Network Marketing Information

When MLMs Go Bad


There is no such thing as a totally fair MLM. The person at the bottom of the line always misses out. That's not to say they don't have their place in the web marketing industry, people just need to understand what that place is.

All too often, MLM's are used as the purpose of a program, rather than an added benefit.

Allow me to back-track. Definition first, then application.

When I first discovered web marketing programs, I kept seeing the initials MLM, with no clue as to what the letters stood for. In fact it was weeks before I eventually discovered the term "multi-level marketing".

Not that I was any the wiser. Describing a typical MLM is like trying to describe a typical job. There are so many different uses for the concept that trying to break it down to a few words can never really do it justice. There are many different applications of MLM's. Some useful, some useless. Some legal, some illegal.

The basic principle is that the marketing efforts of one person benefit more than the individual.

A real-world example would be a wholesaler selling large qualities of DVD's to resellers. The wholesaler buys the DVD's from the producers for 2 per DVD. He sells them to high-street retailers for 4 per DVD. The high-street retailer sells them to the consumer for 6 per DVD.

In each case the profit is 2, but the wholesaler wouldn't make his profit without the high street retailers, and the high street retailers wouldn't make their profit without the consumer.

The process from producers to consumers effectively shares out the cost of the distribution while ensuring a profit is made at each level.

Compare this with an affiliate program.

The owner (producer) wants to sell software X for 50. He sells his product to his members (wholesalers) at a full or reduced rate. The members then sell the product on to other members (also wholesalers) and also to ezine and website owners (high-street retailers), for the same price keeping between 30-50% percent of each sale. The ezine and website owners sell the product to their readers / viewers (consumers), also keeping 30-50 percent of each sale.

This process works well for the owner as the cost of marketing is shared among the members and the ezine / website owners. Everyone makes some money or receives the product they want.

The problems begin when the owner gets greedy.

Not satisfied with a simple affiliate program, they combine it with an MLM program. They reduce the percentage members make from each sale to 5-10%. They then announce that if you introduce a member to the program, you will make 5-10% of every sale they make in addition to your own sale.

If they recruit more members you will also earn 5-10% of every sale they make and so on, down several levels.

This has two effects:

1) Members stop selling the product and start selling the benefits of selling the product. The prospect of making money is usually easier to sell than the product itself which leads to vast number of members signing up. As you have to purchase the product to join, the owner is making a lot of money.

2) In the original affiliate program, members had to sell 2-3 products to break even. Now members have to sell between 10 and 20 products to break even. Since most can't manage this, the majority of members wind up with nothing but a discounted program they didn't really want in the first place. The only real winners are the owner, the members who managed to sell in large numbers and the people who bought the software because they really wanted it.

Take Note: The owner and members who profited, did so, not because they found satisfied customers, but because the promise of riches lured many members to waste their money on the product. These are the guru's who amass their wealth, not dishonestly, but unethically and immorally.

These same people will also take your money in exchange for learning how to be successful in selling these programs. In making a lot of money of the backs of people who should know better, but sadly don't.

This is why MLM's are unfair. This is when MLM's go bad.

But it doesn't have to be this way.

The example of Software X wouldn't be so unpleasant if individuals stopped selling a profit and started selling a product. If they promoted the MLM part of the program as a benefit, rather than the purpose, this would stop some people from buying the program under the illusion that they are assured of making vast amounts of money.

And play your part as well. Stop promoting unrealistic promises of wealth and start promoting promises of a great product. Before you resell it, try it out and make sure it works and is actually worth buying.

And when you assess a program that features MLM. Ask it two questions.

1) Does the MLM have a product? Software, eBooks, services, anything that people can GENUINELY benefit from. If the only product is making money from future members, leave it alone.

2) If a member doesn't recruit a single person, do they still benefit from the program? For example, do they, at the least, come away with a useful product or service. Traffic Exchanges are a good example as (providing the ratio is reasonable), a sole member can still earn a steady stream of traffic from surfing without having to recruit others.

If the program fails to successfully answer either of these two questions, move on. Ignore the promise of wealth.

Keep your dignity, keep your morals, keep your ethics and leave the guru's to continue the age-old tradition of making money off the backs of others who finish up out of pocket.

Dylan Campbell has been quietly making a living on the Internet since 2000. He has a unique, and often controversial, view of the industry.

Dylan Campbell writes exclusively for The Nettle Ezine.


