Use the internet to your advantage in network marketing. You can interact with many more people than you would in your personal network. The more contacts that you can make, the more your network will grow. Spend some time to create a web site that people can use to interact and to find out more about you.
If you’re tempted to join an MLM, we hope this has helped give you a more balanced view than the spiel offered by your rep. (If a friend is considering joining one, please send this article to them before they commit!)
But the people who succeed at MLMs would probably succeed in other small businesses too – they have the right network and skills, and (importantly) they got into this particular MLM in their area early.
**For purposes of comparing Internet search term interest using Google Trends (GT),all 25 companies were compared to the term, MLM. A score of 1.00 would indicate the same level of Internet search interest; anything above 1.00 more interest, anything below 1.00 less interest.
^ Jump up to: a b Taylor, Jon M. (2002). “Comparing Recruiting MLMs with No-product Pyramid Schemes, and with Gambling”. Consumers Awareness Institute. Archived from the original on March 10, 2014. Retrieved March 10, 2014.
Often the only way to make these sales is to recruit people under you (making commission off their starter kits) or to buy products yourself. Otherwise you’re left trying to sell your products to friends, family, mums at the school gates, and anyone you come into contact with (one of the reasons why some of the more pushy/desperate MLM reps get a bad reputation).
Of course, it could be pointed out that this might have happened anyway. Perhaps the die-hard MLMers would have ruined their friendships anyway in some other non-MLM business failure. Is the MLM really the cause, or just the vehicle?
Even ex-accountants are willing to practice the crudest of high-pressure selling tactics, at least when it comes to “signing people up.” The end justifies the means, when it comes to getting people to come to the “meetings,” where the objective is to get a materialism frenzy going at high pitch through a slick speaker or video. The reasons for this “confidence building” should be obvious by now, but here we are considering the relationship cost associated with the “success” of the MLM.
Quartz agreed to Kayla’s request not to use her last name to protect her anonymity, and gave pseudonyms to others. Several of LuLaRoe’s sellers declined to go on the record with Quartz using their full names, citing concerns about possible reprisals from the company due to a non-disparagement clause in their contracts, and concerns about being harassed by other sellers. This fear only perpetuates the cycle as it pulls more women into its spiral.
Multilevel marketing (MLM) or network marketing is a type of unfair and deceptive financial woo, purportedly a business, promoted by a non-salaried workforce selling a company’s product/s or service/s independently, who are paid according to a commission structure that heavily incentivizes endless recruitment.
In most cases, you can sign up to become a Network Marketing Distributor online, by making an initial investment and completing an ‘Independent Distributor Agreement.’ When you do sign up with a Network Marketing company, you are not considered an employee, usually, but seen as a representative, a dealer or a consultant (depending on the type of company you are representing). You may even consider yourself as a business owner.
Assuming the blue individual recruits five, and those five recruit their own five, and so on, the maximum theoretical cycles of recruits possible in the “downline” of the blue individual is 14 cycles (514 = 6.1 billion people), after which point the total human population is exceeded.
Although an MLM company holds out those few top individual participants as evidence of how participation in the MLM could lead to success, the reality is that the MLM business model depends on the failure of the overwhelming majority of all other participants, through the injecting of money from their own pockets, so that it can become the revenue and profit of the MLM company, of which the MLM company shares only a small proportion of it to a few individuals at the very top of the MLM participant pyramid. Participants, other than the few individuals at the top, provide nothing more than their own financial loss for the company’s own profit and the profit of the top few individual participants.
One such success story is Nicole Haas of Williamsburg, Virginia. A bubbly blonde and former personal trainer, she put $12,000 on a low-interest credit card to start her LuLaRoe business in January 2017. Through working 25 to 30 hours a week, she paid off her credit card in May and now puts $3,000 a month in her family’s account, less taxes. “It’s changed my life,” she says. “It’s changed who I am as a person.”
No one can perfectly predict “X,” and the situation is not nearly as simple as considered here, but the objective for marketeers is to forecast “X” as closely as possible in order to provide lasting value to all parties involved: to avoid missed opportunities as well as waste, loss, or failure.
But for most MLMs, the real money isn’t in selling wares: It’s in signing up consultants. Up until July 2017, LuLaRoe’s sellers who signed up new retailers got a 3-5% commission on the inventory their downline bought. But they only garnered that commission if they and everyone underneath them each bought 175 pieces a month, a rule that incentivized inventory buying.
Both recommend internal use of oils liberally, with doTERRA even having a Slim and Sassy blend that they recommend taking internally numerous time per day, for a long period of time, in order to aid weight loss. There are protocols on the internet recommending internal use of grapefruit oils by YL reps in order to lose weight.
LuLaRoe also says it invests “considerable time, resources, and talent” to support its “independent retailers,” as it calls its consultants. If they experience financial or psychological hardship through operating their businesses, it says it’s not the company’s fault. “Retail is not for everyone,” says a LuLaRoe spokesperson. “Retailers own their own business and make their own decisions…The success of any business depends on its leader’s own respective and independent business goals, and the strategies they employ to achieve those goals.”
Founded in 2012 by a Mormon mother, Deanne Stidham, LuLaRoe is named after her three grandchildren, Lucy, Lola, and Munroe. As the company lore goes, she designed clothing for her daughter and had so much success selling copies to the parents of her daughter’s friends that she hired consultants to sell for her. In just four years, her company’s range of leggings, dresses, shirts, and other wares generated $1 billion in sales, making it one of the largest MLMs in the US; between October 2016 and June 2017, it claims it sold nearly 40 million pairs of leggings. Mary Kay, one of the oldest and most successful MLMs, had $4 billion in sales in 2015.
^ Jump up to: a b c d e f Carroll, Robert Todd (2003). The Skeptic’s Dictionary: A Collection of Strange Beliefs, Amusing Deceptions, and Dangerous Delusions. John Wiley & Sons. pp. 235–36. ISBN 0-471-27242-6. Archived from the original on June 26, 2009. Retrieved June 29, 2009.
Jump up ↑ Taylor, Jon (2011). /00017-57317.pdf “The Case (For and) Against Multilevel Marketing” (PDF). Consumer Awareness Institute. https://www.ftc.gov/sites/default/files/documents/public_comments/trade-regulation-rule-disclosure-requirements-and-prohibitions-concerning-business-opportunities-ftc.r511993-00017 /00017-57317.pdf. Retrieved 2018-04-08.
But having devotion to a company despite evidence that they are not telling the truth or that their products are not superior taints the reputation of all MLMs and their reps. It’s frankly uncalled for.
Interestingly, the issue of supply and demand is what brought the USSR to its knees. By design, the Soviet government tried to macro-manage supply, where bureaucrats would decide how many potatoes were needed, how much toilet paper, etc. Assuming these bureaucrats did the best they could, unfortunately their efforts to deliberately manipulate the control “knob” of supply and demand was not good enough. Notwithstanding their good intentions, they were usually wrong, which created huge shortages and surpluses, and led to a massive economic collapse.