Mlm

[Pavel Alasheev]

What do you think about MLM industry? Share your opinions and experiences...

Personally i think that many MLM companies do a good job making their distributors read the "right" books, attend personal growth seminars and so on. As far as i can see, a person's success in MLM is aligned with the person's personal development and leadership skills.

I am actually surprised, that Steve has never mentioned MLM opportunities, though he writes a lot about entrepreneurship.

(no, i do not work in MLM. I had an experience in an MLM company a couple years ago, and it was quite positive.)

[thadroe]

Originally Posted by Pavel Alasheev

What do you think about MLM industry? Share your opinions and experiences...

Personally i think that many MLM companies do a good job making their distributors read the "right" books, attend personal growth seminars and so on. As far as i can see, a person's success in MLM is aligned with the person's personal development and leadership skills.

I am actually surprised, that Steve has never mentioned MLM opportunities, though he writes a lot about entrepreneurship.

(no, i do not work in MLM. I had an experience in an MLM company a couple years ago, and it was quite positive.)

Just my personal opinion....I don't like MLM at all. I've known a lot of people who have done them but I've never seen anyone who is very successful at it.

That issue aside, I personally would not get involved for the simple fact that you don't have a lot of control over what you are selling or marketing. If I'm going to build a long term business, I want more control over what I offer and how I offer it. MLM takes a LOT of work...if I'm going to put that much work into something, I want it to have more "ownership" of what I'm doing.

Some people swear by MLM and I'm sure you can make a good living if you put the effort into it, but it's just not for me for those reasons.

Also, I want to do things that will ultimately allow me to fulfill more of a purpose and pursue my passions in life.

Thad

[starkey]

I have had a few friends push MLM on me and it does not seem like an effective way to make money. Very time intensive but little reward. Analytically, it has to be that a few people make a lot of money and a lot of people will make a little money. Simply because there are a finite number of people in the world. You just can't keep adding levels to the bottom.

[Dave Kaminski]

Originally Posted by starkey

I have had a few friends push MLM on me and it does not seem like an effective way to make money. Very time intensive but little reward. Analytically, it has to be that a few people make a lot of money and a lot of people will make a little money. Simply because there are a finite number of people in the world. You just can't keep adding levels to the bottom.

There is a finite number of people, but you dont expect a 100% success rate. That's like saying McDonalds expects everyone in the world to eat at least one hamburger from them a year.

My mom is involved in one and has been for a couple of years. She's one level below the 'big money.' I think if you're a good salesman and by that I mean you are good at identifying win win situations with your product and service with people, and you're good with systems thinking, you can succeed with just a consistent effort. If you just try to push it on anyone or try to micromanage everything, i think you have a lot of learning to do before success in an MLM.

[Yynatago]

What is this MLM everyone talking about? <Yynatago Googles "MLM">. Ahh, Multi-level Marketing, otherwise known as network marketing.

My parents joined a MLM a few years ago and while we all thought the product was great and although they made money each time they held a party, the real business seems to be recruiting more people into the network so that they can earn passive income while the recruits held the parties.

Originally Posted by Dave Kaminski

I think if you're a good salesman and by that I mean you are good at identifying win win situations with your product and service with people, and you're good with systems thinking, you can succeed with just a consistent effort.

I think Dave is right on the money here as well. Just my two cents.

Regards,
From Shannan

[Scorpibear]

I believe it is not a good idea to make money via MLM, just because you are working for money and create a little value. It is much better to create value for people and receive money for that.

MLM could be a good way to make living, if you really like to do this and can create value via it (not just involve more and more people and learn them to do the same).

[kthdsn]

I find MLM inethical. You can only make money with it if you have enough people working below you making money. You are in effect getting others to do all the work for you then cashing in on it.

Obviously in our modern society one needs money to survive, but is it really that important that you have to hire an army of little slaves to do your work for you?

[Scorpibear]

Originally Posted by kthdsn

I find MLM inethical. You can only make money with it if you have enough people working below you making money. You are in effect getting others to do all the work for you then cashing in on it.

Obviously in our modern society one needs money to survive, but is it really that important that you have to hire an army of little slaves to do your work for you?

Agree, it will be much more ethical to hire an army of technology stuff to do all dirty work (like Google AdSense ). Automation rules!

But also I have to say that I have never involved in MLM (but a lot of people try to involve me ), so maybe I do not understand something.

[Pavel Alasheev]

Originally Posted by kthdsn

I find MLM inethical. You can only make money with it if you have enough people working below you making money. You are in effect getting others to do all the work for you then cashing in on it.

