My Truth about MLMs
Posted Jun 11, 2003 - 05:33 AM
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MLM, the much abused, misused, abjured word. What is an mlm ? A satisfied client who goes and tells about his happiness to others, or a person who has been tricked into a program and he tries to make a fool of others ?
My View of Multi Level Marketing | | MLM, the much abused, misused, abjured word. What is an mlm ? A satisfied client who goes and tells about his happiness to others, or a person who has been tricked into a program and he tries to make a fool of others ?
It is a never ending debate but I will like to share my 2 cents.
It has been observed that only 5% of the people in a free to join mlm type of program make a profit. That is because, we may say, the 95% are lazy and never put in enough effort to succeed, a fair argument, but only 20% of those who join paid programs and make an effort, ever succeed, why ? This is because of the very nature of an mlm, the people at the bottom feed the people at the top, so in order for the people at the bottom to make any profit, they will have to get others under them so that they are no longer at the bottom, but still the 20:80 ratio is maintained, because for every 1 person who makes a profit, there are approximately 4 people (on average) who are not making any profit, and for each of those 4 people to make a profit, they should get another 4 under them and so on. The ones at the top remain because they are making a profit, the ones at the bottom either try hard to bring in a sizable downline or drop out, new people are always willing to enter the viscious circle to ballance the dropouts, very few of these newly recruited people may really succeed. So that describes the general nature of an mlm.
But wait a minute, before you start thinking that MLM is bad, know that it is your best bet if you are looking for a work once and get paid forever type of system which gives you residual income. The main advantage of such a system is that once you get there and start making the money, the money will not stop comming even if you stop working, or atleast if you keep working the way you did to make a profit with MLM, your income will keep growing.
Is it good or bad ? Well mlm is just a system, it depends how it is being used and what the product is. If there is no product and just a piramid scheme, where you join and pay with the hope of getting money when others will join under you, then it is bad, because not everyone can profit in such a system, and for each person that makes money there are many others who are loosing it. In this type of a system, the member pays for a dream to become rich, not for a product, and sells that dream to others in order to get rich himself. If dreams were products, everyone would be rich, for free ;) The other type of mlm is where you buy a product because it is worth the price, the member pays primarily for the product and the downline commission is only a bonus, as a secondary attraction. Such an mlm is a good one according to me, but the catch is that in order to pay commission, such a product will have to be priced higher that the competitive non mlm products.
Some people will shigh away from the very mention of MLM, some websites will proudly advertise on their main page saying "This is not an MLM scheme" like as if that makes their program very scam free. All this adds to the confusion of innocent people who form the false opinion that all MLM opportunities are bad. The truth is that even in a good, honest, scam free, legitimate MLM program one has to work hard to earn money. It is not easy, but it is the best option for you if you are looking for a work once and get paid forever type of system.
MLM in Nature : An interesting parallel to mlm can be drawn from nature. The propagation of the human species is similar to an mlm where two people refer a third (child) who will refer others into the family. The only difference that stops the population from exploding is the time involved for maturing and the ageing of the parents, otherwise god help us ! There are even more parallels if one is keen on drawing a comparison, one gets into an mlm system as a marriage say, there is an honeymoon period where everything appears beautiful, you enjoy the sex (marketing) even though it drains your energy, you do it again and again, as long as your relationship is going smooth, after a while you realize the shortcomings in your program (partner) and then if your relationship is strong, you either stick with it and experience the true love (success) or divorce and move on to another program. Some may be so fustrated by the experience that they will remain single for the rest of their life and never make a commitment to another program again ;)
So as we deleberate over the pros and cons of the MLM system, there are thousands of people earning their daily bread and much more making use of such systems ! So do you want to get on the bandwagon ? I would recommend you have a look at Home Base Business if you wnat to know about our recommended MLM opportunity.
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Note: By Mufad |
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