Why Most People Fail In MLM

The purpose of this Issue is to provide a step-by-step procedure for starting, operating and optimizing a MLM based business, and to do this without making serous mistakes along the way. There are volumes of books on this subject, so this guide will not attempt to "rehash" the "rose colored" views of these authors. Instead, this guide will show you a "lean, mean, cut-to-the-bone" quick and easy way to succeed in your business based upon our MLM MACHINE program. Also, you will be shown tips to use, tricks to be aware of, and traps to avoid.

MLM is an explosive growth opportunity and it is here to stay. Like it or not! Let's review some MLM facts.

There appears to be thousands of MLM companies. Some of these MLM companies are well established multimillion dollar companies, while most of them are not. Many people have become wealthy in MLM, but some of the would be MLM'ers never make it! Therefore, before we go blindly into MLM, let's analyze why some of the would-be MLM'ers don't survive. Let's bread down the problem in three categories.


MLM'er can't EFFECTIVELY recruit new members.
MLM'er can't keep his program going. It runs out of gas and dies a natural death.
MLM Company has serious problems.

I believe that sums it up. Either the MLM'er can't get his program started, can't keep it going, or the MLM company itself goes "belly up."

Why New MLM'er Can't Effectively Recruit New Members?

First is the MLM Paradox. According to Webster, the word "paradox" means, "something with seemingly contradictory qualities or phases." In MLM, there is a paradox that causes major confusion that must be understood and dealt with. Here is the problem. MLM companies by law cannot aggressively "push" the MLM opportunity as the main reason for joining their program. They must emphasize their products and services and explain the MLM opportunity as only a nice extra benefit. If they don't, all kinds of local, state and federal government officials will attack them. Therefore, they must be extremely careful about what their literature, advertising and promotional material states, what they say in meetings, etc. That is why we normally don't mention the MLM company name when we use examples in these reports. We do this just to avoid this kind of problem.

All MLM'ers are aware of the MLM "paradox" problem.

Look, everyone knows, including the MLM companies and all the distributors, that the real reason that most people get involved with MLM is for the opportunity! Yet, the MLM literature and the MLM distributor cannot tell you this directly without crossing over the fine line of being illegal. In other words, it is illegal to promote a MLM company if the sole purpose is to earn profits by signing up new distributors with no regard to the usefulness of the product or service.

Where does this leave the new MLM distributor? Well, no one is officially allowed to tell him how to go out and aggressively recruit new members! Instead, he is always taught how to "promote" the product and then "as an after thought" explain the opportunity! All up standing MLM companies will follow this procedure.

TIP: Keep your lead generating methods separate from your MLM promotions. In other words, it is perfectly legal to promote an opportunity any way you want to as long as you don't tie this directly with a MLM company.

That means that you can write your own advertisements, etc. and generate all kinds of leads. But when it comes time to discuss a particular MLM company, then us the official MLM literature, guidelines, etc. when presenting that particular company, products, and opportunities. In that way, you are making a clear distinction between "lead generating" and promoting a particular "MLM company opportunity."

Secondly, MLM Concepts Are Way Too Complicated. When most people are first exposed to their first MLM opportunity, they are over powered by the complexity and newness of MLM concepts and terms. They are confused with all those new terms such as "Network, Downline, Upline, Organization, Levels, etc." Then there is the specific MLM plan that is being presented that is always anything but simple. There is too much to absorb quickly. Then there is much suspicion. Is this a pyramid scheme? Is it legal? They have probably never heard of the MLM company that adds to the problem. They find it hard to believe that they can really make the kind of money being discussed. They probably suspect the MLM distributor. And on and on. Right? So what happens? In most cases, nothing! They simply don't sign up.

Thirdly, the Potential MLM Member Can't Decide Which MLM Company To Join. Put yourself in his shoes. If he has been investigating MLM companies, he is sure to be confused with all those offers and different companies. If he can't decide, he just doesn't sign up with any MLM company! Does He?

TIP: There are literally thousands and thousands of MLM distributors who will jump at the chance to tell you which companies you should get into and promote. If you want more "advice" there are many books written by the "experts." Understand one thing, every book and magazine article that you read and everyone that you talk to will almost assuredly have a "vested interest." In other words, they are either openly or subtlety trying to get you to sign up in their program. They will be quick to explain that there are "golden rules" and guidelines to follow. Some will tell you to stay away from "grown floor" opportunities since they are too risky. Others, will explain that this is where the big money is. Some will explain why matrix MLM programs are better than others - and visa versa. Some will adamantly advise you to be active in only one MLM company - "be loyal" is their motto. Others, try to sign you up in multiple companies. Still others have put together "Downline Building Teams," and will invite you to join them. They do all the work (You simply send to them money). With all this "good" advise, what is correct?

I have noticed one thing about all these "good" advice sources. They never seem to ask me what my goals are.

What is it that I want? How in the world can someone give another person advice before he understands that the objectives are? What is it that you really want? When? How much can you afford to spend? How much risk are you willing to take? What MLM programs and products do you like? Before we even think about selecting a MLM company, let's review the real world about MLM companies and opportunities.

Most new MLM companies never make it through their 2nd year. This is because they are not properly financed, don't really have a good offering, or the Federal (Fed's ) Government shuts them down! The reason that the Fed's shut down some of these companies is that there is a lot of unscrupulous people in MLM, mailorder and in fact, all kinds of business.

