Even truthful testimonials from the very small minority of participants who do earn career-level income or more will likely be misleading unless the advertising or presentation also makes clear the amount earned or lost by most participants. (For more information on this topic, see the FTC’s Guides Concerning the Use of Endorsements and Testimonials in Advertising.)
This article was really informative and honest! I’m not presently involved in an MLM and I don’t ever plan to be especially after reading this article and the comments below. Why? Well because of EXACTLY the kind of “networking” and “recruiting” that these companies and many of the people commenting on here are advocating. I have been bombarded on my facebook, and other social media from people I haven’t spoken to or seen in years. Its becoming constant, and I am not on social media to make money. Roden and Fields, shakeology, some girl I went to high school with is now trying to get me to buy leggins from her. I have a cousin that I actively avoid now because he is constantly steering every single conversation to Herbellife and why I NEED it to be healthy. Jesus. Its just enough already. I’m all for empowering people, and I love the idea of earning an additional income to take care of your family or yourself. But I could not imagine alienating or even just annoying friends and family in order to make an extra dollar. What I dislike most is that many of those that are recruiting make it seem as if they recruiting you simply because they want to “help” you or provide you with an opportunity. They make it seem as if they are doing this out of the goodness of their hearts, when really the actual motivation is line their own pockets with more money, because the more people you recruit for your team, the more money you make. That feels dishonest and slimy to me. Unless I’m asking for “help” or an “opportunity” I wish people would assume that I don’t need and am not interested in one!
Wow Collette! I’m a new Advocate with doTERRA, as is my wife. She wanted to start using oils to get our family off of medications as much as possible (and now we mostly are!) We chose doTERRA over all the other oils companies because of the process in which they farm and make their oils as well as the great culture they seem to exude. We just felt called to them.
Yes. Personal or internal consumption – meaning product participants purchase and consume to satisfy their own genuine product demand – does not determine whether the FTC will consider an MLM’s compensation structure unlawful. As noted in the answer to question 5, when evaluating the issue of participants’ internal consumption, the FTC staff is likely to consider, among other factors, both (i) whether features of the MLM’s compensation structure incentivize or encourage participants to purchase product for reasons other than satisfying genuine demand; and (ii) information bearing on whether purchases were in fact made to satisfy personal demand to consume the product. When evaluating MLMs, the FTC focuses on how the structure as a whole operates in practice and considers factors including marketing representations, participant experiences, the compensation plan, and the incentives that the compensation structure creates.
Remember to keep things in perspective. Don’t expect that everyone you speak to is going to be as excited as you are about your new business and get involved right away. In addition, when you are fortunate enough to get others involved in the MLM business don’t over sell them on it. That is the quickest way for someone to become negative. If they are under the false belief they will be a millionaire within just a few short weeks or even months they will become extremely disappointed and it will work against you and everyone else in your business line. This is another one of the important MLM tips.
I learned seo and blogging, failed at that. I learned Facebook ads and email marketing, learned how to target the right demographics for Doterra, now people contact me wanting to know about the oils, then I got present and sign up, this my friend’s is the best of both worlds and what everyone should learn, find your form of marketing, go teach and sign up and leave for friends and family alone, unless you know they’ll want it.
84. What creates IMPACT? Touching what people Value and hold dear, with the Hope of Increasing it and making it Larger in their life. Find out what people VALUE in their life, then wrap your presentation around it. "This will help you have more time with your children" or "This will allow you to give more money to your church," or "This will guarantee you having more control over your future."
“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
You are right in that most MLM have monthly dues and have high entry fees to be distributors or consultants. You are also right in that most MLM companies focus on recruitment and not product sales. I’ve been working with Arbonne now for quite a while and none of those comments apply to this company, which is why I believe they have survived and are only growing at this point, despite some people’s opinion that they will soon be relics like Mary Kay. To become a consultant is a mere $75 dollars, the kit is involved with all free samples and material. Product loading is prohibited. Each event we host regularly ends with most if not all attendees becoming a preferred client for $20 joining fee for the first year and a $15 renewal every year with no monthly expectation and a guaranteed minimum of 20% off of all stock at all times and 40% off of all packages at all times. Not only that consultants can will their business down 6 generations, and the Mercedes incentive is for a purchase, not a lease. We do look to grow our network, but we emphasize this takes hard work and is not a get rich quick scheme. While you hit the nail on the head with most MLM businesses, there are MLM businesses like Arbonne who are a cut above the rest and who are in the habit of not putting pressure on anyone attending to either purchase or join as a consultant. We only want the best in our network and we have thousands of examples of very successful men and woman to show for it. Great article!!!
MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but most importantly they are incentivized to recruit others to join the company's distribution chain as fellow salespeople so that these can become down line distributors. According to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission's website, at least 99% of people who join MLM companies lose money. Nonetheless, MLMs function because downline participants are encouraged to hold onto the belief that they can achieve large returns, while the statistical improbability of this is de-emphasised. MLMs have been made illegal or otherwise strictly regulated in some jurisdictions as a mere variation of the traditional pyramid scheme, including in mainland China.
46. There are people out in the industry that will tell you recruiting is Selling, and Selling is Recruiting. They are wrong. Selling is Transaction based, and Recruiting is Transformation based. Selling is a one time event, where Recruiting births many events in the future. Selling is about CLOSING people. Recruiting is about OPENING futures. Don’t be misled. They are 2 totally different processes, with different skill sets needed, no matter what some folks say.
This one is a little sensitive so you should take it very seriously. Ask the family and friends of most budding network marketers, and they will tell you that it is annoying how they’re always trying If you keep doing this long enough, it will eventually cost you your friends and get you no more invitations to family gatherings. Of course, there’s no problem with telling your family and friends about what you’re doing and gauging their interest. However, if they’re not interested, don’t push it.
I’ve been using these leads for over 2 years now and have built large organizations. Not only are the leads of great quality but the support is excellent. I use a simple six-step process to train my team. When you have leads who are all looking to start a home-based business, this is a very simple and duplicatable process. Cal Faber Victoria B.C. Canada –
Delivery jobs vary in their specific functions, but they all allow independent contractors like yourself to travel, create a flexible schedule, and deliver goods (as opposed to passengers). Jobs like Postmates give you the ability to work short gigs during times like your lunch break or at night, while others like Roadie allow you to use space in your car for somewhere you are already going to deliver a package.