This is not MLM
When you are presented with a home business opportunity and you see the words, "This is Not MLM," do you breath a sigh of relief? That's okay if you do. In fact, a lot of people do, so you are not alone.
But why is that?
What is it about "MLM's" that bring about that reaction? The answer is a lack of knowledge. Knowledge about how the MLM Industry operates. In fact, that would be a good place to start. The industry itself is known as Network Marketing, which is a group of people networking together with a common goal, a common product, or a common company. The MLM or multi level marketing side is actually how you get paid. You are paid on the activities of the multiple levels in your down line.
Speaking of compensation, have you ever noticed that most, if not all, network marketing companies pay based on the number of personal referrals you have? These are the new members that you personally sponsored into the company. Yet most, if not all, network marketing companies promote spill over's. What in the world is a spill over, you might be asking? The name is just as it implies. You receive new members or referrals that are "spilling over" from someone else's down line. Have you ever seen a line something like this before? "Join us now and receive hundreds of spill over's just for locking in your position early!" You are also told that you can earn thousands of dollars from those spill over's (in about 20 years.) Yes, I'm being sarcastic, but honesty is what is needed here.
Do you want to know what's really going on?
The original sponsor, who so generously placed some new members in your down line, was paid the fast start bonus associated with bringing that new member into the organization. It is also the original sponsor who will receive any subsequent bonuses associated with that new member. And since that new member constitutes a personal referral for the original sponsor, it is also the original sponsor who gets moved up into the higher ranks of the organization; therefore, allowing them to make much more money. After all, that's how the commission payments are based. The same goes for the bonus pools...all based on personal referrals.
So, where does that leave you?
The only money you'll make from those spill over's is what's called matrix pay. This is a very small percentage of the new member's monthly renewal fees. Perhaps, you've seen a line something like this before, "Get paid a residual income, month after month from the spill over's you will receive!" Well, this is the pittance they are talking about. And you will never make it to the bonus pools this way!
Why do 97% of Network Marketers fail?
Because they never make any money or if they do, it's nothing to write home about. In fact, there are some who genuinely try to make their business work. They end up spending much more money than they will ever make, trying to recruit personally sponsored members; all the while, continuing to pay their monthly membership fees. And what do they do? They Quit! Can you blame them? Perhaps, you are one of them. Because most people have had this experience, they shy away from Network Marketing companies. Or they know of a friend who has had this experience and they "vow" that it would never happen to them!
Here comes some more knowledge!
Although the Network Marketing industry is one of the most lucrative businesses you can be in, trying to make it alone does not work! In order to be successful, you need a system. A system that will support you by giving you the personal referrals needed to really be successful; A system that will credit you with a personal referral whether they were brought into the organization by you, by someone in your up line, or by the system itself; A system that will assure that you make it into the company's bonus pools by giving you what is needed; A system that provides an up line that is helpful and supportive; and most important, a system that does not deal in spill over's!
About the Author:Victoria Leal is passionate about helping others to be successful in business; no hype, just the facts. To learn more about how an automated system should work, Click Here
You can request more information at: victoria@victorialeal.com
This article is copyright 2008 by Victoria Leal and may be reprinted in it's entirety as long as this byline and copyright statement are included and remain intact.
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