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Why you want your new business venture to be MLM…
I'm sure you've seen those biz opportunity classified ads all over the place defensively proclaiming the advertiser's opportunity as "NOT MLM!". If you're not familiar with MLM (multi-level marketing or network marketing as it's also known), has your exposure to these ads left you with the impression that there's something about MLM sales to be avoided ... something that's intrinsically undesirable? That was certainly the impression they want to leave you with. Like somehow their business has a lock on morality in business. That may be what they want you to believe but, in my humble opinion. There is no other business model that takes you right where you are. Poor, rich, successful, never had one single break in your life. PHD didn’t graduate from high school. It does not matter. Sure your background and past history may help you get to the same point faster. But the reality is that ANYONE with desire and the right company and support can make it in MLM. With hard work and shear determination can become extremely successful in MLM.
You need
#1) Shear determination. An attitude of I will follow a system and I want to be trained. Show me what to do and I will do it mentality.
#2) A company that has a sound experienced management team.
#3) a company who produces products that are beyond reproach. Meaning the products are of the highest quality. Products that people want for their value and benefits. Products people will buy month after month because of their benefits, not because they are part of a business opportunity.
#4) A company that has deep financials that can continue developing products can sustain growth and develop expansion into a global market.
#5) A sponsor and a system that will give you the training, tools and guidance to gain the experience to grow your own business. A system that is duplicatable and easy to teach your downline to use. You can change the order to what is most important but the reality is, they all must be there for long-term success. After all your goal should be to work hard for three or 4 years knowing that the company is solid enough that you will be able to slow down and work with your leaders. Knowing the company is going to be around long after your hard three or four years has been invested.
Part of the reason for the suspicion with which MLM is regarded is, I'm sure, simply that there's a lot of confusion about what MLM sales actually IS. In particular, many people seem to think MLM and pyramid schemes are one and the same thing. Not so. MLM is a perfectly legitimate business model. That's not to say the industry doesn't have its share of low-lifes. It does. But, let's face it, what industry doesn't?
Lets look at mlm sales: what it is, how it works, the advantages and disadvantages and who's most likely to be successful at it. If you are overlooking MLM sales you are over looking your chance for home business success that may be the answer to your dreams of lifestyle and time freedom.
WHAT MLM IS
Quite simply, mlm sales involve direct selling of products and services via the personal recommendation and endorsement of independent representatives. In return for your personal recommendation and endorsement, as an independent representative, you receive a commission on the sale. It's different from a normal business in that it doesn't have a store-front and you generally won't see the product or service being advertised in the mainstream media.
In addition, as an independent representative you'll recruit, or "sponsor", other independent representatives to also direct sell products and services. These sub-representatives form what's known as your "downline". As the sponsor of these independent representatives, you receive a commission on THEIR sale, as well as your own.
Similarly, YOUR sponsor, THEIR sponsor and THEIR sponsor (and so on) forms your "upline". Your upline (up to a certain number of levels) receives a commission on sales made by you and by your downline (down to a certain number of levels).
Think of doubling a penny analogy we so often hear about. Your downline grows slowly at first, as you continue to recruit and share your opportunity. Teach you group how to do the same. Before long your organization will take on a life of its own. But it will need your and your uplines leadership!
WHAT MLM ISN'T
MLM sales, multi-level marketing program are NOT a pyramid scheme. Sure, the sponsor receives a proportion of sales generated by their downline, but a legitimate MLM program will involve the sale of products and services with a value proportionate to the amount invested.
A pyramid scheme, on the other hand, is merely the transfer of money from one level of the pyramid to a higher level. There is nothing of value the transferor (the person making the payment) gets in return for their money other than the right to collect money from those lower down the pyramid. Pyramid schemes are illegal for this reason. They are nothing more than an unproductive transfer of wealth from the lower levels of the pyramid to the higher levels. Notoriously, only the highest levels of the pyramid receive significant amounts of money. The pyramid inevitably collapses in on itself before the lower levels can reap their share of the harvest.
You have, I'm sure, received those emails that would have you put $5 cash in an envelope and send it to the name on the top of the list you're given in the email. You then remove the top name from the list, add yours to the bottom and forward the email to 10 of your nearest and dearest. EVENTUALLY (read "never"), when the email has been distributed widely enough, it will be YOUR name at the top of the list and it will be YOUR mailbox receiving all those $5 bills (yeah, right. What's Santa Claus bringing you this year, boys and girls?).
