MLM Misconceptions
Multi Level Marketing or MLM is probably one of the greatest opportunities in the world today that people may or may have encountered. The industry has produced more than a thousand self made millionaires already, and continues to create more and more every day. Producing the best quality products accompanied with a generous compensation plan and self improvement trainings, even someone with less education about sales and marketing will still have a chance to be successful in MLM.
Though all of this is factual and true, there are still so many who tend to shy away from this great opportunity. People base their decision on some reason that they seldom understand regarding MLM. We cannot blame them of course, as there are really rotten apples among the bunch. But if one person sinned, it does not mean that everyone sinned as well.
I have heard so many things that people say about the business that mostly are just wrong information. I believe that if someone would really understand how fruitful and lucrative an MLM business can be, they would see it and try it themselves. What are those things that people often see and think regarding the business? I have listed a few:
1. MLM is PYRAMIDING - This is the most common misconception. People say that because it is shaped like a pyramid or a triangle then it’s an illegal business. This is actually very funny because first of all Pyramids can only be found in Egypt and Pyramid is one of Charice Pempengco's hit songs. Does it mean that Egypt as well as Charice is involved in illegal scams of some sort? Of course not! If the structure itself would be the basis of legitimacy of an enterprise, then how would you defend the "organizational chart" of every organization around us? The President is followed by the Vice President, and then there are Senators and Congressmen and so on. The company CEO, then the VP, then Managers, Supervisors, Rank and File employees, and down the line. Isn't it just the same structure?
How would you know if the company is using a pyramid scheme?
The DSAP and the DTI have formulated an 8 point rule on its ANTI-PYRAMIDING CAMPAIGN, to determine legitimacy of A NETWORK MARKETING operations. If the answers to those questions are yes, then you are assured the Business Model used in paying commission is legal and legitimate and conforms to the DSAP and DTI guidelines.
1. Is there a product?
2. Are commissions paid on sale of products and not on registration/entry fees?
3. Is the intent to sell a product not a position?
4. Is there no direct correlation between the number of recruits and compensation?
5. If recruitment were to be stopped today, will the participants still make money?
6. Is there a reasonable product return policy?
7. Do products have fair market value?
8. Is there a compelling reason to buy?
2. The one on top is the only one earning - Well naturally, the one who got in first has the privilege of earning first. But it does not entail that if you came in late then you don't have a chance to earn in your MLM business. My company started 2006 and I was invited on May of 2008 and there were literally more than a thousand registered members when I signed up. I started right away and with the help of my mentors, I built my own team. Long story short, even though there were thousands before me, I still had the opportunity to make millions with my company.
Remember, the business will start with "YOU". Not you’re up line, nor you’re down lines. Look at it this way, if you work harder than your up line then you would earn more money than him/her. Yes, your sponsor will have a percentage on what you work out with your line, but it is just a percentage. Most MLM companies includes a "break away" system in their compensation plan wherein at some point, your sponsor would not have any income from your work. The trick is to "NOT LOOK UP", which means don’t mind what your up line is earning from you, instead concentrate on your team and yourself and how much more you and your people can earn.
And as what I have experienced, it really dont matter if you are below your up line. I was invited to become as a "BUSINESS PARTNER" and not as an employee. Ask yourself, if you are at the bottom of the organizational chart and you have a boss, will you hava a chance to earn more than what your boss is earning? It is not the same in an MLM business as there are times when I earn more than what those people above me is earning and there are times that we are even. It only shows that in this kind of industry, the ones below still have a chance to become wealthy.
3. The market is already saturated - I hear this a lot when I was just starting. Most prospects I talk to often tell me, that since there are too many registered members, they will have a hard time enrolling new ones. They prefer to join a company that just had its start-up and be the "001". To answer this, I may ask you to check how many registered members your company already have, and then check out the number of population in your area or country. You will be surprised to find out that there are still too many people to invite and share the opportunity to. Try asking your friends and family if they have heard of the product you offer, or the name of the company you’re with, most of them will tell you that they have not.
