Why do people hate Network Marketing / MLM?

[myownboss]

I've been looking at a number of different opportunities and end up meeting a lot of Network Marketing / Multi-Level Marketing people.

Some of the offers look interesting but everyone I talk to about it says to avoid these guys like the plague - what's the deal? Why do people hate network marketers and MLM people so much?

Is it not legit?

[The Computer Guy]

Keep in mind that most people have never been part of a reputable Networking company. They blame many of MLM's faults on their own short comings for not doing their own proper due diligence.

They also try to blame the people they signed with because THOSE people make false claims. So they tend to lump ALL MLMs into the same group. I've seen it tons of times.

They also stereo type MLMs in with Pyramid Schemes when they don't even know what a Pyramid Scheme really is. (Hint: there is NO product/service).

It's sad to see other people buying someone else's story without doing a single bit of research.

Think of it this way, who would you rather get advice from:

a/ The real estate agent making $18,000 a year

or

b/ Donald Trump/Robert Kiyosaki...

Much like movie critics, people give advice on things they have never done or tried.

[saraloves]

I've had a few people approach me for networking marketing opportunities. Most of them sound very unprofessional and seem more interested in recruiting member than selling or supporting products so I think that's why they get a bad rap.

who is a good example Binary guy?

[The Computer Guy]

What you need to do is get out to one of their events. Even though the person who told about their product/service may be a flake, they will always have an event where a 'big speak' (maybe a CEO or other high-ranking company guy) will be talking at. Go to the event, talk to that guy (you'll find most of them are very approachable and intelligent) and ask your questions.

I would strongly recommend staying with products/services that you would personally use and get great benefit from. There are MLMs for just about everything. You need to make a list of what you would like, do your due dilligence (online research) and contact a local rep.

I did this when I joined Mannatech. I looked up "scam +( insert your mlm of choice)" in Google to see if they were legit. I even found a site where someone was bashing Mannatech. Upon further reading I found that he was bashing the company because his sister-in-law was making wild claims (both illegal and against company policy) but this guy chose to blame the company.

I am no longer active with Mannatech. They are a good company, I visited their complex in Texas 2 years ago, pretty impressive. I have moved onto other area in my life and Mannatech no longer fit where I needed to put attention. Heck, I was even making money and still left. You must choose wisely because it will be a lot of work and if it's not something you would put a lot of time into, you'll get discouraged and depressed real fast. Think of MLM as a hobby that you want to do all the time. You sleep/eat/drink(in many cases literally) your new found hobby.

You also must realize that no matter what you choose, regardless of what their salespeople say, your product is NOT for everyone. That's the biggest mistake most of them make. They pester everyone they know, telling them they simply have to get 'this stuff', and when that doesn't happen, they get upset that 'it doesn't work'.

I believe that network marketing is the BEST way to learn how to sell. You will learn quickly what works and what doesn't work. And what better way to have the Gov't cover many of your costs come tax time(because these are legitimate businesses and thus have many deductions associated with them), so it's a nice bonus

You also learn quickly how to run/not run a business. Like anything else, it has to be systematized and organized.

So, back to the beginning. Start with what you like to do. Find some companies that promote products in that category, then see where they hold meetings/events. Consider local business networking groups. There is always MLM people there.

Enjoy!

[jvprosperity]

I used to have that thinking that MLM/Network marketers were evil people - they are not all evil

It's got a bad rap because I think a lot of people enter these businesses with the wrong goal in mind - get rich quickly and say good bye to the Full time work.

It's not completely their fault for this reasoning as in most intro meetings I've sat in I've seen the pitch where they do make it seem it's really simple to get people under you.

The people that fail are bitter that they've lost a small investment in time and money and will often backlash at these companies online and to their friends and families.

Then there are the Friends that know people involved in Network Marketing and see a big difference in their attitude to life (possibly a lot of positivity). These friends start spreading the word that there must be some brainwashing going on etc. etc..

I believe any opportunity properly researched with an open mind that has capability to offer something of value to the public is legit - but you have to approach it with the mindset that of a business owner and not a part-time job.

[OmnivoreInk]

I've had a few people approach me for networking marketing opportunities. Most of them sound very unprofessional and seem more interested in recruiting member than selling or supporting products so I think that's why they get a bad rap.

I only investigated one MLM company, many years ago, and this was exactly the problem I had with them.

It was when I was in my twenties, already employed by someone else, and just looking for ways to earn "extra money". A friend tried to recruit me into an MLM company to sell collectible phone cards. But all she ever talked about was how much money I'd make by recruiting other people to recruit other people also - there was never anything about how to actually sell the product.

I went with her to a seminar on the company - two hours long - and it was the same thing. How to recruit other people to sell the cards, how much you earn depending on how many people they recruit, (the typical fancy grades of "diamond, emerald, pearl," for each level of income you got to, etc.) but again, absolutely no advice on how to sell the cards, who produced the cards, the guarantee of if they'd maintain their value, etc.

By the end of that seminar I'd been convinced not to try it, for two reasons.

Most importantly - although I've become more outspoken and self-confident and professional in the years since then - I did *know myself* at that time, and there's no way I could have approached people - whether strangers or friends - and attempted to recruit them - especially when I didn't believe in the product.

And the second reason was I simply didn't believe in the product. If all the time in a seminar is spent not on hyping the product but on hyping the money you'll make by recruiting other people to sell the product, then something's wrong!

[litekepr]

Good point Barbara

There isn't much time spent hyping the product for a number of these programs. I haven't gotten roped into attending a recruiting program in quite a while, but I've been to plenty in the past. The speech is a variation of having people work under you and making a lot of money without much work. The mentality they require is just not me, besides I'm much happier doing the work I'm doing now. Certainly not getting rich, but the bills are paid

Shri

[jhoover]

My wife was an Avon representative. She quickly became a part of their Leadership program - which is their MLM. Within six months she had four people signed up underneath her and was one of the top sellers in her district. They had programs in place to help you learn how to sell and training to help you to succeed. This was a GREAT MLM.

