MLM/Network Marketing - What are Your Thoughts?

I think MLM is a very misunderstood business. I have been in some of the companies before and never had much luck but I know it was my fault. I just didn't know what or how to do it. And there is a unique way to make it all happen. Most people will recruit a few people and not know how to train them and everyone gets disgusted because they were thinking all I had to do was get two people to do the same thing that I did. Even people with large downlines will tell you that only a small percentage of the people are really working to expand their business. Still, it can offer one of the best opportunities for the right person. No overhead (well maybe some office supplies), no inventory, no employees. Working from your home can be good but a lot of people have problems doing that. Too much distraction. You have to go to your office, where ever that is in your home, and put in a day's work. But I really feel the major problem is that ,as a rule, the people doing the recruiting do not know how to train anyone in this business. Not everyone now, there are some great people out there. But your average person just being recruited because someone says they will all get rich, doesn't have a clue! All that being said, I just got started with another company. This is after a two year absense from this segment. I'm more determined than ever to have a successful business. I have realized some mistakes I made in the past with MLM and now ready to get off the ground. It can really be the hardest thing a person has ever done! It's not as easy as some people say it can be. Oh well, that's my opinion on the matter.

My son-in-law works in sales for a large international company and when we've compared how multi level and conventional sales work - structure, compensation, etc. we're amazed that the similarities of most importance out number the differences of least importance. There are also some obvious differences that have to be recognized.

Learning how to be very selective and how to disqualify goes in the face of what some people or companies teach, BUT it's one of the most important skills to learn - that would be true in any kind of sales environment. Training new recruits is the next crucial step to learn, master, and use in building distribution systems

It can begin with the first step of learning how to retail - how to sell a product or service to people who need, want, and are willing to pay for it.

The best to you.

MitchM

Very well put. I too have worked in sales with large companies. If a sales manager hires anyone but expects that person to learn that business on his own, not train them on the product, then that company is headed down the tubes eventually. But this is what happens the majority of the time in MLM. No training, just recruit. But, if you can recruit and show them how to make extra money within a reasonable period of time, guide them along the way, then they can duplicate that with another, you will have a keeper and a business builder. One person at a time. Really the same in any sales organization.

"If a sales manager hires anyone but expects that person to learn that business on his own, not train them on the product, then that company is headed down the tubes eventually. But this is what happens the majority of the time in MLM. No training, just recruit" -- mcaldwell

Company training is crucial so is one-on-one training. My daughter works in a sales environment in a non sales senior administrative assistant position - when she was hired her training was thorough and job description specific. She's told me how that is exactly what the company does with all their new people.

Then comes the question of what is good and what is not good training which has been debated here. Good training has to include every aspect of the business you're in you need to know about in your position- product and service knowledge. If it's sales - which is our topic - it has to include specific sales technique/systems unique to what you do. Like everyone on this forum, I can't speak of every sales situation from personal experience.

I've used hundreds of resources (and still do) and have learned something important from all of them - "High Probability Selling" has been one of the most instructive and "clearing out the paths" for prospecting and selling success. I've also found that the people I work with who have studied this selling process have improved their success quotent.

But I also know that being attentive and curious and open minded you can take something of value away from almost everything - being that student is obviously one of the keys to success all the masters understand.

The best of success to you.

MitchM

Hey Mitch, or anyone else with MLM experience,

I recently got involved with a MLM company that provides a monthly service that everyone can use. As an Independent Associate I get paid residuals for as long as a member keeps the membership. My sponsor has told me to be successful in this business you have to follow the model, which is selling the opportunity first, sell the membership, attend weekly meeting, help your recruit sell...etc. They say don't try the "build a better mouse trap theory" just follow the steps, recruit, show your recruit how easy the process is and repeat. I really don't feel this is necessary because this service can definitely stand on it own.

There's tremendous opportunity, but I have some obstacles: I go to school full-time, I work part-time in retail (wireless sales) and I'm a college athlete. The good thing is I come in contact with many different people through out the day. The bad part is I have time to tell people about the service, but I don't have time to recruit, train, have 2-on-1's, attend weekly meetings and things of that nature.

Is it possible to be successful in MLM without recruiting and just selling the product or service yourself?


I love the fact that this business is based on a monthly membership (the service is similar to insurance) and you get paid residuals from that membership. So here are my goals with this business:

I want a steady monthly income, so that I can focus on school and athletics (track and field). In this company there are to routes you can choose. You can have your commissions advanced or you can be paid as earned.

With the advanced commsions you are given a sum of money with the expectation that a member will keep their membership for a least 12 months. If the member cancels during those first 12 months you get a chargeback thats prorated.

With the as earned commission you get paid "as earned meaning there is no advances but there is no chargebacks also.

I choose the latter option where I'm getting residuals from the start.

I want to recruit and have a down line and all that good stuff so I can leverage my time, but it seems my time would be better spent selling the service myself to as many people as I can. Without having to make commitments to weekly meetings and training that I know I can't keep with my schedule: Does this make sense?

Every business or government job, income opportunity, including multi level marketing has its cliches. You want to get from cliche to income.

You have to define success for yourself, manchild. Retailing brings in a little income; sponsoring/recruiting brings in more income usually called by these names: wholesale comissions, over rides, royalties, residual income. To earn any of that you need to build a distribution network with like minded individuals.

Like anything else, what successful people - people earning what you want to earn - are doing and have done. There's usually a system to follow AND some less than obvious things that happens: personality strengths, center-of-influence, capital investment, to be successful.

MitchM

Well success for me, in this business means $5,000 a month in residuals. It would take around 600 memberships sells for me to get there and thats accounting for a retention of 70%. I figure I could easily do that over the next 3 years. Now I know I could reach that goal easier with a downline of like-minded individuals but right I don't have the time. Is this feesible?

Residual income is the result of sales through sponsoring/recruiting those who sell and likewise sponsor/recruit those who sell. Most companies require personal sales or group volume (yours) not associated with downline sales to earn residual income. Know your company policy.

Say 50,000 people become distributors/reps for a company. Out of that number about 30% will join to earn a five figure income. Out of that number between 1 - 3% will ever earn $5,000 monthly (or greater) consistently (150 - 450 people) over months then years.

How you use your time is more important than how much time you have to use provided you use it correctly. Do you have fifteen-twenty hours a week or less?

MitchM

I understand what your saying. Now the company I'm with does require a certain amount of sales to come from someone on my downline to reach another tier in the commission plan, but I'm positive it doesn't require that get residuals. The residuals I'm talking about is the money I get every time a member sends in their monthly bill, not the overrides from people in my downline

Know exactly how your company pays - every detail, every implication, every specific part of it - know it for you and theh people you sponsor/recruit.

People can make money in different forms - retail, wholesale, and over ride (residual income) in multi level marketing companies. BUT sustained long term income - the $5k monthly you want - has to be built into what's called duplication or leverage. AND that can only happen through individuals who are committed and have a working relationship with you and the people who sponsor/recruit them.

Network marketing - multi level marketing - is a delivery system for products in creating distribution networks BUT it's driven by the connectivity of solid relationships. Relationships are everything in building a distribution network this way.

AND along with that there's always a system unique to the company in how it's structured.

MitchM