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leek-leek | What is the real deal with MLM'S? |
I want to know what is the gimmick behind multi level marketing and if there are any that really create residual income... |
 |
 
Figato
 |
Here it is:
There are some valid opportunties out there. They are defined by organizations that sell more product than distributorships. The focus (and the profit) is in selling product.
Most of them focus on selling distributorships and the profits for doing so are higher than that of selling the product. These are scams. In fact some of them sell almost NO product.
Here's how they work: They take a useless product or products and promote them as world changing.
Then they find a bunch of people who are so desperate that they'll do or believe anything to make a buck.
They find these people by "qualifying them". They say something like "come to a meeting Monday at the Hilton, we have doctors and lawyers participating, it's a great business opportunity". You then (naturally) ask what it is. They reply "Just come to the meeting and you'll find out" If you are SOOO desperate that you'll go to a meeting without knowing who or what you're dealing with, congrats! you're qualified to sell for them.
They then take a few hundred bucks from these people and train them in aggressive (obnoxious) sales tactics and promise them the world.
These people go out, and immediately betray their "circle" . Everyone has a sphere of influence of about 25 people - these are family and friends that will receive your sales pitch and buy into it... "after all, I've known Jimmy my whole life, he wouldn't rip me off". So they sell some and think things are going great.... for a while.
The end result? You lose the trust of your closest family and friends. You get frustrated after your circle runs dry and nothing else comes your way.
99% of the people who started walk away poorer and fed up. The company gets your fees and those of the few joiners you brought in.
Now here's the exception. There are people who've made BIG bucks in such scams as Amway and Newskin. These people are the kind that can sell ice to eskimos. They would thrive in ANY sales environment so it didn't really matter whether they were selling Hi tech equipement to major corporations or cheap gimic products to suckers. They're selling animals and often lack a conscience.
That's how it works. Not pretty. |
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Hockey
|
First off, pay no attention to what cindie says. The organizations she says mlm do not use it. That is an outright LIE.
Niether is the quote she attributes to Donald Trump true. That is also a big, fat LIE. If mlm is so good, why would mr Trump wait until he has to start over?
Mlm sounds good, and it is often referred to as a good way to make extra money. fact is, 99% of those doing mlm don't make any money.
Mlm has been around for over 60 years and it is still only a very small part of the economy. It contributes less than 0,23% the global economy.
Granted some people make money, but not a lot. However, it is vastly different from what cindie claims in corporate america. When you have a job you have a guaranteed income. You get benefits. In mlm none of these apply.
What you need to realise is that in mlm you become a salesperson. You sell the product and the opportunity. In a normal company, you can be in sales, but also in finance, production, you name it.
One last piece of advice. The company cindie works for has a presentation which features on expensive cars, boats and houses. Beware.
If you decide to do mlm ask questions. What is the revenue of the parent company, how many distributors are there. How many people actually make money, what are the average earnings per distributor. How many distributors sign up each year, and how many quit each year?
I looked at the arbonne presentation. They do not mention their sales figure, just show a graph depicting growth.
They say you can work 10 hours a week, blablabla. But later they say that a consultant has an average commission of $74.09 per month, but in the fine print they state that only 3 -4% of the consultants were eligible for commissions in 2006. So despite the fact that consultants earn a small amount of money, only 4% of them sell enough to get a commission.
Would you want to work 10 hours a week, 4 weeks a month for just 74 dollars?
Sadly, this is typical of mlm. |
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oluocheli
|
MLM are business schemes in which you have to introduce your friends as the tree grows. Without introducing people, the business collapses. Its like a ponzi scheme. There are so many MLM around, mostly fake. Google for good ones. Some I know of are actionwealth.com, wholovesmoney.com, forexenterprise.com, richjerk.com |
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hogleg1991
 |
Most of these schemes are generally set up to provide wealth to those at the higher levels. Most, if not all can be considered "pyramid schemes", even though the organizers will never admit to that. If you want to know the truth about Amway or Quixstar type either of these into a search engine and your eyes will be opened.... |
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Jason F
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I am a Xango distributor, if you look at my website you will see how easy it is to sell others on this product, when Fox News speaks positively about your product you know your on the right track
http://www.readytogoxango.com |
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sarge927
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You can make a lot of money in multi-level marketing, but in order to do so you need to get a lot of people "signed up" under you who get a bunch of people "signed up" under them and they in turn have to get people "signed up" under them... A shining example is Amway. They love to show you that book with the pictures of all their Diamond level associates and focus on the money instead of the math. Amway has a little over 1,000 of these big money-makers, but they have over 5 million members. If you calculate it out, only 1 out of 5,000 gets to the Diamond level. The other problem with multi-level marketing is the model that they show you is not accurate. They'll tell you that you can make x amount of dollars if you sign up so many people, but what they don't tell you is that x amount of dollars is based on you and everyone beneath you spending a certain amount on company goods/services every month, and it's usually a very unrealistic amount. If you wanted to make money in MLM, your best bet is to get in with a brand new MLM company that is trying to make a name for itself and then work your tail off signing up as many people under you as possible. To use Amway as an example again, the chances of someone signing up for Amway now and making it to the Diamond level are about nil because Amway has been around so long and the market is basically saturated. That's the last problem with MLM companies -- once the market gets saturated, the company can't grow anymore and it's only a matter of time before the competition whittles their market share away to nothing and the company goes bust. So don't think you can get into MLM and be set for life. If you milk it for all it's worth while the business is growing and invest the proceeds you may be able to retire very comfortably, but don't look at it as the pot of gold at the end of the rainbow. |
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Robert S
 |
Accurate information about multilevel marketing is not easy to get. Few publishers, editors, and broadcasters are willing to examine this topic in depth. Most reports reaching the public express what the companies and individual distributors would like people to believe. Nearly all MLM companies selling health-related products exaggerate their value, and the vast majority of people who become distributors do not make significant income.
