Does MLM Work?|Whats The Best MLM Program?

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Why Do Some MLM'ers Fail And Some Succeed?

This lens explores MLM and why the majority fail to make money. It is not enough to pass it off as "the greedy ones at the top hog all the money" it is much more complex than that, although simpler than you might think. Everyone says that if you fail at MLM it is only because you did'nt try hard enough but that is not true. Many people work thier tails off with little results. People get all tied up in comparing payment plans, matrix types, and finding "the best mlm program" that they lose sight of exactly what MLM success or failure depends on. Read on and lets explore the real underlying cause of MLM failure and success.


The #1 MLM Misconception 

Its not your sponsors fault they were misinformed too

You email your sponsor and say "I cant get any signups what can I do". You sponsor tells you to get out there on the net and post your referral link in forums and use all of the free advertising online that you can. mlm
Just keep doing this and let the sales page do the rest. When you say "I've done that and it's not working", they say "just do more of everything". If it's not working you just need to try harder. They say your failure is because you did'nt try hard enough.
Nothing could be further from the truth.

OK do you want the truth? FORGET the idea that the internet alone will solve it...it wont unless you work on "search engine traffic building" for around 1 to 2 years and successfully take a few number 1 spots on Google.
And if you try to buy your way out of it using Google adwords I can almost promise you that you will not make your investment back. You will spend way more than you make in commissions. It is possible to do it all online but learning S.E.O. and getting to the top of the search engines is the only way and takes a long time. If you really want to go after the search traffic, you can speed this up using a service company such as Spin Success.

What your sponsor should be telling you is that you are going to have to sell this product locally, face to face with people in your home town. Dont let the fact that you found the MLM online fool you. Trust me you are going to need local sales unless the product or service is specifically used online. You can gererate local leads cheaply using weekly shopper news papers. You wont get alot of calls but the ones you do get are high quality leads who have genuine interest. Then, you can arrange to show them the product and let them try it. If the product is good, this is all you will have to do. Dont worry about being a fast talker or great salesman. If the product is that cool they will buy it after trying it.
Use the internet as a tool to send these people to your site after you show them the product. If possible show them the product in a place where you have internet access so you can sign them up right there on the spot. Many people will actually prefer that YOU enter them into your system because they have no computer skills.

You are much better off using this approach than you are posting free ads all over the net. Sure you'll get the occassional signup that way but you need way more signups than that to create a strong downline.

Similarly, you can also get free leads and call them daily. These are people who have proven that they are interested in MLM before. I know a place where you can get free leads for ZERO cost and no tricks. Just click below to get free leads in minutes.


Free Leads

"You Are Not Required To Recruit Anyone To Qualify" 

Sure that line gets alot of signups but it attracts inexperienced lazy people

best mlmYou've seen the ads..."Amazing forced matrix with no recruiting required". This line gets a much higher signup ratio but the company is doomed from the start because all the members just sit and wait for a downline from heaven. Whats the solution? Join a company that requires you to sponsor at least one person and dont worry about the lower signup ratio.

Forced Matrix vs. Binary 

More people will join a forced matrix but binaries & unlimited width matrices win in the long run.

best mlmAs you read this lens I will talk alot about MLM failure but most of what I am saying pertains mostly to forced matrix plans. These are set up so that people will get more "spillover" due to the limited width matrix. This makes for lots of people joining...a much higher percentage than binaries. They recruit members with the "implied promise" that they can make a killing from spillover. But since everyone waits for eveyone else to get to work, it always fails. The members just sit and wait for the avalanch of members from above.


Really the Binary is the pay-plan that has the most longevity for the company, and they usually require a member to sponsor one or two people in order to qualify for commissions. When this requirment is in place, a person sees "spillover members" beneath them but they dont get paid on them until they decide they had better get two signed up so they can start getting paid. So in this way the system lights a fire under them and gets them moving. After all, when a member sees money being left on the table, they quickly realize that they need to get to work. I will talk more about these later on but if you'ld like to skip to it, click here.

Why Do People Choose MLM? 

after all havn't they heard?

