mlm

[craigos]

What are the general thoughts on mlm businesses? Are they worth a go?

 

[JamesHall174]

They can be, it all hinges on the product and the potential rewards. Despite all the negativity about MLM most sales models are actually based on this principle in some way, to a greater or lesser extent, what did you have in mind?

 

[garyk]

its been discussed at length on here before, try a search for it.

 

[Michael-Bush]

Would rather run a proper business myself, but I know a few people which own a lot out of it.

Michael

 

[internetspaceships]

I'm confused what do they own Mike?

 

[Michael-Bush]

Sorry should have been *earn

Michael

 

[internetspaceships]

Ajhh sorry I got all confuzzled there!!

MLM - yep interesting topic. The ruthless *******s at the top of the pile earn a fortune by selling their "get rich" ethos to the hordes of minions that run around scratching a living and paying the top dogs' over rides.

A pipe dream

 

[serasan]

I agree, it is good to start a MLM, but things will be hard if you are at the bottom of the pile!

 

[Billmccallum]

For a good example of a MLM business working see Kleeneze, they have been at it for many years but the model is based on someone actually selling products.

The key to success in MLM is getting in at the start (or as near as possible) but the rewards are only exceptional for people who put in the work for little reward and much depends on getting lucky finding people to join the programme.

A true MLM programme will not reward you for selling packs to agents, they reward you for building sales teams.

If you are thinking about MLM as an option, its worth investing £150 in a Kleeneze package, even if its only to find out how it works at the sharp end.

I did dabble myself (about 15 years ago) but could not get others excited about the potential, but I did made money on the retail sales (around £200 a week) which covered my costs and I only had to work 10 hours a week for it.

 

[JamesHall174]

Ajhh sorry I got all confuzzled there!!

MLM - yep interesting topic. The ruthless *******s at the top of the pile earn a fortune by selling their "get rich" ethos to the hordes of minions that run around scratching a living and paying the top dogs' over rides.

A pipe dream

Maybe I dont understand MLM because I always here this kind of thing thrown around and people seem to associate MLM with certain brands that dont have a great reputation. Surely they are just bad brands with ruthless people running them as opposed to an indication that MLM is a bad thing. Aren't most businesses MLM, for example a McDonalds Franchise is surely just MLM? I dont think there is anything wrong with MLM as a concept it is just how it is implemented which is the same for any business model?? Or am I missing the point again..........

 

[Billmccallum]

Maybe I dont understand MLM because I always here this kind of thing thrown around and people seem to associate MLM with certain brands that dont have a great reputation. Surely they are just bad brands with ruthless people running them as opposed to an indication that MLM is a bad thing. Aren't most businesses MLM, for example a McDonalds Franchise is surely just MLM? I dont think there is anything wrong with MLM as a concept it is just how it is implemented which is the same for any business model?? Or am I missing the point again..........

The MLM stands for Mutli Level Marketing, the basic system is that the distributor recruits agents to sell products and pays a commission, that agent then recruits new agents and gets a commission on all the sales his agents make and this continues down the levels.

 

[JamesHall174]

The MLM stands for Mutli Level Marketing, the basic system is that the distributor recruits agents to sell products and pays a commission, that agent then recruits new agents and gets a commission on all the sales his agents make and this continues down the levels.

Sorry, I obviously wasnt clear, I understand how it works but do not understand the negativity towards the concept..... yes there are MLM's that mean that only the people at the top make the big bucks but doesnt that tend to be the same in most businesses?

 

[garyk]

I think because its typically 'oversold' by enthusiastic agents, you know 'earn 4000 pounds a month by working 20 minutes a week' (slight exaggeration but you get my point). Also many MLMs are setup to recruit agents who are forced to buy x amount of product per month which they wouldnt normally buy. i.e. the promoter gets guaranteed business, the agents get shelves full of stock they cant shift.

Gary

 

[Billmccallum]

Sorry, I obviously wasnt clear, I understand how it works but do not understand the negativity towards the concept..... yes there are MLM's that mean that only the people at the top make the big bucks but doesnt that tend to be the same in most businesses?

Many people confuse MLM with pyramid schemes, many pyramid schemes were sold as MLM businesses, but the only thing they sold were agency packages.

A real MLM scheme will sell products (not to be confused with those that sell ebooks, buy this ebook cd and you get reseller rights).

I always use Kleeneze as an example because they are the model for UK MLM.

Some MLM programmes do give the sector a bad name, Am way for example seem to sell overpriced products and expect all agents to buy their own "marketing aids", I knew one agent who couldn't sell anything.

If you can come up with a programme where the products are right you can make a fortune, but if it was that easy we would all be doing it.

I did try to a convince a car manufacturer to do a MLM marque, but didn't work out.