Probably, most of our readers have had to look for additional income, or even a place of main work, at least once in their lives. Moreover, this happens not only to young specialists who have just graduated from an educational institution. Everyone is now looking for work or part-time work, from schoolchildren to retirees. The reasons are different - some do not have enough money to meet basic daily needs, others want to save up for an expensive car or apartment, young people living with their parents strive to gain at least minimal financial independence.
The search for options usually begins with studying the media and sites that post job advertisements. Experience shows that there are almost no valuable offers there. And we simply don’t pay attention to some, believing that they are not worth it. Network marketing advertisements often fall into this category. The attitude towards this activity in our society is very ambiguous and predominantly negative. Epithets like “scam” and “scam” are not the harshest in relation to MLM (an abbreviation of the English term MultiLevel Marketing, which “in our opinion” means “multi-level marketing”). But is everything really so sad?
We are all adults and we understand that we can draw any conclusions only after studying the issue. And at the same time, many of us sin with unfounded assessments of this or that phenomenon, inspired by other people’s impressions or other people’s experiences (no matter, negative or positive, but alien). It seems that network marketing has fallen victim to precisely this assessment, although many do not even really understand its essence.
In a nutshell, this is simply one of the ways to promote and sell a product, which, like any other, has its own advantages and disadvantages, which we will look into today. This whole scheme is carried out with the help of a large number of people forming a network. Information about a product is distributed from person to person; there are no intermediaries who buy goods in bulk and resell them at an inflated price, and there is no expensive advertising. The significance of these factors will be explained with an example.
You all know “Orbit” chewing gum and have at least an approximate idea of how much it costs in our stores. So compare - the cost of producing one package (10 pads) is a maximum of 50 kopecks, and we buy it hundreds of times more expensive. And all because, before it hits the counter, it passes through the hands of several wholesalers, each of whom makes their own markup (the manufacturer, naturally, also puts in his own). Add here considerable funds for advertising in print media, on the streets, television advertising, and you get the figure from the store price tag.
MLM, on the other hand, is a direct sales system, devoid of all these clutter, so goods in such networks are often cheaper than in retail outlets. And not because these are fakes or low-quality goods, as some people think.
The earnings of network members consist of a percentage of the cost of goods sold and rewards for attracting new people. That is, it is beneficial to involve newcomers in the network, but the process is not simple. Here you need to be a bit of a psychologist and be able to unobtrusively convince, conveying to the person the meaning of this sales technology and its inherent advantages.
By the way, many people compare MLM networks with such an unpopular phenomenon as financial pyramids. All this stems from a misunderstanding of the sales mechanism. But the mere fact that network marketing does not require large investments and does not promise fabulous profits in return for anything should suggest that this is not a “scam”.
Here, in order to achieve something, you need to work hard to create your own clientele. And profit does not always come immediately; for some time you may have to work in vain. But in any case, your efforts will bear fruit, and after a certain period of time you will begin to receive income. If you connect to a large network, then you shouldn’t count on a huge income, but you can definitely earn an additional 20-30 thousand rubles a month.
True, in order not to get burned, you need to be able to distinguish a real network company from a pyramid that disguises itself as one. Therefore, we advise you to consider a number of points before becoming a participant in such an enterprise and attracting friends and acquaintances to it:
- Firstly, a real MLM company will offer you to sell a certain product (product or service) from the manufacturer’s catalog. You will not be forced to buy goods for future use; you will only work with products already ordered by your customers and pay for them on the day they are received from the warehouse.
- Secondly, you should be wary of the requirement to pay membership fees or buy some “securities” that actually have no value outside this structure. You will also not be paid for the volume of products sold. You will be rewarded solely for the number of attracted members who have already paid the same membership fees. If everything is as we described, then you have ended up in a financial pyramid and you shouldn’t stay there.
