The Truth About MLM… Home Based Business
The Truth About MLM… Home Based Business
I don’t know if anyone has ever told you that before, but if you look at some statistics (google it) you will find out the truth.
Now, don’t get me wrong, I love MLM. I get checks every month from several different companies that I am involved with.
I have noticed a few things that can help you really evaluate your business, or a business that you are considering getting involved with..
Here they are..
1. Denial
Most people involved in MLM are losing Money. This is a simple fact. What’s not simple is that people will justify as to why they are spending more money than they are making. I call this MLM Denial. If you are spending more money than you are making on your MLM, your MLM is a failure.
Now of course their are advertising expenses, start up expenses, learning curve expenses, but if you are not being profitable on the “front end” of your business, you will never be profitable on the “back end”
Why would you run a business at a loss? How long would you run a business at a loss?
2. Duplication
What your upline does, may not be working for them, why would you duplicate that?
Many people get involved and then try to do the exact same thing that their upline just did to attract them into the business. This sound reasonable right? Problem is it isn’t duplicatable. I recently heard of a person that sponsored someone by posting a craigslist ad. Now if everyone in MLM posted a craigslist ad, how would that be effective? It simply wouldn’t. Maybe your upline is effective at the friends and family thing. Maybe you don’t have the same skills. Maybe your upline has a lead generation system that you can’t duplicate.
3. The Numbers
Most people don’t know the metrixs or the numbers of their businesses. How many people do you have to talk to to sponsor one person? How much time does that cost you? What is the ultimate value of a new downline member. Is it even worth it?
4. Running the business like a Ministry.
Let me give you an example of this… I recently was talking with a prospect that had a “potion” that he was convinced that cured all kinds of health ailments. Now I don’t know wheter it did or not, that is not the point of this conversation, but I believed that he believed.
He made about 10.00 per bottle when he sold this stuff. He was spending a lot of time running around delivering these bottles, giving away free samples, and trying to sponsor people into his downline.
He was convinced that he was doing these people a huge favor by telling them about this product.
Problem was he was actually operating his business at a loss. His net per hour was actually -.52 per hour(including gas and drive time)
This is what I call a “Ministry Operation” He is not doing this because he wants to make money. He is doing it because he thinks he is “saving the world” Of course this is a noble cause… but let’s not get running a ministry confused with building an mlm empire.
Take a moment and evaluate your business. Are you running it like a business or like a ministry. Are you out of denial, and paying attention to the ‘numbers’ of your business?
As always we would love to hear your questions, comments and concerns.
Keith Jenkins
http://www.mlmtrafficbuilder.com
keithjenkins66@yahoo.com