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Phil's Past Episodes Episode 5: Busting some MLM Myths MLMs, Networking Marketing, and Online Business Opportunities have had their share of bad press. And, just like anything else, people will remember the bad news ten times longer than they will the good news about something - and they'll tell ten of their friends the bad news, too. Misery, they say, loves company. Because of this "grapevine" effect, there have been some pretty standard Myths about MLMs. Not all of them are bad myths, but, they're myths none the less. In this episode, we're going to review some of those myths. 1. All MLMs are Pyramid Schemes and Scams The simple fact is that this is not true. While, yes, there are some MLM programs out there that are indeed outright scams, the vast majority of them are not. I have personally programmed for some that started off with the best intentions in mind - then, somewhere along the way, the higher ups cave in to the 7 headed beast of greed. I have literally sat in a meeting where the CEO of the company wanted to slow down the payment process we had established. He felt that the longer he could hold onto the money, the better off the company would seem. In reality, he slowed it down as to accumulate more to run away with. If you're uncertain as to what a pyramid scheme is, review episode 4. 2. MLMs provide better money than "normal" jobs. This is a typical recruiting statement. We all want more money. If you took the current national aveage, which is over 35K a year, and then looked at some of the "super mlm'ers", you would immediatly think that MLMs would be the way to go. The truth is that most of the time, people give up on MLMs while they're still in the red. MLMs can take time. Anybody offering "Instant Riches" is simply lying to you. While MLMs might provide a better working evironment, they cannot always provide a better income. 3. MLMs give you the freedom to be your own boss. If this were even remotely true, you wouldn't have an upline, minimum quotas, or anything else. The truth is that you do control your own schedule to an extent, but you will have people to answer to, people to be held accountable to, and people to please. You are not directly responsible for your own success. Years ago, I watched, from behind the scenes, a very sucessful MLM implode. I had made friends with one of the people in the program. A college student. He was moving product and recruiting people very fast. His checks were a very nice size. Then, the MLM got reported as a possible pyramid scheme, and were very quickly shut down. The college students income was gone. In fact, he had held on to his last check to show off as a recruiting tool, and after the courts froze the MLMs bank account, found that he could no longer cash the check. It was worthless. If you are your own boss, only you can make your company worthless. 4. MLM is easy. If it were, don't you think everyone would be doing it? It just isn't so. Being a successful MLM'er takes a special breed of person. One who can take rejection easy, one who is not afraid to spend the time to learn all there is to learn about a product, and one who is able to present themselves in a professional manner. My Foster Children will recall my story of "Joe", in episode two. If you haven't heard it... go back.. listen to it. Learn from Joe. Don't be like Joe. Most people don't have a clue on how to start, what to do, or how to continue. I'll be posting a special report on MLMErution.com very shortly. In it, you will discover how to start, what to do, and how to continue in your MLM business. 5. The person who recruited you is an expert. Truth is, the person who recruited you got into the MLM before you did. In a meeting in New Orleans a few years ago, I was present during an event where I literally watched a gentleman sign a person up into his program. Money was exchanged, and the "new recruit" was given a card with his id number on it. The "New Recruit" then walked into a room, and in less than 5 minutes, had someone else signed up. He did this a few times that I know of before I had to step away. To his credit, he had done his homework on the MLM, understood the product, and was a very good sales person. 6. Make a ton of sales = make a ton of cash If this were only the case! Often times, you are rewarded with "points" for selling. I've seen MLMs who give you discounts on your product for selling as well. Now, instead of paying $100 for your product, you spend $80, but still retail it at $149.99... you pocket the difference. There are some cases where you have to sell a certain amount of prodcut to even be eligeable for cash bonuses. You have to look at the fine print on each deal. If you were in retail, then, yes, every time you make a sale, you should be making a profit. Also, many, if not all MLMs require a monthly fee to be involved. And, as a reminder - if your program requires YOU to purchase a certain amount of product for yourself each month, there are serious problems... 7. You lose money when you don't join an MLM "Today" Exactly opposite. Everyone else loses money. You simply lose the chance to represent the business in the marketplace. This is a hard tactic used by recruiters to get you involved in the system. "If you join right now, you can go sell the product to your neighbor" and so on, and so on. Statistically speaking, from my years of being a Database Administrator, it is rare for someone new to the system to make a sale within the first two weeks. Most of the time, they wait for some form of a "Welcome Kit", or are busy reading up on what they just got themselves involved in. Seems to me, they should have been listening to Uncle Phil and doing the knowledge gathering up front. The bottom line of it all, is that MLMs have gotten a bad reputation over the years - mainly due to a few bad seeds in the business, and poor representation on the front sales line. If you follow the steps I have outlined in previous episodes, you should be able to make an educated decision on joining an MLM. Since we have now dispelled some common myths of MLM, you should also feel more "at ease" with the concept that some online businesses are indeed very good opportunities. I have had my eye on a company for a while, and will be reporting to you on them once I have finished my own study. Who knows, maybe one day you'll find yourself in Phil Fosters downline. For MLMEruption.com, this is Phil Foster - may the streets of your dreams always be paved with gold. |
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