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Network Marketing and MLM: Are You Being Told The Truth? (3 Dirty Little Secrets About MLM)
What do you want in a network marketing company?
If you are like most people looking for home based business opportunities, you want an opportunity that offers you a really good chance of success, right?
Please put aside everything you’ve ever heard or read for a minute and consider these 3 dirty little secrets about MLM you’ve never heard or read:
Dirty little secret about MLM #1:
This secret is about products and how long any network marketing company can last.
A company with products that are strong performers and a good sales history, but not cutting edge may be good – you can be sure that you will be able to sell some of their products.
On the contrary, you may find it more difficult to sell products that are widely sold and consumed by many different companies – and for obvious reasons. – competition.
A new product “buzz” – one person can get excited about can fly out of your hands – at least in the beginning. It is possible that a new product will sell fast for a while – only to fade if it becomes apparent it does not perform as advertised. Nothing can destroy your business faster.
What can you do?
If you can find a company with a product that is relatively unknown in the market, but is quickly growing in popularity – and this product has already caused a lot of people to talk about it and write about it, you can find a “rave” product “. waves.”
A past example of the “rave wave” would be Liquid Minerals during the 1990s.
My wife and I joined a company in 1996 that was relatively new and had a new product. After using the product with our family, we quickly experienced real results. Nothing is better.
Once we had results with the product, it was easy for us to find other people to share the good news with – and this resulted in sponsoring 300 people in just over a year – and our group grew to 10,000 over the next few years come them
Yes, we have tried to build a business with another MLM company that does not have a new and exciting product before we market liquid ineuro. We worked super hard with the first company for a year. Our revenue was $1,500 after 12 months. It was too slow and not much fun.
Should sharing a product be fun?
If the product is interesting and gets results, sharing it with others is exciting and fun. If the product (no matter how good it is) is not new and does not get relatively interesting results, your business will not be fun – it will be WORK!
The end result of our second network marketing or MLM experience was earning more than 1 million dollars in 4.5 years – even though we stopped actively “working the business” after just 14 months.
What did we do?
Our children were young. We were homeschooled. We did 4H. We took them on a 5 month vacation. We felt almost like “strangers” walking into a society that was “living for the weekend” because we didn’t have to work…
Is the product sold for a long time?
We still use this product today, 17 years later…and still get results with it. The opportunity to sell the product through network marketing faded because eventually, the product was everywhere. The company no longer exists. We received our last check a few months ago – it was $89. Our maximum check during the third year was $24,561.
What is the dirty little secret here?
Many foreign marketing companies succeed quickly because of a hot product, but do not last because they have to find new and exciting products as each product enters the mainstream market and competition rises.
Does this mean networking is a bad idea for a home based business?
It is a bad idea if you expect a company to give you a higher than average income for life. Yes, there are some exceptions in the industry. Were we disappointed when the excitement stopped and our group disappeared? Yes, of course we were. We decided we would never “do” MLM again. That was 17 years ago.
In that time since, we have built a large real estate company that peaked at 148 agents.
what happened The boom that collapsed in 2008 ended our office. At the time, no one was buying real estate, but we still had to come up with $30,000 a month to pay the business bills. We “eat” the business hoping that the market will change – it did not change!
Research is 20/20.
What do we learn? We have learned that conventional business has more risk and more down side than network marketing.
If you join a company that eventually disappears, you don’t need to spend a ton of money desperately pushing on a string. And of course, you don’t need a lot of money to start a foreign downline marketing network from the beginning either.
Sure, we made a lot of money with the real estate office – and lost a lot of money too! When our MLM business goes down, we still make money until the last paycheck.
Yes, we still sell real estate – but the excitement has gone for a long time … and so, we have reexamined our years in network marketing – they were the best years of our lives.
What about the people involved in MLM? Yes, we made relatively good money, but what about our downline?
You (and we) cannot control everything.
What about all the agents we trained who could no longer make a living selling real estate? They found other jobs. Were they better off learning to sell real estate? We think so. Many are still selling real estate. Most are grateful for the education and the relatively easy commissions they earned during the boom. They know the accident was not our fault.
As for our old MLM downline – what happened to them?
