Like most people new to MLM, or Network Marketing, you probably have tons of things running through your head. Like most people, you've probably been told at one point or another to stay away from those pyramid scheme things, only the people at the top make any money, they are just trying to take your money, they are going to brain wash you, I had an Amway guy scam me 20 years ago and the list goes on, and on, and on and on.
It all started back in the 1950′s with nutritional supplements, household products, and cosmetics! Many people can recall parents or grandparents either ordering from Amway or being involved with Amway! I hear so much negative talk about Amway by the way, but what many people fail to realize is that to this day Amway ranks amongst the top 50 global retailers, reported revenues of $ 10.9 BILLION in 2011 and the CEO Dexter Yager is the highest paid in the entire direct selling industry banking an astonishing $12,000,000 last year! How about them apples!!! Now I've never and would never chose to get involved with Amway, but I would also never put my foot in my mouth and say that it's a scam! It is one heak of a company with a business model and leadership that absolutely works! Obviously!
Why is the Industry So Attractive?
What is so attractive about the network marketing industry is what many people are trying to figure out. Well, for starters, I would ask, what other industry will allow you to start your own multi-million dollar enterprise for a few hundred dollars or some instances a few thousand dollars and be profitable in record speeds? The average start up cost for a MLM opportunity is between $200 and $1500 and the return for those who are willing to work the business like a "business" can be astronomical! The systems are already set in place. You have a graphic design department, a customer service department, a training department, etc. When you invest in a MLM company, you have literally invested into a multi-million dollar enterprise and this is the fact that many people miss and take for granted! For those who recognize what it takes to build a business from scratch, this is also what makes the industry so attractive.
The combination of technology and traditional selling methods makes MLM popular for all classes of people, of any and every background, no education all the way up to graduate level education, blue collar, white collar, you name it and it attracts. Additionally, the industry is also extremely popular because of something called leverage. You can earn money from the down line of your recruits' sales and their recruits' sales and so on. You do work once and reap benefits in the form of money, over and over and over and over again! There is no overhead if you work at home, and advertising can be based on word of mouth. There is also no inventory (typically), no collections, and no receivables. You do not have to see the customer, and the product is shipped to them on your behalf!
Why the Bad Rep?
MLM has acquired a bad reputation through media reports, that typically arise from people who got involved with an opportunity, did nothing and because they did nothing, they made no money and hence they felt that they were scammed and they set out on a mission, an emotional mission, to tell the world and ruin the company that they were involved in. For most legitimate companies, this never works, but it does leave scars around the internet! Are there some shady network marketing companies out there? Yes. Are there some true pyramid schemes out there? Yes. Are there representatives and distributors in companies selling people dreams in every company? Yes. But a majority of the companies are operating legally and are truly legitimate and lucrative business opportunities.
How to Select a Company?
When selecting a MLM business opportunity for yourself, especially if you are completely new to the industry, you should look for a company that has been in business for at least 3 years, to be on the safe side unless you are completely in tune and in line with the vision of the company and are ready to go along for the bumps and bruises that come along with start-up companies in any industry!
I am not saying to avoid younger companies altogether, there will just be a lot more due diligence on your part and you will be taking a bit more risk. If you do not have money to simply throw away, you may want to think long and hard! With any company, you want to make sure that they have solid, strong leadership, a system for conducting business that can be used with ease, a good training program in place, a strong compensation plan and products that are in demand. You may also want to make sure, where ever possible, that you are joining a strong team (upline) that isn't going to leave you high and dry due to the fact that they don't know what they are doing!
When comparing MLM opportunities, many people will tell you to think of yourself first! I agree with this but I also disagree with this for many reasons. For starters, just because you like something, doesn't mean that it will sell. Likewise, you may not like something, but 90 percent of the world is purchasing that thing that you dislike on a daily basis! I like to state it this way: could you imagine yourself sharing information comfortably about a particular product or service? In terms of business, you have to be selling what people are buying and you have to make yourself attractive enough to make people want to buy it from you no matter what it is. Despite, what you may have been told, products don't just sell themselves, people have a big part to play in this! I am a woman and I sold men's suits when I was 18 years old. I couldn't personally utilize a man's suit, and it wasn't my ideal job, but because I needed the money I chose to be comfortable selling men's suit and I did it passionately because I got paid for doing it! Aside from what I thought, there was actually a DEMAND for selling $500 cheap looking suits! That was my 18 year old opinion at the time - cheap suits, who in the world is buying this!
Don't Quit Your Day Job
Many who become involved in a MLM business start out on a part time basis, simply supplementing their regular income. This is wise advice for anyone considering a network marketing opportunity because as is the case with building any business, it takes time! Most companies request that you be willing to commit to 12 to 18 months up front to build your business and see results. This is common. Think about it this way, it takes the average business owner at least 5 years to turn a significant profit and a majority of people who start traditional business NEVER see a profit. A 12 to 18 month commitment on a business that required very little start-up capital is very reasonable to say the least.
Keeping your day job will insure adequate income to meet your household needs and buy you enough time to get the business established. By keeping your current ties in the business world, you can attract "them" as customers or potential teammates in your new opportunity.
Lastly, just remember that there is no such thing as a legal get rich quick fix, aside from hitting the lottery and inheriting a fortune! You must be willing to treat your MLM business like a real business and work it until you see results. If you put in work, you will definitely see results. If you don't put in work, you will see no results. It is your choice. But when you don't get anything from your investment, as a result of doing nothing, don't go around giving your company a bad reputation, as the only person to blame will in essence be you!
