Network marketing, also known as "MLM," can be a great way to earn anything from a small extra income to a comfortable full-time living. However, many people join multi-level marketing opportunities without fully understanding what they are getting themselves into. There are seven bad reasons to join a network marketing opportunity: 1) Making "quick money" 2) Expecting "spillover" to do all of the work 3) Believing that a product is so fantastic that it will sell itself 4) Expecting that the top recruiters are no longer as active as they once were 5) Expecting a product to sell itself 6) Believing a product will sell itself
Most mlm systems are not about the product, and it is important to understand what network marketing is all about. This includes helping an old friend out, obtaining a large sum of money in a short period of time, and being able to sponsor dozens of new people per day. MLM opportunities have a life cycle that grows rapidly in the beginning, and if you join after the initial explosion, it is much more difficult to see immediate results. To succeed, patience, knowledge, and the right strategy are required. Celebrity X endorses this program.
Mr. Big Hitter has already made thousands of dollars with this opportunity and is not shy about telling everyone how simple it was. He was probably involved in this opportunity long before it was made available to the general public and has the resources to reach out to a large number of people quickly and efficiently. However, new to this game, it's a bad idea to think you'll be able to pull off feats worthy of a network marketing guru right away.
Network marketing, also known as "MLM," can be a great way to earn anything from a small extra income to a comfortable full-time living.
However, many people join multi-level marketing opportunities without fully understanding what they are getting themselves into. This is most likely one of the main reasons why some people have negative feelings about this type of business.
MLM works if done correctly. Period. That being said, here are seven really bad reasons to join a network marketing opportunity:
1) Making "quick money"
I know mlm companies are very good at marketing their business as a simple 1-2-3 process that anyone can do to become an instant millionaire. Using super long and completely overhyped sales letters has almost become a standard, especially online.
This is akin to claiming that anyone who can open a can of beans is a master chef.
Don't get me wrong, I believe that if they put their minds to it, most people CAN make it in mlm. But you must be willing to learn a lot of new things and put in the effort. There is no doubt about it!
2) Expecting "spillover" to do all of the work
A "forced matrix" underpins many mlm opportunities. In a 3x9 matrix, for example, after you have sponsored your first three new members, the fourth will be placed under the first person you sponsored. This individual has thus added one person to HIS downline with no effort on his part.
Some companies would have you believe that their top recruiters are so effective that the spillover from their marketing will make you an instant success even if you are starting from the bottom.
This is a pipe dream that will never come true. Yes, a few people will most likely spill over into your downline, but not nearly enough to guarantee your success. Because of the sheer width of the matrix on your level, an enormous number of representatives will be required to shear any amount of spill over.
And who says the top recruiters are no longer as active as they once were? Worst case scenario, they are now working on something completely different because their income from this particular opportunity has already been secured.
3) Believing that a product is so fantastic that it will sell itself.
This is a common blunder because most mlm systems aren't really about the product. I understand how difficult it is to accept this fact.
As a newbie, I remember joining this lottery syndicate-mlm, thinking that "everyone" would want to improve their chances of winning the lottery - right? When I discovered the truth, I was devastated; some people mocked any mention of this fantastic new discovery I had made.
Similarly, in network marketing, it makes no difference if you are selling a breakthrough product that contains every mineral and vitamin under the sun if you do not understand what network marketing is all about.
4) Helping an old friend out
We've all been there: an old friend you haven't seen in years calls to arrange a meeting about something he will tell you more about when you meet...
I'm not saying this couldn't be a profitable venture. However, calling all of your friends is a very inefficient way to do mlm, and you should never join any opportunity solely to help someone else. Because this is ultimately about you, your money, and your career.
5) Obtaining a large sum of money in a short period of time
The majority of mlm testimonials seem to go something like this:
- I made $800 in my first month and have now been able to quit my job and...etc. in my third month.
While not outright lies, testimonials like these are typically gathered from individuals who, through luck or skill, were able to participate in this particular opportunity from the start. They are simply at the top of the pyramid, and they frequently know exactly what they are doing - they are the multi-level marketing experts.
MLM opportunities, like most offerings, have a life cycle that grows rapidly in the beginning. During this period of rapid expansion, it is possible to sponsor dozens of new people per day with little effort. After all, this is something completely new, and a well-placed advertisement can work wonders.
However, if you join after the initial explosion, it is much more difficult to see immediate results, and attracting new people into the business takes more effort. To succeed here, patience, knowledge, and the right strategy are required.
6) Celebrity X endorses this program.
This is related to the previous point in some ways. Mr. Big Hitter has already made thousands of dollars with this opportunity and is not shy about telling everyone how simple it was. He's also probably not lying. It was simple for him.
Because, as previously stated, he was probably involved in this opportunity long before it was made available to the general public because he already knows all the right people.
He (or she) also knows their stuff and has the resources (large email lists, advanced Internet marketing tools, etc.) to reach out to a large number of people quickly and efficiently.
If you're new to this game, it's a bad idea to think you'll be able to pull off feats worthy of a network marketing guru right away. Would you put your golf skills up against Tiger Woods'?
I didn't believe so.
7) Believing that this will be a profitable venture.
I'm not talking about your mlm opportunity's membership fee here, because that's a given. However, many people mistakenly believe that they can use the Internet to market completely for free.
While there are some effective low-cost Internet marketing techniques available, you should never fool yourself into thinking that Internet marketing will be free. Furthermore, online competition is typically fierce.
To summarize, network marketing can be an exciting new way to earn money. However, your motivation for joining a multilevel marketing company should not be based on one of the aforementioned myths.
You'll be fine if you treat your business like a business.
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