I first must confess to not having a great deal of experience with MLM – Multi-Level Marketing – I’ve been more on the fringes of it than in the middle – but I’m going to share my thoughts on the matter anyway – and you can judge for yourself.
The first thing I always ask about an Internet “make money online” program is: “What are you selling?” For MLM, it’s not going to be a product, what you end up “selling” is the ability for other people to sell… to other people… who then can sell… to other people… and so on. Any “product” is almost strictly a byproduct; you’re selling “management” levels in a selling scheme.
You’re ‘Selling’ The RIGHTS For Others To Sell!
Take a hypothetical example: USA Vitamins – you are invited to join a program where you sell a complete line of vitamins, but the real money is made in your ‘downline’, the distributors that you sign up under you. You end up paying your ‘upline’ a part of your profits, and you might even pay for various price break levels – an extra $500 fee gets you a 10% reduction in your “wholesale” cost, for example. You may even have paid seminars where you can learn the fine points of convincing others to join the program. You may make a small piddling amount of money actually selling vitamins to a few people, but each additional “distributor” that you sign up under you is worth far more.
So “Multi-Level Marketing” isn’t interested so much in any particular product, as it is in signing up additional people to sell that “product” (But in actuality – these additional people you sign up will be doing the same thing – looking for additional people to sign up under them.) Sounds a little like the Cat in the Hat, doesn’t it? Some MLM’s are a little more product oriented, (think Amway, for example) while other MLM companies are so completely oriented towards selling other people that you can’t seem to find out what their actual product is.
If I were ever to get involved in MLM, it would be with someone who has a solid and valuable product that was unique, and had good pricing levels. In other words, I’d be looking for an MLM program where you could actually earn money with the product as well as by signing up distributors under you. There’s no doubt that you can become fabulously wealthy with MLM – sadly, it generally involves being near the top of the pyramid – the further away you are from the top – the more difficult it will be to find new suckers (oops, “distributors”).
It also takes a great deal of charisma – the same sort of charisma that makes for a good car salesman. So if you have a great deal of natural charisma – MLM might very well fit you like a glove, and you could make quite a bit of money with a decent MLM company. I suspect, however; that for the rest of us, joining an MLM company is going to entail a lot of work, and very little profit. That’s my take; anyway… take it for what it’s worth.
I’m quite convinced that for the average person – building a list is going to be a real business that will profit them far more than any MLM company will be able to do. What do you think?
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