MLM Madness - What is MLM?
Multiple Levels of Manure!
MLM stands for "multi level marketing". It's a method of delivering products or services to the public using a pay plan that pays out on multiple levels. You enroll distributors underneath you and get a commission for the purchases they make, as well as the purchases of those underneath them make. Everyone underneath you is called your "downline" and you are their mentor. Everyone above you, including your sponsor (or person who enrolled you) is your "upline".
There are several different names for this business model that have popped up. Some companies have invented their own name for it, even telling their distributors that they are NOT MLM simply because they use a different name (Melaleuca is one). You can call a pen, a writing instrument but it's still a pen. Some of the names that all mean the same; MLM, Multi Level Marketing, Network Marketing (NWM), Referral Marketing, Word of Mouth Marketing, etc.
What is so Wrong with MLM?
People spin and lie and hype...but numbers don't lie. So let's talk numbers.
Most MLMs require that distributors order a certain amount of product each month in order to qualify to earn commission. So you will need to be spending somewhere in neighborhood of $30 to $150 per month to earn a commission. The amount you need to spend usually increases as your commission level increases. So right from the start you will be needing to spend a monthly amount just for the right to earn commission. And you will be encouraged by your upline to start spending this money NOW even though you have no commission coming in. This is on top of the marketing products that are usually pushed on you by either the company OR your upline. Many uplines make the majority of their fortunes via the marketing systems they come up with to sell to their downlines.
Now Let's Talk About your Chances?
Do you know what your ACTUAL chances are of making ANY money at network marketing? No one IN network marketing will actually tell you.
Looking at the income statistics that many MLM companies provide does not offer much insight since these numbers are greatly skewed. For one, they only include those distributors that remained ACTIVE (meaning qualifying for commission) for an entire year. So EVERYONE that dropped out during the year is eliminated from the numbers. And everyone that didn't qualify for a commission every month out of the year are also not included. When it is estimated that 50 - 75% of distributors signing on to MLMs each year fail or drop out, it is even more clear that someone is hiding something. They do not want you to know! What if I told you that at least 95% of those getting involved in MLMs do not make a dime? What if I could show you that it was mathmatically impossible for everyone to make money? More on that later.
What if....
What if I told you that "I" had THE most amazing investment opportunity. Maybe in stocks/bonds. What if I told you that the opportunity for you to make millions off of this investment and be financially secure was a distinct possibility? What if I told you that opportunities like this don't come around everyday...that this is a once in a lifetime shot? Would you be excited? Would you be interested?
And then, what if I told you that the financial freedom was a definate for less than 2% of those who invest? Meaning, that 98% of the people who invest will not make any money. LESS THAN 2 PERCENT!! Would you still be interested in this investment? Would you think your chances lay in being one of the 98% or one of the 2%? Think about it. If you had to go in for major surgery and the risk of serious complications was 2%, would you hope to be a part of that 2% or assume you'd be among the remaining 98%? Don't let your hopes and dreams cloud your judgement and miss the lies being thrown at you.
