Why does making money in MLM sound so good in theory but actually unworkable in practice?

Great question!! Here are a few reasons:

1. mlm people do not take into account supply in demand. There are only so many reps an area can take. McDonalds doesn't put a franchise on every corner, or they all would go out of business. Mlmers try to get a rep on every corner and no one really makes money, except the rep that got in early and now sells marketing materials to the rest of the reps chasing the dream.

2. mlm companies claim that EVERYONE will want their product, and manipulate their data when showing the "dream". This is false hope. Even the most used product probably only has 20% of the population using it. Show me one mlm product that has more then 1% of the population using it and I would be shocked. The funny thing is, mlmers use the 1% stat and manipulate it saying LOOK ground floor opportunity!! Mlm products due to the fact they are generally over priced, will never get much more than 1% market share. Mlm people how many meeting have you been to where your "leaders" have said "EVERYONE will want this!!" This never has happened and this never will happen.

3. Mlm companies hire people like Donald Trump to say good things about it. ACN pays the Donald BIG money to say those things. So people believe that if Mr. Trump says these things mlm HAS to the a great way to make money. Guess who doesn't do mlm? Donald Trump. Robert Kirosaki has made a fortune writing books about why mlm is the greatest thing ever. Guess what Mr. Kirosaki doesn't do? Mlm. I heard an mlmer once say that the fact ACN can afford to pay the Donald big money proves that mlm works. All that proves is the owners have made lots of money, but the reps haven't.

4. To keep making decent money in mlm, your downline needs to continually expand. You will need at least 3 people on your front line and some companies want you to have 6. Even if you only have a 3x3 matrix, you surpass the population of the world after 21 levels. Yes I realise that to make big money, you will only need to hit 5-7 levels deep. But then what are those reps going to do? They also must go deep with their levels to make good money. What do mlm people do when they realise they can't make the money the "dream" promised them? They quit. Mlm can not sustain itself cause it needs continual expansion. The owners are fine, cause generally the ones that quit are replaced by fresh new faces with big dreams, but those people will soon become sour.

There are a million and 1 easier ways to make big money in this world. Good luck in your ventures!!

Because they show you the .5% who are successful rather than the 99.5% who aren't. They also rely on cult-like wooing of the prospect, telling him that nonsupporters aren't real friends.

What are you selling in MLM? Your social capital, as you slowly and surely alienate everyone in your Rolodex.

Because people don't know the "right way" to market.

Good answers but it has nothing to do with either marketing or product. You could have the best product in the world and it still wouldn't work.

Here is why.

If you need 10 people in your network to move it, and they need 10....well by the time you are just 10 steps down you have exceeded the entire world population by about 3.4 BILLION. Ten to the tenth power is 10 billion, the worlds population is listed at @ 6.6 billion.

Many people in the world are multi-millionaires from MLM.

But, as with most high reward opportunites, few ever make it to the top.

The reality in sales, is like the reality in the world. The top 1% of wage earners make 50% of the total income.

It is never "easy" to become the best at anything. If you want to succeed and are willing to work 10 times as hard as everyone else you will probably be successful.

Most of us are not willing to work that hard. Reality my friend.

Ha Ha that is a good question. I think it is because they do only tell you what the top few are doing/ making.
I'm part of a home based business and its not an MLM and I'm actually making money from it. If you want to learn more about how it is possible to make money from a home based business then visit my website www.momtomombiz.com ( I know that it is has The M.O.M Team written all over it but the business is really for anyone- not just moms!) and fill out the " get more info" page.

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