What You Need To Know About Network Marketing And MLM Plans
It seems that just about everybody is jumping on the Network
Marketing Band Wagon due to the success of some major players
like Amway, Mary Kay Cosmetics, Herbalife, Fuller Brush, Watkins
and scores of lesser known companies. Regardless if it's a name
player, or some new kid on the block, there's a few things you
need 1 know, so let's get to it!
While there are success stores to be found, and some people
really do pull-down high six figure incomes, the most glaring
omission from the glossy sales brochures, and high-pressure
advertising, is what no MLM company will tell you and they
desperately hope you'll never find out What? The industry's
gigantic 95% failure rate! Most people who try network marketing
fall flat on their face. Only red-blooded, eager beaver
experienced sales professionals, ever make any real money!
To clear up any misunderstanding Network Marketing, Multi-level
Marketing and MLM plans are all interchangeable terms used to
describe the same type of activity. Also, as you'll shortly
learn, many program are nothing more then illegal pyramid
schemes! I'll tell you how to tell the difference shortly.
To really "see" how Network Marketing works just look at the
pyramid on the last page!
OK, now let's take a closer look at the goose to see if it
really can lay the golden eggs everyone promise The BIG selling
point of every network marketing plan regardless of size or
product is always the commission and bonuses you'll earn from
your DOWN LINE. Everyone in your ever growing down line will
entice, OOPS enlist others, all in turn paying YOU tribute with
an ever increasing spiral of more and more commissions and
bonuses, Well, that's what suppose to happen...
By the time you hear about the "Great Opportunity, the
originator has already signed up every close friend, associate,
and "heavy-hitter," he can find. Every last one of them will
forever and always make money off YOU as part of your UP LINE!
In the stock market it's called "insider trading", taking
advantage of the little guy. I don't really have to put in print
what's likely to happen to you, I'm sure you're already thinking
up some colorful language on your own to describe what I just
In a typical network marketing plan, in order for YOU to make
bigger commissions (the vast majority people that join rarely
break even, let alone make any commissions with all the monthly
fees you pay), you got to recruit other people into the program.
Whoever you sign-up becomes part of your DOWN LINE and remains
on a level below you.
In order for things to get cooking, the pyramid, OOPS... program
has to GROW by Geometric Progression. Good news for people at or
near the top levels. Remember, the "big boys" are already in,
waiting to collect the share of the loot your hard work will
earn them! It's bad news for YOU! As the plan expands both
vertically and horizontally you will be in direct competition
with more and more sponsors and distributors, each trying to
recruit a down line or "steal" yours!
Not only is there a limited number of people interested in
becoming your pawn, OOPS... partner, there's only so many
potential customers interested in the product or service you're
suppose to provide. People in your down line will jump ship to a
different program or try and find a "better sponsor" on their
own all the time, because they can't make any money under you.
It's a Network Marketing Fact of Life the "big boys" don't tell
Now visualize a wet sponge. Before long your potential market
has "soaked-up" all the sponsors it can take. You'll be bumping
into one another trying to squeeze out the last possible recruit
and sale. Now the cream rises to the top. If you're a great
salesman you probably already got a good down line and know how
to recruit and hold effective workers. If you're not, sooner or
later you'll discover that all you're really doing is shooting
yourself in the foot. You'll either quit, or try another program
and repeat the process in a different program!
Promoters of network marketing plans love to brag about the fact
there's no ceiling on how much you can make, but never get
around to how much you can sacrifice in time, and effort to say
nothing of all the money spent on monthly fees, and products you
hid in your closet, buried in the garage, or gave to your
mother-in-law because you couldn't sell it to anyone!
If you think you're "good enough," or just want to get your feet
wet to see for yourself, the first thing you should do is decide
if that great sounding offer you're thinking about is really a
true multi-level marketing plan with a real product to sell, or
simply a dirty little scheme trying to sell you on the "quick
bucks" just selling the program to others. It's fairly easy to
spot a phony. Here's a few quick tests that should help you
decide. If the MLM offer you're considering can't give
believable answers to these crucial questions tell the promoter
to take hike!
1. Does the sales literature contain detailed description or its
products or services, or only countless references to how
easily, and quickly you can make money with little work or
Watch Out! If products or services are only mentioned as an
after-thought, if at all, you're asking for trouble. The program
is probably designed just to push dealerships, sponsorships,
distributors or whatever terms are used. It's all done with
smoke and mirrors. There's no substance. How can it work? Sooner
or later it will fail!
2. Does the MLM offer products or services that the public
needs, and wants?
