Multi Level Marketing – Bad Investment or Bad Rap?
The purpose of this forum is to seek positive and negative experiences in various marketing ventures.
I always get a little upset when people say, “That’s a Pyramid Scheme”, without understanding why that phrase is so widely used. In the past there were few if any laws to control company marketing plans. It was not uncommon for people to have hundreds of dollars of product in their garage that they couldn't sell or even give away. Sometimes the company went out of business before a distributor could make that promised fortune, and sometimes the company was just run by people without any integrity or ethics. I’m sure there are a lot of existing companies that may be bad investments but how about all the companies that are still active after many years and still generate pay checks every month?
I have participated in unsuccessful MLM’s in the past, yet I know a few people, who have made thousands per month in various MLM companies. Yes, I'm sure this type of income is not made by the average distributor but with dedication and some sales ability I believe that the average person can make a good supplemental income or even a good full time income in some cases.
During the first week of February 2008, I received a phone call from one of the individuals that I knew to be successful in the past with MLM, he told me that he had not been active in any marketing program for 15 years, but wanted me to look at a program that he felt was the best opportunity he had come across in all these years! Sound familiar?
Remembering that many people fail numerous times before they “strike it rich”, I decided to take a look at this “Great Opportunity”. To my surprise the company looked as good as my old MLM acquaintance had told me, in fact it looked like you could participate at no risk, even get your initial investment back by returning the used or unused product within 60 days! Most impressive was fact was that one can get the product at an unbelievable wholesale price. So I'm signing-up to try and fulfill that dream of finacial success!
Please tell us about your experiences, good and bad.
Notice: I recommend that you use your own due diligence before becoming part of a company or purchasing their products.
I always get a little upset when people say, “That’s a Pyramid Scheme”, without understanding why that phrase is so widely used. In the past there were few if any laws to control company marketing plans. It was not uncommon for people to have hundreds of dollars of product in their garage that they couldn't sell or even give away. Sometimes the company went out of business before a distributor could make that promised fortune, and sometimes the company was just run by people without any integrity or ethics. I’m sure there are a lot of existing companies that may be bad investments but how about all the companies that are still active after many years and still generate pay checks every month?
I have participated in unsuccessful MLM’s in the past, yet I know a few people, who have made thousands per month in various MLM companies. Yes, I'm sure this type of income is not made by the average distributor but with dedication and some sales ability I believe that the average person can make a good supplemental income or even a good full time income in some cases.
During the first week of February 2008, I received a phone call from one of the individuals that I knew to be successful in the past with MLM, he told me that he had not been active in any marketing program for 15 years, but wanted me to look at a program that he felt was the best opportunity he had come across in all these years! Sound familiar?
Remembering that many people fail numerous times before they “strike it rich”, I decided to take a look at this “Great Opportunity”. To my surprise the company looked as good as my old MLM acquaintance had told me, in fact it looked like you could participate at no risk, even get your initial investment back by returning the used or unused product within 60 days! Most impressive was fact was that one can get the product at an unbelievable wholesale price. So I'm signing-up to try and fulfill that dream of finacial success!
Please tell us about your experiences, good and bad.
Notice: I recommend that you use your own due diligence before becoming part of a company or purchasing their products.
Replies to This Discussion
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Permalink Reply by Kieran on -
Mike
Yes I agree the MLM business as a whole does not have the best of reputations at all, one would suggest that
they are down there with the used car salesman.
I too was involved in probably the world's best known MLM Company, I won't mention their name but it start with an A.
I did nothing but pour money into it hand over fist,purchasing their over priced product,going to meetings everyweek,
conferences and all that goes with that particular company,the whole problem(for me anyway) with that company and the majority of these companies is that they depend on there affiliate members to be consumers of their product,rather than working the business,which requires introducing people to your network.
I lasted about 2 years with the big A , made no money what so ever and that was about 10 yrs ago now, just before christmas I came across an ad on a web site about earning $5000 a week,mmm that appealed to me so I checked it out,I was blown away by what was being proposed and claimed by this particular company,so I did my due diligence
for about 2 weeks,while all the while I must confess I was very excitied by what I had seen,you know the feeling when you lay in bed at night and you can't sleep for wondering what might be...
Well about 2 weeks before christmas 07 I had seen enough, and I certainly liked what I had seen too,I was in...
Had I been sucked in yet again? I didn't think so, so off to work I went doing what I was told to do by the people already involved in the business,it is so simple all I had to do was Simon says....place ads, and plug into the system created for me. I can do that! How hard is that....my kids could do that for me(if I had kids)
So all I can say is I have at last found the ideal home business for me that requires no selling, no meetings, no phone calls, and the best part for me no product to consume,stock or deliver.
Ohhh yeah and the best bit is it makes me money....a couple of grand a week at this stage,which will build & build week after week as my team builds too...
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Permalink Reply by Dreamweaver on -
Mike,
I think there are a myriad of reasons for failure in MLM and just as many for success.
The same is also true for "conventional" businesses. If you think about it, 99% of U.S. businesses are small. 80% of new businesses fail in the first year and most of the rest fail in less than five years. So if the success/failure ratio is the guide, shouldn't entrepreneurialism as a whole get a bad rap?
