Monday, June 21, 2010

REAL TALK ~ What is really happening in MLM

Not admitting that I am older, lol......

   But, back when direct-selling, meant person-to-person/door-to-door contact, sending post cards or flyer to a mailing list. which was equivalent to your e-mail list today. It meant newspaper ads, radio spots and business cards to generate leads. Understand that even major league (name brand companies) participated in direct sells marketing (The Sears, JC Penny's catalogs) Many of these strategies have had to adapted to the new age of technology based marketing. The problem is that these tactic are being exploited and abused over the internet.

   Advertising has always been about hype, attraction - promoting a product, service or event to a targeted audience. Internet marketing is purely advertising in the 21st century. What MLM/Network marketing has done, is employ under-skilled marketers/advertiser to promote their many products and/or services. Because of internet technology, many in the network marketing industry simply over-hype these companies they market for because of inexperience. Oh yes, I hear it now, but I have a mentor or the training teaches me this and that. Training is good but experience is a completely different ball game.

MLM and networking strive on this very notion.

   Each year, neither desperation, the economy or just fresh NEW prospects are enticed to jump on board and venture into this world of making a living online. All the experience marketer have to do is cater (invent) new ways to advertise a product or service.

   I have seen over the years, such advertising & marketing tactics that surely could be persecuted under the "Truth in advertisement act" in this country. Take a look at the language written under the Federal Trade Commission (FTC)

Examples (pulled off any result search of MLM. work at home, Network marketing opportunity)

  • Anyone who signs up after you in this, will automatically be placed below you in your own Cash Generating ...... 
  • Earn a substantial income in this $100 Billion worldwide Market ..... 
  • Financial Rewards Without Making A Single Sale....... 
  • Start Making $12500 Or More Monthly By Simply..... 
  • $300 per day computer work...  
  • Secret Formula For Making Money Online.... 
  • Beginners making $10,000 within their first month

Oh yeah, the list goes on & on.... makes you go, hmmm........?

   Of course, at the end of the pitch, in very fine print is the disclaimer. Which most people tend to ignore.

   Yep, over the years, I have seen a lot of different strategies used, from beginner to these home based internet gurus??? There are a lot of bad habits exhibited when it comes to online marketing. Habits that I like to believe are just innocent attempts to pull in more leads. just plain inexperience in marketing. Sometimes its out of desperation, others, just a deliberate attempt to recruit people into their program or business.

   Now, I have come along way in my approach to marketing online. But, one thing I never attempted to do was hype these companies, products or service unless i was actually doing it myself. (Why), after all the work it takes to get (build) your list, why have those people leave you because they no longer trust the things you offer.

   Trust me, I have dropped or will not do business with many of these marketer ( the ones that are still hanging around) I keep a few on my email list so I can watch what they are promoting or doing. And over the years its just funny to watch them jump from one program to another. I imagine that they are making some kind of money because they are still around. Rest assure that they are feeding off those new crop (newbies). Try getting a response to an e-mail after you sign-up with them. Usually not a problem in the start. But, when you do not get the results that seem to be promised at the start on that venture. All of sudden, it taken weeks to reply if at all.

   See, auto-responder can't reply to tech or personal issue. So these big time marketer are to busy promoting other programs and business, that its nearly impossible to reply to thousand of inquiries.

   You always hear that there is this or that secret. This or that system that will propel you into this wonderful world of making money online. Well, I'm here to clear some things up. Not to piss on anyone parade, but the truth in becoming successful in your online business is..... TRUST.

   Trust will bring you targeted leads that should allow you to build relationships. Whereby, allowing you to pass off vivid information on products, services or events to a targeted audience. These being potential clients, consumer!

   Throughout the years I have connected with many of these so called leader. And many, I am sorry, to have giving my trust to. Because they represented themselves in a manner that should have benefit all parties. But, truth is, it only benefits them and those on top!

Heres some misunderstood facts you should live by......

FACT ~ Most MLM/network marketing companies will ONLY provide hefty profits to those on top. ( Why else would they construct such complicated pay-out plans)

You sell a product or service you get paid for that sell! It straight forward business = simple financial model of Cost of Goods + Overheads + Margin/Mark-up = Sales Price. You sell to cover your expenses then you keep the profits

FACT ~ The top 1% makes all the money in MLM structure 2% generate moderate income and the rest will lose. Again, there is a reason why many online business construct these matrix.

FACT ~ No-one is just going to come off the street (sort to speak) and I will stress this, NO-ONE, is going to decide one day to join a online business and make a full-time income in a matter of months. If you are brand new to marketing online, forget it. You will be lucky to break even after a year! This is just fact.

You simply can not possible tap into the kinds of numbers needed to sustain a wealth building strategy that MOST MLM companies claim. Many, many people are not looking to buy anything related to MLM, point blank. Also, when you look at the amount of MLM/networking marketing related opportunities across the web. Seriously, how many people do you think are on this planet.

   If you have 100 people - 80% are working regular 9 to 5 job. Of the remaining 20%, a percentage run their own business, a percentage simply don't have the income it take to start a business. a percentage are in countries you simply can't tap into.

FACT ~ The only people that realize the promised income are those that get in on the ground floor. Those that are privy to much "behind the scenes" info.

   Ok, so you have this huge list of business associates right. A very interesting business opportunity has opened up. You first, let your top producing contact in on this insight. They in turn let their top producing contacts in on this. By the time, the average Joe/Josette is "privy" to this opportunity, you have market saturation.!

   The only way that a regular Joe or Josette can achieve that kind of success in as lttle amount of time is simply because they have a huge social networking relationship established. Still that will only be accomplished by spending time building that network first.

  With many of us being bombarded with ads & invites each day, this too, is becoming a bumpy road. This is why we see so many lead generation programs/business popping up.

FACT ~ You will need thousands of people under you on a continous basis to fulfill even a part-time income (after expenses R.O.I.).

   Best to understand that there isn't enough people in this known universe for everyone to make money at a level 5 matrix let alone at every level 10 or more. Again unless you are on top!

FACT ~ Having no ability to run a business or no sales, network marketing experience or little computer skills, the learning curve will be overwhelming.

Which is why so many spend money on these all in one lead generation business.

FACT ~ their primary source of income is from individuals who sign up and purchase the basic supplies and training materials.

FACT ~ Traditional business models succeed by the numbers of repeat customers they keep.

   So when someone doesn't make the kind of income, in the amount of time they were attract to, do you think they will buy anything from you again.

FACT ~ Not that there isn't any decent MLM type business but most MLMs rarely sell anything of value, mostly just selling the opportunity to sell.

   This is just REAL TALK - when you are armed with the honest truth, you can make an informed decision on matter concerning a home based business. Again, people can earn a living working from home. As long as they understand what the elements are.

Copyright © 2010 Andrew Hayes All Rights Reserved

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