Monday, September 20, 2010

People can succeed in Network Marketing/MLM.....



.......but don't be fooled. A home based business does require a lot of dedication, learning & hard work. As in any worthwhile endeavor, Network marketing/MLM  involves multiple levels of skills. Do your research, learn the latest strategies.

 But most importantly.......

Treat "Network/MLM marketing" as a BUSINESS!


E-commerce (EC).......

   is the buying and selling of goods and services, and the transfer of funds through digital communications. The buying & selling over the WEB. E-commerce also incorporates all inter-company & intra-company functions (such as marketing, finance, manufacturing, selling and negotiation) that enables commerce and e-mail, EDI, file transfer, fax, video conferencing, workflow or interaction with a remote computer. (EC) includes electronic funds transfer, smart cards, debit cards, credit cards and all other ways of doing business over the digital networks.

Internet marketer & Home based business entrepreneurs....


   have become leaders in educating & facilitating the growth of the internet as they pioneer new ways to support their network organizations. By providing distributors with instant worldwide communication. It has allowed them to develop additional business through e-commerce as well as ways to build & growth your individual businesses.


What is this INTERNET MARKETING / HOME BASED INTERNET BUSINESS thing?


 ~~Traditional Marketing involves moving a product through the hierarchy of middle-persons,from the manufacturer to the consumer. All these jobbers, wholesaler. retailers, etc., earn a profit for handling the product. In Internet Marketing/Home based Internet business these positions are unnecessary. The functions are simplified and the profit that would normally go to the middle-persons are instead shared by the individuals who is marketing for the company. It is a efficient way to distribute products and a more powerful way to earn an income.


How do individuals operate in this environment?


~~ Through business development opportunities called Network marketing. Where individuals create a business of their own, by building a network (LIST) of constant follower, visitors & distributors through which a company's product or service makes its way to its end destination....you the consumer!

Network marketing (NM) & Internet marketing 

Will consist of any one or all of these internet business models.....

    ~~ Affiliate programs, Referral marketing, Direct marketing, Multi-level marketing (MLM). Which utilizes a combination of direct marketing & franchising. Typically, individuals become associates with a parent company in an independent contractor relationship. Sellers are compensated based on their sales of a product or service, as well as the sell of those they bring into their business (their downline). Multi-level marketing has a recognized image problem because of the difficulties in making a clear distinction between legitimate network marketing & illegal "pyramid schemes" or Ponzi schemes.

   ~~Nonetheless, many NM/MLM businesses operate legitimately in all fifty U.S. states and more than 100 foreign countries. In a legitimate MLM company, commissions are only earned on the sale of products or service to the end consumer who, may or may not be a distributor. You will build a network in a network marketing holding company that represents hundreds of network marketing companies, which gives you access to many high quality products at wholesale pricing and keeps your network diversified. This protects you from downturns and fluctuations in the different markets. All purchases funnel back into the holding company's massive computer systems, which scans for group volumes each day and pays you a daily or monthly bonus. These bonuses & incomes earn from sales is automatically deposited into your electronic bank accounts (Paypal, Alertpay,etc.,).


   ~~ Using today's internet technology, social networking site & other mediums to build your list of contacts to buy,sell & attract new distributors using electronic marketing through the internet. Each distributor will have their own E-marketing place with real time video, audio and text marketing tactics. A true multi-media show, which can be sent directly to prospective clients through the internet or loaded on the webpage or auto-responder for easy access.


   ~~ Fortune 500 & New York stock exchange companies such as AVON, with world wide sales in excess of $5.5 billion - through 3.4 million representatives in 139 countries. Other major player are in the Health & Nutritional (wellness) industry but more & more technology based companies (video e-mail, VoIP, phone service, etc.,) are beginning to become exclusive to the Network marketing industry. Because of it's unique ability to rapidly penetrate wide segments of the consumer marketplace. Network marketing has even pioneered a number of today's most successful & vital products & services.




Make Money Online is a hot topic. There are many excellent books on the subject that I can recommend.  http://amzn.to/cqelTG


Word of mouth plus the POWER of the Internet!


   ~~ How often do you recommend a great movie, a good book, an excellent restaurant or even a brand name product you feel is a superb value? All the time, right! And, yet, have any of these companies ever paid you for the powerful, persuasive "advertising" you did on their behalf? This is what Networking marketing/Affiliate, referral marketing is really about.


