| |
| |
|
Network Marketing Information |
|
|
|
When MLMs Go Bad
There is no such thing as a totally fair MLM. The person at the bottom of the line always misses out. That's not to say they don't have their place in the web marketing industry, people just need to understand what that place is. All too often, MLM's are used as the purpose of a program, rather than an added benefit. Allow me to back-track. Definition first, then application. When I first discovered web marketing programs, I kept seeing the initials MLM, with no clue as to what the letters stood for. In fact it was weeks before I eventually discovered the term "multi-level marketing". Not that I was any the wiser. Describing a typical MLM is like trying to describe a typical job. There are so many different uses for the concept that trying to break it down to a few words can never really do it justice. There are many different applications of MLM's. Some useful, some useless. Some legal, some illegal. The basic principle is that the marketing efforts of one person benefit more than the individual. A real-world example would be a wholesaler selling large qualities of DVD's to resellers. The wholesaler buys the DVD's from the producers for £2 per DVD. He sells them to high-street retailers for £4 per DVD. The high-street retailer sells them to the consumer for £6 per DVD. In each case the profit is £2, but the wholesaler wouldn't make his profit without the high street retailers, and the high street retailers wouldn't make their profit without the consumer. The process from producers to consumers effectively shares out the cost of the distribution while ensuring a profit is made at each level. Compare this with an affiliate program. The owner (producer) wants to sell software X for £50. He sells his product to his members (wholesalers) at a full or reduced rate. The members then sell the product on to other members (also wholesalers) and also to ezine and website owners (high-street retailers), for the same price keeping between 30-50% percent of each sale. The ezine and website owners sell the product to their readers / viewers (consumers), also keeping 30-50 percent of each sale. This process works well for the owner as the cost of marketing is shared among the members and the ezine / website owners. Everyone makes some money or receives the product they want. The problems begin when the owner gets greedy. Not satisfied with a simple affiliate program, they combine it with an MLM program. They reduce the percentage members make from each sale to 5-10%. They then announce that if you introduce a member to the program, you will make 5-10% of every sale they make in addition to your own sale. If they recruit more members you will also earn 5-10% of every sale they make and so on, down several levels. This has two effects: 1) Members stop selling the product and start selling the benefits of selling the product. The prospect of making money is usually easier to sell than the product itself which leads to vast number of members signing up. As you have to purchase the product to join, the owner is making a lot of money. 2) In the original affiliate program, members had to sell 2-3 products to break even. Now members have to sell between 10 and 20 products to break even. Since most can't manage this, the majority of members wind up with nothing but a discounted program they didn't really want in the first place. The only real winners are the owner, the members who managed to sell in large numbers and the people who bought the software because they really wanted it. Take Note: The owner and members who profited, did so, not because they found satisfied customers, but because the promise of riches lured many members to waste their money on the product. These are the guru's who amass their wealth, not dishonestly, but unethically and immorally. These same people will also take your money in exchange for learning how to be successful in selling these programs. In making a lot of money of the backs of people who should know better, but sadly don't. This is why MLM's are unfair. This is when MLM's go bad. But it doesn't have to be this way. The example of Software X wouldn't be so unpleasant if individuals stopped selling a profit and started selling a product. If they promoted the MLM part of the program as a benefit, rather than the purpose, this would stop some people from buying the program under the illusion that they are assured of making vast amounts of money. And play your part as well. Stop promoting unrealistic promises of wealth and start promoting promises of a great product. Before you resell it, try it out and make sure it works and is actually worth buying. And when you assess a program that features MLM. Ask it two questions. 1) Does the MLM have a product? Software, eBooks, services, anything that people can GENUINELY benefit from. If the only product is making money from future members, leave it alone. 2) If a member doesn't recruit a single person, do they still benefit from the program? For example, do they, at the least, come away with a useful product or service. Traffic Exchanges are a good example as (providing the ratio is reasonable), a sole member can still earn a steady stream of traffic from surfing without having to recruit others. If the program fails to successfully answer either of these two questions, move on. Ignore the promise of wealth. Keep your dignity, keep your morals, keep your ethics and leave the guru's to continue the age-old tradition of making money off the backs of others who finish up out of pocket. Dylan Campbell has been quietly making a living on the Internet since 2000. He has a unique, and often controversial, view of the industry. Dylan Campbell writes exclusively for The Nettle Ezine.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