MORE RESOURCES:
Home Based Business:Network Marketing Articles from EzineArticles.com
08/16/2017 12:52 PM
Overcome the 4 Most Common Objections in Network Marketing With This
Do you stumble over what to say and how to handle the 4 Most Common Objections in Network Marketing? I am going to give you superpowers..
08/16/2017 12:51 PM
Want to Know How to Get Prospects in Network Marketing? Greater Qualified Leads
Lead generation is something you can learn about when you have the right tips presented to you. Getting leads for a business could be tricky, but that's why tips like these were put together. Take a moment to go through all of this and see exactly where it can take you.
08/16/2017 10:59 AM
How to Generate MLM Success From Your Blog
Does MLM success sound great and do you want to do it without spending money on paid advertising? You can through content marketing.
08/16/2017 09:59 AM
How to Run Like a Wolf in Network Marketing
Leaders rise when there is an absence of authority. True commanders in network marketing came from the bottom. They don't need fancy titles.
08/16/2017 08:38 AM
Valentus Review - Why Is Valentus Growing At 1000 Percent?
Valentus is the fastest growing company in the direct selling industry. Read this review to see why.
08/14/2017 02:20 PM
Residual Income: Building Your Own Dream - Not Your Employer's
Earning a residual home-income is the theme of my article. I explain how you can start to build a solid home-based business from the comfort of your own home. Starting from today, you can be on your way to earning a residual income without any startup costs. Start building your dream today for free, all is explained in my articles.
08/11/2017 10:59 AM
How to Build Up Your Network Marketing Business Through Conversations
Have you ever wondered how some network marketing people get invited to speak some major events? It's not just the stats that are working for them.
08/04/2017 09:59 AM
Why Market Research Matters to Your MLM Business
Your MLM business is powered by people, not sales or marketing elements. Once you have spent time in the industry. You will realize that relationships matter and this solely talks about your prospects for the moment.
08/03/2017 01:04 PM
Success Will Not Come Unless You Believe In Your Network Marketing
Some ideas you have in life are obviously going to be better than others. Many people attempting to work from home find this fact to be true. Make sure you're always making the most out of your business ideas. Read these tips about how to become a successful network marketer.
07/30/2017 09:05 PM
Tips To Boost Your Network Marketing Earnings
If you want to get into network marketing but aren't sure how then you're in the right place. With the information in this article you should start to build your knowledge about network marketing and from there formulate your own strategies for success. If you do all that then you should be well on your way.
07/24/2017 10:57 AM
Reasons or Results - What Do You Have More Of?
Reasons or results - it's impossible to have both. Today I share a story about a recent client interaction and hopefully you can either see yourself in the story or recognize someone in your team that you can help.
07/22/2017 11:43 AM
How to Make Money From Home in Direct Sales?
Making money from home in Direct Sales made easy Are you interested in working with a team of people that have your interest at heart? This company that I am about to present to you has a BBB A+ rating with global presence who has been in business for over 55 years. It is present in over 100 countries in the world and it has partnered with of over 90 companies like Bank of America, Apple, AT&T, Best Buy, Target, Office Depot, Microsoft, Banana Republic etc. just to name a few.
07/13/2017 10:59 AM
How to Power Through a Writing Block for Your MLM Business
Suffering from writer's block in any industry that deals with marketing stinks. Especially for solopreneurs running a MLM business.
07/12/2017 10:59 AM
How to Move From a Network Marketing Novice to a Network Marketing Pro Before Next Weekend
Many people want to rock the network marketing world and many burns out because they don't have the stamina to stick with it. You can become a network marketing pro with experience and education.
07/07/2017 09:59 AM
Why Use Heatmaps in Network Marking Analytics?
Heat maps are great tools that only a few network marketing professionals use in their analytics. They can provide a variety of details that other programs seem to lack.
07/06/2017 10:59 AM
How to Use Hashtags in Your Network Marketing Business
Most social updates are now using hashtags to create personalized conversations with their audience. They are a powerful way to shift from you to them and draw in visits from an audience that is all over.
06/30/2017 06:58 PM
The Answer to Network Marketing Frustration
Are you frustrated with your lack of success in network marketing? Tired of buying MLM leads? Has your upline left you to figure things out on your own? I know how you feel, I was in the same place, what I found will open your eyes to the success you deserve.
06/27/2017 08:54 AM
The Shiny Object
How do you decide on the best business model to work from home? Beware of new and shiny objects!
06/26/2017 03:46 PM
3 Essential Elements of a Viable Network Marketing Business
Many people nowadays are looking at network marketing as a business choice. It has been established that it is increasingly becoming common to see successes in this line of business, many thanks to the advent of relatively affordable broadband internet services, which has really brought the world to us. Amongst the more favourable facets of the network marketing industry is the cost of entry that is relatively low.
06/23/2017 12:32 PM
