Why People Feel That MLM Is Not A Good Business Model!
Since I have been full time at home since 1990, I have seen it all! I have been in many MLM's that have shafted me and people I brought in due to greedy owners who change things mid-stream! My focus has been to help new or young companies grow! Mistake! Also, people drop out since they can't duplicate it, and then your income dwindles. I also learned that most compensation plans are geared to make the big guys and the companies rich at the expense of the little guy! The ONLY fair plan is a properly structured Matrix Comp Plan! The worst comp plan is a Binary, then a Breakaway, a Unilevel, and so forth. People hear about this and know that hardly anyone ever makes it in MLM or Network Marketing! They then perceive the whole industry as a scam! How can we change this perception?
So many fail in MLM due to joining new or young companies since over 97% don't make it past 2 years! Why? It goes back to greed again! Most owners simply want to get a large base of reps in, then with a bad comp plan make a lot of money, then shaft people and take a huge sum & run with it! Then they start a new deal
and do it all over again to make tons of money at the expense of the majority! These are the reasons people fail in MLM: Young or new companies (95% fail), bad comp plans, greedy owners, over priced products, they buy into hype with lack of research, lack of upline support, no systems, no training, no tools, bad management, few products, few countries they are in, and finally they are just lazy and do not want to work!
Now I think you understand why most people feel the way they do about MLM since over 97% fail in it! There is only one way to reverse this and that is to do a lot of research into several companies and never join any company that does not have at least 5 years behind them as some proof that they may survive! Products MUST be consumable and they must be products that people will never give up, especially in this economy! The first thing people cut back on is the "New Money" when it comes down to paying bills first! What "New Money" means is that you are buying products you don't normally buy now. Look for a company that is in multiple countries with plans to go Worldwide! There are a handful of long term programs out there, so get ready to do some homework! The KEY is to not simply jump based on hype and promises of quick wealth! There is no such thing and if you remember the saying, "if it sounds to good to be true, it is"...
Finally, make sure that you have a "passion" for what you promote or you will never make it. Once you decide on a company that meets all the success variables, make sure you interview your sponsor well! Ask about support, what tools do they have to help you build your business, what tools does the company have, are there ongoing conference calls, how long have they been working from home, speak with their sponsors to make sure they are people you want to work with (gut instinct here), and will they help you with 3-way calls. Also, make sure before you decide on the company to take a look at their growth over the years! Make sure that they are a privately held company with NO stockholders or investors to depend on! Why? Any public company has a primary focus on satisfying their investors and this usually means at the expense of their distributor base! I have seen this happen too many times where the distributors suffer by cuts in commissions and people leave! It is truly time to reverse the failure rate in MLM and this is why it is so important to follow these guidelines!
I wish everyone good fortune!
Health Innovations & Marketing, Inc.