Obviously in our modern society one needs money to survive, but is it really that important that you have to hire an army of little slaves to do your work for you?

Quite on the contrary, i find MLM highly ethical. I don't know how familiar you are with MLM, but your talk about little slaves suggests that you are not really familiar no offense. Actually your words about an army of little slaves apply to ANY regular business, rather than to MLM.

Now look at my logical chain:

An MLM leader gets his paycheck depending on the volume of products he and his group has purchased, and so does each member of his group => His earnings are directly proportional to his people's earnings => He is interested in his people earning more => He will do all it takes to teach them to work properly.
In other words, every MLM company is interested in high earnings of its affiliates. The richer each affiliate, the richer the company. I think that's very ethical.

Now think McDonalds (or any other business). The business owner is inclined to pay as little as possible to his employees, because the less they get, the more he gets. Now is THAT ethical?

[kthdsn]

At least people who work in macdonalds actually get an income, most people who join MLM programmes don't earn much if anything at all. An example here is avon, a cosmetic company. I have been stopped in the street by avon people because they are so desperate for people to join below them so they can start actually earning. They all promise high earnings yet the reality as far as I can see is very different for the majority of people.

This is why I find it unethical, if you are making money from it then it is a direct result of the people below you struggling to earn a pathetic pittance.

Of course, this is only my opinion from my perspective. Just because I find it unethical doesn't mean that others have to agree. The point of a discussion is to learn about other perspectives, and that is why I am sharing mine.

[Dave Kaminski]

Originally Posted by kthdsn

At least people who work in macdonalds actually get an income, most people who join MLM programmes don't earn much if anything at all. An example here is avon, a cosmetic company. I have been stopped in the street by avon people because they are so desperate for people to join below them so they can start actually earning. They all promise high earnings yet the reality as far as I can see is very different for the majority of people.

This is why I find it unethical, if you are making money from it then it is a direct result of the people below you struggling to earn a pathetic pittance.

Of course, this is only my opinion from my perspective. Just because I find it unethical doesn't mean that others have to agree. The point of a discussion is to learn about other perspectives, and that is why I am sharing mine.

However, the people that work in MLM are paid in direct proportion to the effort they put in. This is a more fair business model than a salary could be considered, as I'm sure we've all worked with people who don't pull their fair share, and SOME OF US are passionate about what we do and are always striving to innovate and serve at the highest possible level. You find that much more prevalent when you're in control of the amount of money you make.

With a lot of MLMs, it's not the pay schedule that's the problem, it's the prospecting. So many network marketers will just tell everyone they know and hope to find some super stars. If they were good networkers, which is the whole idea, they would qualify their prospects much better, instead of deteriorating their network by verbally spamming people who aren't interested OVER AND OVER AND OVER AGAIN.

[Pavel Alasheev]

Originally Posted by Dave Kaminski

However, the people that work in MLM are paid in direct proportion to the effort they put in. This is a more fair business model than a salary could be considered, as I'm sure we've all worked with people who don't pull their fair share, and SOME OF US are passionate about what we do and are always striving to innovate and serve at the highest possible level. You find that much more prevalent when you're in control of the amount of money you make.

With a lot of MLMs, it's not the pay schedule that's the problem, it's the prospecting. So many network marketers will just tell everyone they know and hope to find some super stars. If they were good networkers, which is the whole idea, they would qualify their prospects much better, instead of deteriorating their network by verbally spamming people who aren't interested OVER AND OVER AND OVER AGAIN.

on the other hand, if a networker believes his company and his product are so great, then he feels he's obliged to tell everyone about it. Otherwise he would be depriving them of such a great opportunity. Actually in the MLM company that my girlfriend works for, there is a rule of 3 months, i.e. once you got a denial from someone, leave them alone, and try again 3 months later. I wouldn't call it spamming. If only all spammers followed that rule!!

[thadroe]

Actually in the MLM company that my girlfriend works for, there is a rule of 3 months, i.e. once you got a denial from someone, leave them alone, and try again 3 months later. I wouldn't call it spamming. If only all spammers followed that rule!!

That's a very good rule for people doing MLM. The problem most of the time is that people get so wrapped up in trying to make their MLM business work, that they get desperate and bug people to death.

I've seen a lot of friendships fall apart because one person gets involved in MLM and it ends up seeming like they joined a freakin cult...trying to recruit every friend and family member every time they talk. That's just bad marketing in general...no matter what kind of business you are in, you have to make sure you are putting your energy into targeting the right people.