You need customers who believe in you & your product. You must tell your story to people so they'll take action. Advertising/marketing was the traditional approach (newspapers, flyers, TV commercials). The reason why business' spend 20%-50% of their entire income/profit on advertising is without it, they'd go out of business.


   ~~There's a better way, a new sheriff in town. And its name is Word-of-mouth advertising also known as Affiliate/Referral marketing. People believe a trusted friend's recommendation when they wouldn't even listen to a $50 million ad campaign. Network marketing is simply a systematic approach that harness the awesome power of word-of-mouth advertising....and asks the question, "Why not get paid for something you do so naturally." Now, team that up with the POWERFUL tool of the internet....Internet marketing! The use of the internet to advertise and sell merchandise or services. This involves use of websites and e-mails to inform customers about a product, answer their question and accept their order directly through electronic medium.



Multi-level marketing businesses let you earn money based off the products you sell, and sometimes a percentage of the products sold by people you refer.


To make money online your business MUST......


- sell something in exchange for capital.


- have a product or service you earn money from on actual sale of products, not just from endless recruiting of other people.


- Sell to an end user,  someone who wants the product or service only as a USER (the consumer). He is spending without expecting a financial gain.




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 Best Books of 2010 ~ http://amzn.to/d61aXb




REAL TALK
Copyright © 2010 Andrew Hayes All Rights Reserved

Tuesday, July 6, 2010

Should you start your Home based business in MLM?


   From the looks of my earlier post, one might get the notion that MLM is not an avenue worth traveling.

   To a certain point, this is in fact true. Truth is, MLM and work at home businesses should be in two different categories. Work from/at home or Internet marketing doesn't mean just MLM business. More on this later!

   See, the reason you get involve with any online business is for the exact reason most MLM companies advertise. To make money!
but also to........
  • have more time for you & your family
  • be your own boss
  • freedom
   There are a good, say 2-3% that actually find that way of life. The remaining quit ,or just get lost in the hoopla.

  The basis of  MLM is to answer the regular Joes financial problems. So, one must understand that in fact you are a average joe, With that comes responsibility to that business. And 97% of those regular joes & josette are failing in MLM, simply because their top level members are telling them, they will make alot of money doing what he/she does. In reality, its clear that running/marketing an MLM business is far from your regular J.O.B.

Why, you might ask?
Does the average Joe/Josette understand:
  • Marketing including internet marketing
  • Business management
  • Computers
  • Sales and Customer Relationships
  • Finance and Accounting
  • Problem solving
  • Networking 
   These are only a few of the skills needed to operate your business. Of course, nowadays, these are some of the so-called opportunities that shower the internet. These opts still require you to market. Whereby, the above mentioned skills are necessary.

   You see, the real issues with MLM as a business is that 97% are just unqualified to build a target market of those who are interested and qualified to run an online business.

   The successful work from home or internet marketer, has acquired the necessary skills and has put them into play. The regular Joe/Josette must to first learn and apply those skills. The price....time and patience!

*If you went to apply for a position at a large companies. Would it for all the jobs in that companies or would you apply for the ones you qualify for*

   This is an important issue, because so many are applying for positions in MLM, they simply do not qualified for. Hence, the 97% failure rate. Something to think about!
 
   Are you really, ready to run an MLM business or simply work from home or Internet marketing?

   Treat your online biz like a business!



MLM -- Are you Qualified?




REAL TALK
Copyright © 2010 Andrew Hayes All Rights Reserved

Monday, June 21, 2010

REAL TALK ~ What is really happening in MLM


Not admitting that I am older, lol......

   But, back when direct-selling, meant person-to-person/door-to-door contact, sending post cards or flyer to a mailing list. which was equivalent to your e-mail list today. It meant newspaper ads, radio spots and business cards to generate leads. Understand that even major league (name brand companies) participated in direct sells marketing (The Sears, JC Penny's catalogs) Many of these strategies have had to adapted to the new age of technology based marketing. The problem is that these tactic are being exploited and abused over the internet.



   Advertising has always been about hype, attraction - promoting a product, service or event to a targeted audience. Internet marketing is purely advertising in the 21st century. What MLM/Network marketing has done, is employ under-skilled marketers/advertiser to promote their many products and/or services. Because of internet technology, many in the network marketing industry simply over-hype these companies they market for because of inexperience. Oh yes, I hear it now, but I have a mentor or the training teaches me this and that. Training is good but experience is a completely different ball game.


