What is MLM - Understand the Facts and the Myths

MLM Facts 

What you can count on to be Successful

1. Building a solid, successful organization and income takes time. You should plan on two to five years. Know this going in and don't get discouraged when your first pay check is not enough to allow you to quit your job. Rome was not built in a day, neither is a strong, solid business. Of any kind!
   
   
2. It is possible for the average person to make a well above average income.
   
   
3. There has never been a better time to build a successful business.
   
   
4. Network Marketing has been written about favorably by major publications such as Forbes, Fortune, Success, Fast Company, USA Today and the Wall Street Journal.Warren Buffett now owns a Network Marketing Company and Donald Trump and Robert Kiyosaki widely endorse the industry.
   
   
5. Some people very close to you, including some of your friends and family, will not join you or support you in your business. Be prepared for this and know that you can still be wildly successful! Let go of any bad feelings you may harbor because of this. It will only slow you down and you don't need them!
   
   
6. Some people that tell you "no" in the beginning will eventually join you and build a strong business. You just have to be there when they are ready. Never burn any bridges and always be positive even when they say no. I promise some of them will partner with you later.
   
   

MLM Myths - Let's see what has been so misunderstood in our industry 

1. It's get rich quick. Now, why would this method of doing business be any different than any other? If it were truly "get rich quick" wouldn't everyone be doing it? RUN far and fast from anyone promising this.
   
   
2. MLM is a pyramid scheme. Pyramid schemes are illegal. Legitimate MLM companies are not. In a pyramid, the one at the top makes all of the money and those at the bottom have no chance. In MLM, everyone has the ability to reach the top of the pay plan with effort and consistency. Also, in a legitimate MLM business, there are goods and/or services that change hands. It's a real marketing system.
   
   
3. MLM doesn't work for most people. Unfortunately, the 80/20 rule applies in MLM as well as all of life. Most people who claim that MLM did not work for them simply did not work the business as a business. They may have talked to 2 people and quit when both said no. They may have had a family member tell them they are crazy. Or, they never even got started. MLM is not a lottery system. Talk to anyone making a living in an MLM business and he/she will recount for you the time, effort and money invested in building a successful business. If someone tells you it doesn't work, ask them for a detailed plan of exactly what steps he/she took to be successful.
   
   Here is a great explanation -
   
   Do Most People Fail in MLM
   
   
4. Once you sign up, you are on your own. While there are some unscrupulous "sponsors" in MLM who sign 'em up and leave 'em in the dust, a professional Network Marketer knows that his/her success is determined in large part by yours and certainly that of the downline. Research and interview your potential sponsor carefully. Does he/she return your calls; rely on email only; follow up in a timely way? Don't be afraid to ask specific questions and have specific expectations of your sponsor. Ask what training you can expect and what the first month will consist of in working together. Your sponsor should be your best ally. Make sure you choose wisely.
   
   

How to Choose a Product 

1. Is the product unique in some way? In other words, not just a "me too" product.
   
   
2. Does it have true retail-ability (new word!) Can you retail the product to a customer and make a product? Or is the wholesale cost to you, as a distributor, more than what a person could buy a similar product for somewhere else?
   
   
3. Is it a product in an industry that is growing? Or is the industry fading out? Research this carefully.
   
   
4. Are you excited about the product? Will you use it? Promote it? Give it away? Enjoy it?
   
   
5. Do you feel right about the product and it's viability in the marketplace in your gut?
   
   

How to Choose a Company 

1. How long has the company been in business? There is not a right or wrong answer, but research carefully when going with a start up and know going in that there is a risk. If it succeeds and you stick with it, you'll be positioned very nicely. If not, well, you know what is next.
   
   Companies past the 5 year mark and before the 12 year mark are typically a great place to be and grow.
   
   
2. Who is the management team and what is their background? Have they been with any companies that have been shut down? Do they have a clean track record? Have they been consistent with their promises and production?
   
   
3. Do paycheck and product deliver on time?
   
   

How to Choose a Sponsor 

1. Does he/she return phone calls and emails promptly?
   
   
2. Are you being promised anything that seems too good to be true? It probably is.
   
   
3. Are you being offered incentives for joining? Look closely at this. Why would someone with a successful track record and your best interests at heart need to "incentivize you" to join the team? What is missing here?
   
   
4. Ask your potential sponsor what can be expected the first day; week; month; 90 days and year as a partnership? What type of training is offered? What can you expect?
   
   
5. If possible, have a phone conversation first so you can determine from the conversation that all is well.