What’s Up, It’s your BOY B!
And I just wanted to put you on GAME when it comes to the MLM and Network Marketing Business World.
If you’ve ever had someone send you a random message on Social Media asking……
- Do you keep you income options open?
- I’m looking for some sharp business minded people in your area that want to create some LIFE CHANGING income. Are you one of them?
- Are you interested in fixing your credit and making an extra $500-$3000 a week?
- Would you like to get fit, fine, and wealthy?
- Are you looking for an income shift?
You get the point.
Most likely it was someone in a MLM or Network Marketing Company trying their shot out to recruit you, and probably doing a bad job at doing it lol.
So What Is MLM/Network Marketing?
What is Multi-Level-Marketing (MLM), also called Network Marketing, Referral Marketing, Relationship Marketing, and Word-of-Mouth Marketing?
It is a Direct Sales Business Model where the chosen marketing strategy for the sale of products/services is word-of-mouth through its distributors, agents, contractors, or sales people.
Entrepreneurs that decide to become MLM distributors usually pay an upfront fee for their starter kit which could be anywhere from $50 to $1500 depending on the company. Some even charge a monthly fee also called a auto-ship for you websites, customer relationship manager (CRM), and payment processor.
You’ve most definitely have heard of some MLM Programs such as Herbalife, Isagenix, Ambit Energy, Team Beach Body, Avon, Amway, Total Life Changes, My Econ, Legal Shield just to name a few.
Is MLM/ Network Marketing A Pyramid Scheme?
Is it a Scam? Is it a pyramid thingy?
Those are the biggest questions most people have about MLM. It’s also one of the BIGGEST misconceptions.
You see a Pyramid Scheme or Ponzi Scheme is actually a business model that recruits members via A PROMISE of payments or services for enrolling others into the scheme rather than an actual sell of products or services.
In most pyramid schemes there’s actually no product actually attached to it. For instance like the Blessing Loom or Blessing Circle.
Usually there’s always some technicality for you to get paid when it comes to a ponzi scheme or pyramid scheme. Meaning even if you do bring people in you are waiting for something or someone else to get paid.
Don’t confuse a Pyramid Scheme with MLM/Network Marketing. Marketers get paid from product sales, and they get paid from products sold from their “downline lineage” which is basically their personally recruited sales force.
Now if you do research on Google and Youtube
You will quickly notice that most reviews will tell you that Network Marketing/MLM IS a pyramid scheme and most people don’t make any money.
Which is partially true, most normal people that start any business struggle to make it work and stay profitable.
But just because someone isn’t good at getting sales does that make the business model a scheme?
I personally don’t think so.
The real problem occurs with uneducated MLM Sales people. Most untrained MLM’rs just don’t have any idea on how to market and sale resulting in them promoting these businesses in spammy ways to friends, family, and followers online.
This may be partially why MLM/Network Marketing gets a bad name.
Why Does MLM Get A Bad Name
The biggest problem with the MLM Business model is that most people don’t succeed. This is what actually gives MLM a bad name.
In the old days before the internet was in full affect; everything was done in hotel meetings or home parties to present the products and the opportunity.
So new recruits joining a company were instructed to make a list of everyone they know (Their memory jogger list of 100).
Mommy, daddy, grandma, barber, cousin, friends, whoever you could get in contact with and try to get them to a meeting.
Most entrepreneurial spirits joined this business model in swarms with financial freedom in mind.
Those same spirits soon had a bad taste in their mouths after friends and family either didn’t want to buy their products or join the business with them.
Which in turn left them with lots of products in their garages, still in debt and not achieving the goal of financial freedom.
Although so many weren’t able to gain success, there still was a group that managed to build.
There were few that were able to build massive organizations and sale Millions of dollars in products throughout their sales force.
So it would seem as if only a few people were able to get into these businesses and make all the money.
But really, the people that were having the most success came from sales background such as door-to-door and were way more equipped than the average 9-5 employee joining the business.
