For a moment, put your beliefs about the MLM business opportunity aside and let’s discuss why network marketing is a solid business model that does in fact produce great wealth for millions of people around the world. After all, consider that:
- Fortune magazine called direct selling (of which network marketing is the largest segment) “the best kept secret in the business world”
- Financial experts say it’s a “recession proof” industry
- Warren Buffet described his purchase of a network marketing company the best investment he’d ever made
If you read Donald Trump and Robert Kiyosaki’s book, “Why We Want You to Be Rich,” you know that they also endorse network marketing. At one point Trump even stated that if he could go back in time and do things differently, he would have started with networkmarketing.
Why does the MLM business opportunity get such high endorsements?
Because it is a great business model that rakes in huge profits for businesses and its members. A traditional distribution chain looks like: manufacturers -> manufacturer’s agents -> wholesalers -> distributors -> retailers -> consumers. But with network marketing, the company deploys a highly motivated, commission-only sales force who not only sells the product, but often purchases it themselves, and then teaches other people how to do the same. It does this by using the most powerful form of marketing… word of mouth.
What the MLM Business Opportunity is not is a turnkey, overnight profit making business. Just like any other business, it requires work and your dedication. You might recruit hundreds of people under you and none of them do a thing. But it only takes one or two people who take it seriously and duplicate what you do. When you identify those people and show them how you make money, then it can become a virtually hands-free, residual income producing business.
My thought is rather than make things more complicated than they need to be, just do what other wealthy people have already proven to be successful. If billionaires Warren Buffet, Donald Trump, RobertKiyosaki, and Richard Branson use and recommend network marketing, there must be something worth looking into.
Personally, recruiting strangers in shopping malls is not my thing, which is why I am a member of SFI Marketing Group.
8:53 pm on November 9th, 2008 1
I worked with Gery Carson (founder of SFI) in a network marketing
business several years ago. He is a great guy, and a truly
outstanding leader.
4:03 pm on November 10th, 2008 2
Ryan, Thank you for your comments about the MLM or Network
Marketing industry. I am a former corporate manager and spent
months in my research for a new business model and opportunity so
that I could own and build my own business. I love network
marketing for the opportunity it offers me–and everyone I teach,
coach and mentor.
The most important part of your
post, for me and my readers, is your emphasis on the work and
dedication required to have a successful network marketing
business. To evaluate businesses and their business models I think
it’s important to keep an open mind, talk with people about the
businesses you are evaluating, and do your “due diligence” before
signing on to a business model and opportunity that will take your
focused energy, resources and (dare I say it?) work to achieve
success. Achieve success, Kate Williams
10:26 am on December 7th, 2008 3
Yes, I also think MLM is a great business model. We must also look
at the 2 main aspects of the motivation. a) The commission the
seller gets vs b) the value the product gives Sometimes people are
more motivated by (a) and end up trying to push junk on to their
poor friends and relatives.
11:57 pm on December 7th, 2008 4
@fathersez… that’s a great point. The product itself must be something you would be willing to pay for and use – in other words, have real value.
The old model of MLM was to approach strangers and pith your family and friends (how uncomfortable for both parties!), but it’s a much different game now. Instead of having to push your message on to people, you can target those who are interested in starting a home based business by using online marketing.
It’s much different when your leads are emailing and calling you vs. having to go out and bug people.