- And finally, thirdly. There are companies that offer to sell some equipment or software, but require you to first pay a certain amount for a certain package of services, without which you will not be able to work, and also to attract a couple of new participants. The mini-network that the participant creates in this way becomes the source of his income. To be honest, such schemes look doubtful, although, in fairness, it should be noted that such companies still have a product for sale. But it’s almost impossible to climb the career ladder here, even with the skills of a psychologist, leadership qualities and oratorical talent.
That is, the conclusion from everything stated above is obvious - you can engage in network marketing and achieve success in this business only if the terms of cooperation are clear and transparent, and there are no points that raise doubts.
- Let's start with the fact that the MLM system makes the cost of goods (services) significantly lower for the buyer, since the price does not include advertising costs and intermediary markups.
- The goods are delivered to the consumer in a short time due to the fact that logistics are well thought out and the company has networks of warehouses in different regions (cities, countries).
- Counterfeits and product substitutions are excluded, which is possible during numerous resales. Network companies directly reach the end consumer and here falsification is almost excluded.
- Employees involved in multi-level marketing have strong motivation, both from the point of view of the possibility of high earnings and from the point of view of building their own business.
Sellers' income consists of a percentage of sales, but not only that. They can also attract new people to work and receive rewards for their contribution to expanding the network (hence the name of marketing - network). Each network participant can, over time, having created a fairly wide client base, establish their own small network business. The MLM system is beneficial to all parties - the manufacturer, the consumer, and sellers (distributors).
For the manufacturer, this is a real opportunity to save on advertising without compromising the popularity of the product. The consumer is satisfied with fast delivery, guaranteed quality, relatively low prices, availability of samples and catalogs, as well as the opportunity to sometimes purchase goods that are not on store shelves.
As for distributors, they have the opportunity to build their own business without a large start-up capital, in an already prepared market (after all, the main network companies are widely known to the population) with a built-in sales system. In addition, they have the opportunity to obtain the necessary knowledge for free, since MLM companies pay a lot of attention to training and mentoring.
So, it would seem, everything is simple. But then why do many people who tried themselves in this business fail and consider it nothing more than a scam? Most likely, they either did not show the necessary persistence, or they simply lack the qualities without which there is nothing to do in network marketing.
We must admit that doing online business is not for everyone. And not because someone is bad, but someone is good. It’s just that this job, like any other, requires a certain set of qualities, without which it will be very difficult, if not impossible, to achieve success.
As a rule, people who do not accept the rigid framework of work “from call to call”, who are creative, sociable, persistent and who strive to build their financial independence with their own hands and according to their own understanding can advance to the highest levels here. If you want your life and your income depended solely on you, if you know how to set goals and persistently strive to achieve them, know how to communicate freely with people, have the gift of persuasion and the makings of a psychologist, and also strive to constantly improve the level of your education, then MLM is exactly what you need.
And I would like to say separately about patience and perseverance. The fact is that most of those who did not achieve results in this field gave up at the initial stage of work. This is not a job where, no matter what your success, you will still be paid your due salary. You need to be ready to work for some time for future results (even without making a profit), create a client base, and master the intricacies of the profession. But over time, your perseverance and your patience will definitely bear fruit, which will definitely please you.
Of course, you should start with choosing a network company. There are different options here - you can connect to a company with a name that is well known to people, where there is already an established, developed distribution network. The product of such a manufacturer is easier to sell, because people know it and trust its quality. But there is also a downside to this. It lies in the fact that in such a network you will find yourself very far from the top, it will be difficult to advance, and your income will not be very high.
Another option is to join a newly created company. Difficulties in this case will await you from the very beginning, because you will have to convince people to buy an unfamiliar product from a little-known manufacturer, and buyers, as a rule, are reluctant to take such a step. But over time, when the company creates a name for itself, you will find yourself on the upper steps of the pyramid and will have a corresponding profit.
However, no matter which option you choose, first of all pay attention to the payment system and bonus program. The scheme for making a profit should be clear and transparent, there should be no penalties, and the employer’s requirements for sales volumes should be realistically feasible.
Having decided on the choice of company, think about the way to generate income. This could be direct sales, or it could be receiving passive income from attracting new members to the network.