If you sign up as a distributor, you may be promised commissions or other rewards-for both your sales of the plan's goods or services and those of other people you recruit to become distributors. These plans, often called "multilevel marketing plans," sometimes promise commissions or rewards that never materialize. What's worse, consumers are often urged to spend or "invest" money in order to make it.
Watch Out for Pyramid Shemes
Steer clear of multilevel marketing plans that pay commissions for recruiting new distributors. They're actually illegal pyramid schemes.
Why is pyramiding dangerous? Because plans that pay commissions for recruiting new distributors inevitably collapse when no new distributors can be recruited. And when a plan collapses, most people-except perhaps those at the very top of the pyramid-end up empty-handed. |
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Wanda
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There are lots of MLM's that are legit, My advise is do your own homework. Ground Floor Companies and being at the top is a great asset as long as the product is strong to market.
I've created Residual Income for life from doing this part-time.
Check this out!
http://www.teammaxglobal.com/max |
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thebigachiever
|
MLM is great and legit. However, like every other area in life, there are scams that sometimes overshadow the good ones.
Just like the churches where the priest who believes in homosexual unions that makes the rest of the denomination appear as though they too are for it as well.
Most MLMs require you to recruit recruit recruit under the guise that you get product cheaper (wholesale). I checked this out for years BEFORE joining my current company. Now I can earn residual income WITHOUT recruiting a soul. Whether you join or not, the products cost the SAME PRICE and you get paid the same commissions. THAT was the biggest problem in MLM.
YES there are many gimmicks and that's why the Feds are shutting down some of these companies for example a few of them who started with gas additives recently, have been ordered to close already.
As for the products, many products are truly great...but again they're scattered among products that can't match their claims. Remember too, that most people have poor techniques so they tend to exaggerate a lot to create excitement about their products etc.
MLM is a good industry. It's the best way for a normal person to build a wonderful additional income gradually. If you've read or listened to Robert Kiyosaki, he's a strong supporter of the MLM business model for creating good residual income.
My first MLM venture went horribly bad but I learnt 10 important facts on my own that no one ever shared with me before. You can read them at my profile...this post is now too long. |
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cindie
|
MLM or NWM, (Network Marketing) is the SMARTEST stream of income!!! The real deal with MLM's is that it is just coming of age. It actually has been around since the 50's but got a bad wrap with all the 'pyramid' schemes. Here is the difference. A pyramid is just like the shape. A cone that comes to a point. How it became illegal? This scheme is just passing money around. Somehow it is intended to make you lots of money but it is illegal because they are not moving product, just money, and the guy at the top is the only one who benefits. That is so simular to Corporate America. Everyone below working like dogs to make the guy at the top rich. By the way, there is no such thing a "JOB SECURITY". Look at all the corportate downsizing and closings. Pyramids are closed down quickly. You would be suprised to hear but here are a list of well known companies that move all or part of their goods through NWM.
IBM, MICROSOFT, COCA-COLA, GENERAL MOTORS, GENERAL ELECTRIC, DISCOVERY TOYS, AT&T, ORECK, ORACLE, to name a few.
When looking for a NWM company you need one with a superior compensation plan as well as consumable products. Which means repeat sales. Have you heard of Arbonne International? It is a Health and Wellness company that is formulated in its own research and developement labs in Switzerland but manufactured in the States. All products are botanical and herbal based as well as being "Certified Vegan". They own all their own formulas which are "Patented". They have strong corporate leadership and are very stable. Arbonne has been around since 1980. There is a distribution branch now in Canada and in July will open another just outside of Sydney!!! We have been featured thoughout the entire "Success From Home" magazine for the month of June. Be sure and check that out.
In a NWM company, everyone benefits. It is in the best interest of all involved to move that product or service.
“If I were starting over today, I would make my millions in the Network Marketing Industry." quotes from both Donald Trump and Robert Kiyosaki".
Check out www.CindieReed.myarbonne.com. I wish you much success! I am building "COMPOUND, RESIDUAL INCOME". There is no ceiling. It will continue to grow based on my own efforts. With Arbonne, your income is actually "willable". Rarely will you ever find that in any business. I would love to speak with you more and go deeper into detail. I'm on my way to the top and would love to take you with me! |
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