The Successes And Failures Of The MLM Industry

In today’s economy, when you ask the question, “Would you like to earn some extra money?” or “Would you like to double your income?”, what do you think the normal response is likely to be? With debt up to your ears and the bills piling up around you who wouldn’t like that extra $500 or $1,000 every month to get you out of trouble? The same applies to the idea of getting away from the shackles of the J.O.B. and starting your own business. Wouldn’t you like to have control of your own destiny and at the same time invest your energy into something that will make you wealthy and not somebody else?

There are many entrepreneurs who have recognized this huge need and are trying to take advantage of it. It has led to the spawning of an untold number of network marketing companies and business opportunities that tout their solution to your economic woes. How often every week to you get those emails in your junk mailbox claiming “$500/week guaranteed with no effort and no recruiting”. “Make $25 for every email you process” is one that I just copied from my own junk mail.

With all these opportunities out there, how come most people are either still utterly broke or living from paycheck to paycheck at best? Are we all not willing to make that little extra effort to work harder and create that needed solution to our problems? Although that may be true for some people I believe that most of us would grasp at the opportunity if we really believed it would work.

I have just returned from one of those huge MLM conventions and met many individuals who I had not seen for several years but who were now millionaires earning upwards of $250,000/year. These are average folks without a college education who have positioned themselves amongst the top 1% of income earners in this country. So it is not because it is not possible. Those folks I met are living proof. So why not you?

The most common answer I hear is “Yes, I tried one (or more) of those companies and it didn’t work”. “They tricked me into spending $500 (or more!) and it went nowhere. In fact I have a couple of cases of a great antioxidant juice in the garage if you are interested.” How often has this happened? This answer is only too many times and it has led the MLM or direct selling industry to inherit a terrible reputation that now turns people away.

Why has this happened? You probably signed up under a family member or friend and were attracted to the opportunity by the pictures of wealth (fast cars and big houses) as well as the false promises (just to get you in). The peer pressure didn’t help either. The question I would ask is how much due diligence and research did you do on the company, the company principals, the company’s finances, the products, the market for the products, the compensation plan, the company support and what did the company expect of you?

This question is, of course, rhetorical, as we all know the answer. The fact is if you had been looking to switch your career and join a new employer you would probably have taken a look at some, if not all, of these criteria. So my conclusion is that your failure was your fault and had nothing to do with the company. The old excuse that “But it is only those few at the top who make all the money off all of us at the bottom (of the pyramid)” is the common wall to hide behind. The reality is that those that did make it probably did a little more research and then put the necessary effort into it to make it work.

One thing I learned many years ago is the best way to become a millionaire is to find one in a business you enjoy, and then go copy what he did! There are many experts that support this view and who support the MLM industry as the best, and in many cases the only, way for normal people to create abnormal wealth. One of those is the renowned author and entrepreneur Robert Kiyosaki who in his book “The Business Of The 21st Century” explains how to harness the power of this phenomenon.

In short, my advice is not to jump on the opportunity without doing the above-mentioned research. Find something, a product or a service, that has a universal appeal that everyone needs. Make sure the product or service being offered fulfills that need. Make sure the company is solid and will be around the amount of time it will take you to become wealthy. Check out the company principals as well as your upline to see if they have had an ethical career. Make sure your upline is going to give you the support you need. But most importantly you must be passionate about the product. Never promote a product you don’t use yourself. That will never work. Be proud of the company you represent.

With these things in place and the willingness on your part to do the things most others are not prepared to do, you will be successful. Look at your successful leaders, listen to them and learn what they did to become successful – and then copy them. Don’t reinvent the wheel. Your company probably has a complete system for you to follow, so follow it. Spend a little money on the company marketing materials and just go out and spread the word. Your success and wealth will follow.

Colin Buckingham is a global Internet entrepreneur who believes a great solution for many of today’s economic woes is to go out and start working for yourself. He also believes one of the cheapest and most efficient ways to start out on your own is to join more than one MLM company. Colin has spent the past ten years as a financial adviser and has seen many of the problems people face financially many of which could have been resolved with just a small additional income every month.

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