MLM and networking strive on this very notion.


   Each year, neither desperation, the economy or just fresh NEW prospects are enticed to jump on board and venture into this world of making a living online. All the experience marketer have to do is cater (invent) new ways to advertise a product or service.


   I have seen over the years, such advertising & marketing tactics that surely could be persecuted under the "Truth in advertisement act" in this country. Take a look at the language written under the Federal Trade Commission (FTC)


Examples (pulled off any result search of MLM. work at home, Network marketing opportunity)


  • Anyone who signs up after you in this, will automatically be placed below you in your own Cash Generating ...... 
  • Earn a substantial income in this $100 Billion worldwide Market ..... 
  • Financial Rewards Without Making A Single Sale....... 
  • Start Making $12500 Or More Monthly By Simply..... 
  • $300 per day computer work...  
  • Secret Formula For Making Money Online.... 
  • Beginners making $10,000 within their first month


Oh yeah, the list goes on & on.... makes you go, hmmm........?


   Of course, at the end of the pitch, in very fine print is the disclaimer. Which most people tend to ignore.




   Yep, over the years, I have seen a lot of different strategies used, from beginner to these home based internet gurus??? There are a lot of bad habits exhibited when it comes to online marketing. Habits that I like to believe are just innocent attempts to pull in more leads. just plain inexperience in marketing. Sometimes its out of desperation, others, just a deliberate attempt to recruit people into their program or business.


   Now, I have come along way in my approach to marketing online. But, one thing I never attempted to do was hype these companies, products or service unless i was actually doing it myself. (Why), after all the work it takes to get (build) your list, why have those people leave you because they no longer trust the things you offer.


   Trust me, I have dropped or will not do business with many of these marketer ( the ones that are still hanging around) I keep a few on my email list so I can watch what they are promoting or doing. And over the years its just funny to watch them jump from one program to another. I imagine that they are making some kind of money because they are still around. Rest assure that they are feeding off those new crop (newbies). Try getting a response to an e-mail after you sign-up with them. Usually not a problem in the start. But, when you do not get the results that seem to be promised at the start on that venture. All of sudden, it taken weeks to reply if at all.


   See, auto-responder can't reply to tech or personal issue. So these big time marketer are to busy promoting other programs and business, that its nearly impossible to reply to thousand of inquiries.




   You always hear that there is this or that secret. This or that system that will propel you into this wonderful world of making money online. Well, I'm here to clear some things up. Not to piss on anyone parade, but the truth in becoming successful in your online business is..... TRUST.


   Trust will bring you targeted leads that should allow you to build relationships. Whereby, allowing you to pass off vivid information on products, services or events to a targeted audience. These being potential clients, consumer!


   Throughout the years I have connected with many of these so called leader. And many, I am sorry, to have giving my trust to. Because they represented themselves in a manner that should have benefit all parties. But, truth is, it only benefits them and those on top!


Heres some misunderstood facts you should live by......


FACT ~ Most MLM/network marketing companies will ONLY provide hefty profits to those on top. ( Why else would they construct such complicated pay-out plans)


You sell a product or service you get paid for that sell! It straight forward business = simple financial model of Cost of Goods + Overheads + Margin/Mark-up = Sales Price. You sell to cover your expenses then you keep the profits


FACT ~ The top 1% makes all the money in MLM structure 2% generate moderate income and the rest will lose. Again, there is a reason why many online business construct these matrix.


FACT ~ No-one is just going to come off the street (sort to speak) and I will stress this, NO-ONE, is going to decide one day to join a online business and make a full-time income in a matter of months. If you are brand new to marketing online, forget it. You will be lucky to break even after a year! This is just fact.


You simply can not possible tap into the kinds of numbers needed to sustain a wealth building strategy that MOST MLM companies claim. Many, many people are not looking to buy anything related to MLM, point blank. Also, when you look at the amount of MLM/networking marketing related opportunities across the web. Seriously, how many people do you think are on this planet.


   If you have 100 people - 80% are working regular 9 to 5 job. Of the remaining 20%, a percentage run their own business, a percentage simply don't have the income it take to start a business. a percentage are in countries you simply can't tap into.


