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business start ups
robbing peter to pay paul
financial collapse
internet marketers
fishing pole
ponzi scheme
pyramid scheme
ups
granddaughter
Does Everyone Fail At Mlm?
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Does Everyone Fail at Mlm?

We often read that MLM is a dead-end street leading to financial collapse and complete failure. But that may be an over simplification of the situation. It is true that some bad things can happen to MLM marketers. I’m talking about group failures. Here are some examples:

1. The program is shut down by the Federal Government. The reason is that it is a Ponzi Scheme. It is a pyramid scheme where new members are paid income from incoming members while the schemers continually scrape money off the top while enticing others to join to obtain a quick buck. This is called robbing Peter to pay Paul.

I was in a program years ago which was shut down. The Court ordered that the members have their money returned. However, the Court allowed the returns to be made in merchandise. I received a dandy fishing pole in a carrying case. It sat in my garage for years. I finally gave it to my granddaughter’s husband.

2. The top promoters bail out taking their followers with them leaving others high and dry.

3. The products are inferior or can not be supplied in the quantities and at the quality required.

4. The product life cycle ends because it is replaced by newer and better products.

5. The program does not return a high percentage of income to the dealers. (A good program returns at least 50% to the dealers.)

6. The payout is “top heavy” in that most of the payout is too the top performers and that the payout to new members is too low to maintain interest.

7. There is no “start-up” bonus so that initial efforts of dealers is not compensated. only bonus on future purchases.

There are probably other reasons for group failure but I’m not going to dig into them here. I’m more interested in the failure of an individual in MLM.

If you look at most any area of achievement, most fail:

1. Most Internet Marketers fail to make significant profits.

2. Most business start-ups fail.

3. Most of us can’t paint a masterpiece.

4. Most athletes going to the Olympics do not win a medal even though they worked hard and did all that was required to go to the Olympics.

5. Many college graduates can not find a meaningful job.

6. Most of us can’t perform brain surgery as my son does everyday.

7. Some of us don’t have a “green thump” or a knack of doing some particular thing.

I guess I could go on here. But you do get the point, don’t you. Failure is common in all walks of life, not just MLM.

MLM is just direct sales. It is similar to other types of sales, there is a level of activity that proceeds the sale. In most product marketing things happen before the product ever gets to the marketplace. My friend use to tell me, you want to be the “middle man.” Well, in a way that is what your are in MLM because you are the distributor. So it is a business that you are in and you must be businesslike to succeed.

There is training involved. You are not only being trained but you must be a trainer yourself. The bottom line is that in MLM you need:

1. Communication Skills

2. Product Knowledge

3. Energy and Passion

4. Persistence

5. Optimism

6. Time Management

I am sure you can add to this list. But not everybody has communications skills. They become frustrated in MLM and they quit. They don’t fail. They quit.

That is true of the other requirements. It is just too much for some folks, not necessarily because of lack of ability but because of lack of interest.

Not everyone wants to be in business. They are enticed by the possibility of high income but they are over anxious and wither on the fine.

Sometimes they drop out because of the thorns of life. Other ridicule them and tell them they will fail. That in itself can lead to a person quitting before he or she ever gets started.

But some find a good trainer who puts them in fertile ground and helps them to grow. They are able to build a business and enjoy the fruits of their labors.

Time belongs to you. It is up to you to spend it wisely and not flutter it away. Maybe your time is more valuable to you by being self-employed. Working for yourself can be very profitable, much more profitable than working for wages. Also, you can turn a part-time business into a full time career that brings you great rewards.

So why do some people fail in business while others succeed? Well, I think I gave you some of the answers. Only you can decide your future and how you will spend your time.

John

Internet Business Tool Center


Street Talk

Nice article and nice profile. I enjoyed reading them.

Reply
  about 7 years ago

I hope you will join me, Eugene. Thanks for the comment. John

Reply
  about 7 years ago
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