The Problem with Multi Level Marketing
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If you’re currently struggling with your home-based Multi Level Marketing (MLM) business, you’re not alone. In fact, the attrition rate in MLM within the first 90 days is 90%... that is to say that 90% of MLM newcomers quit within their first 90 days in the business. With a business model reliant on residual income generated by your downline, no wonder so many MLM’ers are failing today.
Before I continue I should say that some people definitely are successful in MLM. There are some incredibly successful MLM’ers currently marketing today. These people are however in the huge minority, and have generally been distributers in their respective companies for years. For example, the income disclosure statement on the official Monavie website reveals that LESS THAN 1% of Monavie distributers in the United States currently make over $200 000 a year. Less than 1%... those are horrible statistics.
Why is it so difficult to run a successful MLM business today? Well there are a few reasons. First and foremost, to run a successful MLM business (for example’s sake let’s denote successful as generating $10 000 a month), you need literally thousands of distributers in your downline. That is to say, you need to have personally recruited thousands of people into your company. Your income is directly dependent on how many people are in your downline, and how successful they are. Trying to accomplish this in today’s MLM market is like trying to fill a leaking bucket; as stated previously, 90% of MLM newcomers leave the business within their first 90 days. With these statistics it’s near impossible to build a downline which will generate significant income for you.
Moreover, MLM training is generally lacking, and will have you pestering friends and family to join you. In MLM YOU will be selling other people on your business opportunity, i.e. you will have to approach them and convince them to join you. This is a marketing tactic which frankly generally does not work, and which most people hate doing, especially to friends and family. Is this something you want to be doing? I doubt it. A successful business should have people seeking you out because you have something of value to offer them, not the other way around. A top-tier non-MLM internet marketing company will show you how to do this.
If you’re discouraged after reading this, don’t be. There are plenty of other legitimate opportunities out there for those of you looking to start your own home-based businesses. You can be generating $10 000 to $15 000 a month with ten new customers or LESS a month (not thousands... and not your family and friends) in a top-tier internet marketing company. Furthermore, you won’t be reliant on the residual income provided by your downline, and attrition is simply not a factor.
About the Author
Matt Mossop is a professional internet marketer and successful home-based business owner. Looking for an Alternative to MLM Home Business? Check out Matt's Popular Blog to see how he can help you generate incredible income with direct sales => MossopBlog.com
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About the Author: Matt Mossop
Member Since: 05/28/2009
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Industry: Marketing and Advertising
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The problem with mlm
Hi Matt, probably your company is one of the few 5 pillars!
Do you know about the 5 pillars? The lack of success is not their fault, because it is not logic to rely on a need of thousands of people to generate an income. People must learn how to analyze the comp. plan of the company. That costed me time, precious time. Then I learned with the help of my Mentor, Michael Dlouhy, how to think! It is so simple to get the basic skills and avoid the frustrations. I was lucky the day I got the e-book from Michael. Everybody can learn and is free: www.Feroliva.successin10steps.com
Be a Mentor with a Servant's Heart
Fernando Oliveira
The Problem with MLM -- NOW SOLUTIONS
Hi Matt,
Thank you for your blog but it’s easy to point to problems, but let's provide solutions. Indeed, you have to work hard to reap the benefits of a successful MLM Marketer, but it’s worth it! In my research, MLMs (97%) are using last century's MLM recruiting methods. I think walking up to strangers, bugging friends and family members, to join or purchase products is the way to achieve minimum cash results. In today's technology, (3%) we have to train the MLMer with current effective Internet outreach and recruiting methods. Doing oneze and twoezes is so passé. We have the power of the internet now. We have incredible tools, to reach the masses - Today, for example, we can send out a single email and it would reach 3000 - or 6000 people in one or two days. That's 24,000 contacts in one month. How would you achieve that using old outreach efforts?
These are not cold bodies we're approaching on the streets. Indeed, no these are WARM bodies that relate to your message and business opportunity and want more. These are the ones who are going to listen to you and join business. You can sell a product to your family and friends, but in Network Marketing it's really about investing or participating in the business opportunity! Those are the folks we really are looking to recruit.
Now neither you, nor I have the time to personally locate and talk to 3000 prospects, one by one, to talk about your business opportunity. But we can do it effortlessly on the internet. And with today's technology, you can get an auto-responder product like Aweber to send your customize emails and email that message to maintain that constant warm fuzzy contact with your prospects and customers. I believe it takes redirecting and upgrading your efforts.
Now my website: http://www.BESTNETWORKTRAINING.COM
offers such solutions and training. People have to be trained on today's network marketing, and how to approach the customer/prospect. We focus on new Network Marketers and struggling entrepreneurs and provide them the priceless website, training (online videos and audio training), and winning techniques on how to give their business an upgrade to today's technology. You can try it out for $1.00 for 14 days.
Get the website; load it with your primary promotion. It’s already stocked 21st century training videos and audio that will reintroduce the MLM marketer on TODAY's successful Network Marketing methods.
That's my take. Thank you!
Sure you can send out
Sure you can send out however many e-mails you want, but you'd have to buy your e-mail list from somewhere which is going to cost you. Additionally, you could receive as many new customers with a top-tier marketing company as with an MLM, except you'd be receiving much larger comissions with the top-tier company.