Why is it that so many people join mlm businesses and never make any money? Worse yet, why is it that people all over the world will fall for one mlm scam after another? The reason is very simple. People want more out of life than they presently have, but most people are not in a position financially to start their own business. Another thing is most people do not have the skills it takes to run their own business. Also people think that they will be rich over night and get disappointed if they haven’t made money within weeks.
What Qualifies an MLM as a Scam
November 20, 2006 by Ty | 5 Comments
In Network Marketing Trends
Robin Dowd. on November 20th, 2006 at 10:28 pm
An interesting article above. There are a number of reasons why most good honest people fail at MLM. They dont read their Policy and Procedures Document. This is their contract to the company. Its a top priority to read this document. Most companies have you screwed right at that point and most people dont read it. If its over 8 pages I would run as fast as I could. Most people dont know or even ask their upline how many distributors will I have to have in my downline to make $10,000 a month. In many well known companies you need 3 to 4 thousand. In my company you only need 300. If you are a part timer which 95+ people are you are never going to make it to 4000. Never Never Never. I dont care how good your products are you are stuffed at those two point before you start. Not to mention no training, no support no mentoring. No wonder people have trouble working MLM. MLM is a people business and you must help people become successful to be any good long term in this business. You must mentor them offer free training and every bit of help you possibly can. I live in New Zealand and have joined a business in the USA. It is not in NZ yet however I work it successfully from here just using the internet and the telephone. Think how much easier it must be to work in the US. Best wishes, Robin
Steve Tomassen on November 21st, 2006 at 2:51 pm
In his comments above, Robin Dowd made some essential points. In particular, the lack of business acumen that many people have, and unrealistic expectations of what can be achieved in proportion to the amount of work put in. I live in the UK and like Robin, have found that most of the opportunities are US based. But this can be used as an advantage. People from anywhere in the world can develop their network marketing business in their spare time and receive mentoring from their uplines across timezones. That is the beauty of this business. However, it is particularly important to break the business down into its basic steps. Join companies that are providing a product or service you are passionate about and the dedication necessary for success will come naturally.
R.Hiebert on November 23rd, 2006 at 6:29 pm
This topic started something in my mind that made me dig into my stash of literature that has paralleled my experience with the venture I work with. I didn’t realize how much information has built up in my mind as well as on my shelves and drawers.
The title has me on tangent that needs more room and time than I have at the moment, but let it suffice to say that I’d rather use the statement something like, “What Quilifies An MLM As A Legitimate Business.”
Bank tellers appearantly are trained to spot bogus currency by knowing every spec on the bill of real money.
Lynne O'Connor on November 28th, 2006 at 7:53 am
Another point often overlooked is the value of the product itself. So often people are blinded by the money they can make that they overlook the fact that to cover the commission tiers, the products are over-priced without a USP
angel torres on March 6th, 2007 at 6:02 pm
i beleive that the mlm company should the 4 main resources or keys in order to success 1- administration 2- unique product, 3-a well estructeed pay plan 4 - a good education system.