FACT ~ The only people that realize the promised income are those that get in on the ground floor. Those that are privy to much "behind the scenes" info.




   Ok, so you have this huge list of business associates right. A very interesting business opportunity has opened up. You first, let your top producing contact in on this insight. They in turn let their top producing contacts in on this. By the time, the average Joe/Josette is "privy" to this opportunity, you have market saturation.!


   The only way that a regular Joe or Josette can achieve that kind of success in as lttle amount of time is simply because they have a huge social networking relationship established. Still that will only be accomplished by spending time building that network first.


  With many of us being bombarded with ads & invites each day, this too, is becoming a bumpy road. This is why we see so many lead generation programs/business popping up.


FACT ~ You will need thousands of people under you on a continous basis to fulfill even a part-time income (after expenses R.O.I.).


   Best to understand that there isn't enough people in this known universe for everyone to make money at a level 5 matrix let alone at every level 10 or more. Again unless you are on top!


FACT ~ Having no ability to run a business or no sales, network marketing experience or little computer skills, the learning curve will be overwhelming.


Which is why so many spend money on these all in one lead generation business.


FACT ~ their primary source of income is from individuals who sign up and purchase the basic supplies and training materials.


FACT ~ Traditional business models succeed by the numbers of repeat customers they keep.


   So when someone doesn't make the kind of income, in the amount of time they were attract to, do you think they will buy anything from you again.


FACT ~ Not that there isn't any decent MLM type business but most MLMs rarely sell anything of value, mostly just selling the opportunity to sell.


   This is just REAL TALK - when you are armed with the honest truth, you can make an informed decision on matter concerning a home based business. Again, people can earn a living working from home. As long as they understand what the elements are.


REAL TALK
Copyright © 2010 Andrew Hayes All Rights Reserved

Sunday, June 13, 2010

Do people really fail at MLM or is it something else........?


    OK, I'm back with some more REAL TALK about MLM, Network marketing as a Home based business. In the last entry, I try to focus a little on why most people will fail in MLM from a stand point of sheer numbers. When I speak about, failing, I'm speaking about how they were not able to obtain a profit or why they were unable to become wealthy in their business. We will look at what is consider a failure. Along with some issues surrounding the tactics, and some personal insights.


   It may seem that I am not a fan of MLM. Well, I can't say that I completely dislike all MLM, just not popular with most of the tactics or those that promote MLM in a fashion that leads their people to an inevitable doom. I will discuss these on several fronts!


But first, do yourself this task, 


   Do a google search (or whatever search engine platform you favor). Try to find some real information/data on the number of participants in MLM. Try to find some solid numbers on subjects like.......failure rates, turnover(dropout rates) How many new MLM companies are there? Which ones are you likely to succeed in? You will find very little, I assure you on this. Is this on purpose? Is there a reason why? Especially, when there are so many MLM opportunities out there.


   Over the last 3-5 years, there are upwards of 10s of thousands even millions worldwide, who became victims of their failed MLM business and just as many who switched programs (business). Another things about MLM, is people don't (fail) quit, they just stop recuiting others into their business.


Visit here for re-enforcement ideas >>> Internet marketing & E-commerce

   So, combine this with the lack of business experience, no true understanding of their compensation plans and the perception of  "little work builds hugh profit." It is no wonder we don't hear about these short comings. Would you go online an explained that the true reason you failed was because it was your own fault? Of course not. Hence, the only complains one finds, are how the company misled them. Or simply how all MLM/Network marketing are just ponzi or pyramid scheme.


Ideas & insights here ~ Home based business

   These are the same ones whos only real purpose was to get a quick buck with as little effort as possible.They were focus on the hype, they saw only that beautiful, perfectly made sandwich on menu. Without fully understanding what it took to get it that way! It took work, effort & time! Sometimes several do-overs to get it the way they wanted it!


   Now, I have talked a bit about the lack of effort as a contributing factor to why people give up in my last entry. When looking at your business as a business, did you figure out exactly how many people you will needed to create financial security within that companies. Every MLM distributor will in some form go through a rough time obtaining a profit from these MLM. I bet most, didn't get pass the basic look of their compensation plan let alone understand it.
(In some cases, they are presented/designed in just that manner)
..............to be a bit confusing.