Most often, beginners start by selling goods and this, in principle, is justified. By engaging in sales, they get the opportunity to get comfortable in a new niche, study the market and create a customer base.
But professionals advise to simultaneously engage in direct sales and attract new people to the network. After all, it’s not at all difficult, when telling a client about a product, to also tell about the prospects that your work opens up. Most likely, some people will also want to try their hand at this business in order to receive additional funds and the opportunity to purchase products at the purchase price.
When a certain time has passed and you have worked hard on creating your chain of distributors, you can give up selling altogether or do much less of it. After all, you will receive the main profit from the work of your subordinates.
Any activity has its pros and cons, and network marketing is no exception:
- From a positive point of view, it is worth noting the opportunity to buy high-quality products for yourself cheaper by a third, or even more, of their “sales” cost, that is, the price that you announce to your clients.
- The second advantage is that there is no need to invest your own money into the business as an initial contribution (membership fees), of course, if it is a legal network company and not a disguised pyramid.
- We cannot fail to mention the possibility of free training. As a rule, companies, caring about increasing sales and expanding their network, spare no time and money to familiarize distributors with their products, effective sales techniques and rules, ways to build their own business to receive passive income, etc.
- And finally, with the advent of the opportunity to conduct such business through online services, distributors no longer need to stop people on the streets, come to their homes, offices, etc. in search of clients. Now you can work remotely.
Among the disadvantages, perhaps, it is worth noting the fact that expanding the network leads to a decrease in income, and new partners receive much less than those who came earlier.
There is a lot more that can be said about network marketing, but we set ourselves the task of explaining the essence of this phenomenon as simply as possible and giving you the opportunity to orient yourself in how such work corresponds to your needs and the characteristics of your character.
I would like to hope that now you will be able to make a decision about participation (or non-participation) in MLM based on your own conclusions, and not guided by the reviews of former unsuccessful distributors. Good luck.
Why did I choose a cautionary title for this article? Because, unfortunately, lately I have come across deplorable stories of people working in network companies and having the same deplorable results of this very “work”.
Network marketing (or multilevel marketing; English multilevel marketing, MLM) is a concept for the sale of goods and services based on the creation of a network of independent distributors (sales agents), each of which, in addition to selling products, also has the right to attract partners who have similar rights . At the same time, the income of each network participant consists of commissions for the sale of products and additional rewards (bonuses), depending on the volume of sales made by the sales agents they attract.
Network marketing originated in the 1940s. The dawn of the network company industry occurred in the 80s and 90s. One of the founders of the industry was the well-known company American Way Corporation (Amway).
Myth No. 1. Network marketing is my business.
Do you seriously think that this business is yours? What if you think about it? Have you thought about it? No! Network marketing in 99.999% of cases is not your business. Network marketing is a business only for those (very smart and enterprising) people who founded it. Dot. This is the business of those people who speak to you at company seminars once a year and make motivating and “grand” speeches from the stage.
What's the problem here? But the problem is that those newcomers who come to the network company are “explained” from the very beginning that he will be engaged in BUSINESS. Yes it is. But not all newcomers clearly understand whose business they will be involved in. Understand that a business is yours only if you have the authority to make key decisions about how it is run. Can you make such decisions in “your” network company? Can you change the price of products? Can you change the range and suppliers? No. You only RESELL the products yourself or through attracted new sales agents. You are forced to obey and comply with all the conditions and rules of doing business that its founders dictate to you. Even if you have registered an enterprise or company and are engaged in selling the products of “your” network company, you have very limited freedom of action, unlike a full-fledged entrepreneur.
Understand that if you work for a network company, then this is NOT your business. In this case, your activity can only be called an alternative to working “for someone else” and self-employment, but not a full-fledged business, in the true economic sense of the word.
Myth No. 2. There is a lot of money in network marketing and you can get rich quickly.
