Real Problem with Multi-Level Marketing (MLM)

Dear BizBasket Viewers,

While the legal battle is going on in various courts of law related to SAOL, which we are watching very keenly on daily basis, you would have heard majority of panelists asking only one question time and again "leave everything ! just tell me when the payout will start !!!", and you dont have its answer and you dont know how to handle your tough downline. We thought of writing an article to give you all an in depth of the real problem with Multi Level Marketing/Direct Selling business, which probably will give you some knowledge about the subject so that you can handle tough situations in future.

The real problem with MLM is not MLM itself, but some of the people it attracts. Network marketing is just a business model, and it really amounts to "micro-franchising". Its upside is that it has a very low cost of entry, with the potential for exceptional revenue, and there are those who achieve that.

But those same things that make it attractive make it attractive to many who are NOT really qualified or prepared to become business owners. The salient characteristics of MLM make it attractive to people who:

· have not done well in their business or profession and have little money saved up to invest

· have no previous experience owning or running a business

· have no previous experience in sales

· have little or no experience developing business relationships other than that of employer/employee/co-worker

· are not satisfied with their current level of income

.have unrealistic expectations of the amount of work involved compared to the revenue realized situations

· coming across as desperate

· over-focused on new recruits and neglecting existing customers as a result

· being either inaccurate or deceptive when talking about their business

Again, I'm certainly not saying that this describes a majority of network marketers, but itdoes describe enough of them to tarnish the reputation of the rest. To pre-judge someone based on the basis of a small minority of people in that group is horribly unfair, but we must realize that most prejudices have some basis in reality, even if it has been distorted.

So what's the solution?

There's a first time for everything. And network marketing/MLM is a great opportunity for people to have their first business, their first sales role, etc. My point is this—recognize it for what it is: it's a business, and you are a business owner. And if you've never owned a business before, if you've never done sales before, if you've never networked before, you need to learn about how to do so, not just from the network marketing/MLM experts, but from established experts in those fields.

Network marketers who are serious about building a business should be reading and learning about business fundamentals, the latest sales and marketing techniques, strategies for networking and business development, etc., not just swapping tips at your team's weekly or monthly meeting. Act like a small business owner, and people will treat you like one.