Multi-Level Marketing!
 

Recently, I have seen a number of discussions on various board discusssing the efficacy of Multi-Level Marketing (MLM).

From the questions, and responses, I have seen, there is a great deal of misunderstanding on the subject ... so, I went back into my archives and found an article I wrote on the subject about 5 years ago. -- Unfortunately, it is too long to post here ... about 22K. Therefore, I have posted the full text in the Free Reports at my site, under it's original title ...

"Multi-Level Marketing - What it was. What it became. What it is today. Why over 90% of the people who get involved in Multi-Level Marketing programs fail miserably."

You can read the article at:

http://www.businesslyceum.com/mlm.html

Hey ... even the title is too long.

Anywho, if MLM is of interest to you, the report may offer some insights.

Jim


Multi-Level Marketing!

Re: Multi-Level Marketing!
 

Bravo, Jim! A great treatise on MLM. I've used similar logic on recruiters who've hit me up in the past, and they either get mad because I've popped their "dream" or smile slyly and call me again from their next "great opportunity" or "hot air sandwich" as you say!

And I agree that those who are successful will stop at nothing to recruit - I even got hit with a mini-bubble diagram while in the Persian Gulf on a Navy destroyer under battle alert conditions. Amazing!

Another reason why most people lose money in MLM is that most people don't like to sell - either to family or strangers. It's been my experience that the average person has a fear of cold calling second only to public speaking and third to the Grim Reaper himself! So, even if the opportunity is legitimate and product oriented, the failure rate is still high.

Thanks for the insight - maybe it will allow someone to not learn from the school of hard knocks.

Regards, Bob

Re: Multi-Level Marketing!
 

In Jim's post ....
there is a booklet subject for
the person who loves marketing
etc...something along the order
of 30 ways to get rich and 30 ways
to stay poor...there are so many
different programs and people are
so confused that perhaps a little
booklet like that would make a good
one....someone go for it....I would
but I've got some other things in
the cooker...

Look at the top of the board.
 

... Doesn’t it say, “Please do not post any insults or personal attacks (they will be deleted).”

I understand the author is an esteemed direct marketer. But early on, Gordon established guidelines for SOWpub that if your mission in life is to attack other people or ideas or other forms of marketing - and he especially mentioned MLM, because many direct marketers love to attack it - then do it someplace else.

Yet this message was posted … and the thread remains … in direct opposition to the spirit and etiquette of SOWpub.

Some moderator should recognize that and nuke this thread.

This post and the linked article are full of half-truths, poor research, & disinformation.

Example: “YES! There are MLM companies that do (or at least 'pretend' to) attempt to sell their products - but - their "dealers" don't. The "good intentions" of the company are shot to hell by the "dealers" who only see the downline commissions. The "dealers" couldn't care less whether or not they sell any products ... as long as they recruit and enroll more dealers. - After all, that's the name of the MLM game. - And, when there are no more dealers to be found for their current offering, they move on to the next "hot-air sandwich" ... even if it has a seemingly real product to sell.”

This is a lie and an insult and an insight into the author’s poor research. My group - and others - have sold many millions of dollars of products to individuals who never had the slightest idea they were buying an MLM product, and who were NEVER recruited to be part of a business.

Example: “over 90% of the people who get involved in Multi-Level Marketing programs fail miserably."

I wonder how many people who buy someone’s course on making money in mail-order ever have a successful, profitable mail-order business? 100%? 50%? 10%? Maybe 1%, if they’re lucky? I think we all know the answer.

SBA studies some years ago concluded that 90% of all businesses fail in the first year, and of the ones that survive, 90% fail within 5 years. Yet the author makes a big deal over 90% of MLMers failing, like it’s something unusual.

THAT is disinformation.

If this post is still here in a few hours, I’ll have to go over it line by line, pointing out the author’s poor research and explaining to him what he doesn’t know. I’d prefer not to waste my time, since it won’t change his fixed ideas.

Richard Dennis

Current thoughts....
 

I'm considering what you say, Richard....

