Oh No! Not Another MLM Business!
R. E. Bloom
How come it is that even though businesses that pay people commissions to sell products to their family, friends, and others are heralded as such horrible businesses when anyone in marketing would agree that word-of-mouth advertising is the best way to sell products?
Well, as I and others have observed in the last twenty years in the industry, there is a trend that very well may be causing this bad wrap, if not at least a major player in contributing to it.
I'll name it DEFAULT
We've all experienced it. You get a program and fine tune it to your needs. What a joy it is. The sun is shining, the birds are singing. The blossoms are filling the air with fragrance. Then one day something happens and returns all your settings to DEFAULT. And there is no way to retrieve your former settings except by starting at the beginning again. Dark clouds gather. Hours are lost, appointments missed, decisions delayed, emotions run high, and many other things go wrong. All because of DEFAULT.
You might be surprised to realize that nearly every business on the planet has a pyramid as their business model. That's every business, not just network marketing ones. Let me explain. At the very tippy top of the company is the head honcho, Mr. President. Then, below him are his few trusted managers, those managers also each have a few trusted managers, on down to the plain old employees. The top guys get paid the most, the little workers, like the janitor, get paid the least. Sure looks like a pyramid to me!
But then a neat network marketing businesses comes and changes everything up, at least that's what they say.
"Just stick with us, and we'll show you the best business in the world. In our business, you don't have to stay on those bottom levels and get paid less that the president. You can enjoy living like a CEO, have vacation whenever you like, travel the world in style, and even have oodles of time to spend with your family" and on and on and on they tell you. They draw circles all over a piece of paper and who you how it's possible.
And so you try it and everything goes incredibly wellfor a short time. Then suddenly, a dark day dawns and you find that everything you've worked so hard to set into motion is gone, all gone, and everything has turned back to DEFAULT. You find yourself again at the bottom of the pyramid just like if you worked at your local retail store stocking shelves.
Most people don't realize that nearly every network marketing plan is designed with a DEFUALT button. This causes it to go back to the old pyramid style of big CEO at the top racking in the cash and little guys on the bottom scrounging around for whatever little money they can make. This DEFAULT system works with various methods. They're called by a variety of names, but we'll list only four here. I think you'll recognize them.
1. Jump-Start: Knowing full well that most people will never get beyond the initial "buy-in", these companies push you to "tell all your friends and family" about the opportunity. This gives the company free advertising and quick profits from the "packet" that you had to buy.
2. Breakage: if you don't meet your monthly quota then you have to forfeit your "bonuses" or "points" and then the company keeps the money.
3. Break-away: when you "advance" to a higher level you leave behind some earning potential you had struggled hard to achieve. The company keeps the money.
4. Exhaustion: by requiring constant enrolling of new people the company knows that eventually you will tire and give up. They know the average recruit will enroll only 2-3 people, so they keep the recruiting requirement high. The company now keeps what you worked so hard to build.
These are some of the mechanisms built into most of the MLM programs out there. Their intent is to cause your business to DEFAULT to the conventional business pyramid.
But the good news is that not all MLM opportunities do this! Look for those who specialize in helping the "little guy", who don't use the mechanisms mentioned above.
About the Author:
BioGenX Global is an interesting company to check out. Learn about BioGenX today!
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