Of course, the best option is, of course, to try and see the result. But, as many years of practice have shown, there is NO big money in network marketing. Sometimes there is no money there at all, let alone much. How can this be, since network companies make billions in profits? Yes, they do. The founders and those who head these companies and are personally close to the management receive it. Ordinary mortal distributors are content with small checks that barely allow them to make ends meet. You may object that you can become a leader! You're right. You can also fly into space. The whole question is who “will not vomit” on the way to this space, who will not lose consciousness and how long to fly to this “space”. And in general, do you need this space?
All that an employee of a network company does is search for those who would sell more and those who would sell more and who would be looking for the same thing.
People involved in network marketing (may they forgive me) are just intermediary sellers. Just INTERMEDIARIES. Of course, intermediaries can sometimes make good money, but the main profit goes to the owner.
There is no big money for an ordinary distributor in network marketing, it simply isn’t there. All the mountains of gold that your “mentors” and leaders draw for you are a farce and pure motivation with profanity. Getting rich in network marketing is very difficult. I won’t say that no one has made a fortune selling detergents, toothpastes or super horseradish cutters, but the pictures that are drawn to you are radically and sharply different from the harsh reality.
Think of network marketing as an alternative to regular work (and then carefully), as an additional source of income, but not as an easy and shortcut to wealth. I repeat, of course, there are people who, as distributors, became leaders and made a fortune for themselves. But these are tough, unceremonious people with pronounced leadership qualities, these are people who have gone through fire, water and copper pipes in this business, devoting a good part of their lives to it. There are one such “lucky” distributor in a million. Want to try your luck? That's your business.
Myth No. 3. My mentor is my friend, he will help me with everything, teach me everything and explain everything.
Hell no! Well, whoever, your mentor is definitely not your friend. Friends don’t bother each other month after month by constantly reminding them that they need to qualify this month and buy three and a half more super horseradish cutters for future use, they say. Friends do not benefit materially from friends, at least the good and true ones.
Your mentor is the one who is most interested in your success, eloquent people told you in seminars and meetings, he will teach and guide you. So it is so, but what is the problem in this situation? But the problem is that, under the yoke of their “beloved” mentor (who, by the way, should have been sent into the dense forest long ago), the students begin to commit actions that contradict the actions of a person in bright mind and good health. Such wards begin to take out loans, get into permanent and hopeless debts, and begin to make deliberate decisions that are not their own and not their own. This often leads to very unpleasant consequences, which the mentees themselves have to deal with, without the “help” of mentors and leaders.
In general, in our lives we are constantly influenced by other people, whether we want it or not, and very often there is no awareness in our actions and decisions. In network marketing, distributors who are dependent on other people’s opinions, listening to the mentor’s motivation and looking at his painted pictures of golden mountains, lead their lives downhill (in a very bad case) without knowing it. This is sad.
Your mentor may be a good person and he may indeed be your friend, but this is in very rare exceptions and only if he is not very interested in your results in the network company, respectively, like his own. Understand that a boss will never have a true and sincere friendship with his subordinates - this is nonsense and is contrary to business.
Mentors, seminars, educational and entertaining group events in network marketing - their actions are mostly aimed at brainwashing, retaining distributors in the company and increasing the company's profits. They didn’t care about you, your life or your problems. Remember this. The first leaders of the company will never share with you the secret knowledge they have, since they are not interested in your growth to their level. They give you exactly the information and knowledge that you need to increase sales, nothing more. They are not interested in your true growth and reaching your potential.
Let's summarize.
Of course, there are quite a few positive aspects to network marketing. Working in network companies, a person learns a lot, goes through an excellent school of sales techniques and learns a bunch of interesting things. In the process of work, he can radically (possibly for the better) change his lifestyle, he can start traveling if he has not traveled before, communicate with interesting and successful people, he can discover a new side of himself, and so on. There are definitely advantages. But you don’t need to rely on MLM companies as if this is the only occupation worthy of you, that this is a gold mine and some kind of unexplored Klondike.
I repeat, you can consider working in a network company as a means and starting point for unlocking your potential, as a sales school, a school of communication and interaction with people. But those myths that you read above should not be forgotten. As one good person and coach Ildar Zinurov says: “There is no happiness in the network business.”
