MLM – Work the plan and the money will follow. Really?

MLM – Work the plan and the money will follow. Really?

Have you ever been invited to a business opportunity that will “change your life?” How about going for a drink with your “friend” at a hotel, and not a bar? Please tell me you know what I’m talking about. This is exactly the type of deceptive and pushy tactics that have given MLM a bad reputation.

So, what is multilevel marketing (MLM) anyway? In the most basic form, it is a business model that requires that you sell products and services while building a sales team that duplicates your every action. You are required to sell a certain amount of items consistently over a given period of time to qualify for a certain income level. To do this, you will need to build a sales team that will now buy all their products from you.

Each member of your team will then separately build a team of their own that will also buy their products. This process can be replicated further down the line to infinity. The bigger your team, the bigger your sales force, and as result your pay checks. You, the initiator or the “top dog”, earn a certain percentage of all sales made by your entire sales force.

The thing I like he most about MLM is the leverage that you have with such a model. Residual income is REALLY what I am talking about. I find it similar to real estate investing where you do some hard work once, and you get paid for life. What this means is that, through your one time effort, you continue to receive weekly or monthly checks without fail – in some cases, the checks increase month after month as your organization continues to grow. Imagine receiving a 10-25% pay raise every month?

Before you start your mental calculation or pulling out your calculator, know that this level of success does not apply to all. These results (when they occur) only happen after 2-5 years of very intense work. They are definitely not achieved through shortcuts or laziness. In fact, the US bureau of labour statistics estimates that not more than 10% of multilevel marketers make a full time income. This should not come as a surprise as they are simply a reflection of our current society where the rich continue to get richer and the poor poorer.

Those members who are at the bottom of the ladder are paying for the luxurious lifestyles that those at the top are enjoying. While you may be thinking…”this is unfair”, those concerned are of the contrary opinion. They contribute faithfully to the advancement of their “up lines”. The main reason behind this acceptance is because, they are convinced that one day, they TOO will be in that same position, and they would require the same loyal following. So, they buy the tapes and the leads. They “cold call” for hours and they buy any and everything that their sponsor/up line asks them to. So, where is the limit?

As I mentioned earlier, the benefits of multilevel marketing (when you succeed) are enviable. Nevertheless, the question I ask myself is…at what cost?

Making a list of all my family and friends and refusing to relate with them in any other way unless they “join the business?” This is the one thing that sends a chill down my spine. I have unfortunately seen families break up and split because of a refusal of one family member to join. If a family member dares to criticize “the business” or their methods, all hell breaks loose. In some organizations many have reported cult-like followings and doctrines that would make many gurus blush!

While multilevel marketing differs from network marketing, the two are usually used interchangeably. Even though there are new online companies that promise, you will never have to speak to any of your friends or family, know that you will still need to address someone’s friend or relative about a “business opportunity” that you may not be fully convinced about.


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