Business History Books » Business Plans » If You Must Do MLM …
If You Must Do MLM …
Question:
>John, there are some good natural health > products where the company decides to > market thru network marketing. > If one wants to buy their good product, > then they are forced to become distributors.
Hi George. There are advantages in using network marketing, there is no need to employ sales teams, etc, but I’m surprised you were forced to become a distributor. I am happy to supply the general public, that way I I keep the retail profit. People often become distributors to get the products at the wholesale price. Best wishes — John Bain UK TV Sound Director, magnotherapy user & distributor http://members.aol.com/JBainSI/Magnotherapy.html Surround Sound for Television
Response:
>>but we knew the concept >> really could work, provided it offered (1.) An exceptional product. (2.) >> A support system (permanently)in place to assist us at any time. (3.) A >> company committed to excellence. >1) One of the essays I cited makes the point that single-product >MLMs are "fad" companies. That’s certainly been a point proven >over and over again in recent years.
Only if it is a FAD product. >2) The "system" is how people really get screwed in MLM, if >by "system", you mean tapes, seminars, etc.
Nope, the support system is the people there to help you succeed. In a good MLM, they will have a vested interest, if you don’t profit, they don’t profit. >3) Anybody can say they’re committed to excellence. That’s >just hype and spin that costs nothing to say. Did you know >I’m committed to excellence in newsgroup posting?
Indeed, so the enquirer needs to judge by actions, not words. In your case your actions do not support your claim. Best wishes — John Bain UK TV Sound Director, magnotherapy user & distributor http://members.aol.com/JBainSI/Magnotherapy.html Surround Sound for Television
Response:
- Hide quoted text — Show quoted text – > >>but we knew the concept > >> really could work, provided it offered (1.) An exceptional product. > (2.) > >> A support system (permanently)in place to assist us at any time. (3.) A > >> company committed to excellence. >1) One of the essays I cited makes the point that single-product >MLMs are "fad" companies. That’s certainly been a point proven >over and over again in recent years. > Only if it is a FAD product. >2) The "system" is how people really get screwed in MLM, if >by "system", you mean tapes, seminars, etc. > Nope, the support system is the people there to help you succeed. In a good > MLM, they will have a vested interest, if you don’t profit, they don’t profit. >3) Anybody can say they’re committed to excellence. That’s >just hype and spin that costs nothing to say. Did you know >I’m committed to excellence in newsgroup posting? > Indeed, so the enquirer needs to judge by actions, not words. In your case > your actions do not support your claim. > Best wishes
just been kinda poking around and found all this info fairly interesting. I’ve been in MLM for several years and have always managed to do fairly well, nothing extravagant, but it has always provided for me to have extras. One thing I can say that rings true is that ANYONE can succeed. But what I’ve noticed is that more fail because they are sold unrealistic expectations about what it will take to earn the money that has drawn an individual to that company. One of the main reasons MLM has earned such a bad name is because there are so many people out there selling hype and sizzle without empahsiszing the importance of hard work. Thanks for those articles they were pretty good and for the most part true, there were some assumptions made that weren’t entirely fair or true , but for the most part it did a good job of painting problems that are very real within the industry. Keep up the dialog I always find it refreshing to find people who share the truth. Again Kudos to this forum. This site has been great for finding info about ailments that I am asked about on a regular basis.
Response:
> Mark, I’ve not been able to locate the tables you mention above…Where > again is that at? There are a sevral companies we were involved with > previously that I’d just love to take a look at.
They’re in this document: http://www.truthofmlm.com/freedownload/KOT.pdf The tables are on pages 17-20. You might need to read some of the pages before that to understand what the columns mean.
Response:
>> So you do accept that some MLMs are valid? >As with many things, there is a scale of "badness" among MLMs.
<snip> So there is nothing intrinsically wrong with MLMs, just with the way some of them are organised. But this may be a US thing, certainly MLMs are tightly regulated over here. Best wishes — John Bain UK TV Sound Director, magnotherapy user & distributor http://members.aol.com/JBainSI/Magnotherapy.html Surround Sound for Television
Response:
– Hide quoted text — Show quoted text -> >Here are two pro-MLM web resources that every MLMer > >should read. > So you do accept that some MLMs are valid? > As with many things, there is a scale of "badness" among MLMs. > I recommended two essays, available at: > http://www.explode-web-traffic.com/map/booklet.pdf > http://www.truthofmlm.com/freedownload/KOT.pdf > These essays describe how some (most) MLM plans > are structured heavily in favor of the heavy hitters > at the top, at the expense of the average MLMer at > the bottom. One of the essays includes extensive > tables comparing the compensation plans of virtually > every MLM outfit in existence at the time it was written.
Mark, I’ve not been able to locate the tables you mention above…Where again is that at? There are a sevral companies we were involved with previously that I’d just love to take a look at. Cher
Response:
– Hide quoted text — Show quoted text -> MLM companies that "don’t deliver"…that are misleading and deceptive > are the ones who have given MLM a bad name. We’ve been there…done > that….Lost a good bit of money in the process….but we knew the concept > really could work, provided it offered (1.) An exceptional product. (2.) > A support system (permanently)in place to assist us at any time. (3.) A > company committed to excellence. > 1) One of the essays I cited makes the point that single-product > MLMs are "fad" companies. That’s certainly been a point proven > over and over again in recent years. Single-product companies > tend to have a very fast early growth period, followed by an > equally fast demise. For long-term success, you should be selling > a broad line of products.
