subject: Analyze an MLM Opportunity in a Logical Way [print this page] How to Analyze an MLM Opportunity How to Analyze an MLM Opportunity
Coercion has certainly been the hallmark of most network marketing strategies. Although some organizations are striving to change that culture, the fact is, most people who join these organizations do so with little thought.If you are someone you love is considering joining a multi-level marketing origination it is critical that you are able to analyze the opportunity in a thoughtful way.
Most folks simple do not take the time to investigate and answer two very important questions;
1) How much money is this opportunity going to make me?
2) What exactly am I going to have to do to make that money?
Because of this lack of questioning the vast majority of participants in the MLM industry run into what I like to utter and complete failure! Don't get me wrong folks; I am a proponent of the MLM industry and a veteran at it myself. I have personally known people who have made well over 6 figures by working MLMs; however, it is sobering to look at the actually statistics. Only about 5 percent of people join an MLM make any money at it; and only about 1 percent make significant money at it.
I know what you're thinking, well mike, I'm going to be in that 1%! I'm going to make that 6 figure income and quit my job! Well, I would tell you great, but do your due diligence before joining any of these organizations. The MLM industry is one of the best ways left to create real wealth in this type of economy, but onlyI repeat only with careful consideration of the follow issues.
So here it is folks; the patented "Mike Fish LITMUS TEST"
This in an acronym that I have developed and use to analyzing MLM opportunities. I have been asked to share it and I refer back to it when looking at these organizations. I'm going to be taking a look at many of these MLMs over the next few months.
L stands for loss, the loss of members. How many members are leaving them and how fast? If you were looking for a job and saw an ad in the paper for an employer that you knew that 80% of the people who work there quit in the first six months would you apply? Or do you want to spend 100 hour of your time to find 100 people and have 80 of the quit? This is the reality that most folks in the industry run into.
I stands for income. What is the real income opportunity? Not all MLMs are equal and some simple do not have the kind of compensation plans that are going can make anyone a lot of money. What's important is that you have realistic expectations of the opportunity so you don't get led into selling "get rich quick" hype to other people.
T stands for time; the amount of time you're going to have spend to find people to join you.
You need to hear on this one folks. The big one! How are YOU going to find qualified, interested people to join you? How much time and money is this going to cost you? If you have been told to quickly write a list of family and friends and harass at least 5 of them into joining you in the next week, folks I have to tell you through experience. I would personally run! I've been there. I've been so excited I couldn't get to sleep over a "life changing opportunity" that I just wanted to share with my family and friends because I loved them so much!
Folks unless you Oprah you don't have enough friends to make any money marketing a MLM to people you know! Where are you going to go from there? More importantly, where are the people you have ask to join you going to go? A successful multi-level marketer must have a solid, practical, and realistic plan to find interested prospect. THAT IS HOW THE 1% DO IT! THEY HAVE A SYSTEM OF FIND not only other people, but other 1% to join up with them!
M stands for mentoring. Are you going to get solid, significant, and practical ongoing mentorship on how to successfully work this business? This is where even many of the best MLMs fail. Most have expensive, hype filled training events that you must attend if you really want to learn the business. In most MLMs 90 percent of an individual's time to spent trying to find new prospects so you tell me; If you have 20 hours a week to work your MLM how much time are you going to have to help, support, and train the people you get it?
U stands for "you." You must ask yourself; is this opportunity is right for me? Are you really passionate about the product or services offered by the MLM? You must consider that if you are actually going to succeed at an MLM it's going to be your job! It is something you are going to be doing for years! Can you stay excited about it long term?
S stands for Selling. What exactly are you going to be selling? Take a good hard look at what product or service the MLM is offering. I would estimate in my experience maybe 50% of MLMs out there have a valuable and long term viable product, service, and in turn opportunity. I want to take a minute to discuss "opportunity"
Don't be an opportunist folks! It isn't right! It's not right to jump into a deal looking to make a bunch of fast, easy money off other people and then move on! I've had it done to me; and I'm ashamed to say I'm done to others. You can always smell that type of deal because they sell the hype. Don't buy hype. Don't sell hype! Hype does not last and at the end of the day 95% of the people in any MLM never make any money at it. You have to be able to look yourself in the mirror and say; I didn't rip them off!- I'll give you a good example; My wife and I have been in Melaleuca for years. We love the products, but I've never put any real effort into selling it so we haven't made a cent. I haven't been ripped off? I'm getting value product for what I'm paying for. Anyway, at the end of the day the opportunist may have a few dollars in their pocket but they also have a few less friends and I hope we know which is more valuable.
Sorry this has gotten so long folks, but I believe this is information that many many people need to consider. If you have a loved one trying to get you join a MLM be kind, but firm. Send them to this article. Tell them if their organization can pass the "Mike Fish LITMUS TEST" you will consider joining them. I have found only about 25% of MLMs out there truly pass in every category. There are some great ones out there, but a lot of really bad ones too! One must have the ability to cut through the hype, false promises, and BS before you waste your time and money. I've talked to many folks that have been through several MLMs. I certainly went through a few before I found what I'm doing now.
Don't give up. Any with the right amount of determination can make good money in the MLM industry. The key is to find an MLM your truly passionate for, make sure it passes the test, and keep working at it.