Yes, in network marketing you can earn money for a living, you can study, you can travel while working as a distributor, but the happiness that you are told about at the first and subsequent presentations is definitely not there.
We often do wishful thinking. You need to look at the results and draw conclusions. You need to use your precious tool as thinking. Use it! Think with your own head. Trust facts and results, not the words and pictures of your mentors and leaders. If nothing has changed for you for several (or even decades) years, then it is not prudent to believe that by continuing to do the same thing (for example, working hard in a network company), something will change for you and you will start shoveling money. You won't start.
P.S. Who am I to talk about working in network companies like this?
I have a direct connection to working in network companies. I had the good fortune to work as a distributor of Chinese goods, and in a not so simple way - wandering around organizations with a bag at the ready. I was engaged in cold sales. I consider this the most aggressive and difficult form of network marketing. I had a sales system, like in all similar companies, I had a mentor (and more than one), there was a lot of “washing” of my then still virgin brain, and so on. I went through all this and realized (fortunately quite early on) that this is NOT my business, that mentors are NOT friends, and that everything is NOT as sweet as they tell me. Plus, I have many friends and close people who are involved in network marketing in one way or another (some for more than 10 years). So I more than know what I'm talking about.
Too often lately we have heard from the so-called “gurus” of network marketing how quickly and easily you can make money in MLM. Moreover, most often, such “network operators” have not even seen the income that they boast about and shout about on every corner. This fact is very sad, because thanks to precisely such people, the concepts and principles of network marketing are incredibly distorted...
Do you want the truth? Unfortunately, the truth is that no one likes this very truth!
In one famous American film called "A Few Good Men" In the climax, Jack Nicholson responds to Tom Cruise's request to tell him the truth: Do you want the truth? You can't handle the truth! What does it mean in translation: Do you want the truth? The truth is too tough for you! Alas, this phrase applies to many who are just starting their journey in network marketing.
Very often, at personal development trainings, beginners are told not what they should hear about network marketing, but what they want to hear: how beautiful they will live if they become a millionaire; what kind of car they will drive; in which parts of our planet to relax; and so on... No one tells them the truth about how much effort and work it takes to really live such a life. And this is done not because they want to deceive the newcomer and “fool his brain”; many leaders are simply afraid of scaring those newcomers who are not yet on the same wavelength as them. But everyone still needs to know the truth about MLM!
The truth is:
Success in MLM, network marketing or home business will not come to you instantly. But isn't this what happens in other areas and fields of activity? After all, you don’t become a doctor by attending just a month of classes at a college or university. This also applies to other wonderful specialists in one profession or another. There is a time for everything, and any business simply needs to be trained in order to become a professional in this field. Therefore, be prepared to spend time gaining some knowledge in MLM.
In this regard, I like the glass example. Imagine an empty glass; it fills as you pour liquid into it. The more liquid you pour, the fuller the glass will be. At one point, when it is completely filled, the liquid will flow over the edge! We will look exactly the same, filled with knowledge, skills and experience. Only then, being filled, will we be able not only to act ourselves, but also to give the accumulated knowledge to our partners!
You often come across slogans like these on the Internet: “We will help you earn $1,000-$10,000 in a month without much effort on your part!” You don’t need to invite anyone, you don’t have to work at all, but just receive money.” It’s exaggerated, of course, but the Internet is simply replete with such slogans. And you know what's the strangest thing? Those who say this really make money by selling this “super secret knowledge”, and for most buyers of such a course this is another waste of money and time. But why then do people so often buy into such offers? They just tell them exactly what they want to hear!
Or another myth when they tell you: “All you need to do is establish friendly relationships with your potential partners.”
“If it’s that simple, then I’ll soon become a millionaire!” – you say. But making widespread acquaintances and establishing friendly relationships with people is not the key to success in your business.
Imagine a similar situation in a regular workplace, when you spend the whole day talking to a client. At the end of the working day, the boss will ask you if you managed to sell something to the client, and you will answer: “No, but he is an amazing person,” and you will begin to tell what his family is like, what his illness was and where he studied... It sounds absurd!