This is a classic pyramid scheme and it IS illegal, no matter what the email says. Participate in these schemes at your own risk ... don't say you haven't been warned!
Beware also of pyramid schemes thinly disguised as MLM sales programs. These are schemes where there IS some product or service sold, however, it is of a grossly disproportionately lower value than the amount of money that must be paid to participate. These are programs where the product or service is thrown in purely in an attempt to keep the program just this side of legal. Don't participate in these sorts of programs. Most, if not all, are also illegal.
Now that we're clear on what MLM sales is and isn't, let's turn to the advantages and disadvantages of MLM as a business model to allow you to decide for yourself whether it may be for you.
ADVANTAGES OF MLM AS A BUSINESS MODEL
=> Low Barriers to Entry Think of any business you want to buy as a franchise. I urge you to google a franchise or two you would be interested in owning. Look over the cost to get established?
MLM is a very egalitarian industry to get into. It doesn't have any pretentious entry requirements, you don't need a college degree, nor do you need any particular experience.
Financially, MLM sales generally have relatively low set-up costs compared to other small business/franchise start-ups. These low start up cost. Between $50 and $500 for the company I represent. This is actually part of the reason for the high failure rate in MLM. It doesn’t cost a lot. The cost is primarily for product so there is not a lot to lose if you quit. It’s too easy to give up when you don’t have instant success.
Think about this. You can start a business for $500. That allows you to create a six figure plus income and the majority people quit and say it never works. No! The business model works, the people quit and give up on themselves much too soon. Its like spending $3,000 on a brand new set of golf clubs, when you have never played the game before. You go out and play twice. DO terrible because you don’t know what you’re doing and then quit. Were the golf clubs the reason golf didn’t work for you? Know it was your approach… It’s the same thing.
You can start your own business for $500; your overhead in your business is minimal. No company overhead such as rent, development and production cost, employee cost, payroll dept, shipping dept. You simply have to share great products and the company does the rest. Ships them to your customer and sends you a check…
=> MLM Company Manufactures and Drop-Ships the Products
You are selling an already manufactured product and the company will drop-ship the product to your customer. This means you don't need to worry about anything but making the sale.
=> Flexible Hours
You can work the hours you choose. If you have a full-time job, you can work your MLM sales business in the evenings and on weekends. If you're a stay-at-home mom, you can run it when the kids are at school. You can still take vacations and if your child gets sick you can take a day off.
=> Work from Home
You don't need a corporate office for this sort of business. You can run it right out of your home.
=> Can be run Part-Time
Because of the leveraged and residual income nature of MLM, good money can be made running an MLM business properly only part-time.
=> Leveraged Income
"Leveraged" simply means you receive a continuing benefit from a single initial effort.
Because you're earning commissions on sales generated by your downline as well as your own sales, you will continue to make an income as long as your downline works hard. Your job as sponsor is to develop your self-motivated downline so this actually happens. Note, it is NOT your job to actually motivate your downline - that's their job. You want to work with self-motivated people, not those you have to drag across the finish line (or the starting line for that matter!).
=> Pre-Existing Business and Marketing Plans
You don't need to come up with your own business or marketing plans. These are taken care of by the company.
=> Pre-Existing System
Similarly, you don't need to reinvent the wheel when it comes to systems for recruiting, developing and training your downline. These are pre-established by the MLM company you are representing. This means you can hit the ground running and start making money quickly.
=> Personal Growth and Development
The nature of the form of selling you will be doing in this business puts you in contact with many and varied individuals. Over time, your leadership and developmental skills will become ever more finely honed. You will derive a great deal of personal satisfaction from helping others make a success of their businesses.
DISADVANTAGES OF MLM AS A BUSINESS MODEL
=> Potential to Alienate "Warm Market"
MLM sales programs generally have you start by marketing to your so-called "warm market". Your warm market is basically everyone you know: friends, family, colleagues, advisers, teachers, doctor, lawyer, neighbors, acquaintances ...
Although I understand not wanting to alienate your warm market. At the same time, the products you will be representing are worth sharing. Just as you would a good movie, a great restaurant. You need and want customers. That is where you want to start. Those who start re ordering, and there will be lots of those who you introduce LYF products to who will be wanting to reorder the LYF product line. Then you simple ask them how would you like to get them for free? It is soooo simple that we miss just how easy this business is. It is just a mater of being consistent, and staying focused.