Thad

[nikewong]

not everyone in MLM are evil, but not everyone of them are good. And it doesn't really promise everyone can earn big money, it all depends the right person doing the right job finding the right people... however, i found that most MLM that base on recruiting for the survival of the business are mostly scam..
i do like the concept of networking, but not all of it..

[sjpeer]

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.

[Fusebox]

I joined N21/amway here in Sydney last year, just to see what it was like, lets just say i didnt like it. The people involved with their whole positiveness and stuff just dont seem genuine.
Anyways, I dont get involved, and I leave it be, waiting for my membership to expire, then out of the blue when my thing is about to expire I get a call from the guy who signed me to ask how I was doing and stuff. I swear the nerve just to get me signed up again!!

Anyways I dont like MLM.

[Pavel Alasheev]

Originally Posted by sjpeer

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.

I think traditionally the terms Direct Selling and MLM are slightly different. Direct Selling companies rely more on sales to non-members, without giving too much weight to building a vast downline, whereas MLM companies get most of their profits from members' monthly payments, so the focus is to build a network of consumers, rather than salesmen. But i may be wrong here.

Originally Posted by sjpeer

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.

I see a logical mistake here. Even though it takes ten years to become a national director, it doesn't mean it's impossible to do it starting now. Doesn't matter when you start, but if you work hard enough in ten years you'll be at this level. I've seen cases when newbies make top qualifications in a year.

By the way do you have any info about how much money top leaders of leading mlm companies (like Amway, Mary Kay etc.) make in the US? Just curious to compare with russian mlms.

[DmitryDavydov]

Originally Posted by Pavel Alasheev

What do you think about MLM industry? Share your opinions and experiences...

Personally i think that many MLM companies do a good job making their distributors read the "right" books, attend personal growth seminars and so on. As far as i can see, a person's success in MLM is aligned with the person's personal development and leadership skills.

I am actually surprised, that Steve has never mentioned MLM opportunities, though he writes a lot about entrepreneurship.

(no, i do not work in MLM. I had an experience in an MLM company a couple years ago, and it was quite positive.)

STAY AWAY from MLM. It's just about the dumbest and the most difficult way to generate money. Go for YOUR OWN business and DON'T BUY BS from MLM people when they say that when you join their company, you somehow get your own business. This is simply NOT TRUE.

MLM sucks. It's very good for your personal training, but you won't make any money in it. Exceedingly unlikely. Go to Amway and read their statistics. They make 2 billion in sales. Sound's good? Well, they have FOUR MILLION DISTRIBUTORS. Do the math, it comes out to about 500 dollars a year. 50 bucks a month is not a lucrative business you should pursue. Now, that's the AVERAGE. Which means that most people DON'T MAKE ANY MONEY.

As a fellow Russian, I just warned you. One day you'll be thankful. Taking risk is good, but you have to take good risks.

[escapee]

The main problem with MLM is that it hires the sales ppl indefinitely without paying a fixed salary until the whole supply and demand chain collapses ( i'm referring to those highly aggressive type of MLM that requires members to buy products periodically to reach certain level ). When it does , many would lose their shirt , their family and friends while the owner and a few members at the top of the chain make a ton. I believe MLM is one of the most extreme form of capitalism which we should all be very very careful about ( or avoid like a plague ) .

I read an article that says playing slot machine has a better chance in winning than MLM .

Seach MLM scam in google or yahoo , you would get plenty of information pertaining to the subject.

[DmitryDavydov]

Originally Posted by escapee

The main problem with MLM is that it hires the sales ppl indefinitely without paying a fixed salary until the whole supply and demand chain collapses ( i'm referring to those highly aggressive type of MLM that requires members to buy products periodically to reach certain level ). When it does , many would lose their shirt , their family and friends while the owner and a few members at the top of the chain make a ton. I believe MLM is one of the most extreme form of capitalism which we should all be very very careful about ( or avoid like a plague ) .

I read an article that says playing slot machine has a better chance in winning than MLM .

Seach MLM scam in google or yahoo , you would get plenty of information pertaining to the subject.

Yep, I knew a guy who used to make six figures in early nineties with Herbalife. Right now he makes 30K as a manager. That sucks. BUT - it happens with ALMOST EVERY MLM SUCCESS STORY. And these are pretty hard to find.

No matter how you look at it, other than sales training, MLM is a 'you lose no matter what' proposition. You lose even if you become successful. Your only real option is to start your own MLM company.

