Some people avoid mlm types of businesses saying it is difficult to make money with them. But did you know this can also come from joining for all the wrong reasons?
Signing up with an MLM company can be a great way to earn anything from a small side income to a full time living amount.
However, let’s face the fact. Many people join mlm type opportunities without really finding out what it is they are getting themselves into. This is probably one of the biggest reasons why they end up having very low thoughts about this type of business.
An Mlm type of business works if you do it right. But become part for all the wrong reasons and you have the perfect recipe for failure.
That said, here are seven of the worst reasons for enrolling in an mlm opportunity, and exactly why this kind of reasoning can only bring you disappointments.
1) Looking to earn “easy money”
People are not really to blame here but rather the mlm companies. In their promotions they are champions for putting their business across as a simple 1-2-3 process that anyone can do and become an instant millionaire.
Their sales letters are especially guilty of this. Just check any of them online. It has almost become a standard to make them super long and totally over hyped. The sweet language used and the irresistible promises made are meant to entice the totally unaware.
Promising prospects instant riches is tantamount to claiming that anyone who can follow instructions in a cookbook can become a master chef. No, they cannot. But many people hungrily bite this bait and gleefully swim along with it.
To make it in mlm you need to put your mind to it, be prepared to learn many new things and look forward to hard work hard.
Make no mistake about that!
So anyone looking for easy money must stake the lotto or rob the bank. Seriously, don’t do either!
2) Expecting the “spill over” will do all the work
Many mlm opportunities are built on a “forced matrix” model.
Let’s see the case of a 3×9 matrix.
When you have recruited your first three new members, the fourth will be placed under the first person you had sponsored. This member has thus gained one person in their downline without making any effort whatsoever.
So, to suck you into the business, some companies would have you believe that their top recruiters are so effective that the spill over from their marketing will automatically make you an instant success if you join their downline.
The recruiters themselves and some programs make you believe that you simply need to join them, share in the promotional fee and they will build your downline for you.
I had been in such a team and downline building programs. Each week I would pay my part of the advertising fee, wait patiently and only see the downlines going to members at the top. When I complained, I was told to wait my turn. When I saw it was going to take ages to come, if it would come at all, I quit.
Now I smile when I see those teams and downline builders in my inbox and simply delete them. Some even promise to build you all your downlines to enable you succeed in the mlm company.
This is nothing more than a pipe dream – it will never happen. Okay, you probably will be patient and lucky enough to get a few people spilled over into your downline. But the number will be nowhere near enough to guarantee your success.
The sheer width of the matrix on your level means that there is an enormous amount of representatives that will have to share any amount of spilled over recruits.
Other MLM companies do not mention the word matrix but say that you will earn a part of the income of the members that you recruit under you. And they give you training, make you attend meetings and webinars meant to help you recruit.
I joined such businesses selling coffee products, health supplements and the like. While I was making the monthly payments and helping my upline make some money, people under me remained free members or ignored the business altogether.
I stopped paying.
The companies would send me honey messages that since I quit, thousands have joined under me. They would remind me that those were missed opportunities. That if I would rejoin, I should be sure to make money.
I would ignore those messages.
Now the messages which come warn me that if I didn’t take action within a certain time limit, I risk losing my place in the matrix.
The funny part is that long after the said deadline, once in a while I would receive a message as if I were still a member. That makes me laugh.
One question is: who can swear that the top recruiters in those companies are still as active as they once were? The worst case scenario is that once their residual income assured, those top guys turn their attention to working on something else entirely.
It’s nothing more than a fool’s bargain.
3) Thinking that a product is so great it will sell itself
A good product sells itself. A good product sells like hot cake. You know those expressions, don’t you?
This is a classic mistake, because most mlm systems simply aren’t really about the product. It is about the recruiting and the membership fees those members will bring. This fact is difficult to swallow, I know, but the truth must be told.
A now successful marketer recalled that as a greenhorn he eagerly joined this lottery syndicate-mlm, believing that “everybody” would jump at the better chances at winning the lottery.
But was he wrong! You could imagine how huge his disappointment was when he discovered the truth. Some people even made fun of him by mentioning his great new discovery in a derisive manner.
So know that in mlm, it will not matter if you are selling a breakthrough product that contains every mineral and vitamin under the sun. People will not join you simply because of it.
4) Doing an old friend a favour
We have all been there.
You sign up to an mlm which you think is the next big thing in the industry. You call all your friends, including old ones you haven’t met for years, and set up a meeting to tell them about the business that finally will save all of you.
You wait feverishly for the meeting day.
But calling all your friends is a very ineffective way to do mlm. They will come out of politeness, equally politely listen to you and politely promise to join at a later date. Which is a polite way of saying that they are not interested in your business. Those who join there and then often do so in order not to hurt you. You’d find that that day is the only time they worked on the business.