Of course that wasn’t all cases but in any case the ones that had major success had a different mindset and skill level when it came to people.
This is what created the great divide between normal people trying to make MLM/Network Marketing work but couldn’t recruit or make sales from the people that were killing it and building 6 & 7 figure businesses.
The people that were able to sell and build and teach their teams to sell were the ones that were succeeding and even to this day.
And even when they had team members in their downline that weren’t great at selling, they created simple steps to help them get their prospects in front of a good presenter that could sell for them.
That was the secret weapon.
The people that weren’t able to sell and recruit were left behind and usually end up quiting and leaving with a bad taste in their mouth.
But It Wasn’t Always The New Distributors Fault
See in most cases distributors just weren’t taught good ways to build a network and sell to that network of people.
Trying to bring friends to a surprise home party presentation to sell products, services, and a business opportunity wasn’t working for everyone.
Most companies just weren’t prepared to teach and prepare their distributors what they needed to do to reach personal goals.
Even in 2020 a lot of companies still don’t prepare their distributors to market and sale on social media to help drive sales and new business partners. Some of the companies even limit what you can say or do.
Reasons Why 97% Fail In MLM
There’s a few reasons that most people fail with MLM/Network Marketing businesses and I want to break it down below so you understand how to get in front of the wave.
Reason #1 – Friends & Family Think It’s A Scam
When we wake up and find opportunity the first people we want to help is our family.
Little do we know that our family isn’t always ready for change, risk, or the idea of starting a business to change their financial future.
Most of our friends and family don’t have the confidence, knowledge, skills, or mindset to jumpstart a business and hop out on faith.
And because they fear doing all the things you need to do to build a business they project that onto you by either not being 100% supportive, or trying to get you to stop doing this new venture. So just understand they know not what they do and their intentions are good, they just don’t understand yet.
Inability to persuade or demonstrate the value of your product/service or business opportunity when launching to warm market can be difficult to deal with.
I actually suggest not reaching out to your warm market unless they are individuals that you think are on the same wave length as you.
Reason #2 – No Daily Plan Of Action
In most cases if you have a decent upline they may tell you to write down a list of 100 people. Peak their interest by seeing if they’re open to starting or business or “money making opportunity”. If they say yes, get them to a presentation or some type of presenting event. Get them on a 3 Way Call and get the decision.
If you get lucky and find a good sponsor or team they may help you launch your business. This can be extremely effective especially if your upline has some influence and previous results in the company.
But the vast majority of distributors end up joining people that are just as lost as them. This transpires into many distributors getting in and quitting because they simply aren’t getting the direction they need.
Understand that entrepreneurial skills weren’t taught in school.
It’s usually the thoughts of being imperfect, lack of skills, or not having a clear daily plan of operation that kills most MLM business owners.
Reason #3 – No Community or Culture
If you really want to build a large organization you need people to stick around.
Especially if your goal is to create financial freedom with passive income. See real passive income in network marketing comes with your ability to not only sell products and build long term relationships.
But your ability to help your team do the same. So the people that have the most success pour into their teams on a daily basis. They help their teams duplicate and get results.
To have a team that sticks you must create a positive community that people can come to and grow. A community where they don’t feel judged, and you have to give them a clear strategy and blueprint so that they don’t get stuck.
It’s your ability to lead which gives you residual income.
To really stay in Network Marketing long term you need to really be on a mission to develop yourself as fast as possible, while simultaneously growing your team and new members coming in.
If you are looking to create your own economy and start a business part-time without having a lot of overhead then picking an MLM could be a good start.
My biggest suggestion would be to find an MLM/Network Marketing company that has products or services you are interested in.
For example if you are already into health and fitness find a company that promotes products that align with what you are already doing i.e. supplements, proteins, fitness apparel, etc.
If you are on a journey to repair your own credit and get excited about teaching people the power of credit than find a credit repair company that you can affiliate with.
If you love to travel there are tons of travel mlm companies that give amazing discounts on different resorts and hotels.