Why do so Many People have a Problem with MLM?

If you say “multi-level marketing” to certain people, they immediately shy away and mutter something about pyramid schemes. It’s true that only 3% of network marketers are successful in their businesses and the other 97% fail to make a go of it. There are dozens of reasons for failure and we won’t go into that here, but remember that the remaining successful 3% represent hundreds of thousands of people worldwide, many of whom are making a great living.

Knowing the failure rate it’s no wonder many people think MLM is a lousy idea for a home business. There are probably a few thousand MLM business opportunities on the internet right now and lots of them may be scams and/or doomed to failure. Many of those 97% who failed may have chosen one of the wrong companies to join.

What to Look for in an MLM Company

A good solid MLM company should have all five of these following characteristics:

Company Management

Network marketing companies have their own set of rules and ways of doing business. If the management team doesn’t know the ins and outs of network marketing then it’s not a good sign. Look for an MLM company that has solid management and have been in the business for some years with a good track record. Constant changes of personnel should be scrutinized closely as a constant turnover of management can only mean instability.

Policies and Procedures

The company must have strict standards, policies and procedures it must follow. Everything it does should be transparent and available to you the distributor and the customer. A good MLM company will give you whatever information you need without quibbling or delay. If something doesn’t look right, then walk away.

Great Products and Prices

If you look closely at successful MLM companies you’ll always find their products are excellent quality and priced competitively. Your earnings are going to be based on residual income so you want people to keep coming back for the product. If it’s inferior you’ll never get repeat customers and neither will you be able to recruit a downline that’s going to stick around. Products should be “evergreen” meaning that people need them now, they needed them 10 years ago and they will continue to want them in the future.

The Compensation Plan

Many people fail to get to grips with how they’re going to be paid. Nobody would do that when applying for a normal 9-to-5 job. It’s true that many compensation plans appear complicated, but again somebody at the company should be able to explain it to you in layman’s terms. You should also be able to sit down with your sponsor and figure out how many people you will have to recruit and how much product they will have to sell before you’re earning a decent income. It’s no good going in blind and then finding out that to make a couple of thousand dollars a month you’re going to have to recruit 500 people.

A System

Once you’ve learned the ropes then you pass your knowledge on to your downline. Without an effective system that your sponsor should be willing to show you, then you’re going to be floundering around not knowing what to do. Find a company that has first-class training and staff that are readily accessible if you need to ask questions.

Finding a system is probably one of the most important things you will need. MLM is all about generating large amounts of qualified leads every day, and if nobody shows you how to do that then you’re going to be stuck.

Once you’ve told everybody you know about your opportunity, then where do you go next? You must have a lead generation system in place you can learn quickly and be comfortable with. As soon as that system works well for you, you can pass your knowledge and expertise to your downline. You’ll take the baton from your sponsor and be the leader of your own team.

So next time somebody runs away at the very mention of MLM, ask them why. You’ll probably find out at some time they’ve been involved with network marketing unsuccessfully or they know someone else who has had a bad experience. Talk to them, listen carefully to their concerns and explain why your opportunity may be so much better for them. If you’re making good money, then there’s no reason why they can’t do the same.

What other important things do you think people should look at when joining an MLM opportunity? If we’ve left something out, please let us know.


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