You simply don't have to deal with your "warm market" at all. You will, you will want too. But this business is Global and we will show you how to build your business online. How to sponsor like-minded people all over the world. You have the chance to establish and run your business exclusively online if you really wanted to. It will just not be as big as it could be if you think local first, global second.
=> Takes Effort, Energy and Motivation
Not only must you actively recruit your own direct downline, you must stay on top of them to ensure that they are actively recruiting and supporting THEIR downline. Remember, this is the way you make money in this industry. It's all about leveraged income.
So understand going in that this is a business that will require real effort on your part. And sustained effort at that. But what in life that's worthwhile doesn't, right? This my friends is what is so over looked and so understated. It does take work and it is a peoples business. You have to care and love people. Truly want to see other people succeed.
Also, plan to have to motivate yourself. Ideally, you should be being "worked" by your upline to keep you on track but motivating yourself is YOUR job. Don't expect someone to do it for you. There are too many other motivated people out there for your sponsor to be working with.
=> Financial Commitment
More likely than not, you will have to commit to purchasing a certain volume of product each month to remain eligible to participate in the program. Be sure you understand your monthly financial commitment going in. And, while you're at it, make sure that what you'll be buying is a quality product that you have a genuine interest in purchasing. If you're just going to stash it away in a cupboard somewhere, look around until you find a product that you actually want and will use.
LFY Products certainly will fit into your budget and lifestyle. Lyf has designed high quality products that you would be using in your every day life. They take health and wellness extremely seriously. There will be over 1400 different LYF products for the distributor and customer. Easily something to fit into your daily lifestyle.
LYF products you will actually use. The product quality (health and nutrition, organic skin care and natural household cleaning products) is outstanding and, most likely, you will simply "transfer buy" the products anyway. In other words, you're probably already using most if not all of these types of products anyway. It's simply a matter of buying from your own LYF business than the supermarket. You can literally be in business with no new money!
WHO IS BEST SUITED TO MLM?
It should be obvious from what has been said above that in order to be successful in MLM sales, you have to be someone who's a self-starter and is able to lead others. If, on the other hand, you're someone who needs someone else to poke you into action when it comes to work or business, MLM sales is probably not for you.
You need to be an active recruiter and, once you have a downline, you need to be in touch with them constantly to provide support, assistance, and guidance ... leadership, in other words.
Of course, if you're going to take on this role, you will need to be comfortable dealing with people. You must be able to communicate effectively. Common sense suggests that the more outgoing and sociable you are, the more you are going to enjoy this sort of role and the better you will be at it as a result. If you're more of a recluse than a social butterfly, it's unlikely you're going to be able to walk the talk and get out there and do what has to be done to keep your downline on track and productive.
Finally, MLM is a very personal way of selling. You must exercise your own powers of persuasion and influence to encourage others to come on board with you. It is imperative, therefore, that you are 100% behind the program you are promoting. Study the company LYF, give me a call so we can talk personally. Get on LYF conference calls, learn about the team, the company the products. Lyf will soon become a part of your life; your belief system will grow. He more you invest in your self in the company, the calls the training the products, the more it will show through to your downline and those you talk to about the business.
But even more importantly, don't compromise your own self- respect by promoting something you just don't believe in. Not only will you be lying to your downline and prospective downline, you will also be lying to yourself. In the long-run, no amount of money can buy back your self-respect once you've sold it down the river. Do your homework up front. As much as I believe and know about LYF. It has to be what YOU believe. If you are not 100% sure then order products first. Be a customer.
For those who are determined to work this as a business. Lets get started. Nothing will happen with out action!
As you can probably appreciate by now, the right MLM program can be an ideal type of business. The Perfect business model!
BUT don't allow the actions of a few (or even many) to rob you of the chance to participate in something that may ultimately lead you to legitimate home business success. I encourage you to give me a call or fill out the form on this page and I will be inn contact with you. If you are passionate about working a home based business. Contact me. We are a group of full time networkers who are committed to your success.
Randy Bacon
360-209-2989
MLM SALES
MLM Sales© MMG LLC. All rights reserved. The material in this site is intended to be of general informational use and is not intended as technical advice. INDEPENDENT DISTRIBUTOR FOR LYF. Please visit my blog at www.randybaconmlm.com