Multi-Level Marketing is not for everyone. Critics often
suggest it is not for anyone. So what is it that people
love and hate about the MLM business model?
Companies choose MLM because it reduces their overhead
expenses. They can generally avoid having to pay for
employee benefits and depend on their sales teams to handle
most of the marketing expenses.
Successful network marketers stand behind MLM as a flexible
and lucrative earning opportunity. While some report
overnight success, more often those who have risen through
the ranks to become top earners insist that hard work and
dedication are essential, just as with any other kind of
job. Adapting to market conditions and persevering through
the highs and lows are also characteristics that they view
as necessary for someone involved in MLM.
Those who fail at network marketing may choose to blame
themselves, their sponsors, or the marketing structure in
general. If they see the fault as theirs, they may
attribute their lack of success to choosing the wrong
product, or not having a personality that enjoys selling.
They may feel uncomfortable approaching people to sell
their product, afraid that they have to resort to
manipulative tactics to get people to buy things they
perhaps cannot afford.
In many cases, people cite unscrupulous directors as the
cause of their failure and exit from MLM. The ethical
lapses may be limited to the individual sponsor, who cares
only for their own financial gain and is not at all
interested in helping the people under him or her to do
well. Sometimes the issues seem to be originating further
up the chain of leadership, putting pressure on everyone
down the line to recruit or buy inventory no matter what
the affects are on the people below them.
Finally, you have those who view the commission structure
as the problem, where only the top few will ever reach the
level of success that those who enter the system are
desperately hoping to achieve. This view of MLM sees the
hierarchy as inherently flawed, with the bottom level doing
all the hard work and absorbing the cost of failure, while
those who climb higher do so at others' expense. The
harshest critics would say that regardless of the prestige
of the company, honest, unsuspecting people are being
exploited by the business structure. Whether they are
buying the overpriced product or risking financial loss as
a distributor, the marketing method is working against them
and is unfair.
It is often difficult to discern what constitutes a network
marketing scam. Is it when the company is deceptive in its
claims, or when most people lose more money than they
invest? The Federal Trade Commission has advice on how to
sort out which MLM opportunities are likely to be
legitimate and which may not be. Looking at criteria such
as how realistic their claims about income potential are
can help you judge the legitimacy of an MLM program.
You will have to decide for yourself your level of
skepticism and thus which camp you fall into when it comes
to Multi-Level Marketing. If you are interested in trying
it, make sure you research companies and products and your
sponsor to improve your odds of legitimate financial
success.
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Jayne Manziel is a successful Entrepreneur coach and has
helped hundred's of people build their business for over 20
years. She devotes the time, energy, and effort into her
team and mentors them to ensure their success. To learn
more visit Jayne's Making Money Online website at
http://www.freecashcoach.com . A proven leader, she offers
a Sales and Marketing Strategy for all of her team members
in achieving financial success.
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