i read with a lot of interest on these topics on MLM and Network
Marketing in this forums. Sadly, most of the views, arguments
(& conflicts) are between a Amway guys and a bunch of others
that are Anti-MLM (not sure if it is Anti-Amway).
Anyway, successful MLMers will not bother to waste time with the
bunch of Anti-MLMers.
First of all, I am in MLM but not Amway. I am still building and I
am proud to say my network is growing by the month. But then again,
I must also say that I am not at all reach the level of success
(anyway I am serious in it for 1+ yr only).
So facts just to share (no need to bash me if you dis-agree).
MLM vs Traditional
Model
MLM base its business model on direct selling, just like how Dell
sell PCs. Instead of channeling the bulk of the cost into
advertising, this money are channel into paying distributors like
myself.
In traditional retail model, all the cost goes into the various
middleman. In any marketing/econ books, you will learn that the
cost of a product is only 15% or less than what you actually paid
for. It varies also with the level of advertisements. Take for
example, the cost of Pepsi is about 6-7 cents but you actually pay
$1 for it. When do those money goes ?
So in Network Marketing (NM), we cut all these middleman &
advert cost and pass back to the distributors. I do not know about
other MLM company. We have done our study and 70% of the products
cost below retail products you get from Cosmetics/Skin care stores
or GNC/Unity/Guardian (like for like). The other 30% is unique
& patented products market don't have.
MLM is not all about
Recruiting
Yes, many new up & coming company focus a lot of recruiting. A
good NM company must have
- good, unique consumable products
- good R&D so products are up-to-date.
At the end of the day, you can have all the "amazing comp plan",
but products are the only think that can sustain your consumers.
Companies that do not base their vision on good products are
essentially 'black sheeps' to the industry.
Saturation
When will MLM be saturated ? The answer is it will never be. For
Example, will TV be saturated ? No, for more than 40 years, TV are
still the top sellers in any electrical store (go ask Best, Harvey
Norman). You will still be in biz if you are selling new-technology
TVs at good price. Unless you are selling B&W TVs, then too
bad. That's why R&D is the most important thing in a MLM
(mentioned above pt). You can see whether the company is in the biz
for long term by their R&D strength. Many MLM companies have
only a few products or their products remain the same for the last
5 years, then those are craps.
Back to saturation, YES, there are 6.2 million people on earth.
Someone have actually calculated is we recruit people at a simple
rate of 2 people a day, in 45 days we would have recruited the
entire world population. But the question, has that happened ? No
!
Everyday, there are people recruited, dropping out, MLM company
close-shop...and the most important things that there are also
millions of people turning 18 every single day. So how to saturate
?
NM is not a gimmick or a scam, it is a trend that will be here to
stay as it had been for the past 50 years.
If you have not know, the concept of "Departmental Store" was
outlawed in the 1920's and yet it is one of the most successful
retailing concept in the 20th century.
Insurance was also a "scam" in the 1970/80s. Today, "financial
advisors" is a respected career.
I shall stop here for the moment for you to think about.
I understand some of us here had bad experience with MLM. But I
hope to engage in constructive and fruitful discussion, not blind
bashing and throwing of temper.
Cheers
=========================
successful people build network, others look for work - Robert T
Kiyosaki
