As with all MLMs, the real money to be made isn’t in selling their products but in recruiting more people to join your team (basically, doing the work for you). So the real winners are the person who started the business and the very first people she recruited. This top of the pyramid is also where all of the success stories tend to come from. Among the most vulnerable to these pyramid schemes are people in smaller towns and rural areas. Market saturation prevents growth in a small town, because once everyone you know starts selling it, no one can make any money and you’ve essentially created your own competition.
When you hit over a billy in annual sales, that’s reason enough to be on the shortlist. On top of that, they’ve been in the MLM game for over two decades, and they’re now the “largest online wellness shopping club” (basically just sounds like a fancy way of saying they sell a lot of miracle diet pills…for our rankings of the best women diet pills are here).
What is a network marketing professional? Tell me what that is. A person who can approach well-dressed people in Wal-mart and hand them their MLM business card? Someone who writes a list of their family and friends and then 3-way call them with their “higher-up” sponsor? Really, if someone can tell me what being a network marketing professional entails, I’m listening.
“One of the best sales advice that I truly believe in is you always have to listen to your potential customer and their needs, that way you'll see if your product is a fit for them or not. The ultimate goal of an entrepreneur is to provide solutions to the marketplace. That's why we always have to listen more and speak less. We are given two ears and one mouth for a reason, so we have to use them accordingly.” - Jelena Ostrovska
People today want to be understood. They wan to feel like they matter. And the greatest 2 words you can say, are "I understand." Agree with them in part, by jumping over to their side of the fence, and seeing it from their perspective. You may not totally agree with their view, but you can understand it, and that will go a long way to connecting you to that prospect. Understand first, then take a stand second, with that in mind.
Everyday, people get sucked into the lure of MLMs (“multi-level marketing” or “network marketing”) and I can’t stress enough the need to stay far, far away from them. These include Herbalife, Arbonne, LuLaRoe, Younique, Rodan + Fields, and Amway among many others. I understand the need for flexibility, especially if you are a full-time student or are raising young children. Believe me, I also understand getting a job that allows you to create your own schedule and work remotely takes Hunger Games level competition. I am always surprised when I see college educated women sucked into these things. But it’s telling about other issues, like childcare, maternity leave and corporate culture in the US. MLMs are pyramid schemes, and are extremely predatory because the only way to make any money is to sign up more and more people under you which will just ruin your social relationships and make you a pariah where it matters most: your friends and family members.
The end result of the MLM business model is, therefore, one of a company (the MLM company) selling its products and services through a non-salaried workforce ("partners") working for the MLM company on a commission-only basis while the partners simultaneously constitute the overwhelming majority of the very consumers of the MLM company's products and services that they, as participants of the MLM, are selling to each other in the hope of one day themselves being at the top of the pyramid. This creates great profit for the MLM company's actual owners and shareholders.
Too many people get caught up in the hype of potential big income from MLM, that they don't pay enough attention to what the company is asking you to sell. You can’t sell something or share your business if you don’t genuinely have pride in what you are representing. Do your MLM research and partner with a company that has a product you can get excited about. Don't forget to look into the company's compensation plan before you join and make sure it is favorable to you.
Many MLM companies do generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. However, the profits of the MLM company are accrued at the detriment to the majority of the company's constituent workforce (the MLM participants). Only some of said profit is then significantly shared with individual participants at the top of the MLM distributorship pyramid. The earnings of those top few participants is emphasized and championed at company seminars and conferences, thus creating an illusion of how one can potentially become financially successful if they become a participants in the MLM. This is then advertised by the MLM company to recruit more distributors to participate in the MLM with a false anticipation of earning margins which are in reality merely theoretical and statistically improbable.
You already know that MLM has the potential to be one of the most valuable business opportunities that you can possibly get involved with. However, if you are getting started with a new MLM venture, you are engaged in an uphill battle. There are plenty of other MLM pros and entrepreneurs out there who would like to use your prospects to build their list!
The cons of mlm are that most people getting into mlm don’t understand mlm. They apply the incorrect philosophy and it becomes a recipe for disaster. I see dozens of people monthly that join a mlm, don’t work and don’t yield any results and as a result, leave with a bad taste. But with correct leadership that problem could be averted. That is precisely why I love my company. It has the best leadership (in my opinion) and they properly train their agents.
Ever been confused about how a “home business” works? Of course you have, many of us have. Most people have heard the term MLM (Multi-Level Marketing) and usually at the end of that the word, “scheme” is added – giving the whole business model a bad name. Well…let’s change your negative perception and tell you how your Great Aunt Joan, actually earned that pink Cadillac from Mary Kay ! It’s brilliant really…
The Leadpower Promise: Here at LeadPower we talk through experience, we have been generating leads since 1998 and have helped over 167,779 network marketers. The founder of our company founder has been a network marketer himself for over 20 years. He has built some very large groups consisting of well over hundreds of thousands of distributors. He understands how network marketing works and understands sauce how lead generation works as well.
To be successful, you absolutely must branch out beyond friends and family. It’s easy to start out there, but it will soon become a tapped market and you’ll need to move on. Not to mention, you can easily put people off by trying to sell them the same products over and over. Learn how social media marketing works, study the best practices, and show up consistently.
I thought this article was fantastic. I currently work with an MLM and love it, but I definitely can see why MLM’s would have flaws. However, I also know for me it wasn’t about selling as much as it was SHARING. I have experienced more than a product, I have been able to share the gift of health and the gift of the business itself. I absolutely love it and people who join me in this mission are as passionate as well! I believe when we look at really loving people where they are and actually caring, success will come and not the other way around. That’s the only way I’ve been able to see it happen! Any who, thanks for the tips!
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Writing MLM-specific articles is another great way of establishing authority inside of MLM. When people type in a search term or phrase on a specific MLM topic, and an article appears with the networkers name as the author, if the article answers a specific question, and is not just a spam piece, then the reader will visit the site to learn more about the author.
Get them to watch a company presentation and then ask them what they liked about what they saw. One of the, if not THE, best question to ask a bought MLM lead is: “What has recently changed in your life that has you open to a home business?” This question is frigging awesome to get them to open up. If your upline has not provided you with a place to purchase MLM leads for practice and to work with, I have a partnership with Responsive Data where you can buy MLM leads on this site. I have personally bought from this site and the leads are good quality but like I said, you STILL have to treat them like a lead, not a laydown sale. My favorite type are the local leads as I think it is a bonus if I can say I live in their area.
People want to live a fun and free life – that’s what we’re selling. So when you’re using Social Media to grow your business, give people something good to watch. Post family pictures, post lifestyle pictures, post about you traveling and things you’re doing. The more you post about lifestyle and stories, the more your audience grows to know, like, and trust you.
Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common feature that is found across all MLMs is that the compensation plans theoretically pay out to participants only from two potential revenue streams. The first is paid out from commissions of sales made by the participants directly to their own retail customers. The second is paid out from commissions based upon the sales made by other distributors below the participant who have recruited those other participants into the MLM; in the organizational hierarchy of MLMs, these participants are referred to as one's down line distributors.