7 Daily Action Steps For Results In Your Business
f you are not creating content, whether it's an article or video, how are people going to connect with you? How are they going to discover you, and how are they going to understand what you are all about? How are they going to know what you have to offer if you are not developing content?
06/21/2017 11:58 AM
The Horrors of Babysitting Your Downline
We've all been there: Recruiting what seems like great people into your network marketing deal, only to have them be an utter disappointment. Stop the madness! There are things you MUST know to completely avoid this scenario.
06/20/2017 09:38 AM
6 Top Tools for Optimizing All Your Sales Funnels
Ready to start building out your sales funnels? I find that a lot of people are just lost when it comes to building out their funnels. There are a few things you need before you can get started. Here are some of the most popular options when it comes to putting together both free and paid funnels.
06/08/2017 10:59 AM
How to Combine Network Marketing Social Media With Email Marketing
Social media is a very powerful tool to help gain subscribers and followers. Email marketing closes the outside world and allows you to have close conversations with your prospects.
06/08/2017 09:59 AM
How to Make Your MLM Business a Social Networking Powerhouse
You can turn your MLM business into a social networking powerhouse with one easy tip. Just one tip to set your business apart from the millions of others and countless industries across all social media spectrums.
06/07/2017 10:59 AM
How an MLM Business Can Provide for Part Time Owners
MLM business owners that are running their business in a part time fashion have seen improved communication, lifestyle and skill increase during their second career. There are benefits to running an MLM business, and the hours you work in one can be as low as 5 hours per week or less.
05/29/2017 11:23 AM
Outstanding Network Marketing Tips That Will Bring You Success
So you are wondering how to be successful in network marketing? There are so many different ideas out there that it can get pretty overwhelming. While no one method is perfect, there are some simple tips that can benefit anyone trying to take off in network marketing. I've pulled a few of those together for you here.
05/28/2017 01:49 PM
Network Marketing: Turn Your Strategies Into Success Stories
Do you think that network marketing is something you can't get your mind around, then you need to learn as much as you can about the subject. When it comes to this business model you want to expand your knowledge and pick up some sensible advice and strategies. This article presents some information that may not have been aware of previously.
05/25/2017 01:59 PM
A Guide To Getting The Most Out Of Network Marketing
With the economy the way it is right now, it makes more sense to work from your home, rather than searching for a second job. Although operating a small business can be difficult, network marketing offers the potential to earn extra money, connect with other people and improve your quality of life. This article includes powerful tips on starting and succeeding in this business.
05/25/2017 08:22 AM
Information And Ideas About Network Marketing Are In The Following Article
From finding the right program to receiving the right training, many people shy away from network marketing simply because they believe it's too complicated to succeed in. In this article, we'll go over a few easy-to-implement and useful tips that will help you out tremendously in this field.
05/23/2017 08:06 AM
Top Ideas About Network Marketing That Are Simple To Follow
When you are trying to grow in the network marketing business, you need reliable sources for good information. If you waste time on bad information you can quickly spiral out of control into loss and debt. There is so much to learn. Fortunately, you will find some of the best network marketing tips below.
05/22/2017 08:58 AM
Build Your Network With These Smart Tips
You've decided to enter into network marketing. That's exciting! Except for the fact that there is so much information, you have no clue where to start. Don't worry, network marketing tips are here! Listed below are some tips that will help you get started and organized so that you can become a successful network marketer.
05/20/2017 02:54 PM
Network Marketing Made Easy With These Great Tips
Whether you call it network marketing, multi-level marketing, or any other type of marketing, to be successful in this genre, you need to know how to approach building a network. While this might seem relatively simplistic, it can be difficult without the proper information. Here's some info that will assist you.
05/20/2017 10:07 AM
Look Here For Great Advice About Network Marketing
Do you think that network marketing is something you can't get your mind around, then you need to learn as much as you can about the subject. When it comes to network marketing you want to expand your knowledge and pick up some sensible advice and strategies. This articles presents some information that may not have been aware of previously.
05/18/2017 04:14 PM
Conduct Better Business With These Great Network Marketing Tips
A brand new, exciting topic for some people is network marketing. To others, it is a way of paying the bills and surviving in a harsh economy. If you are willing to dedicate yourself and remain focused, it is possible to bring in a steady income.
05/10/2017 10:59 AM
What Does Having a Trust Seal Mean for Your MLM Business?
Identity scams, malware and other devilish tools of the trade are top threats for any website owner. In website ownership today, threats of malware, scrapping and hijacking are overwhelming possibilities.
05/09/2017 12:53 PM