The problem was that the person she signed up under was not a great leader - she wasn't even an honest person and was quite a backstabber to boot so my wife got very frustrated by the lies and deceit that was going on so she walked away. She was already working full time and we were already working on building our own business so she decided she didn't want to sign on to another job that makes other people rich (since all her hard work put money in her uplines pocket - the dishonest woman she couldn't stand) and instead decided to take the knowledge and experience she had gained and pour it into our business.

MLM's can be great opportunities but they aren't exactly the same as owning your own business - in my opinion. You still work for your upline and the company you have signed on with - just with a little more freedom.

[litekepr]

You know, for some reason I don't see Avon, Mary Kay and beauty Control etc as MLM, but they are. I have a good friend who's a leader with Avon and another friend who is way up in Mary Kay. They both thrive in the environment these companies provide. It is an opportunity for many people to have their own business that wouldn't otherwise. Of all the MLM's I've seen, these give the most support and useful information to their reps. I'm sure there are others that give good and useful product and business info - I just haven't come across them. And, like you mention a lot depends on who you signed up under.

Shri

[smifro]

I was really skeptical when I cam across a few MLMs on the net, and thought they were just programs to scam money out of people, or else at best, they didn't really help too many people get rich. I have heard a zillion times about how 97% of those in MLM fail, and I didnt want to be part of that.

But like people have said before, there are good MLMs, its just a matter of doing the research and knowing whether they are delivering on their promises, and most importantly, being honest and transparent. That's why I love the new company I've signed up with, MyPowerMall. They are new, but the CEO seems really genuine and honest, and I admire that, especially as the past few months I've gotten disgusted with the tall claims made by IM people. So don't completely give up on MLMs, just choose wisely.

[LHayes]

Opinions are strong and varied on this subject and I've been on both sides of the debate. The subject of network marketing has prompted many questions from my clients and readers, so I recently shared my thoughts in a blog post

http://www.thehbbsource.com/hbbconnection/?p=36

I'd love to hear your views on the subject as well.

I also participated in a discussion on the subject at http://homebizblogger.com/2007/08/23/an ... marketing/

The more people are willing to share their experiences and opinions, the better others can prepare themselves before making decisions to invest.

To your success,

[JWDesignCenter]

I've recently been trying out Melaleuca products. They run their business on an MLM basis. I probably won't ever join their ranks .. but their products are good. Other MLM's out there... partylite, avon, mary kay... i'm sure there are thousands. A few of them actually do have good products. But personally, i could never get past the fact that they focus on bringing in new people, not selling the product. I like partylite stuff.. will go to any and all parties if and when invited cuz their stuff is great. But I hate the idea of having to sell to your family and friends. I know i know.. they're family, of all people they should be involved if something is a good thing, but my family is full of people who are all skeptical and content working their regular 9-5 job. They have no aspirations of becoming an entrepeneur or working from home.

[Takuya]

This thread interests me.

I enjoy MLM... and this all started when I began building a business surrounding myself instead of marketing for a company.

I began writing articles about general marketing strategies then expanded onto network marketing niche, got to meet some of the greatest business leaders in the world and learned so much from their philosophies.

Since then, I was convinced people join people. And it dawned on me that some people clearly were more successful while marketing the same product, same compensation plan, same niche because they have contacts, experience, network, relationships all in place -- sort of like the exclusive leaders club.

I have made friends who belong to all kinds of other programs but mastermind with me every week, exchanging ideas, strategies, tactics, training methods etc. And when the right timing comes, I might join their programs or they might join whatever programs I promote.

I also have list of responsive subscribers who have given me permission to contact them. I learned this method from Internet Marketing idea and implemented to my Network Marketing business.

The list receives mostly educational articles from my auto responders and the subscribers stay on the list for a very long time. Now the list building effort and other projects surrounding my list outperforms the income from the actual check I receive from my primary program and I do this by simply weaving affiliate products related to my niche and make commission from the list of subscribers regardless of their decision to join my business. Sort of like, Brian Tracy, Robert Allen, Joe Schroeder and all of them have done.

Some subscribers approach me asking how they can become my downline members while most others never contact me but keep reading educational/promotional emails I send out.

When I first entered into network marketing industry, I was discouraged because no matter how hard I sponsored people into a program, those people couldn't do the same and the attrition was like a leaking bucket.

But on average, people on my subscribers list stay longer than a year and I have weekly opportunities to monetize through my subscriber list if I want to, which is much more profitable than the industry average of people keeping autoship (3 months).

So I focus on getting people subscribed first and recruit on the backend and it has worked out for me quite well. I make an effort to structure my marketing to sell myself front end and program back end so that people who join my program do so because it just happens to be a sub-department within a company called MY Inc.

Warmest Regards,
Takuya

[DwayneGarrett]

Because of the low cost of entry and the high hopes of big income, MLM attracts many people from all walks of life. Anytime you have that big of a movement of course their are going to be bad apples.

Unfortunately for the industry those bad apples have tarnished the reputation of the industry, making it that much more difficult to succeed.

But like Takuya mentioned it's all about YOU INC. Over time people will see just how committed you are, and they will decide wether or not they want to be in business with you.

Do your homework, and choose a great upline.

[LHayes]

If you haven't heard of Todd Falcone, you may want to check him out --- particularly his podcast recordings at http://podcast.toddfalconelive.com/

Todd offers free network marketing training every Monday, tapes the sessions and also offers them for free.

You'll receive great tips, training and advice from this guy.