The first thing to consider is why do people join a MLM program when they are so widely known for disappointing people? Well the thing that attracts them is the idea that they might end up with a huge downline that was generated from people above them in the organization. best mlmIf the program talks of "spillover" then they get a far better response when they advertise the MLM. So the promise of spillover is what makes them get out their credit card, and without it the response is far weaker. The only MLM strucure that actually works in the long term, is when they require you to sponsor a set number of people before you qualify for any spillover commissions. The problem is that people do not join those kind of programs as quickly. So it is easier to set it up with "no sponsoring required" and they all join it in droves.
Many companies hint at spillover while also hinting that you should recruit people and put forth effort. But usually the "hint of spillover" is a bit more pronounced in their website text.
There are MLM programs out there that have even tried coming right out and telling everyone that without effort, you are wasting your time and money, and guess what? Those programs get a high number of people joining and doing nothing as well.
In short, most people join MLM programs in hopes of a lottery payout rather than planning to work hard building a team. If you are a team builder, you are in the extreem minority.

People Join Who Don't Want To Work 

work? yuk! Me too lazy 4 that

best mlmFour roommates are sitting around their apartment when the phone rings. Then it rings again. Then again, and now the roommates all begin to look at each other, each one waiting to see if one of the others will get up and answer it. So it goes in MLM as well, everyone waiting for someone else to do the work. People join hoping they can quit their job because they are tired of working, and those people are not going to want to work on MLM promotion either.Then they drop out wondering why they did not make any money. They want something for nothing.
As simple as this sounds, it is the main cause of MLM failure although there are other reasons that tie into it.

People Join Who Cant Afford It 

so they roll the dice

best mlmThese are people who do not make much money and can really only afford one or two months in the program. They join in hopes that they will be paid enough in commissions to keep them in the program. These people all drop out after one or two months and they make up a large percentage of the group.

Way Too Many Competing Programs Online 

The sheer number of online money making programs has caused such over-saturation that every man woman and child in the world could all join and still the MLM's would not all be full. That means that for every "MLM prospect" you go after, there are hundreds of money making offers after that prospect too. Your offer has to look better than the 100 or so offers he's seen already TODAY. This results in best mlmkind of a "spreading out" of the signups into many different companies rather than a few companies getting many signups at once. So it becomes a game of trying to predict the sales ratio of thie recruiting page. If you show your page to 1000 eyballs, how many signups will you get? You want to be in a program that has the best, most effective recruiting page and tools. Some MLM programs are so lame that you can show thier landing page to 100,000 people and get nowhere, while I've seen pages get 1 paid signup per 300 views or so. It just depends on how "joinable" the program is.


MLM is like a fishing trip. You put your line in the water fishing for prospects and wait for a fellow MLM'er to take your worm. But your worm is surrounded by bigger, more tasty looking worms to the point where he has difficulty even picking your worm out from the crowd.
And so it goes that even though a person was on your page, they might join your program the next time they see the same page from another member. The answer is that you need to breakout away from the "same old internet marketing scene" and attract NEW people from outside the online mlm crowd.
One way to do this is learn how to get top spots in Google rankings.
The other is take your product offline where you can show it to local people who have not seen fifty offers already today.

And the final ingredient for MLM failure is... 

OK what is this final ingredient?
Human nature! It is human nature itself that causes MLM programs to fail.
It is human nature to want somthing for nothing and human nature to exploit that fact for profit.
Who would set up a matrix that they know will stall out eventually? Only the type who is out to make a temporary fast buck. Get the picture? I believe the owners who start a forced matrix MLM are aware of their eventual collapse and have that inevitability factored in to the business model.


It is possible to profit from MLM if the company is set up right, in a way that does'nt fill the matrix up with lazy people who are waiting for a "free lunch".
If the product is good enough it can be very easy, especially if the product moves offline well. If the product is not that great, then you need to be an amazing salesperson.
And in my opinion, if you have sales skills of that caliber it would be easier and simpler to just go make a killing selling cars or houses instead.

There are products that create exception to these rules. In the end the product will make or break an MLM company.

So what does the best MLM need to work? 

