What's Wrong With Multilevel Marketing?

Just the sound of the word multilevel marketing is enough to scare away a lot of people due to the bad name the whole industry bears to the eyes of the public. Many have tried it in the past and failed plus many pure pyramid schemes that disguise themselves as Network Marketing companies are contributing to its infamy. But despite the whole negativity and the bad perception to the masses there are still many people interested in delving into it and eventually start a business as distributors.

But Why they want to do such a thing? Can't they see the hard facts, or do they see something different than the others?

To find out let's examine what are the strong points that make MLM an attractive business model suited to average people with no entrepreneurial experience.

Let's first talk about the cost to participate. In comparison with a traditional brick and mortar franchise the cost to join is a joke. No need to deplete your savings or to rely on loans. It doesn't cost you much more than a hundred dollars per month to sign up and promote your MLM business.

Second, let's talk about your sponsor. The individual that recruited you into the company. The same person is going to become your mentor and give you his guidance while you're trying to build your organization. All of these of course, for free. In a traditional business you would have spent thousand of dollars for a business consultant or a business coach. Add to that that your sponsor has a great incentive to help you succeed otherwise he won't make any money from you and you have the perfect conditions for starting a business.

What's more, most of the companies are running programs to train their distributors and prepare them for the entrepreneurial world. They know their success depends on their people working in the trenches and marketing their products, so they're trying to do the best when it comes to training.

As you can see multi-level marketing has great advantages for people like you and me. Unfortunately those strong points it has, happen to be responsible for the ills the industry is experiencing.

Due to the low entry cost to participate it is perceived as of a lesser value by many members and so they don't take it seriously and give their best self to it. The same people if they were running a brick and mortar business with the expenses running to the tune of thousands of dollars every month they would have put more attention to it.

Second, the same goes for the sponsorship-mentorship relation. If it's there free of of charge and at any time they discount its value as they also do for the company training.

As we can see the industry relies into a model which also attracts people who were never serious at the beginning to start their own home based business and they are not committed to succeed in it. These people are the majority who fail and show up in the statistics that contempt MLM as a business model that can never work due to the “huge” failure rate.

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