Multilevel Marketing MLM – Always Read The Small Print
Network Marketing schemes are put forward as the ideal low capital business opportunity. When you join a Multilevel marketing (MLM for short) scheme, you become an agent for a product or service. life- changing health products, self improvement courses, miracle gadgets, cosmetics, cleaning products, discount telephone services – they’re all available as network or multi-level opportunities.
But the real point of MLM is that you also make money by finding your own agents to sell the product too. These agents, in turn, do the same. You re then supposed to receive a commission for every sale which this growing network of agents make: it’s what Multilevel marketing companies call a ‘down line’.
Other People Make Money For You!
This ‘down line’ (as it’s known) sounds fantastic – in principle at least. A whole stream of busy salespeople, all working to pay you a commission on every deal. But this pyramid is built on the hope that each new agent will find new customers. In the search to recruit new salespeople – remember, you’re offering them the same deal as you’ve got, and in turn they’ll also look to recruit their own down line – it’s easy to forget all about the actual product.
You’ll find that a lot of business opportunity magazines shout the benefits of MLM from the rooftops. That’s often because they make big money from advertising Multilevel marketing opportunities. As you know, the MoneyHitman doesn’t accept advertising for favorable business opportunities leads – so our business opportunity researchers can take an independent view of the situation. And your Money Hitman Scambusting team has some reservations about MLM which you should be aware of.
Are You Thinking Of Buying Into An MLM Scheme?
If so, then we recommend that you study these findings before sending any money. As with all business decisions, you need to know all the details first – and not just the exciting headlines from those MLM adverts:
• MLM Often Works In The US – but remember that products and services which appeal to American consumers don’t always translate easily to the UK market.
• The UK Is So Much Smaller Than the US – and this creates real problems when an MLM scheme starts reaching more and more people. The down line can only get so long – after a while, the market is saturated, and new agents become harder to find.
• Don’t Be Misled By Claims of Easy Cash. This is so important that UK law forces MLM companies to print it on their adverts! Yet many of the MLM schemes reviewed by us still claim it’s an easy way to make money. As all business owners know, nothing worthwhile is ever easy. Whatever the product, you’ll have to spend time and money on advertising, marketing, building contacts, visiting people, doing presentations, selling, handling admin – no less, in fact, than you would in running your own business.
• Niche Markets Can’t Make Everyone Rich. Typical MLM products like ‘miracle pills, potions and health supplements, water filters and self-improvement tape packages all have eager consumers. But in most cases, these markets are quite small. Most people simply don’t buy the products that network schemes offer. And once every potential customer is signed up as an agent, your prospective market is destroyed!
• You Can’t Avoid Broken Chains. Most ordinary MLMers are at the end of a long, extended down line. Unlike the people at the top of the chain, who are well supported and motivated, ordinary MLM agents frequently aren’t. They’re simply looking for a little extra income – but actually want you to do the work for them! If the distributor who appointed you to the scheme is a poor performer, then your chances of success are jeopardizes from day one.
• You Can’t Sell Anything That You Wouldn’t Buy Yourself as multi-millionaire Victor Kiam said. Remember the TV adverts? He loved Remington’s products so much, he bought the company – not the other way round. But in MLM, the product is only secondary. Some agents don’t even use the product themselves.
Are You A Successful MLM Campaigner?
In our opinion, there are a handful of good network opportunities around – ones that promote and sell a quality product. You’ll be fully briefed when the evidence is in and the time is right to recommend joining these schemes.
Many viewers reading this will be enjoying good financial returns from some of the better MLM programs. If you’ve been genuinely successful in Multilevel marketing, then write in and show us. Please note: The Money Hitman researchers want conclusive proof that your scheme is every bit as good as you claim! Because, if you look into it closely, the really successful people are at the head of the chain – usually the people who invented the scheme or introduced it from the US. Agents recruited at the bottom of the chain often fail to get any return on their investment.
A guide to Multilevel Marketing (MLM) brought to you by MoneyHitman.com