Technically speaking, the actual text of Jim's post on Sowpub is not insulting anyone. You are referring to the article on his web site (and I'm not sure it is my place to judge what's on someone's web site)....

But I understand what you mean....

On the one hand, I think MLM and any other topic should be able to be discussed here, even though it is a topic where people have very strong opinions.

On the other hand, I see what you mean, Richard....

Still considering and consulting....

Dien

A pause for reflection
 

Richard ~

I would have a tendency to lean in your direction on this as well. But I fail to see any insults or personal attacks to anyone in general.

What I do see is someone relating an experience to a marketing strategy which wasn't for them.

Also the tenacity of some people within this marketing strategy. I'm tenacious and agressive as well, but I don't believe I would be attempting to close a deal on a battleship under red alert! ;-) Not *my* style anyway! LOL

Personally, I believe the cross posting of open articles, is very close to the line of Spamming a Board. I've seen this thread and topic on a number of boards and the 'status quo', 'boilerplate template' answer is... "Different people view and respond on different boards so you receive broader responses by doing so". Quite frankly I don't buy into that.

If someone were to have asked for information concerning MLM's, or other topics... Then the self-posting of articles under that thread would in my mind be a valid, and requested post.

When I receive a question in the e-mail, I don't go to every board and "Spread the word". (Ever been to an office party where someone is "Holding court"???)

But by surfing to the many other boards and posting the exact same post, is in my mind Board Spamming. Post it once where it needs to be when asked, and others will find it. Post it to dozens of board's without the request... I call it a form of Spamming.

Either way... Although I don't agree with the method, most board owners are allowing it and it is supported by the majority of Forum Visitors.

Richard you may do what I do... Just ignore certain posts with certain types of headings, and/or authors. I do believe in the First Amendment and the ability to express yourself without slandering, attacking, or coming across as libelous in some way.

This thread doesn't cross the line there, yet. I know of people who make a nice income from MLM and I know people who despise it. Simply it's an opinion not an attack stated above.

If you feel the post, and or poster, has done something which crosses the line, by all means you are invited to make a reply. But please be sure you make a logical, non-offensive argument to support your case and thoughts.

Sometimes it's very easy to get carried away with your thoughts and become a bit overzealous.

Yes it's very close to being Spam, or viewed as insulting or attacking to some. But here we have a narrow strip of gray between the black and white. Some will say it's more white, others will say it's closer to being black.

You and I have our thoughts on it, and others have theirs... Thanks for opening this topic for me. I've watched posts like this for a few months now and am amazed myself, it hasn't been called on.

Maybe we both can push this thread aside, let it be, and move on. Don't you think that's possible Richard?

Thanks for reading this. As always it's just one mans opinion and should be thought of as such.

~ Mike

No insult intended ...
 

My article was NOT intended as an insult. It was, rather, an expose of the current trend in the MLM industry ... where the "making of money" has been perverted to a belief in the "Free Lunch" ... no selling, no products, just give us your money and we will do EVERYTHING for you so you make money for FREE (but, they don't).

As I stated in the article, I have nothing against MLM - however - I do find the current MLM opportunities to be highly distasteful; playing upon the greed and stupid of those who, often, can ill afford to participate.

Multi-Level Marketing ... when legitimately established for the distribution of products ... can be a viable (profitable to all participants) marketing method. But, the industry is NOW filled with petty con-men who's only purpose is to separate the gullible from their hard-earned money.

For proof, you only need read the headlines on the sales material being used to promote those MLM plans. -- Or, work the 'real' numbers on a matrix sometime as I have. And, please don't fault my math, I have an IQ in the 99th percentile ... member of Mensa ... and was a Math Major in college.

Legitimate MLM can be one of the most profitable methods of distribution in the marketing game - but - not the con-games masquerading as MLM.

Jim


FREE Money Making Newsletter!

Apology accepted (DNO)
 

Some more thoughts....
 

Hi Jim....

> My article was NOT intended as an insult. It
> was, rather, an expose of the current trend
> in the MLM industry ... where the
> "making of money" has been
> perverted to a belief in the "Free
> Lunch" ... no selling, no products,
> just give us your money and we will do
> EVERYTHING for you so you make money for
> FREE (but, they don't).

