MLM and Network Marketing Schemes

I thought I’d cover this early in our discussion – I have been involved with a number of Network Marketing Companies in the past. I have built a downline of several thousand people. I have earned thousands of dollars per month through Nework Marketing – years ago…

I have several really nice suits and cotton white shirts in my closet.

I’ve taken and written off many vacations.

I even purchased for cash a timeshare in Florida just outside of the Disney properties.

I never worked so hard in all of my life!

Some companies have really wonderful products and I still order Nuskin through my distributor account. Other companies have fizzled and all but gone away. Yet others keep going because they make so much money that they can stay alive.

I was a presenter – I had my laptop connected to a video projector and I stood up there talking to the groups that my downline ‘Invited’ to our presentations.

I did in-home demonstrations – I just can’t tell a woman that she has lines and wrinkles in her face that our product would help!

I told people that it was easy to make the money that I made – that I would show them exactly what to do.

Have you been here?

Pay attention to what I’m going to say for the rest of this post…

If a company has a product that is sold through a distribution channel that requires multiple people to earn a commission – no matter how good it is, it is going to be over priced. Remember that the company makes the biggest profit – then all of the ‘Distributors’ down the line to where the product actually gets to the customer. Whew… hard to imagine the whole $$ thing. You have a  $1.00 product that ends up costing the buyer $49.00 because of everyone in between that needs to get a cut.

No matter how good it is it takes a lot of ‘selling’ to convince the buyer that it’s worth it.

Don’t forget the ‘autoship’ product that you have to maintain – $100 of product produces commissions for all of that upline – doesn’t matter that YOU are buying it now does it!

Here is what I really didn’t like about Network Marketing…

My (BIG) income had nothing to do with my ability to sell or market the product(s) – it was directly dependent on how well I recruited, motivated and babied those in my downline.

I stopped counting how many times I heard – "I can’t find anyone to buy this stuff" or "I don’t have any friends who I can recruit"

But this is why I won’t do this ever again – no matter what the product or how close to the top I’m placed. Just never going to happen.

The difference with doing my own thing…

When I have my own company, products, services, etc – I can decide what I’m going to sell today. If wigs that make a woman look like beyonce are hot (look up ‘beyonce wigs’) then I will promote it… if it’s the beginning of the NFL season I want to be able to promote ‘NFL wear’ or Fantasy Football League web sites.

I want to choose what I’m going to sell… something that I know is hot and real people are really buying them!

I don’t want some company to tell me that their product is hot – because that’s what they produce and market – regardless of how cold the market is for their product. Just because they say that their products are needed – it’s the wanted products that I will be promoting!

IMPORTANT NOTE!

Please don’t comment about how the MLM or Network Company that you are with is different. I’ll delete your comment and ban you from this site.

We are not here to promote MLM / Network Marketing as the way to really make money.

To your continued success,

Michael Hobach