But this does not mean that in online business you do not need to establish good relationships with your potential partners. This is certainly important, but it does not give you any guarantee that the person will become your business partner.
How often have you heard from potential partners that they passionately want to start their own business? They say that they have made a serious decision and want to finally change their lives for the better.
You were probably happy when you heard this, in the hope that you had found a reliable partner. But, oddly enough, 80% of such people end up finding all sorts of excuses and excuses for themselves, saying such phrases - this is not for me, they did it in America, but I can’t, and so on... To say - I want to change my life is very easy. But that doesn't mean anything yet.
Therefore, speak seriously only with those people who know what they want and will be ready to consciously walk towards their success!
You can spend a lot of time persuading and persuading those who never wanted to change anything in their lives; constantly motivate these people; fall flat in front of them and, ultimately, realize that you have made a mistake in the person...
This can be compared to searching for diamonds in a pile of stones... Look for your diamond, throwing aside stones that will never become diamonds in their essence.
So, real MLM is desire and endurance, diligence and work, endurance and faith in victory, perseverance and effectiveness! And the most important thing is action!
Tell people the truth about MLM, so you will save your and their time, save each other from disappointment, and most importantly, you will find real Eagles for your team!
If you do not want to become victims of scammers, then you need to know exactly what an MLM business really is. Because it is too easy to fall into the trap of a financial pyramid and end up without money.
In this article we will look at how to distinguish a real MLM business from financial pyramids. And is it really possible to make money in MLM?
And first, let's figure out what the essence of the MLM business is, and why it is so disliked “by the people.”
What is MLM business in simple words
The name "MLM business" comes from the English MLM - "Multi-Level-Marketing" (literally - "multi-level marketing"). Other names for this same phenomenon are network business, network marketing and the new “fashionable” name - “network marketing.”
This designates one of the options for organizing marketing - a distribution scheme for the company's products. A classic business is when there is a store where people come to buy our product. A network version of a business is when many people take our product and distribute it among their friends.
That is, in MLM we do not hire employees on a salary, we do not rent stores. Our task is to recruit as many volunteers as possible who will distribute our products themselves, receiving a percentage of sales for this.
In addition, these volunteers of ours will recruit their own volunteers. And then they will already receive a percentage not only from their sales, but also from the sales of all their “recruits”.
Who invented MLM?
MLM as a type of marketing was invented, of course, in America. The first organizers of online companies realized that people are much more willing to buy certain categories of products when they are recommended to them by their friends. These are products such as floor cleaners, shampoos, cosmetics (note that almost all of these are products “for women”).
And, in principle, it turned out to be a good thing. The goods of network companies were usually cheaper because there were no expenses for renting premises and salaries for employees. And in quality they often surpassed analogues from stores. Thus, networkers were able to bypass the fiercest competition in the household goods market.
But here's the question. Why do “the people” dislike this same MLM and network business so much?
Why do they dislike MLM so much?
If you don’t believe that MLMs are not loved, look at the advertisements they advertise in newspapers and on websites. They will never write directly - they say, we are recruiting people for a network business, come to a meeting at such and such a time.
No, everything will always be hidden there and disguised as “opening a branch of the world’s largest company” and under “need an assistant to the head of a business, I’ll teach you everything, salary from 50 thousand per month.” Why such secrets and enticements? And because if you directly write that you are recruiting for MLM, no one will come to you. Because they don’t like MLM =)
And there are two main reasons for this.
Reason #1 - Destruction of the foundations of relationships
Have you ever wondered why we (people) recommend anything to anyone? Why should we tell our work colleague where they make delicious sushi? Why should we advise a friend which car is better to buy? After all, this, in fact, does not concern us.
But nevertheless, we really want to come running from the other end of the city, if someone needs our recommendation, and at least force him to listen to us. What is the reason for this behavior?
You might think it's because you're such a kind and nice person who just wants to help everyone around you as much as possible. But actually it is not. We are ready to recommend with pleasure, because in this way we dominate those to whom we recommend something.
