Sunday, June 13, 2010

Do people really fail at MLM or is it something else........?

    OK, I'm back with some more REAL TALK about MLM, Network marketing as a Home based business. In the last entry, I try to focus a little on why most people will fail in MLM from a stand point of sheer numbers. When I speak about, failing, I'm speaking about how they were not able to obtain a profit or why they were unable to become wealthy in their business. We will look at what is consider a failure. Along with some issues surrounding the tactics, and some personal insights.

   It may seem that I am not a fan of MLM. Well, I can't say that I completely dislike all MLM, just not popular with most of the tactics or those that promote MLM in a fashion that leads their people to an inevitable doom. I will discuss these on several fronts!

But first, do yourself this task, 

   Do a google search (or whatever search engine platform you favor). Try to find some real information/data on the number of participants in MLM. Try to find some solid numbers on subjects like.......failure rates, turnover(dropout rates) How many new MLM companies are there? Which ones are you likely to succeed in? You will find very little, I assure you on this. Is this on purpose? Is there a reason why? Especially, when there are so many MLM opportunities out there.

   Over the last 3-5 years, there are upwards of 10s of thousands even millions worldwide, who became victims of their failed MLM business and just as many who switched programs (business). Another things about MLM, is people don't (fail) quit, they just stop recuiting others into their business.

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   So, combine this with the lack of business experience, no true understanding of their compensation plans and the perception of  "little work builds hugh profit." It is no wonder we don't hear about these short comings. Would you go online an explained that the true reason you failed was because it was your own fault? Of course not. Hence, the only complains one finds, are how the company misled them. Or simply how all MLM/Network marketing are just ponzi or pyramid scheme.

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   These are the same ones whos only real purpose was to get a quick buck with as little effort as possible.They were focus on the hype, they saw only that beautiful, perfectly made sandwich on menu. Without fully understanding what it took to get it that way! It took work, effort & time! Sometimes several do-overs to get it the way they wanted it!

   Now, I have talked a bit about the lack of effort as a contributing factor to why people give up in my last entry. When looking at your business as a business, did you figure out exactly how many people you will needed to create financial security within that companies. Every MLM distributor will in some form go through a rough time obtaining a profit from these MLM. I bet most, didn't get pass the basic look of their compensation plan let alone understand it.
(In some cases, they are presented/designed in just that manner) be a bit confusing.

  There are:
  • Bonuses
  • Overrides,
  • Left & right leg,
  • Spillovers,
  • Unilevels,
  • Stairsteps/breakaways

DO you REALLY understand these plans?  HOW YOU MAKE YOUR MONEY!

 "This is where YOU get paid for YOUR effort in YOUR business"

Can you explain them to others so they know exactly what it will take to profit.

   These company pays you a commission on your sales but also on the sales of all the people you've brought into the network, either directly or indirectly. This is the bread & butter of your business, When this is not understood completely, Your income is not undersood.

Now, I found a very interesting video clip that I believe will help get your mind focus on an alternative view. In terms of this word "Failure" as it pertains to this industy.

   Network marketers who are serious about building a business should be reading and learning about business fundamentals, the latest sales and marketing techniques, strategies for internet marketing, networking and business development, etc.

   It doesn't matter what you think you know, just like technology. Marketing (online) is ever changing. There are ways that work one day or in some situation. While in others, simply,  ineffective.!

   Ever watch a movie once, believing you saw everything, then you watch it again, only to discover scenes you missed, parts or acts you understand more clearly. This is your business, something that you want to be able to live off of, survive off of. Yet, many, many people skim over some of the most important aspect of running a business. "That it's a business" then wonder why it doesn't work! ????

Really think about whats being said in the video clip!

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