I’ve been asked often how multi level marketing companies work? I’ll explain very roughly how they work,and how you can succeed with them. You actually can (I have personally made money with two of them).
– First clearly define the niche you want to be a part of. Start broad in the beginning as you think of what you want to do. Let’s say your passion is diet and fitness. This is an incredibly popular niche-almost everyone is interested in diet and fitness. For the purpose of this article, let’s just focus on diet.
So your options are to:
Join a multi level marketing company that specializes in diet products. There are an enormous number and I’m not advocating any of them. But examples are BeachBody, Visulas, Vitamark-literally we could just spend all day listing them. The advantage is, of course, ready made products, some marketing information, a support system, and some sort of marketing strategy.
The problem is they usually have some sort of monthly payment that can range from a few dollars to upwards of $100 a month. You are expected to consume the product, give it away as samples, or dispose of it in some way. This isn’t really a problem if you can afford it and really like the product. This recurring fee is the lifeblood of any mutlilevel marketing company. When they talk about residual income-this is it. Let’s say your monthly autoship is fifty dollars. Of that, perhaps twenty is involved in making the product, packaging it, and shipping it to you. Some goes to the parent company directly to keep the lights on, pay the rent, and pay the people that work there. The rest goes to to your upline in one way or another. As you enroll people, your team- your downline gets bigger and bigger:
Your MLM company
If you think it looks like a pyramid, you are right. Some people mistakenly call all MLM’s ‘pyramind schemes, which they are not. Companies like Mary Kay, Avon, and Amway are legitimate MLM’s, because they sell products and services and grow by selling products AND recruiting new distributors. An MLM runs into legal trouble and eventually fails when the entire focus of the company become ONLY recruiting new people and nobody is actually joining because there is a legitimate product or service being consumed.
So, what I am saying here is that MLM’s CAN be a legitimate business opportunities, but make no mistake-you are still not working for yourself, truly. You are simply freelanceing and your success will be dictated on how smart and how hard you work.
So, why do most multi level marketers fail and how can you truly succeed: the lack of interested people to talk to. We have all probably been pitched on a ‘business opportunity’ by a friend and had that really uncomfortable feeling of having to politely listen (after all they are you friend/relative/whatever) to a business opportunity that you were not really interested in. Well, the reason you had to do that is that the poor person doing the ‘business opportunity’ really had no way to prospect effectively outside of their immediate circle of friends and neighbors.
They didn’t understand one of the very first rules of having a business: you have to have an ample supply of people who are interested in whatever it is you are selling to have a chance to make money. Since most people realistically only know about 200 people and only a small fraction of them would be interested that is your forst problem. Since only a small fraction of them would actually join your business that is your second problem. Since only a small fraction of the people who join you will actually work the business and find others that is the final, killing problem. Think of it like a funnel. Unless you have a large number of real prospects at the top of the funnel pouring in, you really are in for a hard time.
If you can’t figure out how to find actual real human beings who actually want to hear what you have to say-and if you can’t teach another average human being to do the exact same thing you do, then you are eventually doomed. Harsh, but true.
This is why the majority-the LARGE majority of MLM business opportunity seeks fail. But there is a simple way around it and it costs almost nothing but your time to succeed-or at least make back your investment.
The way is simple-create your own website (can be done in a few minutes), do some basic SEO research (I can help you with that), build a tight little niche website based on the lesser competitive keyword phrases (I can help you with that), begin to post short articles around you keywords, do some simple free marketing, and given a few months of consistent, focused effort develop targeted traffic of people who HAVE SOUGHT you out for your specific opportunity.
Along with that, you train those people on your opportunity-doing the exact same things you do, and develop a second, affiliate income based income stream as you help them learn to use the same products you use-web hosting, website design, domain names, keyword research tools, backlinking services-etc.
It really isn’t tough. If I could do it, anyone can. I’ll be glad to help you if you are interested as well. It is all part of giving back. Please keep in mind I do not represent any multi level marketing company and this post is just to explain what I have learned over years of working and consulting with several MLM’s.
Most of all, good luck!