subject: MLM Reality in 2010 [print this page] You are an entrepreneur and you want financial freedom. You know that in order to get financial freedom you need to have your money working for you and not the other way around. You know residual income is the solution to help you get there.. You can invest in stocks or real estate but that road is certainly not a sure thing anymore. So you start looking at the Multi-level marketing industry (MLM). The idea sounds good and 3-5 years from now you will have built a five figure residual income, or not What is the reality of the mlm world in 2010?
The hiccup with multi-level marketing business as we know it is that it is still the same from 20-30 years ago when the Herbalife and the Amway's of the world got started. As you will discover the products are great but you could get the same products at a 70% discount at your local vitamin or grocery store. The world of mlm is made of vitamin, cleaning products, lotion, potions, vacation, juices and much more. They can afford to pay commissions because the products are sold at a premium price.
In a book written by Jim Collins name Good to Great. He describes what a great leader is. One characteristic of a great leader is they face the brutal facts. They want to know the brutal facts so they can make the best decisions for the business they are leading. If you want to own a business, you have to learn to face the brutal facts as well and in this case, it is the brutal facts of the MLM world. Here are the facts that you will be dealing with if you decide to start a multi-level marketing business.
1. Be prepare to make a list of friends and family members and make them the mlm sales pitch.
2. You will have to buy leads
3. Once you went through all of this. You will have to make a list of the 100 professionals you know and make them the sales pitch.
4. You will probably enroll a few people at first which will give you confidence but after a few months, your members will start dropping out because they are not entrepreneurs and they don't want to pay premium for products when they can get at much cheaper price at their local store.
5. You will constantly fight the attrition in your business for a few reasons. Let's say you have 400 people on your team and you are making around $3,000 of residual income. Not bad but what could possibly go wrong?
a. A rep just below you decides to go to another MLM and he/she takes everyone on their team with them. (that is 30-50% of your residual income)
b. The company changes the compensation plan and the person that enrolled you does not like it so they decide to go to another MLM and with the click of the mouse, they send an email and take everyone with them. (50-75% or your residual income)
c. No long term commitment from your reps because they are only loyal to their options.
d. Downline will be ruined overnight just because of fabricatedrumor
6. You will constantly be dealing with complaining reps and having to hold their hands.
7. The constant competition of a new MLM launch almost every day on the internet offering a better vitamin, juice, vacation deal etc. etc.
8. Fighting the competition that will try to steal you reps away with the idea of being at the top of the food chain because let's face it, the only way you have a chance to make money with MLM is to be at the top of the chain.
9. They are still using the same conventional marketing techniques they were using 10-20 years ago. These methods do not work anymore. In fact the methods that worked 2 years ago don't even anymore either. Time changes but MLM did not.
10. Almost no training is provided. I run into many mlm business owners that ask me how to promote their business on Twitter or Facebook. You would think something as basic as training for social medias would be offer but no, it is not.
11. You only have your sponsor as a resource
12. No sales personnel to help you make the sale.
If you are a leader you will not be afraid to face these facts when making your decision to own your own business. Unfortunately these are the cold hard facts and reality of the mlm industry. It will be very difficult to find success with mlm today. If you are looking for long term financial freedom, MLM is not the way to get started. There are many other opportunities that will give you a much better opportunity of success on your road to become your own boss. Keep looking and don't give up on your dreams.