[Pavel Alasheev]

Originally Posted by DmitryDavydov

STAY AWAY from MLM. It's just about the dumbest and the most difficult way to generate money. Go for YOUR OWN business and DON'T BUY BS from MLM people when they say that when you join their company, you somehow get your own business. This is simply NOT TRUE.

MLM sucks. It's very good for your personal training, but you won't make any money in it. Exceedingly unlikely. Go to Amway and read their statistics. They make 2 billion in sales. Sound's good? Well, they have FOUR MILLION DISTRIBUTORS. Do the math, it comes out to about 500 dollars a year. 50 bucks a month is not a lucrative business you should pursue. Now, that's the AVERAGE. Which means that most people DON'T MAKE ANY MONEY.

As a fellow Russian, I just warned you. One day you'll be thankful. Taking risk is good, but you have to take good risks.

As a fellow Russian you could try to be a little more objective and respect my point of view. And don't talk to me as if i'm a newbie who knows not a thing about MLM. And SHOUTING is not a good idea either.

Have you personally BEEN a success in MLM? if not then how do you know what it's like. Yeah you probably have a bunch of stories to illustrate your point of view, but i also have a lot of stories to illustrate mine.

Your point is that most people fail. But if you look from another perspective, they may not have earned any money, but not everything in our life is measured with money. For a lot of people MLM is the first step to: 1. acquiring an entrepreneurial mindset. 2. personal development. How much does that cost?

Once again, most people in MLM quit without achieving any success. That's true. Now think of linear business. How many entrepreneurs succeed in their business? Think of e-commerce. I'm sure 90% of those who start an e-commerce business fail. (By the way, your blog kind of talks people into starting a web-business. 90% of them will fail. Does it mean your blog is a scam?).

Your logic: most people in MLM fail => therefore MLM sucks.
Then: most people starting their own business (or web business, or forex trading, or whatever) fail => therefore everything other than a 9-to-5 job sucks. Right?

My point is MLM is no different than any other kind of self-employed work. 90 percent will fail. 9% will get average results. 1% will achieve outstanding results. You get as much as you deserve.

PS: some comments on the amway figures you've quoted. Out of 4 million distributors, 2 million probably do not work at all. i.e. they bought a product, and either they are happy with that or they changed their mind, in a word they will not start really working. Of the remaining two million over 1,5 million work part-time as a supplement to their daily jobs. Yeah they earn very little, but they invest very little. Those who invest much, "skim the cream". In any decent MLM company (in Russia) two years of hard work is enough to achieve a paycheck of a few thousand dollars. In Russia it's a lot more than "nothing".

[escapee]

Pavel , below are some very "negative" articles about MLM. I think there will be valuable for you to weigh the pros and cons of MLM before commiting yourself fully into it. No offense ..

Ten Big Lies of Multi-Level Marketing

MLM Watch

98% of the ppl earn USD38

Nikken

[Pavel Alasheev]

Originally Posted by escapee

Pavel , below are some very "negative" articles about MLM. I think there will be valuable for you to weigh the pros and cons of MLM before commiting yourself fully into it. No offense ..

Ten Big Lies of Multi-Level Marketing

MLM Watch

98% of the ppl earn USD38

Nikken

Thank you escapee, i've already read those (plus other stuff from that site). Now, don't get me wrong here. I'm in no way saying that MLM is unconditionally good and everyone should do it. Also note that i'm not working in MLM and not going to (at least not in the nearest future), because i see a lot of opportunities better than MLM. Probably in this thread i've created myself an image of an MLM fanatic, but believe me i am not.

What i'm trying to do is to be objective. for example, I mentioned that my girlfriend worked in MLM. When i notice that she's getting too hyped up, i try to kind of point out to her that MLM may not be the best thing on earth (those articles have helped me there too). See, if i come across an MLM fanatic, i try to kind of counterbalance him in the discussion, so he gets a more balanced perspective. The bad image of MLM is mainly due to fanatic people who bug everyone out. And when i come across an MLM-hater (like Dmitry two posts earlier) i try to point out the good sides of MLM to him.

Personally i see more good than bad in MLM, but that is just my experience. But i don't think a person's single negative experience in MLM (as in anything else) should close the MLM doors for him forever. It's said that wise people do not have their own opinion. Cause there's no "right" point of view, everything in this world is too subjective.

To conclude, the world is not black and white, and perceiving MLM as absolute good or absolute evil is a "disempowering belief". That's what i'm struggling with.

