What's your reaction when you hear the word "Direct Selling", "Multi Level Marketing" or "MLM"?
Some people swear they'll never take any MLM product. They may have encountered one or two MLM companies that disappointed them. Consequently, they tell others that all MLM companies are bad.
Why MLM gives people such a bad impression?
Multi Level Marketing is actually an unconventional marketing method. It offers new concepts for 2 business aspects, namely advertising and distribution network.
Conventional marketing uses mass advertising such as television, radio and huge billboard. Needless to say, this type of advertising is very expensive. It costs a lot to:
Have you ever wonder who pay for all these advertising costs? You, the consumer of course! Besides, advertising is getting less effective as the medias are cluttered with increasing ads.
Pure MLM company spends nothing on advertising. In return, it pays its distributors with the saved money on advertising. In short, MLM company pays for "advertising" (distributor effort) after it successfully brought in sales.
However for conventional company, advertising may not always work. It's money down the drain.
MLM offers opportunity for anyone to grow their business through downline distributor network. This means you can leverage on other peoples' effort to build your wealth. With MLM, some people have attained success beyond their wildest dream.
MLM offers equal success opportunity for anyone, disregarding their education background, races or ages. It rewards those who are hardworking and willing to learn. Some MLM company even provides high quality educational seminar with minimal fee.
In MLM, you're not alone in your quest for success. Your uplines will try their best to help you grow. Their strong encouragement and guide are invaluable for your long term success. It's very important for you to follow your upline and learn from their proven methods. After all, your success will create more success for them.
Consumer can get direct service, product information and usage guide from distributor. Some distributor even sends the products directly to their client. In health care, consumer may receive encouragement and support in each stage of their health improvement. This often results in lifelong friendship.
While MLM sounds like an ideal system, it has some drawbacks too. First, let's take a look at the problems with MLM company. The heart of any MLM company is the founder. Their vision for the company affects its direction and growth.
Some founder care more about their own pocket. They create a system, get some products and recruit distributors to market it. They may be selling the products at high prices or the products may be inferior in quality.
And soon, when the false promises are never realized, problems begin. Eventually, the company closes. The founder gets rich, leaving behind frustrated distributors and customers.
Watch out for this. It's the pyramid company pretending to be MLM company. What's the difference? Pyramid company is illegal and it will eventually fail for sure. Have you ever heard of this scheme?
Become a member for $400. Recruit 3 new members and you'll get $600. Well, your investment is back with $200 profit. Sounds simple isn't it?
But now, your 3 new members must go on to recruit other new members to profit. Theoretically, when everyone in this world became a member, no new membership is possible. The cycle must end eventually. And people at the top of pyramid scheme profit the most. Their money is from people at the bottom of the pyramid.
Greedy people always get caught in this scheme. Today, many people are more educated to avoid this trap. However, a different breed of pyramid scheme is still lurking around.
Now the pyramid company has some products to sell! But it's usually low-value products selling at high prices. Members often don't use those products. They must keep on recruiting new members to profit. To spot this type of company, you need to watch out for 3 points:
At one point, the company will eventually disappear together with all your effort and money. Now let's look at what other problems you'll face through real MLM company.
Have you ever met with MLM distributor who never stops talking about their products? I do. And it's certainly not a pleasant meeting. This type of distributor scares off many people and gives MLM a bad name.
However, some distributors are really professional. They offer good service and advice for consumer.
Within a MLM network, distributors often argue with each other over issues like member recruitment. Two distributors may know a new prospect at the same time. And they may argue over who recruit that prospect.
Some conflict and misunderstanding among distributors can even cause them to give up and leave the company.
Price slashing is another issue of concern in MLM company. The company can terminate the membership of distributor who violates the law. But it's still impossible to have total control of pricing issue.
Good MLM company offers good opportunity for you to:
If you intend to build your MLM business, it's better to start small at first. Keep your full time job and slowly build your network. Usually, you may not see any profit during the first few months.
But with continuous effort, your product and sales skill will improve. And your network will slowly grow. When your profit is significant and stable, you can put more time into your MLM business.
When choosing MLM company, consider these points:
Remember, there are good and bad MLM companies out there. It's up to you to choose the best one for yourself.
Looking for good MLM opportunity? Chini Enterprise is a network marketing company founded by Dr Lee Yan Ping from Taiwan. With 17 years of history, it has MLM network in Taiwan, Hong Kong, Malaysia, Singapore, Brunei and Indonesia. Longheh Lingzhi is one of their most important product.
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