  There are:
  • Bonuses
  • Overrides,
  • Left & right leg,
  • Spillovers,
  • Unilevels,
  • Stairsteps/breakaways

DO you REALLY understand these plans?  HOW YOU MAKE YOUR MONEY!


 "This is where YOU get paid for YOUR effort in YOUR business"

Can you explain them to others so they know exactly what it will take to profit.

   These company pays you a commission on your sales but also on the sales of all the people you've brought into the network, either directly or indirectly. This is the bread & butter of your business, When this is not understood completely, Your income is not undersood.


Now, I found a very interesting video clip that I believe will help get your mind focus on an alternative view. In terms of this word "Failure" as it pertains to this industy.
 .

   Network marketers who are serious about building a business should be reading and learning about business fundamentals, the latest sales and marketing techniques, strategies for internet marketing, networking and business development, etc.


   It doesn't matter what you think you know, just like technology. Marketing (online) is ever changing. There are ways that work one day or in some situation. While in others, simply,  ineffective.!


   Ever watch a movie once, believing you saw everything, then you watch it again, only to discover scenes you missed, parts or acts you understand more clearly. This is your business, something that you want to be able to live off of, survive off of. Yet, many, many people skim over some of the most important aspect of running a business. "That it's a business" then wonder why it doesn't work! ????


Really think about whats being said in the video clip!


  REAL TALK
Copyright © 2010 Andrew Hayes All Rights Reserved

Friday, June 4, 2010

REAL TALK ~ What are the numbers.......Market Saturation???


Andrew D Hayes, EzineArticles.com Basic Author

   In my last entry, I touched upon the inherent issues that come along with many MLM companies. I'd like to dig a bit deeper. These inbuilt issues when understood, can provide you a bit more intel when you are pursuing a career in MLM as a business.


   Again, I like to add that I am in no way attempting to denounce nor promote MLM. Merely providing facts I can confidently write upon. With a number of years actively participating in this industry under my belt one thing is for sure, I can say its night & someone will see it as day.

   How you intake the info can surely be up for debate, but please feel free to reply, comment and discuss any topics.



   Realize now , that alot of our societies infrastructure incorporates some form a pyramid structure. Lets see.....the military, Army, Air Force, (generals, majors, sgt, etc.,) our government and as I pointed out in my last entry most traditional business models this pyramid structure.

- A typical corporation will have a CEO or President at the top, then their directors, the directors have their managers, and the managers their supervisors, and the supervisors, foremans have workers who do the work!



In an traditional supply chain structure it operates like this:
- Manufacturer
- Distributor
- Wholesaler
- Retailer
- Customers
   Each step adds expense to the final destination........the           consumer!

In Network (Internet) Marketing (MLM) the structure operates like this........
- Manufacturer (supplier)
- Distributors (you)
- Customers (the end user)


These customers, represent a targeted market that you the distributor have to penetrate


   Running your online business so that it becomes profits, is where some MLM companies structure make it nearly impossible to achieve. Why......?
Well, you've heard that famous quote....."It's a numbers game"!
You best believe that. It's the numbers needed to stay ahead, that does... become an issue.
The compensation vs. the consumer vs. the distributors


Simply by the numbers alone:
   Let say your business needs to employ/recruit 5 people now that 5 needs to employ 5....and so on and so on! Here what it would look like.................


LEVEL       New Members needed
1       ~ ~     5
2      ~ ~      25
3     ~ ~      125
4     ~ ~      625
5      ~ ~     3125
6     ~ ~      15,625
7     ~ ~      78,125
8     ~ ~      390.625
9     ~ ~      1,953,125
10   ~ ~      9,765,625
11    ~ ~     48,828.125
12    ~ ~     244,140,625
13     ~ ~    1,220,703,125


   This is just you - what about the other 10,000+ people that are also looking to market that same business!


In this manner, MLM can differ financially from normal business practices.


Market saturation - Point at which a market is no longer generating new demand for its products or services. A result of competition, decreased need. Simply not enough targeted consumer, an end user!

REAL TALK
Copyright © 2010 Andrew Hayes All Rights Reserved

Tuesday, June 1, 2010

Some REAL TALK (facts) about MLM...... Why its tough to really make good money!


Ask yourself this question (particularly if you have been working with MLM)......