80% of network marketing distributors never sponsor more than 2 people and never get a paycheck. However, our MLM group was the exception to this rule. I’ll tell you why in “The Little Secret About MLM #2.”
Dirty little secret about MLM #2:
There is ONE feature about the compensation plan that is important above all else.
The network marketing industry promotes endless pay features, machines, sign up bonuses and front load packages that will pay you huge commissions. Forget all that and forget the company you’re looking for if it doesn’t offer these features.
That’s because these features build stability in your group and pave the way for relatively easy (and fun) growth in your group.
Can a product user join for free?
If not, run! MLM “gurus” will tell you to promote “opportunities” (chance to make big money from home). That is putting the cart before the horse! The driving factor in any MLM is the PRODUCT – and the VAST majority of people who join you will (initially) be primarily (if not entirely) interested in finding and using the product.
Are the products competitively priced?
As you can see in the paragraph above, if the price of the products “from the school” you will be lucky because no one will continue to buy a product with a crazy price tag.
Assuming the products are fairly priced and work, you still need insurance against eventual competition.
That “insurance” is your mouth product you are using customers. Many of the users of your product will tell you, “I don’t want to do the business.” However, people like to tell others about the good things they find. Once they have a friend who wants the product, they WILL (in many cases) contact you for help signing up their friend.
If the company you’re looking for makes it easy for product users to sign up a friend – and the company pays them for it, you’ll be building on a solid foundation.
If the company insists that product users become a representative to get paid, run! However, if the company has a system that allows a user of the product to overcome the monthly cost of the product by signing up some friends – that is the basis of a winning combination.
Why? When a product user comes to the monthly price of the product they are using, they are “bullet proof” because all competition is eliminated – they will never find the product elsewhere for free … and some will convert into business. builders at the micro level and some at the mega level.
The logic goes like this:
Product User: “If I can get my product for free by signing up some product user friends, what could I do if I became a distributor and started treating this like a business?”
We have had many people making $300, $600, $1,500 $6,000 and more a month who started out as users of the best quality product. The key is to help product users like they have problems (because they matter most).
The only thing better is if a product user gets a check (no matter how small) after signing up one friend who ordered – again, this is because 80% of networks never get any check. Just receiving any check (or electronic payment) is shocking to most people.
How did we sponsor 300 people and build a stable group?
In our previous MLM experience, it was the above features that allowed us to sponsor 300 who became 10,000 people – the vast majority were product users or small builders. Out of 300 sponsors, only a few were hard charging heavy hitters.
Dirty little secret about MLM #3:
As you can see, the vast majority of our former group were product users – many who became micro builders, typically making $300 a month.
What is the 3rd dirty secret about this?
The network marketing industry guides you to go after existing network marketers. The problem is that many existing networks are victims of the “next shiny object” syndrome – they fly like a parrot for the next shiny bobble in the network.
Product users are from the general public.
They are NOT looking for a network marketing gig! They don’t know what you are talking about. On the other hand, 7 out of 10 people on the street (and online) want to know about a hot new product. We (you and me – the general public) are always interested in hot new products, aren’t we? Were you interested when the first iPhone came out? We were.
So it follows – building your network marketing business by gathering product users is the way to go. MLMers do NOT do this – they take what they THINK is the “easy way” – they think they will sponsor “seasoned network marketers.”
It is a big and often repeated mistake. Take the network marketing sponsorship route and you will be in for a lot of rejection and you will have a hard time building stability.
Life is about taking calculated risks. Business is about taking calculated risks without risking a lot of money to start. Do not spend any money for a while in any company you join. Sign up for free and check it out. Ask people you know for their opinion. If everything feels right, take the next step and order the product. If you get results, consider “doing the business.”
The redeeming factor about networking is exactly that – name for low startup cost. Don’t bet the house. There is no other business model on the planet that offers so much upside for such a low investment – and offers so little risk on the side.
Again, we were upset with our network marketing company because it didn’t last – but neither did our real estate office. The BIG difference? We KNOW the total amount of money we have earned in MLM.
We also knew the pain and financial loss of conventional business when the real estate market moved – it was not nice. AND we did not have 3 years to play and do anything we wanted to do while we were operating a conventional business!
What should you do next?
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