MLM/Network Marketing

Multilevel Marketing [MLM, or as it is often referred to today, Network Marketing] has been around since the 1950’s, and, if memory serves, Amway was the first company in the field.

Conceptually, the concept behind MLM is brilliant.  Rather than a company going the traditional route and hiring straight commission sales people, MLM allows the sales force to build their own organization and to really be in business for themselves.  It is also great in that it rewards merit and hard work.  Those who are the best sales people rise to the top, while those who are the worst stay in the bottom.

Theoretically, thius is the perfect opportunity for a budding entrepreneur who doesn’t have the capital required to start up their own business from scratch.    Another theoretical advantage is that with MLM, your upline, which is supposedly much better at the business than you are, will train you and teach you to do what they do to make money.

With the advent of the internet, it would seem to be an MLM’ers dream.  No more of those dreaded meetings to go to each week.  Greater reach — the whole world is your market, instead of just your own neighborhood.  Cheaper, faster, and more efficient communications.  You name it, the internet should have the perfect ingredients for making tons of success stories.

Sad to say, though, this promise hasn’t borne much fruit.  Sure, it has worked for some, just as have the traditional marketing methods, but, by and large, the internet has not proven to be the “magic bullet” people in this business thought it would be.

why is this?  Why hasn’t MLM taken the world by storm, like its rival, started at about the same time, franchising?

Franchising has worked very well and is a much bigger industry than MLM, even though they started at the same time?  What is the problem, or flaw, in MLM?

First off, let me tell you that one of the reasons franchising has worked so well is that because it requires usually a big investment on the potential franchisee’s part, the franchisee pays very close attention to his or her franchise business because they have a lot riding on their new business venture.

Also, another factor is that because it generally requires a major investment, franchising tends to attract people who are well off financially, meaning that they already know how to run a business because they already have one, or, at the very least, they know a lot more about handling money than the regular Joe or Jame out there.

Therefore, while the NUMBER of franchisees is much less by a factor of about a hundred or more than the number of MLM’ers, they generally have a much higher success rate because they already know how to handle themselves in a business environment.  Plus, the investment of their life’s savings into the franchise means that they pay attention to training and work long and hard to make their business a success.

When you contrast this to the situation of the average MLM’er, you quickly see that there is, indeed, a vast difference.

The average distributor is generally a salaried employee working for someone else, and therefore doesn’t have the faintest idea of how to really run a business.  They lack the skills and education that a typical franchisee brings to the table.  They also are typically just regular people, to whom even an investment of a few hundred dollars is a major deal.

So, to summarize, you have lack of business knowledge and education.  Add to that lack of capital.  And, finally, they generally have to work their new business part time since they are working full-time at their day job.

Also, since they don’t invest very much into their new business, the MLM’er can simply walk away at the first sign of trouble or difficulty.  Sure, maybe the excitement of the rah rah meeting gets them all pumped up at first, but, as time wears on and they meet one problem after another — as is typical in a business start up of any kind — the inclination is to just give up on the dream and go back to work at their day job.

Finally, there is the problem of the recruitment methodology itself.  Most serious business people are turned off by the emotional appeals at your typical recruitment meeting, phone call, or internet webinar.  What this means is that most of those who DO have business skills never sign up because they think to themselves “I’m not going to hook myself up with this bunch of idiots who don’t know what they are doing.  My time is too valuable to waste on these ridiculous meetings, and I don’t want to hit up all of my friends and relatives, either, about this “great opportunity,” so I’m out of here!”

So, should the budding internet entrepreneur ignore MLM althogether?  Is it a “has been” or some kind of “business cult” that is best ignored?

The answer will depend on your situation and opinions on this matter.  Some people are so turned off by bad experiences or the bad reputation of MLM that they won’t even look at any such “opportunity” no matter “how good” it looks.  Their minds are just plain closed on the subject, and there is nothing you can do about it, period.

With most people, though, they don’t have a strong opinion one way or the other, and so they can be talked into taking the plunge — at least once, to try it out.

But herein lies the problem.  If your upline is a clueless idiot who knows nothing about business or internet marketing and promotion, then your chances of failure have increased greatly.  This is the heart of the problem with MLM and why it never grew to the prominence that franchising did.

You see, the best franchise companies have their training down to a science.  The new franchisees in McDonald’s, for instance, MUST attend “McDonald’s University” before they can get the keys to their new franchise.  And, they must PASS the training course, or they can’t become part of the McDonald’s family, period.

But, since most of them are either business people anyway, or have above average intelligence and financial management skills, almost all pass with flying colors and the success rate is as close to 100% as is humanly possible.

What we are talking about here is that the franchise system makes sure that the franchisee can duplicate their winning system before they are ever allowed to take control of their own franchise operation.  The training is top notch and intensive, and if they fail the course, they can’t open up their franchise, period.

These factors, obviously, differ greatly from the typical MLM experience!

To put it bluntly, they send out their people to recruit a bunch of broke, clueless idiots, send them to rah rah meetings which are more like a religious revival than a business meeting/presentation, get them to sign on the dotted line, and then their idea of “marketing” is to sit the new recruit down and have him or her make lists of all of their friends and relatives and tell them to get them to the next meeting by hook or by crook.

Then, the process is repeated ad nausium.

It’s no wounder that over 80% of people who try MLM not only fail, but would never consider another such “opportunity” again in a million years!

Sad to say, there are many legitimate and great opportunities out there in MLM land, but they never reach their full potential because of the above approach.

And, with the internet, you really DO have a golden opportunity in the right programs to build a real income and a real business — if only…. you had the right training and support!

We suggest, then, that you keep your eyes on OffshorEarnings, because in the future we will not only be presenting the best opportunities to earn money online, but will also give you the tools you need to make you a success as long as you do your part to both learn what you need to do as well as have the follow through to apply it!

The same can be said of affiliate marketing and promotion, Private Label Rights products, etc.  As long as you apply the right formula and have the right product or service, you can make more money online than you ever dreamed possible.

And, the investment to learn how to make that money is small indeed.  You can’t lose if you properly apply yourself to learning what to do, and then simply just do it!

And remember, it costs hundreds of thousands of dollars, at least, to get into a profitable franchise or independent offline business — your online business costs you very little and has the same reward potential.

So, get started today, and continue to watch this site to learn how to make your very own Offshore Earnings!