Its what the MLM has AND does'nt have that makes it last

1. Company imposes a sponsoring requirment to qualify for commissions and shows the un-commissionable downline members to the unqualified members above. (ie: look how much money you would have made, and can begin making next month if you sign someone up!)


2. Unlimited width matrix with no promises of spillover that attract lazy people.


3. No fast start bonuses for recruiting. Their legality is questionable and they only inflate the cost for the new people signing up, making it that much harder to promote the program.


4. A good product that people will purchase retail OR with a business opportunity. If they would'nt buy it retail, and the attached business opportunity is the only reason anyone is buying it, then it is not a good enough product for an MLM in the long run.

A Good Product Nearly Sells Itself 

With all this going against them, why do some MLM's thrive?

The only way to overcome the pitfalls of MLM is if the product is great. It all comes down the the real value of the product. Long standing, big MLM companies like Herbalife are still around because their products are excellent and do exactly what they say they will.


So, whats the best MLM? The best MLM is an MLM with the best product. The more useful the product is, and the more exclusive it is (meaning the product is hard to find anywhere else) then the better the MLM is and the higher the odds of the company staying successful.


I have found a product that people just come up and ask me about when they see me use it and when they see it they want it. I dont even mention the business opportunity because they can buy it without becoming a distributor if they want to. It is a product that anyone who smokes cigarettes should see. Weather they want the business opportunity side of it or not, it is somthing that smokers become instantly intruiged with. So regaurdless of weather you like MLM or you hate it, if you smoke or know someone who does, you really should take a look here.

MLM Books From Amazon 

Learn how to make money on the internet with multilevel marketing.

Be a Recruiting Superstar: The Fast Track to Network Marketing Millions

Amazon Price: $10.88 (as of 11/25/2009) Buy Now

The MLM Binary Plan

Amazon Price: $9.95 (as of 11/25/2009) Buy Now

MLM Handbook

Amazon Price: $39.95 (as of 11/25/2009) Buy Now

Do You Know Of A Great Money Making Program? 

Does this program work well online if effort is applied to the system?

If you know of a program (MLM or otherwise) that gets a good response on the internet and is workable please share your link with us in the comments section below.

What do you think? 

MLM good or bad, leave your thoughts.

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  • Reply
    mbgphoto mbgphoto Aug 2, 2009 @ 2:35 pm
    interesting concepts.
  • Reply
    SaveGoldAssets SaveGoldAssets Jul 25, 2009 @ 7:49 pm
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  • Reply
    3000records 3000records Jul 12, 2009 @ 2:12 am
    This Lens is NOT accurate because the author is comparing MLM to a pyramid scheme. MLM (Multi Level Marketing) is NOT a pyramid scheme. It simply allows people to sell a produce or service for a cut of the profit.... in addition... it allows the person selling the product or service to get others involved for even more profit. The author of this blog seems to imply that ANY company that offers to sell their product through MLM (Multi Level Marketing) is a failure. Well, then that means that perfectly legit companies like Mary Kay, Arbonne, Partylite, or Herbalife are failures too. The fact is that ANY business can be a failure for various reasons... and most business do fail within 5 years. That doesn't mean you shouldn't open your own business, or work with an MLM company. It just depends on what you prefer... work for yourself... or work for someone else. Both options are good for people who are honest and work hard.... and smart.
  • Reply
    athomebusinessmt athomebusinessmt Jun 27, 2009 @ 11:19 am
    Hi.. thanks for the lens. :) I think the Efusjon network marketing concept will work.. because everybody needs to purchase the product... and 2/3 is spillover. Everybody must bring 3 people in to qualify for commissions. I am excited to see what happens. :)
  • Reply
    Apr 27, 2009 @ 2:45 pm
    The biggest mistakes network marketers can make are trying to hard-sell everything and recruiting the wrong crowd. The new concepts of
    attraction marketing and front end funded proposals enable you to bring in customers in a pleasant manner and separate interested prospects from those who are not. These two authority networker methods eliminate the useless sales pitch in your network marketing online strategy and brings in fresh MLM leads and free guaranteed MLM signups of really interested buyers who would kill to join your program.

by -Ray-

Greetings! In this lens I will rain on everyones parade and talk about the reasons for MLM failure. (more)

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