In the Philippines, the population is 105.72 Million as of this year (according to CIA) and ranked as the 12th most populated country in the world. So there will always be someone to invite, someone to share the business with, and someone to help achieve their dreams. Think about this, according to ask.com, there are 3-4 babies born every second averaging to 250 babies born every minute and 15,000 babies born every hour. Everyday there are millions that just turned 18 (yahoo answers). So as long as there are people, there is a market, and as long as these people drink, eat, maintain their health and consume there will always be a market (especially for those companies with health and wellness products).
4. Only those people with excellent sales skills can become rich - Honestly, it is an edge if you already have an excellent knowledge when it comes to selling. But based on what I have experienced, even professional sales people have a hard time marketing in MLM, so what more if you don’t even have a single clue on what selling is all about? I used to work in an office where all I do is to compute, to balance and audit financial reports, nothing I did involved selling a single item. And when joined my company, I found out that most of my mentors were in different fields as well. They were dancers, band members, dentists, architects, nurses, janitors, family drivers, etc and etc. None of them were exposed to any selling of some sort. But they turned out to be the top earners from my company averaging to a MILLION worth of income per month. How did they do it? It is because of the desire to learn and the desire to become successful and the understanding that MLM is not selling but sharing.
Most people don't realize that they do sell or share different products and services every day. When you see a movie and you enjoyed watching it, didn't you at some point, recommended watching it to your friends or relatives? And how many times have you been talking about that really sweet deal you had with your new phone to your workmates and telling them to buy one? How many times have you posted your newly bought things on your Face book wall and on other social networking sites and telling your FB friends where you bought it and how much you paid for it? As you can notice, you are already selling. And since you are, have you ever been paid to advertise these things? MLM works almost the same way. You buy the products, you use it and benefit from it, then you recommend it to the people you know, if they buy it, you get paid by the company. It is a simple concept that anyone would understand. And most companies provide free trainings and seminars for you to enhance your MLM skills, so you won't have a hard time sharing the opportunity.
5. MLM is a get-rich-quick-scheme - Do you remember the time when
you first saw an opportunity and you were very excited to start inviting your friends and family? You were so eager that all you think about everyday is that you will become rich and fulfil all your lifelong dreams within months of doing the business? But as you go along you were bombarded with so many objections and rejections you didn't expect and eventually led to you being negative about MLM and just quit the business? I see this happen to so many people in the industry. They expect to earn so much in such a short time never considering that there are so many things to learn first before you can actually become wealthy. MLM is not a get-rich-quick-scheme but rather a GET-RICH-SURE-SCHEME as what my mentor would always say. Building your MLM business is no different to building any other business opportunities out there. You have to LEARN before you EARN.
Think about this, you spent 1/4 of your life studying and after finishing school; you end up working for P10, 000 per month ($223). To become a Doctor, it may take you 8 years of studying and spend a huge amount of money to become one (wiki.answers.com). It will take someone 4-6 years of studies and more than a million pesos. To become an Engineer (yahoo answers). And someone aspiring to be an Accountant will spend 5 -6 years studying and spending million pesos worth of school fees to become one (based on ME). So if you want to become successful in your MLM career, you have to be ready to learn and spend some time with your mentors.
What you can do:
Be willing to take risks and learn to move around those risks.
Do not be afraid to fail as it is part of the process.
Be teachable and apply those things you learned.
Don't listen to people who tend to steal your dream away from you.
Pick a mentor that can teach you how to succeed.
I myself am still learning the business, and that is one of the many benefits that this business has to offer. You EARN while you LEARN. You don't stop learning so you won't stop earning. There will be so many objections along the way, so many rejections to endure and so many failures to overcome but as long as you have a deep desire to succeed and the will to learn to reach your dreams, then nothing can stop YOU.
Keep in mind, that success is not measured by the money you earn, or the type of car you drive and how huge the house you live in. Having a huge paycheck, a sports car, and a mansion but not having the time to spend it and live life with family is no success at all. But a man that has financial freedom and time freedom and a family to enjoy it with is the measure of true success.
-Paul Fabros