Judge for yourself - we have a certain Knowledge. which the person opposite us does not have (be it knowledge of where you can eat sushi without getting poisoned, or knowledge of which car has better characteristics). And by sharing this Knowledge, we show that we are better. Yes, yes, we are better and higher and smarter than a person who does not possess this Knowledge.
And the higher the result a person gets on our recommendation, the stronger our dominance will be. Accordingly, we sincerely try to recommend only the best. And the one who asks us for advice subconsciously feels all this, and therefore believes our recommendation.
MLM should be based on this principle, but here money spoils the whole thing. When a networker we know recommends something to us, we always have a suspicion that he is doing it solely for his own monetary gain. Even if he really likes the product and would recommend it for free. But an unpleasant aftertaste remains.
Thus, MLM interferes with the fundamental set of unspoken laws of human relations (it is also called the “social contract”). And this destroys friendships, friendships and even family relationships. And that's why people don't like him.
Reason #2 - Overmotivated Zombies
If you have ever met a real “networker”, then of course you understand what I’m talking about.
The basis of MLM marketing is strong training and strong motivation of network participants. People by nature are very lazy and timid creatures. Getting them to sell something to strangers and people they barely know is not an easy task.
And therefore, every new recruit undergoes intensive training, where the emphasis is on motivation. They are brainwashed with promises of huge profits. They are told that they are the chosen ones, and everyone else is only jealous of them. And they are also very convincingly told that their product is almost the most ingenious invention since the light bulb.
And people are gradually losing their minds. Can you imagine what it’s like to be the only one who knows the whole truth (that the best job is a network business, and the best cream is Oriflame), but no one believes you and shies away from you like the plague?
As a result, it becomes very difficult to communicate with networkers. All they talk about is the network business and their product. All they do is try to pull everyone they meet into their structure, to the “light side”.
Again, this leads to rifts in friendships and family relationships. That's why they don't like MLM. In people's minds, getting into MLM is the same as getting into some kind of sect. And those who fall into the “trap” will soon begin to sign over their apartment to some of the next “Herbalife witnesses.”
But there are, of course, positive sides. If you don’t lose your head, then an MLM business can be an excellent development option for you. You will keep your friends and find new ones.
How much can you earn in MLM?
Networkers love this joke:
A man comes to the city and sees that on one side of the street all the houses are large, beautiful, well-groomed. There are expensive cars next to the houses, and all the people walk around cheerful and happy. And on the other side of the street the houses are small, dirty, dilapidated. All the people are in rags and eat rats.
He approaches one of these dirty houses and asks a passerby why the houses opposite are so beautiful, but here they are so bad.
The passerby replies: “Oh, there live networkers across the street who are involved in MLM.”
The man asks, “What are you doing?”
Passerby - “We don’t believe them!”
The joke is funny. But, unfortunately, as in any other type of business, most people involved in MLM do not have any income at all. A very small percentage of networkers have an income comparable to the usual salary of a qualified specialist. And only tenths and hundredths of a percent of all millionaires make really big money.
How to develop in MLM correctly?
Yes, you can earn money in MLM, and even a lot. But only on condition that you really work. And to earn money, you will mainly be engaged in recruiting people into your structure, and not in selling the product itself.
If you want to develop in network marketing, you need to conduct a huge number of personal meetings every day. And we also need to ask our friends to organize parties at their home, and bring their friends - for whom we could hold an “impromptu” presentation of our product and business.
And most likely it will take you several years to build a large and loyal structure with which you can have large incomes. Therefore, please do not be fooled by promises of quick money. Like everywhere else, you have to work here.
And most networkers eventually understand that MLM is not the option to which they would like to devote their entire lives. Therefore, they go into other types of entrepreneurship. But they retain the skills they acquired while working in MLM.
And today there are projects that masquerade as MLM, but in fact are something much worse.
How to distinguish MLM from a financial pyramid
If you haven’t noticed yet, today there is a huge offer on the Internet to participate in some super innovative projects. As a rule, we are talking about decisions that will change the whole world in some area. In the field of housing, in the field of transport, in the field of the Internet or in the field of telecommunications.
