MLMs...a greater understanding of the easily influenced.

[JennaOkstate]

I've recently began educating myself on the mysterious entities of MLMs and their undoubted 99% failure. I find myself amazed at the number of people who will actually buy into the crap that these, essentially, "get rich quick" schemes have to offer. I have also been approached by these zealots of MLMs time and time again weather it be person to person or via some lousy spam e-mail. I am just looking for feedback on this rediculous phenomenon of overmotivating and counter-productive MLMs. Pros and Cons welcome. I'm just doing this for further education and insight. Those who do respond to this topic, please try to be intelligent in your arguement but don't use a bunch of jargon. And if you're a, what I like to call, over-motivated zealot for an MLM please do not be rude or vindictive. This is for informational purposes only.

J McDonald

[~Karen~]

I am one of those MLM zealots that you are referring to.

As with any businesses, nothing is a get rich quick scheme. Network marketing, or MLM, takes a lot of work, time, effort and patience.

Those who believe it is 'get rich quick' were mislead by the person who showed them the opportunity.

Anyone can become sucessful at anything they do. The success depends on the person, not the company the business or the job.

Karen

[JennaOkstate]

Karen,

Thank you for your response. I should probably clarify myself on the "get rich quick" scheme. I've been mostly reading up on the MLMs such as Quixtar/Amway/Alticor, Herbalife and such. I am curious to see who has/has not succeeded at MLM's. I myself have not "invested" in an MLM, but just merely curious about the experience of those who have. Personally it just seems that "corporations" that claims to have IBO's or Independent Business Owners, and I stress Independent, seem to have their hands in alot of the operations of an "Independent" business. I'm just curious as to peoples thoughts. Thanks.
Jenna

[robotomator]

Originally Posted by ~Karen~

I am one of those MLM zealots that you are referring to.

As with any businesses, nothing is a get rich quick scheme. Network marketing, or MLM, takes a lot of work, time, effort and patience.

Those who believe it is 'get rich quick' were mislead by the person who showed them the opportunity.

Anyone can become sucessful at anything they do. The success depends on the person, not the company the business or the job.

Karen

Yes, you're right, but I guess one has to make a distinction between MLM's who offer real products, are product-based (just affiliate marketed) and MLM's who need new money input to pay the earlier promotors (Pyramid schemes, scams).

[patrickwagner]

I've been moderately successful in mlm or network marketing in the past. By moderate I mean I made $2-$5k/month - not a millionaire by any means.

The truth behind MLM is very simply the personal development aspect involved with most MLM companies. Most people see personal development as motivational speaking but these are two different things.

Any good sales department or affiliate program are the basic concept of MLM - you need a good sales team that will go out to the public and shout the benefits of your product and make lots of sales.

The reality is that sales are not easy whether you are developing a qualtiy web site or doing home meeting with your friends, family and strangers to sell products. So the biggest factor in the success of any one in MLM like in affiliate marketing online is their ability to TRAIN, MOTIVATE = GETS RESULTS.

The further removed you are from constant contact with affiliate network and the key is to support them to allow them to grow and become better and therefore your business will benefits as your affiliate become better online marketers.

The miss fact in most affiliate programs online - unlike MLM is that MLM programs always have personal development tied into their programs to help improve the lowest common denominator (the avergage joe - you and me). While with most affiliate programs it's hard to even get a personal email response back within 48 hours. This is why most individuals stay in MLM paying the monthly fees for the development, whether that is for overcoming shyness, public speaking, presentation making, learning sales or marketing. The lessons, books, audios are there to learn how to overcome and get the job done. Since the more development a sales team does the better it gets - the one that does less talking,calls,goal sheets etc will always lose.

This does not yet fully exist for affiliate programs - that why some many "average joes" join MLMs rather then online affiliate programs. Let's just say your affiliate banner and affiliate link code are nothing incomparison to individuals willing to pay for their education to become better or to over time their flaws.

