What is the best MLM or Business Opportunity?
If you have been around any length of time you know that the MLM industry hasn’t got the best reputation. When pyramid schemes started and were being prosecuted the industry had to change their model to make them legal. They are still a pyramid but when constructed properly they can legally run as a business. It got so bad that many companies denied they were a pyramid and changed the business model to “network marketing” and then to “warm marketing”, then to “business opportunity” and then to “direct marketing” companies. It doesn’t matter what you call them they are all pyramid designed companies. I am not saying that is bad or good I am just saying call it what it is! The most successful people in MLM industry have been those who have copied the MLM formula and started their own MLM. They usually grow their companies to a point where they have peaked in profitability and then either sell or stop their MLM and create another one using the same people who made them rich on the last one. The bottom line is the best MLM to have is one you start yourself.
Can You Make Money with MLM?
The short answer is yes! You can make money in a credible MLM with a credible product or service but you will never make a living just selling the products or services. According to In. Magazine October 2018 the median income for MLM reps is $2,400 per year. Less than 1% become financially successful in MLM. To succeed you must create one or more down-lines of believers just like you who will duplicate what you do to create even more down-lines for the company and you. To succeed in any business you must be willing to work long hours, invest money and learn all you can from those who are successful in the same industry. After all you are not in the MLM business you are in in the marketing business! The MLM is just the vehicle you are driving to attain success. Later in this post I provide the best and quickest way to grow a down-line for more success.
Why Do People Fail at Direct Marketing?
There are several reasons including the reasons people fail at any business as explained in the “How To Fail, It’s Easy” blog previously written. The biggest reason MLM’rs fail is the companies they represent are not honest with their reps. “You can do this part time”, “You don’t have to have any sales skills”, “You don’t need to invest much money”, all you need is a few friends and family members to become successful”, plus about 50 more lies. Many of these companies show amazing money being made, testimonials (mostly by other reps), and other unrealistic expectations. Another reason is they make claims that “they are the only company with a product or service and that no other product or service will accomplish what their product or service will do”. MML companies are famous for preying on the person looking to escape their day job or those who want financial freedom without investing in themselves and their own business business.
How To Find The Right MLM
- Select a product or service you feel comfortable marketing and that you can get excited about selling. You need to believe in the type product or service if you plan to sell to others. Research the product /service to be sure it is priced competitively in the market and that there are not several same or similar products that accomplish the same goals at 40% or less cost. With the internet today most everyone does or should do their own research before making a purchase.
- Do your homework! Look at the companies history. Have they been in business at least 10 years? Google the reputation of the company both good and bad. Don’t buy into the “ground floor opportunity” pitch unless you have already been successful in a MLM and have a ready made following.
- Look at the compensation plan: Do the math! How much product will you need to sell to make the money you want to make as well as how many people do you need to maintain in your down-lines to sell what you need to be successful.
- Know your up-line: Choose someone above you that has been in the MLM more than two years and is financially successful or becoming successful from the MLM. The person should NOT be in the business part time! Make sure you can rely on them to help you grow your business and be available to help you when times are not so great or you have questions as to how to overcome rejection, etc. You need to think of them as your boss and support system. After all, if you are not successful they will also fail.
- Company support: This may sound the same as your up-line but it is not. Your up line may fail and you will still be in the business. You need to know that the company is there to help you when you don’t receive the help and assistance from your direct up line. What Is The Idea MLM Company Model?
The Ideal MLM Company Model
The “ideal MLM” is difficult to find. They all have the same basics but most put a twist on what they do hoping they look different or better than the competition. In business most companies pay you to represent their products or services. MLM’s many times charge you or make you purchase their products in order to sell their products/ services and grow their business. Here is a partial checklist with basics I would demand if I were to pay them money to represent their product or service.
- The Company: Ideally a company with a positive track record for more than 10 years, low complaints, access to people who have been in the business 2+ years with verifiable income from the business.
