Your Take on Multi-Level Marketing

[cschin4]

And what do these other "sales consultants" do? They sell product.


My point is that the product is the sideshow. The real emphasis is on you to recruit other "sales consultants" rather then sell the product. Quite the reverse of traditional business where the product is the emphasis.
But, it certainly is NOT a get rich quick either way. You probably can make money on MLM but it is going to involve time and effort just like any job. I do think that those who get into it are looking for "easy money" when there is really no such thing. Some of the folks I know in it would probably be further ahead by just getting a part time job. It wouldn't take so much of their time and they wouldn't have to annoy their friends and families!

[gackle]

I agree that there are greater efforts to recruit salespeople than other business models, but I think that's just a nature of the way that MLMs are constructed. They have zero to minimal advertising and marketing costs, instead relying on their members to spread the word about the product. In the end, it's the sale of the product that keeps any business in business. The more salespeople MLMs have the more product they sell, the more successful they are.

[jIM_Ohio]

It's a scam in terms of the person making the most money on a given transaction is probably not the one doing the work for the transaction.

These are very popular in Michigan.
I once got suckered into one when in college
I had a friend selling amway when I worked at Ford after graduation
An old fraternity brother wanted me to join team national earlier this year.

They all had many things in common:
1) if I sold something, someone somewhere else in company was making a percentage off my transaction.

argument- if I were to go into business for myself, I would not have to pay the percentage being mentioned to anyone except myself.

2) I needed to put cash upfront for something
this cash went to someone which was higher up as "profit" at my "expense". This was generally advertised as training.

3) The lure of other people working and making money for self is enticing, but once the people under you lose the motivation, you lose your income.


Multi-generational means a parent can pass the "business" onto a child at death.

[Gruntina]

Some people are not good at being entrepreneurs or sole proprietors.

In some MLM like Pampered Chef for an example, people can do the marketing, PR, outstanding orders, and etc. without having to worry about making the products. Its like a collaboration. When you have some people reporting to you, you get a glimps if you would be a good manager or not.

Doing something like MLM short term can build up your resume, providing more advance skills for those who are just starting the workforce.

[Scanner]

I just think of my poor wife - she is a very busy woman and wouldn't mind some "genuine" friends and invitations to parties and she gets those stupid Candle Party Invitations or Pampered Chef or Sex Toys (a new one) invitation.

I'm her sex toy. Why would she need a party for that?

Unless she plans to use me in her downline. . .now maybe I can get on board with that.

[maat55]

The way I see it is, if you don't understand it or it hisses, step away from it.

[jIM_Ohio]

Originally Posted by Scanner

I just think of my poor wife - she is a very busy woman and wouldn't mind some "genuine" friends and invitations to parties and she gets those stupid Candle Party Invitations or Pampered Chef or Sex Toys (a new one) invitation.

I'm her sex toy. Why would she need a party for that?

Unless she plans to use me in her downline. . .now maybe I can get on board with that.

My wife went to a sex toy party and even bought stuff. Let's just say I was disappointed... she would have been better off at hustler hollywood, victoria's secret or even just the lingerie part of a department store like wal mart.

But if your wife does better for you at that party, good for her and even better for you.

[jIM_Ohio]

Is tastefully simple MLM? My wife does quite a bit thru tastefully simple- several people around here have those. The apple bread thing is quite good.

One afternoon the wife made the apple thing and left it on the counter (in a 6v6 pan). I got hungry so I ate a piece. Then I went back for seconds.

About 3-4 hours later my wife came home. The whole apple thing was gone (even the crumbs). Now when wife makes it she makes it CLEAR their must be a piece for her. She knows it won't last more than a day or 36 hours at most. MMMMM good.

[michaelo]

I'm new here, so forgive me if this comes across as too critical for this forum. I just feel the need to step in and share some of my experiences.

Originally Posted by Scanner

I think it's a flawed concept (except for the chowderheads at the top who greatly benefit).

It rewards "sales managing" vs. "sales."

That's an ultimately inferior way to promote an item and reward your downline.

You could be the Zig Ziglar of tupperware and you'll do bad, unless you can convince people to "start their own business."

THAT is where most of the big money is made. It is in the motivational gatherings, the conventions, optional meetings (read: you better show up), tools, resources, books, CDs, and other motivational stuff.

My point is, where did Zig make his big money? Was it in selling a product? Nope. It was in writing and speaking, he was selling the motivation not the product. There is nothing wrong with that, but be aware that the people in a MLM upline who are putting on the big events are the ones making the most money. And that money comes from the events, not the products.

I speak as someone who was very gung ho and did as I was told for longer than I'd care to admit. The cult-like practices may be joked about by people in the MLM, but they are real.

There are so many better ways to make real money.

One more thing, NEVER buy into the lie that being in an MLM is the same as running your own business - it isn't. You will be subject to so many rules about what you can and can't do to sell that it should be a crime. Just try getting involved in an MLM and then put a website you designed to sell your product. It won't last long.

I learned my lesson, eventually. After years in MLMs I was able to break free, now all I can do is warn others to avoid them if possible.

Funny, all the promises never came true, but after I left the MLM I was able to walk away from my full-time job within a year. Oh, and the people who were perpetually on the verge of quitting their jobs becaus "big things" were happening in their MLM business? Well, they still work for somebody else. Hopefully they will come to know the truth.

~michaelo

[arthurb999]

It's a sales job...

[michaelo]

It's a sales job, but without the benfits that go along with a typical job. Plus, there are tons of restrictions on what you can and can't do.

I know some people can make money with them, but be very careful.

Do your homework.

Attend a meeting if you are invited to do so. Then observe how much time is spent discussing actual sales and presentation techniques vs. how much time is spent promoting upcoming events, selling the "sysytem", CDs, resources, etc.

Ask specific questions, and notice how elusive they are in answering them. These people are experts in making you think you gt an answer, when you really didn't. See what happens if you keep asking for specifics - chances are you will not get the answer you need. Instead, you will be ridiculed, told they wil answer you after the meeting is done, told that you will have your answer soon, or it can so far that you get yelled at or removed from the meeting. I have seen ALL of these things happen.

~michaelo