I was inspired to consider this topic by an invitation I received to join a Multi-Level Marketing (MLM) aka Network Marketing firm, by a new friend. (My long-term friends already KNOW not to ask…)
My initial reaction, after watching a video presentation, was NOOOOOO thank you!!! Been there, done that! Not for me!!! LESSON LEARNED…sharing it here just for you!
Yes, I speak of FIRST HAND experience, as I have been part of several MLM company’s myself, incl. Tupperware, Amway, Jamie at Home, Avon and the likes….
Every time I thought ‘ooooh maybe it is the product’, NOOOOOPE IT IS THE BUSINESS MODEL!!!
I KNOW that 99% of MLM sign-ups do not make even enough money to claim that they ‘pay themselves’ / earn a minimum wage from profits and bonuses received.
The upside of MLM’s:
• You can claim that that the product has helped X number of people, based on the entire business / brand NOT JUST YOU, who might have signed up an hour ago.
• You can put your name in one sentence with celebrities / famous peeps who have endorsed the business / brand / product.
• You can claim that the products you sell are sold in X number of countries, even though YOU MIGHT SELL TO YOUR FAMILY AND FRIENDS ONLY.
• You get a discount on all the products you may want to buy (Hint: This is one of the biggest income stream these companies actually make money with!!! New sign-ups who spend their hard-earned cash, which they earned elsewhere)
• Potentially you can earn from any $/£ of your own downline, given that you consistently motivate people to sign up and DO THE WORK…
• You get (most often) free training and access to nice events at (most often) awesome venues – This to be honest is the ONLY reason why I would join if I were you!
The downside of MLM’s:
• You have no business, unless you constantly sell; first to your inner network e.g. family and friends, then to work colleagues, neighbours etc. and lastly to anyone who you come across.
• You are depended on building your own network of ‘Busy Bees’ aka new sign-ups, otherwise you run out of names on your contact list.
• You must ASK ANYBODY, to ‘Join the Club’ and Buy, with the motto “After X number of NO’s THERE MUST BE a yes…”
• You cannot ‘Brand’ YOUR BUSINESS, as anyone in your network sells the same products.
• You cannot make a living! Yes, I said it!!! How many hours have you worked in the last three months, or since you have started and how much money did you make? And please don’t tell me that you are still growing…show me YOUR numbers, not how much you CAN POTENTIALLY make or how much the ‘company’ makes each year etc.
On the other site, IF YOU START YOUR OWN BUSINESS, either solely online based or a location aka ‘brick and mortar’ business, YOU CAN BRAND YOU AND THE WAY YOU DO BUSINESS, for example price, location, service quality, product range, BECAUSE from having started, operated and sold two out of three businesses in the past 16+ years, in both the B2B and B2C sector across several industries, I know that this is the key to differentiation and ultimately it works…And YES, you can work around your kids schedule doing so.
I would love to hear your take on this!
P.S.: Need help starting, building or growing your business? Great! Head over to my website to book your 1st Strategy Session with me! https://www.naomimclaughlan.com/more/business-coaching/
P.P.S: If you feel offended because you have started your MLM business, sorry to hear that! You might be the 1% who can pull it off. And if so, I am happy to write about your outstanding business! Yes, I really mean that, for the bottom of my heart