The Tortoise and the Hare Once upon a time in Marketing Square, there lived a tortoise and a hare.. MLM Success- The MLM Leadership Secret of Heart Touched Leadership There are three Rules of Network Marketing Leadership for MLM Leaders:.1) You must touch people first before you can ever change their life. What are MLM Leads? Multi-level marketing (MLM) is a type of direct marketing that involves selling a product, service, information, or business opportunity. It is also known as network marketing, and typically operates as follows: the self-employed independent distributor first becomes associated with a parent company, and then attempts to locate and sell to customers and others who may also want to become distributors. MLM - Sure Thing or Scam? Be your own boss! Set your own schedule. Retire Early! Who doesn't want that, right? Multi-level Marketing has been praised for allowing financial freedom; and it's been criticized for being a big scam. Network Marketing - Its All About Customers Leadership, Visualization, Goal-setting, blah, blah.. No Romance, No MLM Downline NO ROMANCENo DownlineNo Downline, why bother?If you were romancing a fine lady, would you walk up to her and say, "Hey babe, lets do dinner?"I wouldn`t. That would not work. MLM Success: The 2 MLM Basics You MUST Master in Network Marketing Here is truly a MILLION Dollar Question:What is a Basic?It is the simple and most fundamental action you can engage in network marketing.And engaging a basic will always be what a distributor needs to do to succeed. Looking For A Home Based Business? - 11 Factors For Choosing A Network Marketing Business Who wouldn't want to work from home? There's no commute, no boss, you make your own schedule, you can work in your pajamas if you want, and your efforts are rewarded. Plus there are great tax advantages for owning a home-based business. The X Factor of MLM Mega Earners Send this to your downline. It will give them a perspective that will make you money. Online MLM Promotion - The 4 Wrong Ways And 4 Right Ways Of Doing It Contrary to popular belief (or what most MLM people would prefer to believe), online MLM promotion campaign is somehow different from an offline MLM promotion campaign. You can not simply try to apply the same successful offline MLM campaign online and hope that it will be as successful online. Do It! A Guide to Starting an Internet Business The first thing I did was start searching the internet for a work at home business that would fit me. You name it and there are tons information on the Internet about every conceivable subject that you can possible think of. Listening Your Way to Greatness What you listen for in your conversations with others determines what you will get out of them. All too often, we listen to others in a casual or unfocused way. MLM Success Network Marketing Secrets - The MLM Power of Patience "Persistence is needed, but Patience is a MUST." Ben Johnson- 5 Billion Dollar Producer. What Network Marketing is NOT There are so many misconceptions flying around out there about what network marketing is or is not. Let's take a few seconds to review what network marketing is NOT. Increase Sales through Store Consignment Placing your products on consignment in a hair salon, clothing boutique, card store, or a specialty gift store is an excellent way to increase your sales and profits. Many of these businesses welcome not having the expense of ordering products and keeping inventory of ordered stock. Network Marketing Tips: Celebrate Your Failures - Every Failure Is A Step Closer To Success Dear friend, have you been trying and failing in every business opportunities that you have tried? Have you bought so many ebooks and still get nowhere.. Financially Free with Network Marketing? Are you also curious, but skeptical, about becoming financially free with network marketing? Do you think financial freedom is only a dream? Why would network marketing be the answer? How should you use it to achieve financial freedom? Let's begin?Let's assume you've got a job or you're self-employed. That means you have to show up for work to get paid. The Misconception Of Multi-Level Marketing Ever wonder why people are so turned off at the mention of Multi-Level Marketing? Is it legal? Is it a pyramid? Who benefits the most? Where does the money flow? In this article we will examine basic differences between Multi-Level Marketing and a Corporate Structure.Let's take the corporate structure first. Finding The Right Business For You: Getting Paid There are many different reasons why people choose to get involved in network marketing. Although it may not be the primary reason for many people, getting paid will be rank high on most people's list. The Single Greatest Reason People Fail At Network Marketing How many times have you found yourself in one or more of the following situations:1. After giving a complete network marketing presentation to a prospect, you discover that he/she was never qualified to begin with.
|
| home | site map |
| © 2006 |