  • What is the average time your clients STAY with your business?
  • Are you constantly, replacing clients that dropped out with NEW ones?



   I know there are die-hard MLM fans out there but, really, there is a disturbing truth behind this question! And many folks involved in this industry.....know the truth!

Andrew D Hayes, EzineArticles.com Basic Author


   In my last entry, I talked about the worth of working from home as an Internet marketer. One word that should stand out is "EFFORT". There are many reason why people fail in this industry.....lack of effort is only one of them.

   Why, because most are "recruited" under the pretense that it only require a few hours of work. After a few attempts with little response they are ready to throw in the towel. But MLM type companies have many other issues as well.


   Before I begin this article, I want to be perfectly clear, This is not an attempt to undermine or put down MLM as a home based business opportunity. I have (in the past) marketed some MLM companies and would most likely (under the right conditions) market some in the future.



*These participation usually pertain to products or services that will benefit your online business!*

Keywords being an actual product and/or service (to an end user)!

TIP: See what a few marketer in this industry do not understand is that many of the techniques.products & services use to promote MLM type businesses can be use to build other types of legitimate online business.

   However, there are some real facts based on a number of years that I have spent....dealing with, participating in & research of MLM companies over those years.

Once again, this is not an blog that is meant to degrade MLM, but as an aid to those who maybe looking into, wondering why they are not succeeding in their MLM business..



   First, over the years, they're  people who have made plenty of money in MLM companies. Truth is the basis of MLM structure is that of traditional business model. A typical corporation will have a CEO or President at the top, then their directors, the directors have their managers, and the managers have their supervisors, and the supervisors have their foreman's who have workers that do the work!

   The structure of MLM is at it's basic.... build upon this platform. A crude platform but today, I'm not here to discuss in-depth MLM structure. Whether the inherent facts that are embedded in every MLM!



Some real talk when it comes to marketing MLM companies.




In my first months of market online as a real business, meaning that, even though I had done some direct marketing in the early 90's. I was still wet behind the ears when I became interested in internet marketing.  (After some research), I understood that money could be make with hard work & effort. See there were certain aspect of direct marketing that taught me much about MLM type business at that point!

TIP>>> Truely, one really simple fact.......You will have a much higher success rate (% wise) when you have an actually product or service to sale to an end user.....a customer!


Even with that wisdom in mind I began using the trainings, paying for online/offline advertising, buying leads trying to convince prospects to join or stay in  my businesses. The income from commissions was still less than my R.O.I. (Return On Investment). I was truthful in my presentations, careful not to hype products or services excessively ( I'm turned off by this types of tactics of advertising myself), willing to build relationships etc., yet I kept losing my clients. The harder I seemed to work didn't seem to stop my rollercoaster ride in building my MLM business.


There is a reason for this.


Now this was a few years ago. I've seeked, explored & have learned so much more!

Nowadays, there are 2-3 times more of these MLM type businesses and more every month.

Seriously,  financially, the odds for an individual to achieve financial success is against them straight out the gate.


For one, MLM are not defined nor regulated like say, franchises are. MLMs can be established without federal or state approval. There are no federal law specifically against MLM with many of them in fact being nothing more than an pyramid schemes in disguise. Not all but many are floating around out there!


MLM, just like pyramid schemes, generate income from those continuous influx of new distributors at the bottom that goes straigh to the top and that profits those in top level positions & their sponsoring corporations.




Fact ~ one the largest MLM, Amway, of all distributors they only produce 1/2 of 1% of basic "direct" distributor level, with an average income from those Amway distributors being about $40 a month. Where do you think ALL of that revenue from the other 99 1/2% went too???


And think about this ( if you do any amount of research or even just looking for a business) You are likely to find these businesses, at one point will claim that there are X amount of people enrolled in their business. Usually some number of thousands of  other distributors who are trying to make money just like you.

 Which brings upon another fact......


Market saturation! The simple fact is that even the most successful products will have only partial market penetration.

Huh???  LOOK....not everyone will buy, say, a PS3(Playstation3), some will buy the Xbox! Not everyone will buy a GMC cars some will buy Toyota.

Yet, these MLM companies have 10s of thousands of distributors. Is there a cut-off when enough sales people are hired? In a traditional business, there is someone that says, "We have enough, let's stop hiring people at this point." But in most MLM, there is no way to do this. An MLM continues to saturate the market. Out of control by design, this will eat up the lower level distributors money, time, credibility, and entrepreneurial energy of well-meaningful people who joined merely to supplement their income.