And now i'm out of this thread. it eats up too much of my time already.

[mrkpinero]

I'd rather not get into the heavy discussion but would just like to say something.

MLM isn't easy. It requires 100% of yourself and another 100% from the company you market for. If you're a part of one of the great companies that have a product people need and are extremely good at what they do, I'd say it's all just dependent on you. I know of a certain company that's exploding right now (I won't mention any names because it'd seem I'm biased) in the heart of Los Angeles. And if you're familiar with Southern California, it's EXTREMELY hard to do MLM, I've heard it's 3x harder than any other area in the United States. The reason why is because they do have a strong product people need and success is very capable. There's my two cents.. please don't flame me! Hehe.

[Hai]

Most of the time it is not simply just MLM. There is a thin line between MLM and pyramid scheme. Many pyramid schemes hide in the smoke screen of MLM.

Read This Before Joining MLM

[Lucas]

I would love to just weigh in my views on MLM. I appreciate all the views in here too, theres a wide variety. I researched MLM for an entire year before even picking one.

Direct Sales vs MLM - Typically Direct Sales deals with higher ticket, one off items, like information products and seminars. They have a higher cost of getting in, usually $1500 for the entry level products. The up side is that you get a high commission on each sale, around $1000. The downside is that since it is not a product that depletes, you either need consistent sales, or a massive downline (people working under you) making sales. It is good for experienced marketers looking to supplement their income, imo, with a great info product they already use.

MLM however typically deals with quality products that get used up, like heath and beauty products, or juices. The start up costs are much lower, the commissions are lower, however you get residuals from clients, and usually residuals from your downline as well. The upside is that it can make you a substantial passive income, the down side is that it takes real work. Yes, you have to work your business. Many people get in and then say "why isnt this working for me?", because its a system, the system only works if you work the system.

When you do MLM you are basically buying a franchise. The corporate office supplies you with a system and resources and you go from there. It's typically not over 600 dollars, and I can't think of a brick and mortar franchise you can get for that. Not a well known one. Typically a franchise will cost you 100k plus startup expenses, and a typical franchise takes 5 years to start making money. 5 years. While you are NOT going to get rich overnight in an MLM it is reasonable to expect making profit in 90 days, if you do these things.

1. Don't be sold by hype. You will buy into a brilliant MLM, you will not get sold one. If you got sold, you are most likely going to quit. It's going to take effort, and yes it will take some money, especially if you aren't comfortable promoting in your warm market (people you know), which is ok. You can replace your income in a reasonable time, and you should have that goal...just stage them. Recoup investment. Replace Income. Build a Fortune.

2. Research. I can think of countless people "burned" by MLM who went with the first opportunity that presented itself. Do you buy the first car you look at, or the first home you look at? Rarely, and if you do you probably knew what you wanted. Familiarize yourself with the company, it's mission, their products and their compensation plan. People who start a business without research are setting themselves up to fail, imo. Especially take care in choosing a sponsor. Joining with the first yahoo that pitches you is dangerous. Make sure you like that person and they are willing to help you and that they have tools and drive to help you succeed.

3. Treat it like its your business, and this is crucial. Always treat it is like your business, from keeping records of expenses, to following up prospects and leads. If you treat it like a hobby, and thats what some do, especially because the start up costs are so low, then thats what it will be. This is a chance for you to free yourself from a job, but you need to roll up your sleeves. Stay in contact with your sponsor, work you leads and follow up, follow up, follow up.

Can anyone do this? Yes. Should anyone? No. I personally shouldn't be an auto mechanic, I just am not geared that way. If I buy a Jiffy Lube, and work it a month and quit, is it the auto repair industry's fault? Nope it's mine. If you take responsibility for your income and actions, you will go a lot farther. I love this business model because your upline has a vested interest in seeing you succeed, and you have a vested interest in in seeing your downline succeed. Theres no positional competition, theres room for as many Senior Distributors as want to put forth the effort to get there. You have no boss telling you what to do, what to wear, when to be there, and best of all theres no limit on what you can earn. None.

Whew, that was long. I need lunch!

-Lucas

[Stephen]

After reading all the posts on this thread, I have to say that there are one or two people who are either confused or completely ignorant of MLM or any other business.

I dont nor ever had (though I wouldnt rule it out) worked in MLM. Regardless: It works something along the lines of the greater the network of distributors the greater the numbers of products distributed. I assume that for MLM to succeed, the distributor has to 'be' the product or service: thus greater product distribution and greater experience by the distributors of the product they themselves are using.