Mark…there are hundreds of products availabe and sold through this company. We offer any or all of them. It’s just that since the introduction of their liquid dietary supplement, it’s become their biggest seller, and gets most of the attention, but there are many other products available. > 2) The "system" is how people really get screwed in MLM, if > by "system", you mean tapes, seminars, etc.
That’s not what I meant…by support system I mean live, human beings…I can picked the phone up right this second and call this companies #1 top producers. Any of them or all of them. They will answer their phones, or will return my call shortly…(they always have….and believe me, we’ve called many times). Anyone of them will drive 4-5 hours (the distance from most of their homes to mine) to explain the company, the product or the business. They’ve done this for as few as three people in my living room. And when they leave, they tell us they’ll come back whenever we need them….And they mean it because they do exactly what they say. They’;re good people…..real people. The parent MLM > can get in big touble if they make more money off of sales support > materials and services than by selling product, but the distributor > networks are under no such constraint. For many of the > "heavy hitters", it’s the tapes and seminars that bring in the most > money, not product sales. For a description of how this works > in Amway, check out: > http://www-2.cs.cmu.edu/~dst/Amway/AUS/articles.htm
Well, the only tapes we use are put out by companies not associated with the product (really). We’ve had two big seminars, but I’ll have to check out the above site to see if I can understand how anyone makes much money off of those. > 3) Anybody can say they’re committed to excellence. That’s > just hype and spin that costs nothing to say.
Yeah, I know that….But the three points I brought up previously…(1)good product(s) (2) good support system and (3) committment to excellence, is what my husband and I felt would be necessary to succeed in this business, or really what it would take for us to ever get involved again. We used their products for quite a while before we became actively involved in the business end of it. We sort of sat back and observed how things were done… These 3 major characteristic (along with the "people first" mindset)…. attracted us to this particular company. The company never promoted themselves in these areas (well they may have, but not to my knowledge). Thanks for the links… Cher
Response:
> >Here are two pro-MLM web resources that every MLMer should read.
> So you do accept that some MLMs are valid?
John, there are some good natural health products where the company decides to market thru network marketing. If one wants to buy their good product, then they are forced to become distributors. I have been using a particular flora product which the company has chosen to market by network marketing. I like the flora capsules which for me functions as a colon cleaner; food digester [digestive enzymes] and getting rid of the "bad" guys in the body like bateria, fungi, and viruses. Got rid of my food allergies. George ( 41259 )
Response:
>Here are two pro-MLM web resources that every MLMer >should read.
So you do accept that some MLMs are valid? Best wishes — John Bain UK TV Sound Director, magnotherapy user & distributor http://members.aol.com/JBainSI/Magnotherapy.html Surround Sound for Television
Response:
> >Here are two pro-MLM web resources that every MLMer >should read. > So you do accept that some MLMs are valid?
As with many things, there is a scale of "badness" among MLMs. I recommended two essays, available at: http://www.explode-web-traffic.com/map/booklet.pdf http://www.truthofmlm.com/freedownload/KOT.pdf These essays describe how some (most) MLM plans are structured heavily in favor of the heavy hitters at the top, at the expense of the average MLMer at the bottom. One of the essays includes extensive tables comparing the compensation plans of virtually every MLM outfit in existence at the time it was written. This inherent unfairness in most plans hints at a phenomenon which is not widely reported, the existence of MLM "clubs". If MLMs worked they way they appear on paper, for example in the distributor agreement, the compensation plan might seem very fair. I get a certain percentage from my downline, my sponsor gets a certain percentage from me and my downline, and so on for another four or five levels up the line. After all, if some guy could build a network six or seven levels deep, doesn’t he deserve some compensation from that? And I could do that too, right? On paper, this seems very fair. But in reality, the top four levels are all the same guy. Oh sure, the distributor agreement prevents him from signing himself up in his own downline, but that’s easy to get around. He signs up his brothers, sisters, children, cousins, etc. And so the compensation ends up being a small percentage for me, a small percentage for my sponsor, and a HUGE percentage for the "heavy hitter" who created the "club" that recruited my sponsor. Now, that doesn’t seem so fair, does it? The better plans described in the essays I cited don’t follow this model. They pay out more at the lowest levels, which gives the little guy at least some chance at making a little money. Why do most plans favor the "heavy hitters"? Some MLM outfits are far more dependent on MLM "clubs" than others. By following a model that favors "clubs", a new MLM venture can rapidly pick up downlines with thousands of members. That can be very appealing to a struggling MLM, but it’s like agreeing to sell your soul to the devil. It gives the MLM "club" an enormous amount of power, because the club controls a significant part of the downline — in some cases the great majority of the downline. When a "heavy hitter" walks away from the MLM — which has happened in the past when an MLM didn’t give the "heavy hitter" everything asked for — it can bankrupt the MLM or come close to it.
