Why MLM is the Business Model of the Future

Why MLM works 

If you ask people involved in MLM to define WHY the system works, it's almost a 100% certainty that they'll describe HOW it works instead... the pay plans, the procedures, the practices, the structures, etc etc etc, when what really makes it work are the little-known principles on which it's based.

They're not the same thing. Not even close. And what it says, loud and clear, is that they don't have a clue about WHY network marketing works. That's especially worrying when it's the owner or chief executive of the company!

There are basically two types of people in business...

• Innovators and
• Imitators

Innovators understand cause and effect, so they're in control of the processes involved. If things go wrong, they have a good chance of fixing them, fast.

Imitators see the effects of innovators' discoveries and think that they're the causes! When things go wrong (not if, but when — guaranteed!) they haven't a clue how to fix them because they have no idea of the cause-and-effect processes involved.

When you consider that 95% of all MLM companies fail within the first five years, what does that suggest about the people running them?

Yep... they're imitators who've seen something that impresses then and copied it, but without understanding what's really powering it. So this is one of the most crucial insights you need to have before choosing an MLM company to work with.

Another popular online business model is affiliate marketing where a company like Amazon, Go Daddy, online health summits, or teaching programs offer financial kick-back if a customer purchases from the company through your online affiliate link. This is another wonderful way to make money recommending products and services, however there is no personal integration with the company. You are promoting the company’s wares without being a part of the company.

Here’s what to look for when considering becoming a part of any MLM:

1. Does the person who wants to sign you up actually use the products or services? Can they speak to how using the products or services has improved their lives financially, health-wise, or in self-esteem as a by-product of building a business? Listen to their stories. Are they sincere and inspiring?

2. Is the compensation plan and buy-in clear? Are your financial obligations listed up-front? Do you know exactly what you need to pay to become part of the company? Be skeptical of a high-dollar buy-in. The focus needs to be on future sales, not what you are paying the company up front to become part of the company.

3. Are you required to meet a sales quota? (I don’t recommend becoming part of an MLM that requires this.) Do you have to carry inventory? (I don’t recommend this either.) Can you quit the company at any time without penalty?

4. Is this a line or a brand that you can stand behind ethically? Will the quality, uniqueness, and appeal of the products or services sell themselves? No MLM or distributor can sell a junk product for long.

5. Do you feel pressure to join or sell? This is usually a sign that you and the company are not the right fit. However, if you like the company but not the person wanting to sign you up, find another sponsor. Call the company headquarters for a distributor in your area. Meet with them. They will be your coach. It’s important to feel comfortable and that you can establish a healthy working relationship. Signing up needs to feel like an opportunity, not an obligation or something to later regret.

6. Is there any price-fixing when selling the product or service retail? The company establishes the wholesale price, however when the distributor (individual, business, or store) turns around and sells their product inventory at retail, they should have the freedom to determine their appropriate retail price for their market. Do not engage with companies who price-fix retail sales. 

7. How old is the company? Getting into a legitimate MLM early is beneficial. Not only will you get to bring a new product to the world, you also stand to benefit from the large network that will grow beneath you IF the product or service is of quality. New MLMs need to be well capitalized to be a safe investment for you, otherwise it is recommended to only join MLMs that are at least 5 years old if you’re not a risk taker.

8. Do you have easy (phone, fax, email)  access to the company headquarters to provide feedback, ask questions, and request help and customer service?

Why am I involved with two MLMs? Because I have been able to build a massage practice & become a spiritual nutritionist while being a full-time mom, supportive wife, and primary keeper of the home. I love contributing to our family income because it makes me feel empowered, purposeful, and productive. I have a say in how we spend, I don’t feel guilty about my expenditures, and I’ve developed a greater sense of self-competence through building a business. I like to work, I like meeting new people, making new connections, and promoting products that have not only enhanced my life, but can enhance the lives of others.

I’d love to hear in the comment section below how MLM has improved your life!

Source: http://www.carlagoldenwellness.com/2014/06/13/why-mlm-is-the-business-model-of-the-future/ , http://allaboutmlm.com/why-mlm-works.php