This is kind of a trick question. Think about it. Is there
really demand for what you 're going to offer? Lots of luck if
you 're stuck with something that doesn't generate repeat
business. It's the lifeblood necessary to generate the
commissions you got into the plan for in the first place!
3. Can similar products be found in retail stores, or be
obtained through mailorder at about the same price?
Your commissions and bonuses, if any, are based on sponsoring
people who can fill orders. When you have a good product -
that's what makes the money for you. Even if you have a good
product, if it can be purchased through regular retail channels,
ask yourself why people are going to buy from you instead.
4. Can you generate repeat sales?
If the company has a reputation for quality products you should
be able to generate repeat business, build and hold your down
line. That's what's necessary for any successful MLM Plan.
DECIDED THAT MLM PLAN YOU'RE THINKING ABOUT IS OK?
HERE'S WHAT YOU NEED TO BE SUCCESSFUL!
1. A quality product or service.
2. A successful attitude. You must Live, Think, Talk, Dream
Success. All day. Every day. No Exceptions. Sell. Sell. Sell.
3 Believe in yourself, and the company you're working for.
4 Have a realistic goal. Don't aim to high, but you do have to
5. Discipline. You will never be successful if you only work at
it when you feel like it! Go Back and read item # 2 again!
6. Find Prospects. If you don't know how, you will never get
past first base!
7. You should like people. It's hard to be a good salesman if
you don't; and that's what you have to be. A good salesman!
8 Close the sale. You can have the best product, an eager
customer with money to spend, but if you can't ask for, and get
that order, the best sales presentation in the world won't do
you any good! To be successful in MLM you must be a really good
9. You need Repeat Sales. More Repeat Sales, and still more
10. Recruit new distributors and or dealers.
A FEW WORDS ON MLM PROJECTIONS AND MONEY-BACK GUARANTEES
One of the best ways to spot a potential phony is a promise of a
sizable "guarantee" if you don't at least make $100,000 or some
other arbitrary high figure with their program in your first
year. Honest companies can't possibly make such an offer, or are
not giving you the whole story!
Read the fine print. To collect on the guarantee you probably
have to fulfill a few little requirements. Like pay a year's
worth of monthly dues, Provide proof you distributed 25,000
brochures, or have at least 10 people in your down line.
I already told you how difficult it is to even recruit a couple
of people and then hold on to them.. The average MLM distributor
has only 2.8 people is his/her downline. Now look past at all
the fancy double talk and see what (if any) commission you get
with just two people. Still want to join? Get out a pencil and a
piece of paper and figure it out for yourself! The "guarantee"
SOME OTHER THINGS TO LOOK FOR...
- A company with a proven track record in business for several
years. MLM companies have a strange habit of folding up their
tent with little or no warning! Don't get stuck holding the bag!
- Diverse product line. NO door to door selling. That's a big
hurdle. If product can be sold through a simple ad or catalog,
it's a lot less wear and tear on you, and burn-out is slower.
- Initial small investment. Don't tie-up big bucks buying sample
- Proven earnings potential. Talk to several successful members
already doing the program.
Can't find any? Then how good is the program? Find a lot, then
how are you going to cut into their action? MLM is a cut-throat
fiercely competitive business!
I'm sure some people that read this report will strongly
disagree with some, or all of the things I said. A few people do
make a lot of money. A few forfeit their life savings. Most
people spend months of sixty and seventy hour weeks with little
or nothing to show for it! I have never met anyone who did much
better than break-even with any MLM plan. If you still want to
try, go slow and pick a quality company. Hope you're the
exception. If you are, drop me a line and tell me your success
story. I would love to hear about it!
NETWORK MARKETING PLANS AND THE PYRAMIDS IN EGYPT
It's really the best illustration to visualize what is required
if a Network Marketing Plan is going to make YOU the kind money
promised. The Pyramids built centuries ago in the distant desert
sands of the Middle East have layer after layer of huge blocks
piled one on top of another to support the massive weight of the
Unlike the Egyptian pyramids that are already "topped out", a
successful MLM program must continue to grow. Not from top, but
from the bottom by adding an ever increasing base to pay
commissions to more and more people. If you can't continue to
recruit new people to join the plan to help support the growing
structure you're just running in place all the while you're
paying monthly fees for the privilege of trying! It's like
lifting up the entire pyramid and adding a new course of blocks.
The people that start the program, and a few "heavy hitters"
near the top of the pyramid are feeding off of everyone's
efforts, and are of course profiting handsomely. While it is
mathematically possible through geometric progression to make
the kind of money claimed, the promoter never gets around to
telling you that for everyone to do well would require enrolling
first hundreds then thousands, and finally millions and billions
of people! To keep going further would eventually require more
people than there are on the entire planet!