Response:
> MLM companies that "don’t deliver"…that are misleading and deceptive > are the ones who have given MLM a bad name. We’ve been there…done > that….Lost a good bit of money in the process….but we knew the concept > really could work, provided it offered (1.) An exceptional product. (2.) > A support system (permanently)in place to assist us at any time. (3.) A > company committed to excellence.
1) One of the essays I cited makes the point that single-product MLMs are "fad" companies. That’s certainly been a point proven over and over again in recent years. Single-product companies tend to have a very fast early growth period, followed by an equally fast demise. For long-term success, you should be selling a broad line of products. 2) The "system" is how people really get screwed in MLM, if by "system", you mean tapes, seminars, etc. The parent MLM can get in big touble if they make more money off of sales support materials and services than by selling product, but the distributor networks are under no such constraint. For many of the "heavy hitters", it’s the tapes and seminars that bring in the most money, not product sales. For a description of how this works in Amway, check out: http://www-2.cs.cmu.edu/~dst/Amway/AUS/articles.htm 3) Anybody can say they’re committed to excellence. That’s just hype and spin that costs nothing to say. Did you know I’m committed to excellence in newsgroup posting? Each one of my postings is fully researched by a large staff of qualified professionals. Then, it’s reviewed by a committee of Nobel-Prize-nominated scientists. Finally, once it’s vetted by Sonic.net’s attorneys, I print it out with fresh electrons generated by a natural hydroelectric dam from the pristine waters of a mountain stream in the Pacific Northwest and upload it to the Internet through wires made of pure copper. You have my word on it. :-)
Response:
>Here are two pro-MLM web resources that every MLMer >should read. > So you do accept that some MLMs are valid? > Best wishes > John Bain
Yes, some MLM companies are absolutely valid. Are they out to make money…even a profit? Why of course they are….what company on the planet isn’t? But there are MLM companies who are legitimate, who pay commissions that are fair and honest, who go above and beyond the call of duty to help the little guy "make it"… The company we’re involved with has been great. When we first got started and were told that we could "get our product free" , we thought to ourselves…"yeah, right!!!!"…But what they told us was exactly true…no catches or gimmicks…Sign 5 people up who buy a case (4 bottles) a month and your product is free. Because this stuff is incredibly "good" and helps so many, 5 people is fairly easy…….Is there some leg work to do? Some commitment? Some work to be done to achieve this? Well of course….success in any area of life depends on these type things.. MLM companies that "don’t deliver"…that are misleading and deceptive are the ones who have given MLM a bad name. We’ve been there…done that….Lost a good bit of money in the process….but we knew the concept really could work, provided it offered (1.) An exceptional product. (2.) A support system (permanently)in place to assist us at any time. (3.) A company committed to excellence. In a recent gathering in Little Rock, Ark. we were once again reminded of why we’ve been so impressed with this company. It’s the people. From the so called "top producers", right on down to the little guy. They’re what we call "real people" who care about others. As we listened to some of the companies most successful people and top producers….we heard person after person say the same thing…….Their speeches or comments were not about fortunes accumulated, and all the money made, not a word about new cars, luxurious living or cruise vacations every month…… No hype about "You can be making $50,000.00 a month if you do what we did"…Not ONE word of that. Instead we heard story after story, comment after comment (hours) about lives touched, about failing health improved and or restored…and about what a blessing the company and their product had been to them, their family’s and friends. Stories so personal and sincere that there wasn’t a dry eye in the place. Am I making a million? No way…Would i like too? Sure, who wouldn’t….but not if it means putting "people on the back burner" and turning into a bad guy. We’ve only been actively involved with this company since April of this year. We are getting our product free (as they said we would) and we’re making a little extra which helps pay a few bills. One day we hope to be making a substantial income, but it will happen because of putting people first…not greed…This is the formula for success we hear over and over again….It’s also a pretty good mindset for any company or business. Anyone interested in hearing more about this company and what their product is doing for others….call the Monday night conference call. (This is not sales, it is information). Every Monday night at 8:30 p.m. (central standard time)….just call 1-800-736-8084 and listen to what is said. It’s just company information, what the product is, how they found it, etc. etc….. and then 3 or 4 people from across the country will come on and tell their story. At the end of the call they say anyone interested in learning more should contact whoever gave them the 800 #…(in this case, that would be me)…at which time I will refer you directly to the company. (I said I wouldn’t sell in here and my word is good. I won’t) Ok….I’m done rambling now….sorry… Cher -Let Freedom Ring! o/ God Bless America
Response:
Here are two pro-MLM web resources that every MLMer should read. They explain how badly some plans are structured to rip off the little guy, to the benefit of the heavy hitters at the top. Of course, these essays are intended to promote their own plans, but they still provide useful information for anyone considering an MLM business. They are both PDF files, and may take a few minutes to download. http://www.explode-web-traffic.com/map/booklet.pdf http://www.truthofmlm.com/freedownload/KOT.pdf