There are many cross-overs here - as the transparency of online affiliate programs will start to have a large offline presence. To teach and encourage your many thousands of affiliates. This is already being done by eBay and other online affiliate programs have yearly conference for tops resellers - this is the closest thing to MLM out there in #s, profits and range of products.

The more you can type the two together the great your success both offline and online.

Thanks.

[drummin]

I've been in network marketing for about five years and been in a number of companies and their systems and I have found one common problem with all of them.
All legitimate companies, even the hottest sellers in the industry right now all require that you purchase product to get paid. I don't have a problem with that. This is how MLM works. The problem comes from getting to the breakeven point.

See, I've signed up hundreds of members and worked with them to cross that magic barrier. Many members make a dozen referrals but don't cross that line before they can't afford the business or product and end up quitting.

So I’ve spend almost a year now developing a downline "Prebuilding" system where a member joins my system (For Free), they learn to make referrals, who are then assigned to their downline. Once they have added twenty business builders to their line, they are then processed to join the primary network marketing company. By having people actively building the business for each member who is processed (for the Primary) at the point when they join, this gets each member past that barrier faster than if they were paying upfront for product right from the start.

As each of these downline members, gets their twenty business builder under then, they are then processed under their referring sponsor. It's a strong program which can save the new member tons of cash because they can build their business first.

I don’t think MLM is bad; it is one of the fastest ways to make money for home. It's just hard for most people to get to that breakeven point. Which is why I build my system.

[JennaOkstate]

Thanks for the responses. I read each and every one when I get a chance and try to respond back. Another topic concerning me is you tell me that you do well with your MLM or Affiliate Marketing program but have not disclosed which AM/MLM that you currently are "investing" in. If you are doing well, please let me know which company(ies) you are associated with so I can get a broader understanding. Thanks.

Jenna

[mktplace]

Many good points have been made:

1. nobody gets rich quick
2. you gotta work the system
3. training and support are the secret sauce
4. many MLM require you to buy product (money's gotta come from somewhere, right?)

Here is an MLM that meets/exceeds many expectations folks have:

1. They don't promise you will get right quick (their pay cycle is like 60-90 days after the sale)
2. They make it easy to work the system (everybody uses telecom products, and most people pay too much)
3. They have TONS of training and support material
4. The products they want you to buy you already use anyway! (telecom, cellular, internet, dish, pagers, computers, ...)

The company is Cognigen Networks, and they sell telecom products. I am not getting rich off them, but the income is decent, and residually based (i.e. someone signs up for Long distance and you make money every month they continue to use the service).

re: all your concerns... believe me, I have been there, and done that. I have the soap and herbs in abundance to prove it.

There are lots of ways to make money on the Internet - MLM is just one of them, and they have their good point and their bad points.

As most succesful Internet marketeers will tell you, it is far better to have 10 systems in place making you $5000/mo each; than one system making you $50,000/mo - why you ask? Just read about all the pains folks have keeping their sites placed well in the search engines, and think diversity, diversity, diversity.

To me, the Cognigen Networks MLM opportunity is both another system (of the 10 you should have), and also one that is a little more tolerant of rises and falls in the search engines, since the cusotmers I already have continue to make me money - vs. systems that are single sales based.

My too sense.

Owen

<< MLM LINKS REMOVED by Catalyst >>

[~Karen~]

Jenna,

I am involved in a company called Annasa, which is an established company that is now expanding through a world wide launch. The company has been around for several years, selling their products directly, and has decided to expand world wide through MLM.

The world wide lauch is catching momentum quickly so the people who are becoming involved now will be at the top of the binary system.

The leaders behind Annasa are top professionals in their fields and have years of proven successes. Include are people like Rod Cook (mlmwatchdog) and several top 1% earners who are masterminding the world wide launch. These key players have joined together, using all of their combined successes, to make the 'best of the best' health and wellness MLM.

