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Disadvantages Of MLM
It is said that every advantage has an equal and opposite disadvantage. Well, that was really aimed at ‘action’, but it can be applied to the world of business, too.
At least I think it can. I discovered this when I initially tried my hand at MLM (Multi Level Marketing). I must admit that I was hooked for life to a system that showed more promise than my otherwise other, more frowned upon plan of fixing the state lottery.
I admit that I had my share of get rich quick schemes, however, a few MLM programs caught my fancy and while I realized that there was no way one could get rich without a great deal of effort put in, I also realized that the law of leverage could be applied to make the work easier.
MLM was my lever to make my work easier. In the same vein I found out that the advantage of using MLM to make money had a disadvantage; I started to lose a lot of friends.
Being a newbie in the MLM business I was depending on all my friends and colleagues to sign up in my down line. In the beginning they humored me to a great extent and some of them even signed up for the small fee, but soon they began to avoid me and my long line of friends vanished into the blue yonder and my hopes of building a great down line went with them.
This is just one of the disadvantages of MLM if you stick solely to your "warm market" - that is, your friends, family and associates. Today, the internet has changed the way network marketers do business.
I did manage to grasp success in my MLM campaigns. Not everyone can succeed in an MLM business model, however. Some people are not suited to direct sales and marketing. They may be afraid to approach customers, or ask for a sale. They may not have time to invest in building a downline.
The idea that there always has to be a loser was changed once companies began offering true quality products, needed and wanted by customers. In addition to useful products, some gurus in the field initiated the concept of giving away a product and a few add-ons for the price of joining an MLM. This was the take-away of the MLM program. If someone gets something in return for a fee to join an MLM it is not a loss, even if the person decides direct selling is not their cup of tea.
On more disadvantage of an MLM is the absolute requirement of a down line in order to succeed. Not everyone can create one. If you are good at creating a down line and there are a few weak links in your line your MLM tree will be very weak. You will need to manage your tree by placing people in places where the gaps appear to maintain consistency in the uniformity of the growth of the line.
It used to be that every MLM had a life and it was imperative to get in at the top if one wanted to make considerable gains. That was more true in the days of real pyramid schemes.
Today, with quality, consumable goods and services the MLM business model can be as successful as Walmart for just as long, as any Shaklee, Mary Kay or Avon representative could tell you.
MLM Specific links
MLM News
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