Well, if you ask anybody who’s currently IN a MLM, they’ll most likely respond with something like, “It’s the best opportunity to make some side income which can easily turn into massive wealth within a year or less so you can quit your job and live happily ever after.”
And then they hand out their business cards and do their very best to talk to you into joining THEIR businesses/downlines.
Allow Me to Give You MY Interpretation
Let me break this down for you really quick, MLM simply describes how a company chooses to build out its sales force – it does so by compensating its sales team not only for sales of products they generate but also for the sales of any other sales person they bring into the company.
This sort of recruitment by the sales team forms what’s called a “downline” – the depth can be infinitely deep (Bob recruits Sally who recruits James who recruits Mary, and so on so forth).
Why do companies want to turn to the MLM model (instead of just hiring a team of workers)?
Companies like the MLM model because:
- They don’t need to hire a sales team as employees which is costly
- And more importantly, so they don’t have to pay BIG bucks trying to market their own product and compete with traditional companies for shelf space!
You have to understand that most MLM companies out there would get CRUSHED if they tried competing with the likes of say… Nestle, Nature Made, Conagra, Red Bull, Proctor & Gamble, General Mills, Pepsi Co, etc.
MLM companies, especially the ones just starting out, will NOT survive if they go through the umm… shall we say the standard form of marketing – paying millions in advertisement plus fighting for shelf spaces and consumers against such behemoths as the ones mentioned.
So they rely on their distributors to sell and push their product, and in return they reward the distributors.
Oh, and some of them will also tell you because they want to “help” the masses and “give” the people an opportunity to make money… it’s their way of “giving back”. Yeah right…
And Monkeys Fly Outta My Butt
While at first appearance, it appears that these are some legit reasons a company would choose to go the MLM route instead of the traditional route (some might even believe the “giving back” reason…). But let me share with you the reason they DON’T want you to know.
The reason companies choose to go the network marketing route is simply because they know people are easily sold on “hopes and dreams”!
The reality is, most people join MLM companies not because it has great products, or because they really like the selling profession. People join MLM companies because they think and believe this is a viable option for them to try and achieve their dreams (by making more money) whatever they may be.
Most MLM companies (and distributors) aren’t so much about selling their products as they are just selling hopes and dreams.
You HAVE to understand this as you venture down the MLM path.
MLM/network marketing is in reality an industry where hopes and dreams are being sold, behind the pretense of overpriced and overhyped products. And THAT, my friend, is MLM.
(But fear not, not ALL MLM companies/distributors are like this, let’s dig deeper…)