Can YOU make money as a MLM distributor?
The real question is, can YOU make money in any type of business?
The answer, it is entirely up to YOU! Even if you spend a ton of money buying a profitable established business, providing you keep doing what the past owner established and improve upon it, it is possible for YOU to bankrupt that business. True, it is harder to destroy a well-established business, but not impossible, just have to look the Detroit big three.
We will compare the cost of purchasing a franchise and a MLM distributorship. To start a brick and muter franchise, cost usually begin at approximately $150,000.00 and can run into the millions. The cost for home based franchises usually start at $15,000.00 and can run up into hundreds of thousands of dollars. In either case, you have invested a large sum of money, more than likely, you Mortgaged the family home to secure the financing required for the start up, but unless you invest more money in prospecting and advertising, YOUR new business will not generate a dime. Can YOU make this work? The advantage of purchasing an established franchise is that there is revenue being generated from day one, but in most cases an established franchise will cost anywhere from two to fives times the price of a new operation.
Let us briefly examine at some of the difficulties of running a small mom and pop franchise store. You will be working all the time; you will not have time to get sick. ROI is usually 10 to a very maximum of 20% that is providing you run a real tight ship. Purchase a larger store where you are able to hire employees, (now your thinking, wow! I have time to get sick) maybe you are even thinking of taking time off to spend with family! Wrong again, from my experience the day that you planned to spend with your family, is the same day that one or two employees will call in sick. The truth is that you become a slave to your business. There may be nothing wrong with being a slave to YOUR OWN business for a few years, if there was a light at the end of the tunnel, there usually is no light. As a franchisee, you are a glorified manager; you have all of the risks of being the OWNER and none of the benefits. Not a good life solution.
With all the pit falls of owning a franchise, why are so many people rushing to invest such large sums of money? They are sold a dream a dream of being in business for themselves (The American Dream) for most this seems like a good life solution. Think Again, once in the system most people find it difficult to get out, they have invested too much time and money to let go. A savvy franchisee will run a very tight ship, save as much money as possible and re-invest in another store. Once a franchisee owns two or more stores, their income will rise up dramatically, unfortunately the investment and risk go up as well.
An MLM business on the other hand requires very little start up costs (you will NOT have to Mortgage the family home) and ROI can be substantial. This being the case why is it that 99% of distributors fail within the first 2 years, where as the failure rate for new businesses is 80%. The blessing of a low investment to start an online MLM distributorship is also a curse. It really boils down to this “Low Risk, Low Effort”, when there is very little to lose, most people do not give a 100% and do not tend to treat an online MLM distributorship as a real business, Big Mistake! The other major problem is that upon joining an online MLM company, new distributors are told to create a list of everyone they know, call and present the opportunity to them. The new distributors that follow this advice are doomed right off the bat. The fact is that unless you have financial creditability such as a CEO of a corporation, it is highly unlikely that any of your family or friends will join you in your new venture; at this point, it is just a matter of time before the distributor quits and believes that an online MLM is bunk. How many lawyers, accountants, mortgage agents, real estate agents….. (you get the point) do you think would be successful if they only relied on a list of people they knew to grow their business? This holds true for MLM distributors as well.
What is a distributor to do in order to be successful with any of the online MLM companies out there? They will need to invest both time and money promoting their new venture if they want it to succeed, just as they would in any other new start up business.
Choose an online MLM company that offers products that you would be proud to use yourself has a payment plan that you can understand offering residual without having to continuously having to sell products or recruit distributors. More importantly choose a MLM system where your up-line is genuinely committed to helping you succeed. Be weary of MLM companies and up-lines that are constantly trying to sell you over-priced products and information, insisting that you need to make the purchase if you want to succeed. Once you have chosen a MLM company, ask your sponsor and up-line how to best promote your new venture. If they give you the same old song and dance about putting together a list of everyone you know and nothing more, take control, educated yourself and seek professional advice from experts that will help you succeed.
Bottom line, if the online MLM opportunity is run like a real business, it will provide an excellent residual income. Look it this way, any type of business you start up in reality is MLM. Say, you open a coffee shop, if your coffee is good and more importantly you provide excellent customer service, word of mouth will spread, not only that you provide a good cup of coffee, but it also is a fun place to go for coffee. Is that not MLM other people selling other people on your product and service. All businesses are about building relationships with clients, keep in mind that your employees or down-line are also clients, treat them with respect and they will help your business grow. If your sole propose for starting a business or meeting clients is $$$$ STOP! Do not precede any further, you are bound to fail miserably. Providing excellent service and great products is the simple recipe for success for any business and of course, you will need to Promote wisely.
Now that you know the simple secret to operating a successful business, MLM is a great way to start working for yourself, especially if you have very little capital to invest.
To Your Success! Change your outlook! Change your Life!