MLM or Network Marketing…
Does it work?
Part of the series Network Marketing Vs
Multilevel Marketing (MLM)
For almost 30 years I have been
answering that question. There is so much that is written about
multilevel marketing, also known as MLM. And there is so much that
is not really understood about this type of business. However, the
MLM business can be boiled down to very simple terms and facts.
The MLM scheme is based on distributors that buy inventory from the
MLM company and then supposedly turn around and then sell it to the
end consumer. Now, usually MLM products are difficult to sell
because they are either more expensive or lower in quality (or both)
than what can be found elsewhere.Or they are luxury items that the
average person does not need ($40 bottles of juice tonics, expensive
diet drinks cleanses, shark cartilage pills etc). More times than
not the distributor ends up with inventory because they cannot sell
the products to a legitimate customer. Or worse, the MLM scheme
encourages the distributor to purchase inventory which they then pay
rebates and the distributor then purports that they made money to
their friends. The “commission” they receive is a small amount
compared to the inventory they purchased. In any case, the
distributor loses money.
Sadly, many distributors end up “garage qualified” which means that
they have a garage full of products that they cannot get rid of (and
the MLM company does not want the products back, so a refund from
the company might be hard to get if not impossible).
So, if there are no real customers how do people make money in MLM
companies? They keep recruiting people who buy inventory and they
make the commission on those purchases. This is why some people
compare MLM companies to pyramid schemes – where the person “on top”
makes money from those “on the bottom” who have purchased unsellable
inventory. As you may imagine, this is not a sustainable business
We all know that bad news travels more rapidly than good news. When
many people get hurt with an MLM company the word gets out fast!
Soon enough it seems that everyone has heard about the company and
the people that got ‘scammed’, the market seems ‘saturated’ and the
MLM company’s days are numbered.
The majority of MLM’s go out of business within the first 5 to 7
years (not unlike most businesses). Even if the MLM Company survives
past the seventh year there is no guarantee it will succeed. If
there are any individuals that "succeed" they are usually the owners
of the company and a hand full of people the probably joined the
company in the beginning and received special deals. This even
further augments the idea that only the first few people who get in
make any money.
Having said that there are successful MLM, Network Marketing, and
Direct Sales companies. Some have been in business for over 30
years, and YES they are legal and YES there are those that have
earned an income with them.
There is a company that operates a completely different business
model – Consumer Direct Marketing. This model offers everyday people
the opportunity to earn an income and manufactures products that are
exceptional in quality, environmentally responsible and
competitively priced. Consumers purchase their products direct from
the manufacturer (there are no distributors). The products are
drop-shipped to the consumer’s front door. There is a refundable
one-time membership fee of $19 which also allows the consumer to get
$100 of free products and the ability to shop at over 650 partner
stores and receive a cash back discount from all of those stores.
Obviously everyone would want a membership to this company! It’s a
simple model that is built on sound principles: the manufacturer
produces exceptional products at reasonable prices. The customer
gets better value, safer products that are environmentally friendly.
The Marketing Executives are paid commissions and bonuses on real
products that have been purchased by real customers, which really
want them and really consume them.
As a member, customers do not purchase inventory; they shop for what
they will consume. When the manufacturer by-passes the middle-men
and distributors and has a direct relationship with the end
consumer. As previously mentioned, just by eliminating
intermediaries the consumer obtains a better price but more
importantly, the products are vastly superior in quality because
they are developed by world-class scientists that are able to use
superior quality ingredients and manufacturing processes. In 2016
this company had more than 500 consumer products in their portfolio,
most of them being proprietary and or patented, and all
competitively priced with neighborhood and online retailers. This
company has an impressive 30 year track record and sales are
projected to top $1.8 billion. And, they have the highest re-order
rate of any company I know of which is a testimonial to the products
demand and value and the ability to earn a real residual income.
That is impressive to say the least. Learn more by visiting about
advancingwithus.com and how you can change your future and the
well-being of all around you. Visit us at advancingwithus.com or