MLM is no different from other companies that frankly have about the same survival length. New companies in any business, MLM or not, have a tough time getting through the first few years. The people that promote MLM companies never seem to get around to explaining the real facts to you. But you need to understand the dark side as well as the "rose colored glasses view." Sound scary? Well, it you were to invest $5,000 to $25,000 like some MLM companies would like you to do, yes it would be scary. The correct word is probably "foolish."

Now let's take these facts and see if there is really a low risk, high potential waiting for you.

So, back to the question, "How do You Select the Right MLM Company?" This is like asking, "What Stock should I buy?" Brokers, advisement firms, and the like will be quick to make their advice. Wouldn't they? And why not - they all earn a fat commission or other fees. Do you think any of them really cares about you? And if they really believed in their own "advice", why don't they mortgage their homes and buy in themselves? The fact is, "No one knows!" And that is true with MLM companies and buying stocks!

TRAP: Don't be a "MLM junkie" without a plan. Human nature is to entice you into many different exciting "ground floor" MLM opportunities. These can be fine, but you will lose your shirt if you don't have a coherent plan that makes sense.


Here are a few problems some new MLMers have.

First They Get No Upline Support. Once a person joins a new MLM program, he is vulnerable and needs a lot of help from something or someone. In many cases, his upline is not actively helping him for whatever reason. This happens a lot when the upline person is simply sponsoring as many people as he can with no regard to what happens to them after they get sponsored. In most standard MLM programs, it is important that the new person gets immediate assistance from a local person, meetings or whathave you. Otherwise his chances for survival are slim to none.

Secondly, New MLM'er Can't Sell. This is probably the major reason most people don't make it in MLM. By using standard MLM techniques, you have "just got to" sell and learn how to advertise effectively.

Thirdly, MLM'er Cannot Generate Good Leads. Next to the selling problem, this has to be the next biggest reason most people fail in MLM. Let me paint you a picture of what normally happens. The new person has just signed up in an exciting MLM program. He is taught by the manuals, meetings and so forth, how he should "share" his product with his friends, neighbors and relatives. Normally, he is not comfortable with this, and if he is typical, he will have many sleepless, tossing and turning nights! He just doesn't want to impose on his friends! He would feel a lot more comfortable just presenting his opportunity to strangers. But to whom? Unless his upline sponsor can get to him immediately, this guy is sure to be a fatality!

Forthly, There Is No True Duplicative System. If the MLM company must be promoted through expensive methods, this is not feasible. Also, if you must learn how to sell, or to speak and conduct an opportunity meeting - friend, this is just not duplicative. It just isn't! Only a few people can do this. Here again, is a very important reason a lot of would be MLM'ers die on the vine.

TRICK: Follow up with your first level of people. You can do this by letter or phone. If you have signed up someone that is not active, replace him with someone new, but keep all your first level people active.

Fithly, MLM'er Not "Sure" About His MLM Company Or Service. Often a person will "sign up" in a MLM program in a "fit of excitement." After the dust clears, he comes down to earth and reality slowly sets in. He then starts having doubts about the company, the product or service and his own ability to promote it. If he has enrolled in a program that is not well established, or doesn't have a marketable product, he may have some well founded fears. Things can get very shaky very quickly.

The slightest amount of financial problems or bad press can crater this company over night. Therefore, it is of utmost importance for the new MLM'er to align himself with a solid company with unquestionable products and services!

TIP: Pick an established, financially sound MLM company with unquestionable products or services. That way, you can feel good about the company and products that you are promoting. There is nothing quite like being able to "tell the complete truth" to your prospective customers.

TRICK: Don't select a MLM just because you are "in love" with the product. Put your emphasis on the business, the money making potential. Sixthly, New MLM'er Doesn't Stick With It Long Enough. TIP: Starting any company takes time, and this is true with MLM as well. By the time you study the program, write and receive literature: study this and sign up; get the literature; etc. - it takes time! And then you have to generate your leads and so on. Also, there is a lead time before you get your first check. And then your organization has to take time to grow. And on and on. The point is, it will take several months before you can expect much of anything to start to happen. You should set in your mind that you are going to stick with this for at least one year! That just makes good business sense.

TRICK: Use some other promotions to earn money during the interim time. That way, you are earning extra profits and generating a lot of surplus leads to help your downline.

TRAP: Don't spend all your initial promotional money on one thing and all at once. Do a little testing. Spread it out and find out what works best for you. If you "blow it" all in one big shot, and it doesn't work, then what?
How To Build A Secure Income
When you can afford it, buy into more MLM programs. Re-invest some of your profits and round out your MLM companies to at least three. Start promoting MLM programs so you can recruit members into your new MLM programs. When you do this, you will generate surplus leads for your original MLM programs. At this point, you can either feed these leads to your existing downline, or start to build a second organization.

TRICK: Consider forming a co-op advertising group made up of your downline. You can advertise locally or nationally. You simply put the advertising package together, and your downline pays you so much for a block of this advertising. That way, they get tons of leads, and your downline builds automatically. TRAP: Don't forget the method that you used to succeed. After you become successful, you will want to work closer with the individual MLM companies that you are promoting. All these companies have "grand" ways that they want you to use and teach. Beware! Stick to the system that worked for you. With Internet's help, you can do a lot of research before you jump to any network marketing company. Plus, you can use the Internet to recruit new prospects at a low cost with Search Engine's.

In tomorrow's Newsletter we will look at "How To Succeed Through Duplication" and "New To Network Marketing? Some Key Ingredients For Success."

TeamLine Builder
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