Some of these businesses are primarily in the business to continuously enroll distributors with little focus on products or services retailed towards consumers (an end user). Unless, of course, it benefit their company (and/or other business venture). Things like leads generation programs, auto responders, splashpages etc., ( Which again does what.......benefit top level participants).





   BIGGEST mis-conception about MLM is it can be done  in your spare time. As a business, it offers the greatest flexibility and personal freedom of time. A few hours a week can earn a significant supplemental income and may grow to a very large income making other work unnecessary.

Come on, now really.......I understand this business of advertising.


Example: You go to one of these fast food joints, We look at the menu, and boy those pictures makes you want to eat the menu. When ever, has your burger, sandwich ever come to you looking like it does on the menu? So yes, there is always a bit of hype (exaggeration) in advertising, commercials. This is or has been reasonably except-able. MLM companies or their distributors on the other hand, sometime really do over do it. Many times bordering false advertising. Which is almost always cover by the fine printdisclaimers!


   Decades of experience involving millions of people have proven that successful entrepreneurs who make even a reasonable amount of return on their investment ~ requires extraordinary time, commitment as well as hard work, effort & persistence.


Which is WHY people drop out of they're respective business.


   It’s sad that 90-95% of all home businesses (mlm and network marketing) fail to produce a substantial income (if any income at all). And this is well documented. The remaining 5% are considered to be the home business or internet “guru’s” who make ALL THE MONEY! 

Top level participants

   Most people begin and end their MLM career only talking to a few family members and friends. That is the extent of their lead generation, their marketing campaign. Their effort to run a business. Clearly, any serious network marketer or business owner cannot build a sustainable income like this.


   Truth is these guru's can claim they built their massive organization nearly over night, however, it took them years of building teams through affiliations with numerous other MLM companies. After years of building relationships with hundreds or thousands of distributors, these top producer can switch companies, contact their down-line (list). . . have what seems like an overnight success.


   Choosing the wrong product, a weak compensation plan, the wrong team or the wrong lead generation system are other reasons you will fail in this MLM and network marketing arena.


   Strategic planning, organizing and goal setting are all a major parts of running a successful business, whether at home or in a traditional business.


The exact nature of your internet marketing activity will depend on the following things:


   - What do you want to achieve?

   - How you are going to achieve it?
   - How much you are willing to invest?
   - Are you willing to dig in and work hard towards your goal/dream?

TIP>>> Understand that most home business entrepreneur and network marketers are ALREADY in business for themselves. They already have a business opportunity, or affiliate program, and don’t want to hear about yours. So don't spend alot of time or effort in that direction!


(Don't believe or understand this statement.....take a look at your inbox of your email, social networking etc.,)

How many opportunities do you pass up?

   Ok, the question at the beginning of this entry "What is the average time your clients STAY with your business?"


   After an intense research...... There seems to be no actual hard data, giving the nature of many MLM business over the last decade. With no real state or federal regulations in place and many company's being fly-by-night operations. True data can only be calculated through numbers provided to the IRA by up-front companies who reps are required to provide their social security number for tax purposes.



 * Roughly 70-75% of new start-up MLM companies fold after the first year
    * Nearly  60% of sign-ups to an online business cancel after the 1st month
                 * Nearly 80-85% after the 3rd month                                                        
                                              
   Again, many many MLM. network marketer understand that there is a very high turn-over ratio in this industry. Granted that you have been networking for a little bit, it is easy to see.
I know I  do.


Visit these sites for some interesting topics on MLM


 http://pyramidschemealert.org/


 http://www.falseprofits.com/FalseProfitsBlog.html


 http://www.msnbc.msn.com/id/4375477/


 http://www.mlm-thetruth.com/

 http://www.mlmwatch.org/

   Hope that you find this piece of value to your online endeavors. Also remember to really focus on the basic of marketing online. When you take care and have a solid foundation of the essential working of marketing online. Many of the pitfalls can be avoided.


   Find your own groove or niche, that is how a true entrepreneurs succeeds. Think outside the box. If you need and want to work successfully from home/online you've got to be willing to adjust, work hard and stay informed.


Sincerely,

Andrew


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