1.) Traditional MLM Business strategies require too much work setting up before the profit starts.
One of the biggest reasons why hard working people don't get their MLM Businesses going in the first place is because there is a lot of work that goes into the initial prospecting and recruiting.
When you factor in the time for the phone calls and restaurant meetings, providing training and attending the hotel ballroom motivational meetings (to say nothing about the cost), starting an MLM Business doesn't pay.
All of this non-paying work (You are not being paid for doing any of this work. You only get paid for sales.) is just too time-consuming for the average job-holding person to invest in while still holding a job to pay the bills.
2.) Traditional MLM Business strategies have built-in pressure to sell to your family and friends because these are the only sales that you can make until you really learn how to sell.
It is easy to burn out by spending so much time building your MLM Business (without making any money). You begin to think that you are never going to make a dime, you imagine that your family will laugh at you for failing, and you begin to fixate on making money (instead of focusing on caring for your customers and your Downline associates.
The demand of spending three to five hours every night (away from your family) prospecting and recruiting takes its toll. Couple that with the demand to make the MLM Business pay off, and you have "stress up the kazoo." Continuing with this prospecting and meeting schedule for long periods of time requires a stamina and determination that few people possess when the process is paying off, let alone during startup when the investment hasn't started yielding fruit.
3.) MLM Business strategies require pricey and long-term advertising. You have to purchase glitzy magazines, overpriced catalogs, Websites, give-a-way CDs and DVDs, and assorted sample products.
Then there are the huge cell phone bills because three and four-way calling eats up your minutes two or three times as fast as a normal call.
You also have to keep up appearances that you are a successful MLM professional. How can you recruit and sell if you look as impoverished and desperate as you really are? "Faking it 'till you make it" may work, but acting affluent requires that you spend like a drunken sailor.
4.) MLM Business strategies demand a large investment of sales training. You have to learn to change your habits of speech and gesture. You have to learn to rephrase questions to develop the "yes set." You have to read your customer's objections, and counter their "just say No" mind set before they even raise the issues that indicate that you are advocating a "bum investment."
Then you have to moderate, troubleshoot and fix a variety of problems that develop with lost or botched orders, claims that product shipments didn't arrive on time, and other tasks that somehow got left out of description of what you were getting yourself in for when you were recruited. (Let's hope that you don't do the same to your Downline associates.)
The truth is that MLM Business strategies require a large investment in training, both your training, and the training that you provide (free of charge) to your Downline associates.
5.) MLM Businesses also require that you continually battle to keep your customers and Downline associates. Folks are quick to drop out when they find out how much work they have to put into the MLM Business before they see a payoff (if they ever do), and there are a lot of competitive pressures enticing them to "jump ship" and join another business (where the sponsors promise better, even magic, returns than the program you offer provides).
What most Upline Sponsors fail to reveal is that the "average" Downline associate and customer will stay active for 3-4 months before they cancel. So, while your Upline Sponsor showed you "What If" profit numbers based upon a steady pyramid of growth, the reality is that "pyramid" looks less exponential and more like a slow incline...with you having to battle to keep the profit slope positive.
Fall down on the job, and your profit slope takes a downhill turn. This means working even harder than you already are just to keep the progress that you have made, and the prospect is that profits will only diminish.
These MLM Business profit prospects are probably only going to get worse as more competitors join the fray, and as your market area becomes saturated.
And, if the numbers that your Upline Sponsors gave you were true, your big city market could reach product saturation (Downline Associates and Customers) in an amazingly short time, and that is if MLM Downline Associates and Customers hung around.
MLM Downline Associates and Customers simply don't have the time nor money to remain active members in many different programs, including yours. Issues include indifference, a lack of effort, poor results and a never ending amount of other enticing offers, and little payoff for a lot of work. You are lucky to get MLM Downline Associates and Customers to stay with your business for three or four months.
But an MLM Business can be profitable, but, there is a right way to run your business...and a wrong way. Unfortunately, the way that your Upline Sponsor told you is the "right way" for the Upline Sponsor to earn fast cash, and the "wrong way" for you to build a long-term business.
While the process of building a profitable MLM business is simple (you follow accepted business procedures, measure your investments and profits, and follow a business plan), rushing headlong into the business the way your Upline Sponsor tells you is "surefire failure."
What are the things that your Upline Sponsor tells you that are wrong?
Here are the major misleading pieces of advice...
- Sell to your family and friends first to "get your feet wet"
- Don't sell to your family and friends at all
- Your product isn't that good
- Your product is overpriced
- Less expensive competing products are available at your local hardware or supermarket
- Spring for large quantities of the company-produced brochures and catalogs
- These company-printed materials are often glitzy and over priced
- The purpose of the glitz is to show that the product is "upscale" and worth inflated the price
- Brochures and catalogs do not sell products, salespeople do
- You are asked to invest in non-productive materials that add little or nothing to your bottom line
- Purchase a large quantity of these materials to "get the volume discount" and you can put your MLM Business into a hole that you can never climb out of
- Attend high-priced motivational seminars at fancy hotels
- This is great if you want to deduct 20% of the cost of the program from your taxes and 100% of the cost from your bottom line
- Listen to pep talks that try and convince you that your success comes from believing in yourself and the "Law of Attraction" instead of focusing upon sound business principles and professional business planning
- Invest now in building your Downline for future riches
- You cannot help your Downline Associates until you are successful yourself
So, get started now to learn the methods of turning your MLM Business opportunity into a thriving money-maker.
Ignore they hype, and look closely at the business that you want to invest in.
Expect that everything that your Upline Sponsor says is an exaggeration about how easy earning money will be, and how quickly you will arrive at profitability.
Perform the basic business step called "Due Diligence" before you invest in any MLM business, and ensure that you are making the right decision.
You also have to take action.
Without action you can expect that even the most amazing, wealth-building, long-term MLM opportunity to be a flop.
It is a sad fact that only five percent of the folks that undergo MLM training take action.
The MLM program can be online or offline, but the application rate is nearly the same.
Then, of the folks that take action, only slightly more than half make any money.
Why do only five percent and take action on what they learn?
That’s 95% of your Downline Associates that invest money, purchase stock, spring for the brochures and catalogs; and let the monthly orders pile up until they drop out of the program.
Sure you made a few bucks in commission from the start-up sales, but not enough to cover your time. You can't afford to recruit Downline Associates who will fail to follow through afterwards.
You have to qualify your prospects, and determine which ones will take action after the first step.
Unfortunately, the MLM field survives largely on the supply of people willing to pay for the next big opportunity, then fall flat. It is as if these folks gamble their money because they think that just joining the MLM business will make them a success.
Only a small percentage will have the knowledge, skills, attitude, opportunity and initiative to take the business to profitability by following through with the basic steps.
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