What Is Happening to MLM?

Written by Gary E Layton

I have lots of people asking me what inrepparttar world is happening to MLM? Well thatís a good question and deserves a thoughtful answer.

Overrepparttar 122574 past two years a lot has happened to MLM onrepparttar 122575 Internet. The most obvious thing is thatrepparttar 122576 old MLM systems are not working like they are supposed to. People are getting smarter and can recognize hype for hype and owner oriented profit schemes more easily.

People are not biting onrepparttar 122577 time worn scams so common onrepparttar 122578 Internet these past few years. The old style of MLM, promising fast and easy money just plain doesnít work in todayís web environment. Impossible claims for quick and easy results with a fully automated system and with no work involved, just do not cut it anymore. Why? Because systems of this type do not work for anyone exceptrepparttar 122579 owners ofrepparttar 122580 MLM in question, thatís why.

Why donít they work? Well to be successful in any MLM you must work your tail off and learn how to properly advertise and close your sales. Not only that, but you must actually recruit people to a downline and train and motivate them to duplicate your effort. Many people want to participate in MLM's but never learnrepparttar 122581 basics of how to sell or close sales.

Then we come to compensation plans; most are front-loaded to benefit those high up inrepparttar 122582 MLM downlines or matrices. Most compensation systems do not really pay enough to properly reward a person for building downlines. Letís face it, under repparttar 122583 current rules being enforced by most ofrepparttar 122584 regulatory agencies, paying for recruiting people is considered to be building a pryamid and that is a definite no-no. By lawrepparttar 122585 majority of income from MLM's must result fromrepparttar 122586 sales of products and services and not from recruiting people into repparttar 122587 program.

That does not mean that referral fees cannot be paid but such fees should be more or less fixed atrepparttar 122588 level compensating those who dorepparttar 122589 recruiting forrepparttar 122590 time and work involved.

Recruiting cannot berepparttar 122591 main purpose ofrepparttar 122592 MLM. Yes, downline clubs may charge a membership fee and pay a referral fee for new members brought intorepparttar 122593 program, butrepparttar 122594 main source of earned income must come fromrepparttar 122595 retail sales of products and services.

It seems everyone has a system to get magic results with little or no work or time requirements. I wish it were so, but it just plain does not work that way my friend.

If you do not know and understand what a good MLM should offer you, it is time you tookrepparttar 122596 time to find out. Letís take a minute and talk about that and see what we can come up with.

For example never join a pure downline club or buy a membership in one until you know what products or services are offered by repparttar 122597 club for you to sell. Then determine ifrepparttar 122598 compensation plan offers a real percentage of retail sales as commissions and not some cooked-up business volume system, which requires reaching certain levels of production to qualify for commissions. Ifrepparttar 122599 MLM requires you to purchase a product in order to be authorized to sell it, make sure you can buyrepparttar 122600 product or service at a discounted rate or at cost. Required purchases for members must be, by law, not subject to commissions for MLM upline orrepparttar 122601 company involved.


Written by Bob Leduc

A new business owner called me recently with a question I hear often. She asked, "What can I do to build my business faster? I'm making a small profit but cannot seem to generate enough sales to makerepparttar real money in this business."

As Karen answered some of my questions it became clear she had done a good job of targeting a niche market. She also provides a compelling reason for prospects to do business with her instead of with her competition. She was obviously effective at attracting customers because she already had over 100 of them.

In fact, she was so busy chasing down new customers she completely overlooked her existing customers as a source of additional business.


Your existing customers and clients already know and trust you. It's easier for you to get more business from them than to get business from new prospects. It's also more profitable than business from new prospects because you get it without an advertising expense.

Some businesses have natural repeat sales built into their operation. For example, most MLM companies sell consumable products that periodically need replacing. And web site hosting services collect a new fee at regular intervals to keep your site up.

These replacement needs automatically generate repeat business. But how can you generate additional business from customers when it's not automatically built into your product or service?


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