Wednesday, February 13, 2008

Multi Level Marketing?..... Does it work?

For some people, this is the way to go. I have met a few people over the years that swear by it. I know a few people who make over $100k a year working their multi level marketing program. The unfortunate part about it is that they were the only one making money. No one on their team was duplicating the efforts they were doing. Weather they were selling vitamins, travel, a gas saver product, lotions, potions, pills, candles or juice beverage products, I have tried it all and it was a difficult task for me. Once I ran out of my friends and family to bug about my new business, once I had two or three home parties, I ran out of leads, so I started buying leads in hopes to try to convert some people into my business. That is so much harder than it sounds. Sure I made sales, but by the time I was getting to the next profit level, the people who I brought in 2-3 months ago were dropping like flies. This is why I could never make it to the next big payout level of the commission plan. For some reason, I would always fall short of the next bonus payout or car bonus. Usually, I would fall short of personal volume or group volume or I would have enough on my left side, but not enough on my right side, so I would miss out on the big payouts, month after month.

This got to be the same old stuff you hear about why MLM doesn’t work for most people and the only people making money were the people at the top of the pyramid. People with huge dowlines and people that have been in the business a long time and lists of hundreds of thousands of people to market to. For any newbie joining, good luck. I once watched a stay at home mom put $13,000 into a business to quit within a year. Most of us are smarter than that and would have quit after a few months and maybe only lost $1000 down the drain, but this person was persistent and did not want to fail. So she kept plugging away until they had no money left and when gas prices went to $3.50, the father of the family couldn’t afford to put gas in the car. So much for helping out.

The only thing we have found on the internet to work for most people is a direct sales company that pays you 100% of the sale. Companies that have a price point of less than $1000 to start. This is the only way you have a chance to succeed. Beware of the $1500 to $5000 programs, the start up company and program jumpers. The truth about start ups is that they have no track record. You have no idea if they will be in business two years later. Watch out for people who jump ship every time a new program comes out on the internet. Most importantly, be careful of the program that costs more than $1000.00. They are hard to sell, no matter how good it sounds.

I hope this helps your research in determining a company that you can be proud to represent.

Also I welcome your comments + opinions, since the above is my opinion and you have your own opinions which may be different from mine. I will respond to you as long as you are open to my response.

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Shaw Funami
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Lori On Maui said...

I like your discussion but my opinion is that the MLM model works fine as long as you understand it. It is about duplication and teaching, not about selling. If you understand that as an mlm distributor, you are really the companies customer. Make sure you don't fall for spending all your money on sales aids (a profit center the for company). MLM works if you can market and promote online, just like any other business! Lori On Maui

Shaw said...

Thank you for your comment, Lori on maui. My experience in MLM has been miserable. But, you may be right that I did not understand basics. One point is if it is the system work for participants or providers. I am tired of the discussion talking too much about "if it works, the result is great". Most of them, in my experience did not talk much about HOW I could make it work. Since member is buying, the system definitely work for provider company.