Network Marketing Tricks Every Business Should Know
Network marketing tips are extremely valuable to those that are new to the method and want to ensure that it is performed correctly. There are various elements of this type of marketing to consider, and only with a clear understanding can you fully take charge with such a marketing strategy. These network marketing tips can give you a great bit of information for a reference into the use of this type of marketing.
05/09/2017 09:55 AM
Network Marketing and Internet Advertising
Many network marketing or MLM companies either deny or restrict your advertising efforts for their product or service. Some network marketing companies allow you to advertise but only with their approval.
05/08/2017 04:39 PM
Network Marketing - Choosing the Right Company
Choosing the right vehicle or company to be associated with is a very important first step to finding success in a network marketing or home based business! Many factors go into this. Finding a home based business or network marketing company that has a product or service that you feel passionate about is also very important. Lastly the key ingredient is understanding is that there are no "get rich quick" companies out there. It takes hard work, but when you find a company that meets the requirements above and you work hard and have patience you can have great success.
05/05/2017 10:59 AM
What Do They Mean by Unlimited MLM Income?
Unlimited income potential is a fancy phrase for putting effort into MLM and you could make a massive income from it. However, this does not mean that it is guaranteed, nothing in MLM is guaranteed. If you haven't come across this potential term yet, consider yourself lucky.
05/04/2017 10:59 AM
How to Shake Up Your MLM Business Email Subscribers
At some point during a MLM business career, you may suffer subscriber grief. The grief does not always take form in a direct way, but some signs of grief include lack of interaction with the content that you send their way.
05/04/2017 09:59 AM
Should You Use a Professional Email in Your MLM Business?
Your MLM business is an adventure and you want it to succeed. Often, people that start up in the industry wonder if they should get a professional email and if they should use their name in it. Worry no longer about such information, in today's subject, we will look at the professional email and how to make it effective for your MLM business.
05/03/2017 02:38 PM
Fast Ways To Gain Success In Network Marketing
Finding a comprehensive guide laying out a step-by-step process for network marketing is what you may think would be best for your chances of success. However, the best marketing campaigns out there aren't copied campaigns; they're original campaigns put together by educated marketers. Read this article and educate yourself on the correct way to market.
05/02/2017 10:37 PM
Network Marketing Confusion? Look To These Tips To Help You
If only somebody threw you a nickel for every so-called "easy" business opportunity out there, you could retire right now. That's how many types of businesses present themselves as simplistic. But don't buy the hype. They're anything but easy. Especially in a venture like network marketing, you need to educate yourself on how it operates. This article will help you do just that.
05/01/2017 12:07 PM
A Third Party DoTerra Review - Is This Essential Oils MLM The Next Big Thing?
If you're searching online for information on DoTerra, look no further. In this third party DoTerra Review, I'll go into all the essential details you'll need to make an informed decision before joining.
05/01/2017 09:49 AM
The 3 Things Google Wants
I have no doubt that this must be one of the most sought after answers among all internet marketers, because your website or blog is like your viral salesman. It is the only place where your real sales will come from, because random social posts with affiliate links is how Not to make money online. How do I know? Because I made the same mistakes, simply because S.E.O seemed too technical, when on the contrary it's pretty logical.
04/28/2017 08:10 AM
Methods To Accelerate Your Network Marketing Results
Network marketing uses representatives to reach potential customers that you might not be able to reach on your own. This article will give you tips on how to reach those customers and anything else you may need to know when it comes to network marketing.
04/26/2017 04:40 PM
Become Successful With These Great Network Marketing Tips
Network marketing uses representatives to reach potential customers that you might not be able to reach on your own. This article will give you tips on how to reach those customers and anything else you may need to know when it comes to network marketing.
04/18/2017 10:24 AM
Build a Network Marketing Business
Life in the corporate world is one big nightmare and many folks would actually love to work from home these days. Commuting is such problem, and so many folks are looking for jobs, it could be making you feel insecure and unhappy and worried if you 're going to get replaced by someone who will take a lower salary. Many jobs are being taken offshore and corporate America is tightening their belts and laying off many management and executive positions.
04/06/2017 10:59 AM
Love, the Network Marketing Way
Love doesn't have to be a romantic sentiment, but it can be a natural commitment to helping strangers overcome difficulties. Network marketing offers love on a basic level, in the sense that it helps others achieve freedom and growth in a business environment.
04/06/2017 10:59 AM
Why Is Being "Fake" in Network Marketing Dangerous?
Fake people may be successful but eventually, they will fail. Honesty and transparency are important in network marketing.


home | site map |