Thread: Mlm
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Old 11-05-2006, 05:30 AM   #15 (permalink)
sjpeer
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Join Date: Nov 2006
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Default MLM not for everyone

I actually have worked previously on the corporate side of the MLM (acutally a more correct term is Direct Selling) industry and currently work for a company that provides services to Direct Selling companies. Needless to say I've seen the industry from several different angles.

Direct Selling is completely legit but not for everyone. MLM products are often premium products (i.e. Mary Kay, NuSkin, Tastefully Simple) so there's no problem with legitimacy there. Most compensation plans DO rely on heavy recruitment to make the big bucks so there can be a tendency for distributors to start seeing their friends and family as simply a way to make more money. I've seen many strained relationships personally because of this.

Statistically, the direct selling industry is a revolving door with a high percentage of distributors quitting within a few months. They sell the dream of financial independence and that's perfectly fine. But it's true that most won't obtain it. Those who are dedicated and spend considerable time building their business will be most successful. And it DOES help to get in on a new MLM company early. With Mary Kay, I don't think you'll find one National-level Director that hasn't been doing the business for less than ten years. Sure they probably make 6 figures every month, but it took considerable time and dedication to get there.

Ultimately my advice concerning participating in an MLM is this: if you have a passion for working with people and the products you're selling, it might be a good opportunity. If you're in it just for the money, you're probably better off doing something you love. You'll be happier and can arguably make just as much money.
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GettingFinancesDone.com
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