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MLM Money Making Opportunity

Can You Really Make Money in an MLM?

making money in an MLM
Well, the short answer is yes, of course you can. You don’t need any formal education or sales experience, and you can work on your own schedule, as much or as little as you want.

However, without a very strong desire to succeed, followed by a strong work ethic, and being open to and committing to new ideas, you will probably never make any money. The statistics bear this out.

Becoming financially independent with an MLM is achievable although it might seem impossible. Jon Taylor discovered in his free online electronic book titled ‘Multi-Level Marketing Unmasked’ that over 97.7% individuals will fail in network marketing, resulting in a great loss of money.  Statistically speaking, it is assumed that only 3 people among the 1000 individuals who signed up for a network marketing network will benefit, those three will definitely receive greater measure money compared to what they invested. However, if I plan on growing five successful members in my downline, I have to mobilize about 1,665 new people. I will say that again….the average is that out of over 1,500 recruits, only 5 become successful.

One Chief Executive of a top 5 MLM company says that about 70% of people singing up for an MLM never do anything whatsoever.

This could be a technique any person can try, although it still only benefits 1 out of 333 individuals.  If you are to consider why it’s tough for network marketers to earn money, you can refer to the payment schedules of USANA, Amway, Nu Skin and Herbalife. As you might expect, the system for earning money with each, are very similar.

Likewise, each of the MLM embodies separate features and their mode of payment. On the whole, we believe this arrangement as a setup that makes it hard for people to earn good money in network marketing.

For instance; you must be eligible before you can receive payment – A ‘rank’ will be awarded to you once you purchase products. This action generates what we call ‘synthetic demand’ for those commodities you bought.  For you to stay ‘eligible’ you must keep purchasing more products.  People continue to demand these products in surplus even beyond their consumption rate or above what they can sell to dealers, and this is leading to over congestion of these products.

Members are the ones investing more in this business – The management of these Network marketing recognizes that only a lesser portion of their product are sold to dealers while huge demands are coming from members for consumption or to simply stay ‘eligible’ in the plan. In other words, sales are not influenced by market factors; they are influenced by members just to meet up with the goal. If the company only generate little revenues from retailers, this means that one can only be successful by taking advantage of members registered under their matrix.

It’s a game of spenders and earners – Outside other revenues generated within; those ahead of you in the matrix can only earn money if you pay in money.  The news that says the suffering single parent became rich overnight might be real.  But most times, they don’t share what went down the line in the business, and that is: every single dollar they earned was generated from people who belong to a lower rank in their MLM matrix order. As members lose money, other members earn in that MLM circle.

This is a system that is prone to negative incentives- Just as we  discussed earlier, money is only earned when more members are signed up.  The moment you launch in fully into the plan, your referrers gain from your payment. They will always advise you to keep putting in those dimes to remain ‘active’. The actual fact is – you make them richer every time you put in money into the system.  They will assure you that you will make a great profit when you climb a higher rank in the MLM, but actually, they need you to keep pumping in more money into the company for them to keep up with more earnings.

Tips for Finding Leads For Your Network Marketing Business

To begin with, the above video begins a discussion regarding some of the methods that I have found to generate leads for my business. At the moment, I am using Elite Marketing Pro for my “Marketing System”. You can go HERE to try this system for 10 days FREE.

So Exactly What is Attraction Marketing?

Attraction marketing is now widely accepted as a systematic approach to provide valuable content to a select targeted group for the purpose of building a relationship, trust and credibility with the audience who in turn we hope will become loyal customers or potential business partners. The idea attraction marketing was made popular by the network marketing industry. It’s primary platform is the Internet, but it is certainly not the only platform.LIfe is 10 percent what happens to you

The purpose of this discussion here is not so much to sell you on what I think attraction marketing is, but rather to provide a solid understanding of the term. If you want to see an academic definiion of the term, wikipedia is probably your best source. However, attraction marketing is not a set of tools and products that comes neatly packaged in an affiliate link. It is a strategy we feel should be used to develop your online business. Within that strategy, there are multiple tactics that can be used to drive traffic to your website or other source of information.

Marketing is a process of identifying customer needs and delivering a solution to meet those needs. Advertising is a form of communication used to hopefully persuade an audience to take a action, or view your brand favorably. Branding is simply a repetitive form of advertising to communicate a certain product or company with certain qualities in the mind of the consumer. These concepts have been around since the advent of mass production. Attraction Marketing is a distinctive concept which is built upon these components.

Defining Network Marketing

Network Marketing has traditionally been a “seek and sell” approach whereby representatives actively approach people in their personal networks as well as cold prospects in their niche to make a pitch, without any real knowledge of the prospect’s interest in their product or opportunity. While this is not the most efficient strategy, it has proven effective ever since companies like Amway made network marketing popular in the late 1950s. It was largely based on the relationships people have with their personal associates, not much different than recommending a movie or restaurant. This method has always been has always been an effective way of getting new customers. However there can be many negative consequences on your personal relationships, if people feel like they are being pestered by you to buy their product or service.

Attraction Marketing evolved out of two particular needs:

The pain and frustration of Network Marketing business owners, as well as the growth of internet marketing.

Relationship between MLM and Attraction Marketing

Multi-Level Marketing and Attraction Marketing

What is the Relation Between them?

If you are a network marketer, you may have heard alot about attraction marketing and you might find it all very confusing to say the least. Attraction Marketing has been taking the MLM/Network Marketing industry by storm. But is attraction marketing worthwhile considering what it is and how it can help you in your business.

MLM Similar to pyramidFirstly, let us explore a few terms. MLM stands for multi-level marketing, and these are direct sales opportunities that have been around for over 100 years, despite the fact that some people still call them pyramid schemes. Nothing could be further from the truth. They are now deeply rooted into our culture, our economy and our daily lives. Who has never been approached by someone offering to sell them diet pills, skin care, and household cleaning products. They are as American as apple pie.

The top ten MLM companies in 2016, are as follows:

Advocare
doTERRA
Empower Network
Jeunesse
Nerium
Isagenix
Young Living
Nu Skin
Pampered Chef
Amway

It is interesting to note that one company, Nerium which offers anti-aging products only started in 2011, and Amway has been around since 1959.

Most of these companies operate in a similar fashion. You might be approached by someone to purchase their products, and then get a spiel about joining their team to earn some extra money.

MLM marketing on facebookOne of the downsides to joining an MLM, is that they require you use the product, and in some cases will require you to buy product if you don’t sell anything during the month. This is required to continue your membership with the organization. Usually, after you maintain 2-3 regular customers, this will cover your membership and get you product to use at no cost to you.

Is there money to be paid in MLM? Well of course, but unfortunately over 99% actually lose money. It usually winds up being more work than they bargained for, or they are just not able to get comfortable approaching people.

All these companies tell you to make a list of everyone you know, (warm market) and then to start-up conversations with people whom you meet around town on a daily basis as you go about your lives (cold market). Usually people run through their warm market pretty fast, make a couple of sales, move on to the cold market and become disillusioned. Are there people who make money? Of course, but only a small minority.

Most of the money spent is by members – something that Network marketing companies acknowledge.  They do not come from retail demand.  Much of the product being ordered is to satisfy volume quotas.   Sales are driven by members vying for sales contests or for volume targets.

After people have run through their warm and cold market, they are good prospects for what we call Attraction Marketing. They need to find a better way to find prospects, and get leads. We will cover this in the next post.