Monday, 27 August 2012

About MLM or HowTo MLM

MLM is the route of all evil!
MLM does not work.MLM is a scam.

MLM, direct sales, word of mouth, network marketing share many similarities, but I will focus on MLM which is the acronym for Multi-Level Marketing. Search google for "What is MLM" and got About 53,900,000 results (0.55 seconds), bing 40,900,000 results and yahoo more than 10 pages returned, yahoo does not give a count, weird to be different. With all these results out there why would I still find the need to add another?

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In the items I read against MLM I often saw that people like to link MLM with pyramid schemes and Direct sales; it is not that same though at some technical level of language this may be the case. However; so many of the definitions really cannot make a clear case to a difference; except the a Pyramid schemes are illegal and the most significant item that makes something a Pyramid scheme is the lack of any products or services, so the whole program revolves around a fee paid by new participants and the requirement to recruit new participants in order to get money back.

The term pyramid is a very distinctive visual term and worthy of note. Looking a the Egyptian examples we can see layers of blocks that reach up to the single block at the top. This example is that
someone creating a new Pyramid scheme is the top block that recruits the first level. Each person on the first level second level, who in turn recruit the third level and so on until the last row is recruited; and they are on the ground with no one to fit below. So no more money to come in, that is very bad.

Now most large business have a formal structure that is referred to as an organisational chart. Small and medium size companies have these structures too but their formal use and documentation
tends to have less detail. The important thing here is to note that an organisation chart is a top down structure just like a pyramid.
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This comparison continues with the compensation plans you will find in these structures. The top positions gets paid more than the next level down. This comparison does vary is many large organisation that have a sales department with commission based employees that often earn more than the senior C level managers. Sales make business run!

From my study of MLM a question of how come so many people cannot make money lead me to look at what the products where that people where representing. The idea of someone getting behind a product that they do not use naturally seems to have significant baring. The quality of the product, has less to do with the success factor; the fact the representative has to first be an active consumers of the product or services; it may not be the brand offered by the MLM program, until of course the person becomes a representative of the MLM program and switches brands.

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It is my opinion that MLM in and of itself is not bad and the failure to select a program that matches your interest and the ability to avoid the hype while selecting are critical to becoming successful. Here is my recommendation for selecting I use;
  1. List all the products and services you already have.
  2. Rank the list on a scale of 1 through 5 with one being cannot live without.
  3. Review your list to see what products are of similar type and can be provided by one reselling services company.
  4. Look for MLM, Network marketing companies or direct selling opportunities that carry your product(s).
  5. Review the business structure to see if their value proposition is acceptable to you. I look for no inventory requirements, no re-qualifying cycle, little or no sign-up cost, no sales quota.

Now remember that you are starting up a business and some cost is expected; after all that is a very good reason to startup a business; pretax expenses. It recommend that you do contact an accountant before starting up a new business and a lawyer that is experienced in business startups. Many MLM type venture can be conducted with out creating a legal business entity and still be eligible for business tax credits or write-offs.

Many opportunities have built in training, this is only as good as the person that will be administering the training and your ability to receive instruction. If the training is all online or on some recorded media

that requires you to train yourself then you most be able to learn this way or you will not be successful. If the training is provided with in person and or groups sessions then you must me able to attend the scheduled training with missing to absorb the information. You may also have to change your circle of friends if they put out resistance to your new endeavour; but that is a completely separate topic covered that I can share with you here.

To provide you an example of how I use the list follow this link to the direct marketing site I have from ACN inc. The site is the online store from where you can see the types of products, they vary by country and region so cruise around and see what is there. If you pick a country for a language you read, in the upper right is a page translator link. The second link you can use to evaluate the opportunity.



  1. Hi, I'd like to add.You can't because 3rd world countries don't have the advantage of actually trying to learn about network marketing. Some rich companies get rich because they target the less educated ones. That's why we have Walmart taking advantage of the Chinese for their low-income labor work.thanks,
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  2. Hi Rimi, and thanks you for jumping in.

    Third world contries will stay behind if those that can, do not help them join in.

    Walmart is taking over China, well I'm not so sute that is correct, interesting thought.