Sunday, July 8, 2012
The real problem of Multilevel Marketing
It never ceases to amaze me the bizarre views on multi-market. Some are extremely passionate, and there are many famous authors like Robert Allen, Mark Victor Hansen and Robert Kiyosaki doing it and defending it. But still, in many circles, you prefer to plead leper before revealing that you have an MLM business.
So what's the problem with MLM?
Perhaps is it a pyramid structure? Well you can think of it as a step --- compensation structure Almost all large organizations worldwide use an equal. Salespeople earn commissions, sales manager earns bonuses, and so on upwards.
Or maybe the question is it because you have to pay to participate? But this is not so --- is a standard franchise model.
And I assure you the cost of a traditional franchise shrink in comparison to the costs of joining a MLM business.
Of course there are illegal pyramids and other scams. This is where the money comes from people affiliated. With little or no product to be shipped. But despite any perception you may have, the fact is that Amway, Herbalife, TNI, Agel, Usana and others have sold millions of products to millions of satisfied customers, many of them without being distributors, then, may be a problem of perception here, but if so, the perception is out of line with reality.
But surely the bad reputation of MLM is because like does the illegal pyramid scheme?
The real problem is that MLM is not MLM in themselves, but some people are attracted, the MLM is simply a business model, and the truth is that they are an accumulation of "micro-franchising?, payable very little to begin with exceptional earning potential, and there are those who achieve this.
But these very things that make it attractive to some people also make it attractive to people who are not ready to own your own MLM business. The most notable features that make them attractive for a MLM business people are:
• He has had success in their business or profession and have little money saved to invest.
• No experience in other businesses or to own.
• No previous experience in sales.
• Little or no experience developing relationships with employees / business partners.
• Not satisfied with your current income level.
• have unrealistic expectations of the amount of hard work compared to earned income.
--- Do not get me wrong I'm not saying that these things are bad, or that describes most MLM business owners --- this only describes a disproportionate number of multilevel business owners, and most of them never do anything about it.
As a result, many dealers just like this:
• About the opportunity to sell
• Inappropriate discussions in social situations
• Coming to despair
• fixation on new distributors and abandon existing customers
• Becoming somewhat inadequate or disappointed when you talk about the business
Again, no forestay describing most of the distributors, but describes a considerable amount to tarnish the reputation of everyone else. To prejudge someone based on a minority is a horrible mistake, but we understand that most prejudices have some basis in reality, even if it has been distorted.
So what's the solution?
There's always a first time for everything. And a MLM business is a fantastic opportunity to get your first business, the first relationship of sales, etc.. My opinion is this --- recognize it for what it is, is a business, and you're the owner. And if you've never been owned before, if you've never done sales before, if never before worked with suppliers, you need to learn how to do that, not only multi-expert, but if established expert in these areas.
Distributors who are serious about building a successful business should read and learn about the basics, the latest marketing techniques and sales strategies for teamwork and business development, etc. Do not just learn the tricks in the team meeting weekly or monthly. It acts as a small business owner, and people treat you as such.
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