There is a lot of hype about Multi-Level Marketing (MLM). But, most of that is about getting rich quickly. But, as they say, "Easy come, easy go."
What is more important is looking for a career, not eat your cake now, but "butter your bread for years to come."
The question is, "Will you run your MLM endeavor as you would a day at the race track, or like you would a real business?/
Real Investment
If you are going to invest your time, and money, the opportunity had better provide outcomes that exceed what you could make on your current job once you placed some of your earnings into a tax-free annuity.
It makes no sense to invest "sweat equity" and "hard-earned, after-tax dollars" and get back less than you put in.
Overall profit and Return on Investment (ROI) is the correct measure of the business-like focus of getting into an MLM business.
Are you Building a Business?
The MLM folks like to say that you have a business, that there are so many people (head count) in their organization, but, where is their written business plan?
Due diligence...
It is up to you to insist that you have a real, genuine, professional business plan before you start any association with an MLM company. If the organization has no help for you in creating and implementing a basic business plan, watch out!
Find out if the lack of a business plan support system is the fault of your upline folks lack of knowledge, or if the program is really just a "get rich quick" scheme.
If the later, head for the door.
Home Life
You better have a business plan because, keeping your current job, and working at your start-up MLM business will take a bite out of your family or social life.
You have to define just how much time you will devote the your business, and keep to the schedule.
So, the question of, "Is MLM a career?" has to be answered as, it is a career if you make it one by putting in the time and effort.
What Kind of Person are You?
Here are some types of people that can be successful in Multi-Level Marketing...
- Entrepreneurs
- Professionals
- Salespeople
- Marketers
- People People
- Managers
- Teachers
- Political-type Organizers
Whatever your personality, your skills, and your strategy. You can develop a personal system that you have to put into operation consistently to make money.
Entrepreneurs get things done, but they make a lot of mistakes when they operate on "gut feelings." They are easy prey for MLM schemes, and must perform their "due diligence" before entering into any MLM business.
Professionals will study and analyze and plan effectively. However, unless they are people people, they will not do well in any MLM system that requires lots of contact with customers.
Sales people are like hunters, and the "thrill of the chase" excites them. The mistake that sales people make is that in getting the sale, they might fail to build the long-term relationship that is required. All great sales people focus on the relationship first, service or serviceability fit of their product to the customer/ client's needs, and gradually selling more pr, more expensive products and services in the future. This is a career if relationships, rather than quick sales are the goal.
Marketers focus upon matching a product to the most people of a particular category, then writing sales copy that motivates people to buy. Marketers are at a disadvantage in the MLM field because they are hampered by the latitude that they can operate in. Of course, great marketers will figure a way to put together an irresistible offer despite the MLM company's framework.
But, marketers may shy away from MLM companies because they research the market first. The "deal killers" for a marketer are:
- Choosing a product only after determining
- Setting the correct price point. Most MLM products are over priced to carry the overhead of the upline, so market research will show
- Marketers are convinced of their own abilities, and would never put their career in the hands of downlines and associates. Too many slackers, not knowing what they are doing to bring in the return on investment for the training
- Training the downline doesn't pay, after training their is nothing to keep the associate from "jumping ship"i.e., affiliating with another MLM company, or a competitor, and taking their "organization" with them.
- Marketers look for under developed and under exploited products, and they look for buy out or licensing agreements. For example, they may want to change the title of a book. Bundle the products, provide a sales funnel of upsell and back end products, etc.
- Unless they are starting the MLM company, marketers may find that participation in an MLM company hampers and stagnates their career
People people may get excited about the MLM propaganda as they join, but if they truly care about others, they will quickly begging to doubt that selling over priced products to people, and bringing in independent associates who don't stand a chance of ever breaking even, let alone making a profit is just something that "bothers their conscience." Sadness and disillusionment are career limiting situations for the people person.
Managers operate well in an MLM environment because they are able to organize and structure their activities. They are also able to delegate work, although this skill doesn't serve much purpose until they have a downline that has been trained.
Teachers operate well in an MLM environment as long as they can training downline associates. Of course, they have to have a training mentor for themselves (a rare occurrence) or, it takes years for them to acquire the skills. The caring about others that teachers feel serves them well, unless they are working for a pyramid scheme company that just churns out new (soon to be broke) associates to keep the "money-grubbing apparatus" oiled for the higher-up company partners.
Political-type Organizers, hype, pitch people. These are the hotel ballroom megalomaniacs that revel in a crowd. They do well in MLM because they have no conscience and will say anything to anyone, promise a moon shot when the MLM product can barely reach the balcony of the second floor, and twist psychology so that people are lead to believe that their failures are just because they don't have the right success attitude.
Folks who do poorly in the MLM arena, and who fail to build a career include:
- Con Artists
- Get Rich by Tomorrow
- Capital-Challenged
- Homeless Street People
Investment Costs
You have to have money to make money, and you have to deliver more value to the person than you take front them in money.
Tricking people means that you have converted a potential lifetime customer into a one-time customer that "bad mouth's you and your MLM company's product to everyone. Unfortunately, MLM folks encounter turned off customers at every turn that were "worked over" by con artists. These folks ruin the career potential for everyone.
The "get rich by tomorrow"crowd are quickly disillusioned, and quickly jump to the next offer, never building their downline. They don't stay with a company long enough to build a career.
The Capital-challenged people don't have the money to make the initial investment, or the luxury to put in the long "apprentice program" that is require to learn the ropes. The capital-challenges people must either have a backer that can help them buy in to the high entry costs, the purchase of products at above retail instead of wholesale, and the mandatory purchase of some companies that is required in order to receive a commission. Entry into an MLM is not a venture for the "weak of wallet."
Homeless street people cannot afford the high entry price of most MLM systems, and they cannot point to their success to show prospects that the system is lucrative.
So how does a MLM Career Stack Up
College students change their major an average of 3.x times before graduating. After that, they change jobs and careers plenty of times, too.
Multi-Level Marketing is not for everyone. It probably isn't for 18 to 22 year olds since they would seem to lack credibility in some product areas. Although a few young people have made a lot of money on Internet multi-level marketing.
How can you Benefit from a Career in MLM?
If the folks who sponsored you will actually train you, you can benefit from the MLM experience because you will learn vital skills that are needed for running and managing any business. These include planning and management skills, sales skills and communication skills. These skills make you valuable to any organization.
With the right training and a legitimate company, you can earn a substantial income, invest in your retirement with Individual Retirement Accounts (IRAs) (don't buy the foolishness that your independent associate status is equity, it isn't).
Career Path for You, or Not?
The hype from the Multi-Level Marketing marking folks is that you can work as little or as much as you choose.
This is true. However, the reality is that if you want to earn a lot, you will have to work a lot, particularly at first, when you are learning and making lots of mistakes.
Each mistake is a learning opportunity, but it is also lost revenue or a lost revenue stream.
You will find that to make MLM a career, you will have to put in as many or more hours as you would work as a salaried worker in a major corporation, i.e., 40 to 60 hours per week. And, you will work nights, weekends and holidays.
If this is for you, you might be successful.
If you find a professional and career-oriented MLM opportunity, go for it. Otherwise, head the other way.
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