ScottHallett.com

The reason I am writing this post is because I both love and hate MLM (multi level marketing) – also knows as Network Marketing.

I personally believe that the network marketing financial compensation model is one of the greatest revenue plans out there.  And for that reason I am hooked - as are many others.

I simply love it!  Always have and always will…

If a person takes the time to seriously think about how it works, it’s no question that the true potential becomes apparent.

And with everyone who has got involved (and continues to become involved) with MLM, it’s safe to say they probably felt/feel the same way.

With all things being perfect, here is how it would go down:

You find just 5 people, and teach them each to do the same.  If that happened down to 5 generational levels – and if you were earning only 1$ per month on each person – you would be making about $4,000 a month residual!!!

I won’t spend but that one paragraph explaining the model – it doesn’t take rocket science to figure out how it all works…

So, what’s the problem?

Why have so many failed in network marketing?

Not only that, why is the industry hated soooo much by soooo many people?

Mainly – empty promises by those who recruit others into the business.

Here are a few:

• All you need to do is find just a few, and teach them do the same (the emphasis on this lie is “All you need to do”)
• The product sells it self
• You just need to make a list of people you know – and you will have all the signups you need
• Once your downline is started, it grows automatically.

What would happen, if a recruiter told something more akin to the truth:

• Chances are your going to have to find a lot of people, because 99% wont be interested, resent you for asking – and the one percent that you do convince to join will probably not be successful and lose money and friends before he makes any back – so he will quit.
• Without adequate training, you will be left to your own devices to try to market this product on anyone you can find by any means possible.
• The product you are selling is an inferior product that is wrapped up in an money making opportunity, but that’s ok – because we are using it to make money and people will see that.
• You are going to have to buy tons of product that you may not want or need and it will probably sit in your garage collecting dust.
• You will have to make a list of all your friends and family and bug them to join.  Chances are they are already aware these types of so-called “opportunities” and wont want to join.  Many will probably look at you in a negative manner afterwards.
• Even if you do get a few on your frontline, most won’t make a go of it because they are not serious about building a business – and will eventually drop out.

But with all of this, MLM is still very much alive.  And there are quite a few people who continue to thrive in this industry.

The math is there.

For this reason, I still remain hopeful.

So, in 2009 – is it still possible to get involved in MLM and make a successful run of it?

Absolutely!

The first and most important thing you must do is completely overhaul your understanding of MLM.

And overhaul how you promote this industry.

Integrity is key.  Integrity on the part of the company to deliver a quality product that works at a competitive price point with similar products – or by providing a product that truly is revolutionary and doesn’t exits in the marketplace.

It also takes integrity on the part of the individual sales associate.

Two things one must do:

1. Tell the truth about the industry
2. Work with a professional integrity

Here are some things to think about.

• Never lie about how the industry works.  Be honest with expectations one can face when starting in this industry.
• Never push your product on others, instead treat it like a professional business.
• Advertise your product and let those (and only those) who are interested come to you
• Respect peoples decisions and privacy.

And when choosing a company and a person to help you represent them, consider the following:

• Find someone who doesn’t hype up a product or opportunity (beyond reason).
• Find someone who works exclusively with their downline to help them become successful.
• Look for satisfied customers.
• Look for a company/team that has professional marketing/promotional and training tools – ask to see all of them ahead of time.
• Look for a company that wont make you commit to more product than you can use for yourself in the designated period.

There is a new wave of people in this industry who refuse to compromise it.  Attraction marketing is the best thing that has happened to this industry, and it is the only way to go.

I will save what attraction marketing is for another post – but it basically means you put yourself out there in a way so that those who want what you have can find you and *choose on their terms* to do business with you because you have proven yourself to be a positive attribute and help to them - regardless of what is in it for you - thus establishing trust, credibility and a sincere desire to want to work with this person.

• These people conduct their business like a business and with complete honesty and integrity.
• You provide authentically helpful service to others without regard to anything in return for yourself.
• People will naturally gravitate to you.

MLM and many other work-at-home opportunities are still very much in high demand.  And people, both newcomers – and those who have been burned in the past, are looking.  They will choose to partner with people that make them feel like they matter, comfortable and have a feeling like they can work with this person and ultimately become successful with them.

There is a lot more to say about MLM and finding the right company/product and sponsor/team - also about how to successfully establish and build a business in this industry.

But for now, I just wanted to cover some of the high points…

My advice – do not rule out MLM – you truly can make a great income/living from this industry.  But it is up to you to do your due diligence to understand exactly what is to be expected and what it takes to succeed.

Best of luck!