Does MLM Work?|Why Even The Best MLM Program Fails

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Why MLM Fails

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. People get all tied up in comparing payment plans, matrix types, and finding "the best mlm program" that they lose sight of the one thing that makes MLM fail. Read on and I will attempt to explain the real underlying cause of MLM failure.

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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. If 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 easyer 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!

Four 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 

These 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.

MLM Members Poll 

Have you ever made money with MLM and if so how much?

This poll looks at what percentage of people have made money using MLM and what percentage lost money.

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MLM Fails For One Simple Reason 

although several factors are in play it boils down to this

OK what is the one big thing that causes MLM to fail?
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.
Imagine if you owned a corner store in your town. You put up alot of money to build the place and stock it and for two months everyone in town shows up buying stuff and picking your shelves clean, but then they all dissapear and dont come back.
Who would become a store owner in a scenario like that? Only the type who is out to make a temporary fast buck. Get the picture? The owners who start a MLM are aware of their immanant collapse and have that inevitability factored in to the business model.


It is possible to profit from building a MLM team but you must have plenty of money to advertise and be very very VERY good at closing sales because you must get the sales closed well before the company stalls out or goes offline entirely.
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.

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 07/04/2009) Buy Now

Success In 10 Steps - Secret MLM Strategies

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The MLM Binary Plan

Amazon Price: $9.95 (as of 07/04/2009) 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.

athomebusinessmt wrote...

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. :)

ReplyPosted June 27, 2009

Lensmaster

AuthorityNetworker

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.

ReplyPosted April 27, 2009