The products are revolutionary and are being written about in the medical journals. For example, the anti-wrinkle cream is the first one in the world that does NOT have Botox as an ingredient. AS well, one of the new products about to be promoted is based on MesoTherapy, but is a cream instead of injections.

Additionally, "SlenderWeigh", a leading company for weightloss products, has joined forces with Annasa to distribute their products.

Because of the leaders who are putting together the MLM section of Annasa, the compensation plan that is being created is a result of combined suggestions and successes of top MLM earners.

Please let me know if you have any questions, and I would be pleased to answer them.

All the best,
Karen

[JennaOkstate]

Owen and Karen,

Thank you both for your insightful information on your companies and what they are associated with. I enjoy being able to read and internalize information that is not heady and written with angst, but is rather informative and supportive of the issue at hand. Thanks!!!! I continue to learn more about this marketing phenom. I do not think that I will do such an investment, (I prefer the traditional means of business as opposed to MLM/AMs) but I am educating myself in many aspects of business. Thank you soo much for your input. I will apologize before hand, if I don't respond for a few weeks it will be because I will be at training for the USAF. But I will get right back on reading and responding the end of May. Thanks.

Additionally: I've heard plenty of positives lately (Which is good, mind you) but also, if someone has a negative experience please do share. There is always two sides to any type of arguement.

Very Respectfully,
Jenna

[kigoobe]

Among all others, Amway is the most successful ... and a lot of guys are making good money with this company ... the untold truth is that, to get success here, u need a lot of hardwork, dedication and everything else thats needed in any other business. U don't start getting the money before 1 year or so, or it may be even delayed, depends how well u r doing that ... but hardwork and willing to learn is the success secret here ... and see, thats not really a get rich quick scheme ...

Best of luck.
Cheers.

[a-1cellphones]

Hi,
I have read some very good responces here. Yes it does take time, training, and a lot of patients. One thing i disagree with is when i have to buy to make money. NO MLM should make you buy there product or services in order to make money. They should try to persuade you in ordering your products, "to show your friends and familey". If any MLM or company i worked for made me buy there services and products I would quit that day.

I have been a part of cognigen for a year Im making from 100-500 per month they do try to persuade us in buying there products. The only thing i ordered is a new cell phone about 2 months ago and i love it lol.
My year has been very frustrating rewarding and time consuming. I learn to build a website so I was doing a lot of view source coping and pasting altering colors and images. Now I could build a website on my own. Sites like this one was very helpful.

Now to change the subject a little what most MLM hate to tell you is that #1: THIS IS REAL WORK EVEN FOOT WORK! For me to sell a business account i have to go store to store business to business.
#2 YOU HAVE TO SPEND MONEY TO MAKE MONEY.
Most MLM's will give you a free site but if they have a ? or some other symble search engines wont index them and even if they did there all the way in the back because Identical content. So buy a URL DISK SPACE AND BANDWIDTH = MONEY+Advertising+Optimizing=time and money

So It takes time money and patients. The reason i like cognigen is that they are a public company and they offer a wide array of products and services.
Thank You,
Thomas Montaner
www.a-1cellphones.com
business@a-1cellphones.com

[kigoobe]

Cellphones ...

regarding your 'have to purchase' stuff. Man, you are always purchasing a lot of thing in your daily life ... everyday ... its not that they are obliging you to purchase something from them ... what they are telling u is that:

You keep on purchasing all your life without any return other then the product you purchase ... come and join us, you will still be purchasing, but here you can make money as well ...

Cheers.

[a-1cellphones]

Yes i do purchase stuff everyday but im obligated to. All im saying is if i had to purchase to make money thats not a business thats a scam.

[cjshu]

One of the problems with most of these is their promotion of "do the work once and get paid forever".
This is highly unlikely. You will have people dropping in and out all the time.

The legit companies promote themselves as direct sales companies, and of course most people hate to sell and don't like rejection. You have to sell products to people outside your downline to get paid. This is tough because most of the products are overpriced because of the payouts involved. Not to say that the products aren't good - most of them are. Some are just pretty packages and overhyped garbage.