This doesn’t mean that friends cannot help you build your business. All we are saying is that you should never join any opportunity to do someone else a favour. It may backfire. And more often than not, it does.
In the end your mlm business is only about you, your money and your career.
5) Earning a lot of money in a short period of time
In the piece 5 Linking Strategy Tips to Increase Website Traffic for Your Mlm Business, we mentioned providing testimonials to other websites with high domain authority to obtain a precious link from that website to yours.
Mlm testimonials seem to work in a similar way. They also provide credibility to a program and make it attractive to prospects.
Just see how most mlm testimonials always seem to go:
In my first month I made $1,500 and now, in just my third month, I have been able to quit my 9-5 job entirely…
While these testimonials are not fabricated, forced or outright lies, they usually come from individuals who, through contact, skill or luck, joined the opportunity right from the very beginning.
They are at the top of the pyramid simply because a friend or an acquaintance put them there, or as mlm experts they know exactly what they are doing, or they just happened to join at the right moment.
Like most offerings, mlm opportunities have a 3-stage life cycle that begins with a rapid growth, goes through a decline and then dies out at the end.
If you are in the mlm business during the initial phase of explosive growth you can find it very easy to recruit dozens of new people per day, with relatively little effort. After all, this is something entirely new that everybody wants and one well-placed ad can do wonders.
This is the apex of the pyramid where the numbers are few and opportunities great. This is when members earn good money quickly.
However, if you join during the declining phase, it will be much more difficult to see quick results because you will require more effort to attract new people into the business.
This is the mid-section of the pyramid where many people interested in the business have already joined. The novelty is already waning and patience, knowledge and the right strategy are required to succeed here. Success can still be good for some but not as great as before.
If you join the mlm company during the dying phase, you will find it almost impossible to recruit people no matter the effort you put in.
This is the bottom part of the pyramid where people who joined complain about their inability to make any money at all and out of frustration are leaving the company in droves. Success at this point of course is impossible or a herculean task.
This picture is why you must not join an mlm platform with the idea of making good money in a record time.
6) Believing a program simply because a big name endorses it
We talked about testimonials in the previous point and this point is somewhat related to it.
A guru made thousands of dollars with this new opportunity in a short period of time and they are not shy at all about telling everyone how EASY it was. And they’re probably not lying either. It was easy – for them – for some reasons.
Because they know all the right people, they most probably got involved in this opportunity long before it was launched to the general public. So as we described above, they were able to recruit in the explosive phase.
Whenever a new program is released, there is a beta phase where the owner shares the business with all the big names they know.
And when the program is made public, you will find raving testimonials from all these big names endorsing it.
By studying several new programs I saw that these people are simply returning the favour because you find the same faces endorsing each other’s programs.
Second advantage. The big hitter already knows their stuff, and also have the resources (large email lists, advanced Internet marketing tools, large social media following, large webinar following, etc.) to quickly and efficiently let the word out to a large number of people who already trust them.
Online, people buy from those they trust.
So if you are relatively new to this game, it is a very bad idea indeed to assume that you instantly could pull off the same feats as the network marketing guru who endorsed it.
Tell me, would you, an amateur golfer, compare your golfing skills to those of Tiger Woods?
I don’t think you would.
7) Thinking your mlm business will be free to run
Many people joining an mlm business only think of making money available for their membership fee. As for marketing, they falsely believe that they can do it entirely for free using the Internet.
While it’s true that there are some effective free and low cost Internet marketing techniques you can use (like posting on social media, giving out free eBooks, and blogging about your business opportunity), you should never fool yourself into believing that Internet marketing will be a no cost affair. No, it wouldn’t.
Advertising and promotion needs money.
You need to make monthly or yearly payments to an email services company to build a list and send messages to your subscribers using an autoresponder; all the social media now have paid advertising which are more effective than the free ones which are becoming more and more restrictive and inefficient; you can even drive paid traffic to your mlm offer; etc.
Besides, the online competition already usually quite fierce, is becoming keener and keener. The harder the battle, the stronger the means to use. And strong means call for money.
An mlm opportunity can offer an exciting new way to earn money. But your motivation for joining shouldn’t be based on any or all of the misconceptions mentioned above.
Treat your mlm business like a real business, and you will be okay.
You may want to read:
- 5 ways to incorporate network marketing with your home-based business opportunity
- 7 marketing tips to grow your MLM business
- MLM – Is network marketing easy?
- Get unlimited ads and unstoppable income with EasyCash4Ads
- 5 questions you needanswers to before joining an affiliate or MLM programs
- 3 reasons to use social networks for internet marketing
- Summary of 7 easy steps to affiliate marketing success – Step VII & end: Implement an email marketing system
- 3 keys to increasing your mlm traffic
- 3 proven strategies for internet and network marketing success
- MLM – is network marketing easy?
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