To say that those who are working are slaves is contemptable. Free market economies work on the basis on the free distribution of labour and resources. MLM is no different. I think the real reason why MLM gets a bad name is because too many go into it thinking about instant success without the work. Wrong. Yet to find that business myself. I would imagine most smell the coffee as soon as they actually get a few rejections then give in, like most other people who go into sales. They never realise that with only a little perseverance and stamina, success is just around the corner. The trajedy is that the vast majority of people go into sales and give up too soon. Slaves? Yes, maybe to themselves, but not to anyone else.

But if you want real slavery, get a salaried position with crazy targets then look at your net wage after deductions. Now try and walk away after you have joined the rest of society who are trying to keep up with the Jones's!

Another thing I cant understand is why people can attack MLM because someone above them is making money from their success! Well why not. They have probably recruited you and given you support. Even if they havent, you certainly must have looked at the commission structure before you signed up and if you are successful and making a killing, who cares if someone else is? Isnt that even better?

[Caveman Joe]

I think the real problem with MLM is that it just doesn't make economic sense. The numbers simply don't add up. And, granted, if you've got a lot of drive and are determined to succeed, you might - but if you've got that much energy, you'd be much better off investing it into a business idea that has a higher chance of success to begin with.

Also, if the products are that good, why can't I buy them in Asda?

[Lucas]

Originally Posted by Caveman Joe

I think the real problem with MLM is that it just doesn't make economic sense. The numbers simply don't add up. And, granted, if you've got a lot of drive and are determined to succeed, you might - but if you've got that much energy, you'd be much better off investing it into a business idea that has a higher chance of success to begin with.

Also, if the products are that good, why can't I buy them in Asda?

I would love if you would help me to know where you are coming from with this post. Starting a business, regardless of which one you do, does not guarantee success. Could you give me some examples of these business ideas that are closer to a guarantee of success? I would appreciate that, because maybe I would be interested in investing there as well.

Word of mouth advertising is the most powerful form of advertising there is, and these companies are using that, which is why you cant buy the products in Asda (is that a town or a store?), because they aren't going through the normal distribution channels, which costs money. What these companies do instead is make an initial investment into developing tools and systems for their distributors to use, which cuts out the huge advertising and marketing cost companies spend per year, and that goes to the distributors in the comp plan, which is why theres a lot of money to be made in MLM and NWM.

In my opinion, and this is just me, I think MLM is one of the best business models around. It's a relationship fostering model, and that is one of the most powerful forms of client retention/sales in the world. We buy from people we like.

[Caveman Joe]

Originally Posted by Lucas

I would love if you would help me to know where you are coming from with this post. Starting a business, regardless of which one you do, does not guarantee success. Could you give me some examples of these business ideas that are closer to a guarantee of success? I would appreciate that, because maybe I would be interested in investing there as well.

There is no business that can guarantee success. I don't know where you got the idea that there was.

Originally Posted by Lucas

Word of mouth advertising is the most powerful form of advertising there is, and these companies are using that, which is why you cant buy the products in Asda (is that a town or a store?), because they aren't going through the normal distribution channels, which costs money. What these companies do instead is make an initial investment into developing tools and systems for their distributors to use, which cuts out the huge advertising and marketing cost companies spend per year, and that goes to the distributors in the comp plan, which is why theres a lot of money to be made in MLM and NWM.

MLM's don't use word-of-mouth advertising. They pay people to sell for them, just like other companies pay telemarketing firms - except that instead of selling to random people, most people end up selling to (and recruiting) friends and family members. It's not word-of-mouth if money changes hands.
ASDA is the biggest supermarket in the UK, and recently merged with Wal-Mart. ASDA, Tesco, Sainsbury's and Morrisons are the UK's "Big Four" supermarket chains.
Are you saying that MLM companies wouldn't like to have their products sold on ASDA's shelves? It'd certainly shift a few units. No, I don't think that's the case. I think the problem is that the Big 4 don't want anything whatsoever to do with MLM, and prefer to stick with a business model that has proven itself to work.

Originally Posted by Lucas

In my opinion, and this is just me, I think MLM is one of the best business models around. It's a relationship fostering model, and that is one of the most powerful forms of client retention/sales in the world. We buy from people we like.

If you can make a living in MLM, then fine, go ahead and do it. I just think that if you have the determination to make money in MLM, you have the determination to make money in anything, and you really should be working for yourself instead.