MLMs- Waste of time
or Goldmine? By Sharon Davis
When most people think about Multi-Level Marketing,
they envision slick-talking, insurance salesman-like people pushing
their products at everyone in sight. Maybe some of you have even
tried MLMs, didnt get insanely rich overnight and gave
up thinking, I must not be cut out for this business
or this is the last time I fall for one of these schemes.
Part of the reason that many people dont make
any real money with MLMs is that they go in with unrealistic
expectations. Its not really even their own fault either.
Alot of the ads you see out there are promising some pretty appealing
stuff; overnight riches, insane profits, quit your job today. If
it were really that easy, wouldnt everyone be working in their
pajamas and retiring at 30?
Want to know the truth? You can make money with MLMs.
Good money. I know, I make good money.
So whats the secret you ask? Its not
really a secret. If you think about it, its really just basic
business technique. The problem is that the true nature of MLMs
can be clouded by all the hype, and people that arent well-suited
to this business join up thinking its their ticket to financial
freedom. Lets look at the pros and cons, and you can decide
if an MLM can work for you.
PRO: When you join an MLM company, you are
basically starting a business. But its kind of like a franchise.
Youre using the tools that an already-successful company has
tested, used and proven to be effective. Youve got a great
product (Im assuming youve chosen a program that does,
in fact, offer a quality product). All of this already gives you
one of the biggest benefits of MLM programs: you dont have
to deal with the manufacturing, the packaging, the shipping, the
inventory, the order-taking. Your focus is on the advertising, and
because of the power of the internet, this is literally at your
fingertips. In short, the company does most of the work for you.
CON: This very fact can actually be a drawback
for some people. It goes back to unrealistic expectations. Because
it seems so easy, some people think that they dont have to
do anything, that the money will just start rolling in once they
sign up. You laugh, but Im telling you that I see this happen
every day. In fact, more people dont do the A-number 1 thing
that you must do which is to place at least ONE ad. It would be
like planning a great party with the best caterer in town, but not
sending out any invitations and hoping that guests would just come
stumbling by. The bottom line? You do have to put in time, effort
and sweat equity, just like any other business.
PRO: Promoting an MLM program allows you an
extremely flexible business. It really can be done in your spare
time. Most of that sweat equity is spent in the beginning; planning,
organizing, placing your initial ads, etc. Once you have the foundation
in place, most of your time is spent finding new ways to promote
your business. You arent tied down to a 9-5 schedule, you
dont have to attend meetings, wear suits, be at the mercy
of your boss.
CON: It is imperative that you follow up religously.
By following up I mean not only with your leads, but with your downline.
This is the absolute key to turning a little trickle of sales into
a real source of income. The secret is in your downline. Most programs
offer at least a 2-tier commission program. Many go much deeper.
Those who are making the really big money are the ones who teach,
mentor and follow up with their downlines. Personally, I wouldnt
classify this one as a con, but I know that many would. If YOU want
to be successful, then make THEM successful. And what about your
leads? Youve probably heard it before, but Im going
to say it anyway; on average people have to be exposed to your information
7 times before they will buy. The good news is that so much of this
process can (and should) be automated. If you only use one tool
to automate your business, then make it an autoresponder.
CON: If you absolutely cant handle rejection
and/or cant stick with something unless it gives you immediate
results, then MLMs are not for you. Most people give up before
theyve even given it a chance. Even with a killer ad
its still a numbers game, and persistence will pay off. If
nothing youre doing is working, you have to make changes,
test, monitor. Then you have to make more changes, test, monitor.
Then, when you find just the right ad and just the right places
to post them, they might suddenly stop pulling. Remember, this is
your business. Youve got to keep changing your approach as
your audience changes. Look how quickly companies change their commercials.
Theyre responding to the changing market. This is why Jack
was blown up, and its also why hes Back.
Always do your homework before you sign up. Ask for
references from existing associates. Contact the BBB and see if
they have any information on the company, good or bad. Be sure to
read all the information that is presented to you. My personal recommendation
goes to OutSource2000. Its my most successful program by far.
Take a look for yourself here.
So whats the moral of the story? MLMs
can be a viable source of income. They can be for you if you are
persistent, organized and enjoy helping others, but theyre
not for everyone. Take stock of your skills and your expectations
and you will be able to make an informed decision rather than wasting
your time chasing something thats just not for you.
Resources:
The
Better Business Bureau - They have
an alerts section and local BBB information.
The FTC - has
a lot of information on which MLM's to stay away from. Just by doing
a search at their website for multi-level marketing you can get
a ton of information. You can find out which companies are or were
being investigated or taken to court by the FTC, and lots more.
Cagey
Consumer - Keep on top of the latest scams, and investigate
hot topics like Internet fraud and travel scams.
© Copyright 2000 Sharon Davis.
Sharon Davis is the Mother of two girls, the owner of 2Work-At-Home.Com
and the Editor of the site's monthly ezine, America's Home. In her
spare time she reminisces about what it was like to have spare time.
To subscribe to her free ezine, Click Here
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This page last updated:
Wednesday, October 19, 2005 11:06 AM
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