The only problem is that this ingenious solution is still under development and cannot be used yet. Or you can use it, but it is so inconvenient, crooked and weak that it loses even to free analogues.
And you are offered to either buy a share in this project, or buy a product and pay for it every month. And people do it, and with great joy. The question is - why? And then, they can attract new members who will also pay every month, and you will receive some percentage from their payments.
Almost like MLM, but with one difference - there is no specific product that you could use. That is, you pay not for the product, but for the opportunity to receive money from those who are below you in structure.
And such an organization is possible precisely due to the “virtuality” of the proposed product. It does not need to be transferred or stored. You don't have to use it at all. The main thing is to attract more and more new participants “for yourself”.
How financial pyramids collapse
All these projects always end the same way. One day, people who can be attracted to the pyramid simply run out. And then the participants in the “lower layer” stop paying their monthly fees. Why should they pay someone if no one pays them (because there is no one below them)?
Then the penultimate layer stops paying because the last one does not pay them. And so on until the pyramid burns out to the very top.
Some pyramids appear and disappear in a couple of weeks. Some last for years. But the main thing is that they always have the same ending. And if you are offered participation in some kind of “network business” where there is no product, or it is very complex (too innovative for a mere mortal to understand its idea) - most likely you are being lured into a financial pyramid.
Here are some more indirect signs of a financial pyramid:
- Promises that there will be no need to sell anything or recruit anyone.
- Mandatory monthly payments.
- Inability to personally check the quality of the product (or poor quality of the product).
In general, it is the quality of the product that distinguishes a real MLM in the first place. Recommendations are certainly good. And your friend will probably buy something from you one day if you recommend it to her. But for her to pay you a second time, she needs to really like the product.
Therefore, pay attention to indirect signs and do not fall for scammers. Otherwise, they feel like fish in troubled waters on the Internet. Is it really possible to do a real network business via the Internet?
Is it possible to do network business via the Internet?
This is the golden dream of any networker. You don’t need to go to any personal meetings, you don’t need to recruit anyone. Stay at home, spread links to your product on social networks and websites - collect the cream.
But it seems to me personally (and this is just my personal opinion) that network business in its original understanding cannot exist on the Internet. There are two main reasons for this:
- MLM business is a business of recommendations. We recommend the product to our personal acquaintances, and they recommend it to their acquaintances, and they recommend it to their acquaintances. This is how the structure is assembled. And if we recommend a product to everyone, then this already becomes ordinary advertising.
- MLM business is based on a high-quality physical product. That is, you can touch it, try it. And you definitely need to give the buyer the opportunity to “touch” it before buying. Accordingly, there is no escape from personal meetings.
And if you really don’t want to go to personal meetings with anyone, but work via the Internet, then it’s better to engage in affiliate programs. This is the same as MLM, but you simply advertise a product and receive a commission on sales.
That is, MLM via the Internet is possible. And it’s called “earning money from affiliate programs.” Look at my article and a lot will become clear to you.
By the way, there are also multi-level affiliate programs. That is, you can also earn money there by attracting new partners, and not from personal sales. Watch my video about how I make money from affiliate programs (opens in a new tab).
Conclusion
I in no way want you to get the impression after reading this article that I am against MLM business. In fact, I'm a big proponent of people starting to take responsibility for their own income, and trying to provide for themselves through their own efforts, rather than relying on someone else.
And for starting an entrepreneurial career, network marketing is a very good option. You will gain experience, make your first bumps, and learn to resist public pressure. The main thing is to approach everything head-on and look at things objectively.
Otherwise, there is a high probability that you will be disappointed in ordinary MLM, and instead of using the acquired skills to open your own business, you will get bogged down in financial pyramids and financial bubbles.
Don't forget to download my book. There I show you the fastest way from zero to the first million on the Internet (a summary from personal experience over 10 years =)
See you later!
Yours Dmitry Novoselov
Loading...