- Low or no fee to get in: If they are a successful company that pays their reps from sales vs entry fees it should not cost hundreds of dollars to sell their products or services
- Compensation: A minimum of 20% net from a single sale with more based on volume sales and a minimum of 5% on all down-line sales. Competitive bonus structures with similar MLM companies.
- Product Guarantee: A 100% money-back guarantee on all products if the customer is not satisfied for any reason within 90 days of the purchase date.
- Representative Guarantee: If a setup fee, initiation fee or other fee is required to sell their products and grow their business is required I would require a 100% money-back guarantee within six months or representing their product if I had not realized a minimum of 20% net earnings over any fees or expense i had invested to sell their products or services. this would only be required if their were required fees and purchases were required.
- Competitive in the marketplace: The product has to be competitive in price. I don’t care if they say they don’t have competition! It doesn’t matter that they say theirs is better! No one knows that until they try it and most will research something similar at a lower cost if they think the competition is similar, as good or will solve the same issues.
- No monthly minimums: I would never join or work for any company that required a minimum monthly purchase to sell their products. I have heard of people who have a garage full of inventories they can’t use or sell!
- No auto-ship requirement for you or your customers: This may sound like a convenience but in reality it is a way to keep you and your customers on the hook for product. It is also usually hard to stop when you want to stop receiving product. This can turn good customers into bad reputation posts about you and the company.
- Training and support: Constant and ongoing free training for all reps with phone numbers where live people answer the phone and provide answers and support to any questions or support you may need.
You may be more trusting than I am but when I pay someone to grow their business I want a better than average chance to become successful if this is going to be my main income stream.
Secret to Grow a Successful Down-Line Faster & Better
The following is based on the fact that you believe in the product and the company 100% and are passionate about becoming successful selling for and growing their company. it also takes in account that a minimum of 60%+ who use the product/service stay with it more than six months. It also takes into account that at least 40%+ become distributors after trying the product/ service. If it is just your side gig or a hobby stop reading and keep doing what you have been doing or get a job that pays you to sell their products.
Step #1: Be passionate when speaking about the product/service and the company. If you have to fake it until you make it! I know this sounds dishonest but if you believe in it and want others to believe in it you need to come across as “this is the best thing since sliced bread”.
Step #2: People are skeptical especially when it comes to MLM’s. If the track record (provided by the company) states that most people stay on the product after trying sell that! If you are making money…sell that! If the company offers a no-risk money back guarantee . . . sell that!
Step #3: Here is the biggest secret to growing your down-lines faster and better. Remember you are in business. You need to invest and take risks in any business to become successful! If the company offers a no-risk guarantee offer this to your potential customer/down-line person but with a twist. tell them you will write them a check today for a 3 months supply (if that is the average time for it to work). This way you are putting you money where your mouth is. They have no risk and you have shown how much you believe in the product. have them sign an agreement that if after 3 months they do not want to continue you will help them get their refund based on the company requirements with and they refund you when they receive the refund. What is the result? You have made a potential customer/client and also a representative at no risk to the customer. If the record states that 40%+ become distributors after using the product you have started building a down-lines that will make you profit faster and better results. Will you ever get screwed out of your investment. Probably but if you screen the people before you make the offer it will only happen one out of fifty people. This is just the cost of business to become more successful. Ok…so you say . . . “This would cost me a fortune to do this with everyone I meet”? It just depends on how fast you want your business to grow! If a 3 month supply costs you $100.00 and you offer it to 10 people a month =$1,000 per month deposit! If only 5 become customers and pay you back, 3 become distributors and one screws you out of the $100.00 what is the result every 12 months? = 60 new paying customers + 36 distributors. You tell me. . . was it worth the investment and risk? If not either the companies success statistics are not as stated or you don’t believe in your product/service.
What if the company doesn’t offer a guarantee? So what! The numbers still show that you are making money and growing your business for long term success! Do the math! If you are not making a net profit this way you need to find another product/service and MLM to represent.