What Is The Truth On MLM - Do You Know?
Christine Oakley

Just Mention the words MLM, multi level marketing, network marketing and watch the sparks fly. Reactions range from distrust to anger. You hear words like scam and fraud a lot. On the other end of the spectrum are those fiercely loyal to Network Marketing.

Why such strongly opposing views?

The Pro MLM voices come mainly from within the industry - while the Anti Multi Level Marketing camp is largely on the outside.

But that doesnt paint the whole picture.

Many of those who are adamantly opposed to network marketing were once in the business themselves...and more importantly - failed miserably. Its also true that many of those with the strongest anti-mlm convictions base their opinions on hearsay.

Weve all heard the My cousin ( friend, brother, uncle ) Bob got sucked into one of those things - he lost a pile of money! Or Yeah - MLM is a scam - dont waste your time!

So then what is the Truth about MLM?

MLM is simply a method of distributing products to the end user that allows a company to maximize revenues in order to pay commissions out to their sales force. These commissions are paid to individual distributors.

Companies minimize costs and maximize profits using this model. Which explains the potential for the huge commission checks you hear about.

But in order for an individual distributor to make money they must spend the bulk of their time recruiting people into their opportunity. In other words - product sales are not the main focus. Recruiting new distributors who will likewise consume the products is the name of the game - and where the big moneys made.

It is this factor that creates the bulk of the negative perceptions about the MLM industry.

But does it have to be that way! Whats the real problem?

Quite simply - its this...

A new distributor is told to make a list of his or her warm market. In laymans terms that means every person within their sphere of influence - from the garbage guy to Great Aunt Lucy.

Theyre told not to let anyone who comes within 3 feet of them get away without hearing their pitch. Suddenly the new distributor realizes that even close friends and family are avoiding them like the plague. So they try running ads about their great new opportunity...

Weve all seen those!

Make $20,000 a week while yousleep! Call xxx-xxx-xxxx Today!

They pay good money to place those ads. Their upline assured them it would work - only it doesnt!

Most of those distributors arent intentionally trying to suck someone in. Theyre simply following instructions from their upline distributor in order to grow their business. And, if youre thinking - Oh then its that upline guy whos the jerk! Youd be wrong...

You see many of those upline distributors have little or no experience in network marketing themselves...so guess what theyre doing? You got it! Those poor guys and gals are doing whatever their upline told them...and on it goes.

MLM offers an income generating model thats supposed to allow the average person to reach up and grab their piece of the pie. And - its precisely because a person wants it so badly and is so emotionally involved in the outcome that they get so upset when it doesnt happen.

For most of the honest, hard-working people who swallow their doubts and fears and scrape together the cash to give MLM a shot - the results are dismal.

They jump in with both feet and flog their opportunity to anyone thats breathing.

Net result? Most new distributors quit in short order because no-one bothered to mention little details like effective advertising and marketing and so they run out of money almost as fast as they run out of people to talk to.

Its a known fact that 95% of all active network marketers make little or no money. The industry attrition rate is appalling which is why MLMrs are bashing their brains out trying to find people to pitch their opportunity to.

So - does that make Multi Level Marketing a scam?

Ill leave that to you to decide...

The real question to my mind is - how do professional network marketers make the big dollars?

And the answer is that they target people who are already successful - either within the MLM Industry or in some other field.

Most network marketers fail because they recruit people who know absolutely nothing about MLM - and even less about running a business!

If youve been struggling to make a go of MLM - you might want to read that again - its the missing piece of the puzzle.

So - is MLM a viable business option?

In my view - yes but on the proviso that you understand how the game is played and know how to market effectively.

Isnt that true of any business?

Theres a lot of money to be made in MLM if youre willing to work at it and your message and your target market are well matched.

If you dont know what that means then you need to study marketing.

Bottom line - if youre considering network marketing as a career or youre already involved in the industry and not seeing the success youd like - dont rely on your upline to either know or be willing to teach you the Truth On MLM.

Copyright 2005 Christine Oakley

Chris Oakley specializes in helping Network Marketers and other Business Owners Succeed. Frustrated? Get Your Free 10 Day Magnetic Sponsoring Boot Camp Email Course at http://www.mlmprosonly.com/mlmcoach.html.