Plus it seems the companies make most of their money on initial purchases and marketing materials.

I've seen estimates that only 5% of people who join an MLM ever make any money. I can't believe its that high. Just an opinion from someone who was involved before.

CJ

[malcolm]

I have some sympathy with the feelings of the original poster. I think there are two big problems with network marketing.

Firstly it's the people involved. Many are involved because they are desperate, unemployable failures. Networking attracts such people who need an income on minimal investment. Sad to say that they often continue to fail, get more bitter and twisted, find another scheme and then go and fail at that too. They flit around like butterfly's searching for nectar and not finding it because they don't focus and work.

Secondly there are the sort of companies who choose to use network marketing as a cheap way of recruiting a sales force. They know at the outset that the vast majority of the people recruited will fail. They bank on the super networkers at the top of the tree being good at what they do. Often the strategy fails due to the over optimistic and under funded principals of these businesses.

Combine these two big flaws and you have a recipe for failure. I apply the 80/20 rule. 80% of companies will fail and 80% of networkers are failures.

If you accept this I believe you can make good money as a good networker with a good company. You have to look hard at yourself and decide if you want to do it enough and if you are capable of doing it. Then look long and hard at the company and decide if they are one of the 80% or one of the 20%.

In the 20% are companies like Kleenezee. NO, I am not involved with Kleenezee, it's just not my thing I'm afraid. I don't want to deliver household goods door to door but those who do and do it well make good money with a long established and committed company. I respect them.

For my part I am a distributor for Tiscali. I believe it to be one of the 20% companies and they have services that I can believe in. I make a good monthly residual income from them that more than pays my mortgage. I'm happy with that. I do not split my focus into other networks. I have other sources of income but I would never represent more than one network.

Networking can work if you do it right.

<< MLM LINK REMOVED by Catalyst >>

[a-1cellphones]

I hate to say but people who want to market services and products have to research the company they are going into. If the person doesnt want to work for there money most likely the company would rather them to quit. I do not try to recrute anyone all i do is sell. I just sell online set up a website try to optimize it and watch your sale grow. All my products and services are all underpriced look at my cell phone web site.

Now there are a lot of scams out there. Buyer beware! Just like buying on ebay, Maybe your identity well get stolen maybe it wont.

When i first started with Cognigen I refused to give my money. I set up a geocities website found a code to remove the ad and a little advertising I was selling making money. Thats when i bought my url and web space.

Remember im no web master I read alot and looked at other peoples websites codes. I also dont know anything about selling. So if the person wants it enough they will work for it.

I do this part time I am a Operating Room Nurse/ Certified Surgical First Assisant. I consider this more of a hobby that gives me a few hunderd a month. If I had the time I would be out trying to sell T-1 Accounts.

Thanks
Thomas Montaner
www.a-1cellphones.com
business@a-1cellphones.com

[MG]

Interesting post , I think Malcolm put it most truthfully. My thoughts are they are a huge waste of time energy hope and money for the majority of people. they are not without benefits however, what is called personal development is possibly the most useful, and also many folks tag along and eek a very modest income along the way Nothing at all wrong with that

A distant associate of mine has just joined herbalife and has spent a small fortune going to a conferance in the US ( from another country ) she expects to be a millionaire in a few years, this is what she has been told and she firmly believes it. will it happen , short answer no . Will she get her moneys value from associating with the extendeded organisation possibly , she will definately learn a great deal along the way.

They share something in common with affiliate schemes that play the numbers i.e you can earn %10 of sales provided you reach $50 per month ( or similar ) I expect 80% of affiliates never reach that figure , but the marketers know this very well and factor it in nicely. As some one said, if you think you are in the 20% range of people who do make money from such things then most likely ( 20/80) you are mistaken The real trick is to not be a looser in the first place ( oddly you can perhaps learn this by joining MlM and similar business ventures ! )