I agree that many MLM distributors seem to give this impression....

Though we should probably qualify that by saying that not ALL are necessarily like this....

> As I stated in the article, I have nothing
> against MLM - however - I do find the
> current MLM opportunities to be highly
> distasteful; playing upon the greed and
> stupid of those who, often, can ill afford
> to participate.

Again, we should probably qualify this by saying that while some MLM distributors are like this, not all are....

Part of the reason why this impression might come across is because if someone is legitimately selling a MLM product, they may never even mention the opportunity, so you DON'T realize it is MLM. Though it is.

BUT when they are promoting the opportunity, you know it is MLM. So MLM may get a worse rap than it deserves, because those who just promote the opportunity make it obvious it is MLM, but those who really promote the product DON'T make it obvious it is MLM....

Thanks Jim, Richard, and everyone else for your thoughts....

It's okay to disagree -- and both Jim Straw and Richard Dennis are BIG successes and both are experts -- just let's strive to keep it sensible (though I know this is a topic people have STRONG opinions about)....

Dien

Congrats!
 

"I have an IQ in the 99th percentile ... member of Mensa ... and was a Math Major in college."

Certainly having an IQ in the Nth percentile isn't a very persuasive argument to solidifying a point you're trying to make.

Keep in mind Ray Kroc(McDonalds empire), Henry Ford (Of the Auto fame), Albert Einstien (Proven theories to numerous to mention! And was a "slow" student growing up as well!), Colonel Sanders (Success reached in his later years), were not highly educated men.

As a matter of fact, by todays standards, they were poorly educated, and could possibly be called 'non-educated' men.

I personally know of highly educated people with Phd's in Business and Marketing who have failed miserably in both business and marketing. An educational flaw or shortcoming??? No.

You are successful in your field. That's a given. But intelligence levels are not the reason for success.

An MLM being "distasteful" to you is still an opinion. Regardless of what a matrix shows. Or what IQ percentile you fall into. A computer program, a matrix, facts and figures will only produce more facts to either support or disprove a theory. It will not spit out "distasteful" or other opinions, based on human-emotions.

Opinions do not win court cases or debates. Solid arguments do. I know of highly successful people in MLM and I know of people who look down upon the Direct Mail and Infommercial types. Because of the Lapre types involved within these segments.

Still all based upon opinions and stigmas. Even though there are solid arguments to be made supporting either side!

Personally, I also find cross-posting articles distasteful as well unless information of that type is specifically requested. But I have never nuked your post, or made my opinions or commented on it until Richard opened the topic.

Even on the other boards Jim, the cross-posting of your articles, has been questioned by some of the visitors.

Certainly you do not intend to, but I found your reply to Richard somewhat defensive on your part. See??? Just another opinion. The reference you make to Mensa in no way sways my position. Now that's a fact.

I have an Uncle who went through MIT on a academic scholarship. Who worked for the government on many of the Apollo missions as well as the first Skylab linkup in space. He's certainly up there near you in IQ, I would assume.

But he never once used his IQ as a basis for one of our heated discussion on politics, religion, or even me sneaking out of the house when I spent the Summer with him and my cousins when I was 13.

It's apparent you have done the work to support your theories on the topic of MLM's. Super! But it can also be said there are many success's which could show them wrong as well. (And I am not an MLM fan!)

If you are Mensa, then you know this to be true.

Facts and logic will put any man on an equal platform with anyone else.

I dropped out of college to make a living. I've seen people come and go within my industry of Sales and Marketing and I can assure you a Diploma does not guarantee you success in the real world of dealing with people. It may get you a high techno-geek job like my Uncle has... It may even get you into certain clubs and fraternities... But by and large, the average person on the street will only be interested in what you can "do for them."

But all-in-all, you're blessed with a God given talent. And as such, it shouldn't be used as a tool to base your viewpoint from.

As Joe Friday said every weeknight on 'Dragnet', and still does on Nick at Night, "Just the facts ma'am."

~ Mike