales recruiter but she has made money from the sales of Melaleuca products to allow her to subsidize her income by reducing the money she had paid in taxes on her day job.

Just so you know I like MLM’s or whatever you prefer to call them, they have made many people rich! I remember a stat from some berry juice company that said of the hundred’s of thousands of associates selling the product only one percent made more than $800 per year.

If you do your due diligence and find a network marketing business with a good solid residuals structure, fair compensation and great products you have found a winner.

Now write down your list of 25 friends…

 

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15 Comments

  1. Love the Post, The Old school of enrolling people use to work before the internet era, but with advent of social media the potential is even greater for success in the MLM industry… but we must learn new ways to letting people know, new ways that people can get clear and see posibilities and the benefits of this Great Industry. MLM has been design for all people, but IT IS NOT FOR EVERYONE!!

    Cheers!!
    Gerardo.

  2. Mr. Bizzo

    It’s wonderful this topic, my experience about marketing and business are tied to the demand planning (Management supply chain) as career, MLM requiere more tools to gain more terrain, it’s important to keep on the top for a long time. that’s my point.

    Actually, the third world demands more information from the first world . Well, in this way it’s probably an excellent point to gain more income for the MLM, in whole the world.

  3. I think what a lot of us people who love this industry of network marketing have as challenge is our lack of skills, in terms of knowing who we are looking for… as i said before this profession is not for everyone.

    Gerardo.

  4. You certainly have some agreeable opinions and views. garybizzo.com provides a fresh look at the subject.

  5. From Mary OSullivan in Australia via Email
    “I read your article “MLM’s are they good or bad for you”, I liked it.. I have been down that road, Amway, MonaVie, DubLi ….the latter until very recently….and u know what I found….apart from DubLi, but this just took too long to gain traction in my opinion,…..NO REAL CUSTOMER…I.E in most cases, in the end, the distributors, affillitates, b.a.’s etc..WERE the customers and when after, (usually 3 or 4 months, maybe longer for some) they are not making much money and quit, they too often stop using the product…..eventually. This is what Im doing now. bannersbroker.com/maryo. Head Office in Toronto. Onlineadvertising and publishing – real customers – massive global market – no mlm matrix, no payment for recruiting, in fact you do not have to talk to anyone if you so wish. If you want to take a look at it connect with me on skype and Ill show it to you. If not, no worries as we say downunder, its very nice to connect with you across the different platforms.

    Sincerely
    MaryOSullivan”

  6. I have to say that the product you use or buy from any MLM company have to be products that you would use anyways even if you were no in the company. If the product is to expensive to buy… Then I will be expensive to you customers.

    I have a friend who bought a health product from a really good company and product was excellent, but shipping and handling and reselling it to others was hard and spensive, he lives in Guatemala, so even though the product was excellent it just wasn’t a product people buy in Guatemala.

  7. Hello There. I found your blog using msn. This is a very well written article.
    I know people like this for sure

  8. Thanks for the article, there is so many BS mlm’s out there it is hard to assess the good ones cause they are all hiding in the pile of bad ones

  9. Its like you read my mind! You appear to know so much about this,
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