Disgusting Truth One: Multilevel marketing companies are designed to fail from the very beginning! That's right, anyone who is experienced in network marketing will tell you that most of these companies have between a three and five year shelf life... that's if they are lucky enough to survive the first six months. Think about it, every single day on the Internet there is another company touting another monumental prelaunch... some latest and greatest invention that's going to change the world so that we can all be financially free.
Hogwash.
Only a very small handful of people who get in at the very top will make more than they spend. It doesn't matter if it's a forced matrix, binary or any other comp plan. The people at the top who can see the entire downline structure, and who have the ability to strategically move people and groups of people where they need them are the people making all the money. Do you have the capabilities to see the full picture of the entire company's downline? If so, do you have the ability to move people where you would like to move them? Can you strategically fill in all the gaps in your downline pyramid and replace the people who stop their auto ship? If not, then failure is just a matter of time for you at this point.
Your "upline" can be compared to your credit score... you know you have one, but you have no idea what it looks like or how it was determined. Why is it such a big secret? Hmmmm?
When was the last time you met someone who is TRULY successful in MLM over the long term? For most people the answer is never. Of course you see all of the hype on the Internet and spreading like the plague through every form of spam known to man, but if you've ever tried to contact those people who are running those ads and ask to see a real copy of their last paycheck, you will find most people will not call you back because they simply don't have anything that proves they are making any sort of significant income. They are lying to you. And one last thought... if you do not believe in this "shelf-life" theory, simply ask yourself why most top MLM earners have been with at least five companies or more over the past five or six years.
Disgusting Truth Two: The products are usually consumable, low to average quality, horribly packaged and are not necessary for everyday living! It's hard to tell what goes through the mind of a CEO, other than big dollars in their pockets, when deciding what type of product to create and at what price point. With the economy in the worst shape it's been since the Great Depression, it's simply baffling how many network marketing programs are hitting the scene with vacation programs, designer beverages and health supplements. In a bad economy, these are the very same things people sacrifice so they can continue to pay their bills and keep food on the table. These seemingly brain-dead CEOs should have probably taken a course or two on "market timing."
Disgusting Truth Three: The average "auto ship" only lasts three months. A recent industry snapshot shows that the average person who gets on auto ship for a product or a service in the MLM industry lasts an average of only three months. Do you really want to continue replacing people you bring on board? Auto ship and auto billing is the key to multilevel marketing, but people today are getting wise to the fact that they have enough recurring payments to make each month. A constant monthly auto ship payment can be a real budget breaker for most people in today's economy, but the real pain in the back is when a company keeps shipping products to your house that you really don't have a need for. Can you relate? Perhaps you have water filters, health supplements and energy drinks stacked in your garage right now collecting dust. Join the crowd.
To summarize, most people who get involved with MLM or network marketing, or any other type of home-based business opportunity will end up losing money in the end. It's already a well known fact that approximately 97% of all home based business owners fail within the first 12 months. The other 3% are mostly hidden amongst the people "in control" that were mentioned in "Disgusting Truth One" above.
The sad part of this entire scenario is that it's not hard to create a business model where people can truly find success. It's true that the secret to building long-term wealth is by recruiting or hiring other people and showing them how to work the business, or one specific part of your business, and then earning a small percentage of their efforts. But recruiting should not be the main focus of any business as it clearly is in the network marketing industry.