The company, the product or service, the timing and the individual need to all coalesce into a synergistic whole for long term success. I enjoy what I'm doing now and not just because I'm making money. Personally, I'm not genuinely money motivated. It took a lot of experience to find out I'm motivated more by the mission than the money. Perhaps it's a misguided hero complex left over from my Marine Corps days or simply Quixote like but none the less, it's the mission that moves me.
Affordable Justice for All!
Jerry Chavers
http:www.greatplans.us
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Permalink Reply by Myles Harman on -
Hi,
I did research on many, MANY home based business. Some which use the network marketing model and some that use a different business model. I am happy to share my knowledge with anyone who is interested. As a result of my research I was able to find the company that was right for me.
Today, I successfully run three home based businesses and many of the people I surround myself with are in the same position. I now help people to find which home business works best for them.
Cal me on 1-810-299-1688 or visit my URL www.homebasedbusinesshelper.com
I look forward to speaking to you.
Kind Regards,
Myles
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Permalink Reply by Michelle Cobbs on -
Good topic Mike,
Before making my comment, it is safe to say that networking marketing or MLM is not for everyone nor is everyone ready for network marketing. With that said, depending on who you speak to on the subject you can get those who have been 'burned' as a result network marketing gets a bad rap. On the other hand, if you speak with someone who is successful in this industry network marketing is the best business to be in period.
It all depends, building a successful home-based business is hard work it takes dedicate, determination and a desire to succeed at making it work. Doing what you have to do to fulfil your goals, and dreams. What is your 'why' for building your business many people have no clue as to what that is there 'why' is to have more time home don't get me wrong that is as good as any I am suggesting that it also be more like having that dream house you have always wanted, or being able to buy any car you want, its about setting goals and fulfilling your dreams once you achieve one dream some more.
For me it about making my dreams, all of them a reality by starting today for a better tomorrow. good luck
Michelle
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Permalink Reply by Nick James on -
One of the primary reasons a person has success or failure in a network marketing home business is because of the proper structure or lack of proper structure of a home business. Most people that start a home based business of this nature never consider how to properly build and structure their business. Their initial goals needs to include how are they going to identify, target and prospect the several key people they will need to make their business a success.
Think of it like this - virtually all businesses involve marketing - getting the word out about their products or services. In a traditional business would you leave the success of your business up to having your mom and friends tell others? No - you would look for and hire some people very good at getting out the word so to speak.
Network Marketing businesses work just fine when people understand that they need at least a couple key people to promote their product and business. It doesn't hurt to also involve family and friends getting the word out. The problem is most people starting a network marketing business depend almost exclusively on the wrong people - friends - family - basically amateurs.
Our goal is to educate people how to be successful and target these key people.
http://www.health-goji-juice.com/home-business.html
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Permalink Reply by Sandy on -
Hi!
I like MLM's but only ones that sell products that are either cutting edge, cannot be found anywhere else or are priced to compete with their retail counterparts.
You will see in allot of MLM's that the products are over priced in order for all of the "middle men" for each of them to be able to take a profit from the pricing. It has to be that way otherwise you would have to limit the amount of "downlines" in order for each to recieve a piece. To have 100 downlines would mean the person at the top basically does not recieve a piece of the bottoms sales, so pricing has to be inflated. I therefore like the idea of mlm's that do not have a big tier or lots of downline levels, the pricing then remains intact or inline with other industry standard merchandise.
I am a little leary of drinks that are 25-30 bucks a bottle, even at small doses or higher percentages of nutrients, you can compare labels to regular retail supplements and see the large markup involved in a MLM product. Cosmetics may be not as much, since it is really hard to sell a mascara at $50. bucks when comparable designer ones in Macys may only go for 25-30.
Other than that the only other problem with MLM models is when you dont see the product reach the public, and it becomes a "pyramid" of the business only making money on the backs of the distributors having to buy the monthly quota backstock...and it not moving...
And having to buy the promotional goods such as catalogs or samples is money that is filtered straight to the business. Again, the top making money off of the business supplies of the distributors. I remember selling AVON in the 70's and catalogs and samples were free!!!!
I suggest shopping for the MLM if it is something you would just like to make money off of, and decide if you have a nitch market. Or if you just like the product line and use it yourself, then any MLM is fine, as long as it is not super inflated...
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Permalink Reply by Mike on -
Thanks for the input Sandy. Good advise for those who are seeking a viable direct marketing company (MLM). I have been in sales for over 34 years and hadn't participated in a MLM for over 12 years but when a friend called and told me a company that did meet all the requirements you mention and more, I found myself excited and I quickly jumped back into the MLM biz. My only problem now is learning how to market on the Internet , as I am retired and don't get around much anymore. PS: Visited your site...Nice Work!
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Permalink Reply by Diana on -
Did anyone see Donald Trump when he was on Letterman?
Dave asked Donald to give people the best business advice,he said NETWORK MARKETING!!!
The audience laughed,and Donald said "that is why I am sitting up here and you are sitting out there!"
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Permalink Reply by Mike on
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Thanks Diana, thats a great quote! I believe The Donald is right, but finding the right MLM Biz can be tough. Just remember, The Donald is no fool eitherso I doubt if he would recommend 10% of the exsisting MLM companys.
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Permalink Reply by Mike on
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Michelle, thanks for the imput, it is important for everyone interested in networking marketing to know that it does take hard work to really succeed. Having a dream is a good thing!
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