How do people doing MLM/Network Marketing justify trying to make money without doing any real sales volume?
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Even minimum wage sales jobs that high school students are doing require realistic volumes of sales...at least 3000-4000/week. If MLMers were required to actually sell the equivalent of even the minimum wage sales people they would quit in droves. So essentially MLMers are doing less personal sales than minimum wage salespeople yet they will tell you MLM is about sales and not making money by recruiting people. Well, if they are not doing real sales volumes, then they are making money recruiting. HMMM. How do those in MLM justify this?
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Answer:
When you consider the average MLM income is well below minimum wage I think you have your answer.
Marcello at Yahoo! Answers Visit the source
Other answers
That is a very good question. I've been in MLM/Network Marketing for 6 years. The answer is leverage. If you can understand that, then you will understand the difference between someone who makes 10,000 a year and someone who makes 10,000 in a day. Selling is a job in which you work "for" a company. Network Marketing is a business that you "own" and you must treat it like you are your own CEO. Most of your MLM organization are going to be customers not business builders. The advantage of your customers is that the product or service you have is consumable, meaning people ordering again and again and again. The more people who order, the more money you make. This is a term called "volume." In the beginning of building a Network Marketing/MLM business, it requires effort and work to build residual income. This is why people quit Network Marketing/MLM, because they treat it like a "get rich quick scheme" meaning... they think they can get something without investing time and money into their business in order to get it off the ground. You see, putting in 1,099.00 dollars into a business and then making only 100 dollars residual for the first few months is misunderstood. They don't see it as an asset that will grow to 10,000 a month or more. This criticism usually comes from people who do not do the self development to learn how to treat it like a serious business. I've personally noticed that people who have social skills tend to build their Network Marketing businesses easier than those who are all talk and try to recruit people by convincing people rather than educating the willing. They appear to be pushy. Sad, because the successful Network Marketers are actually very humble educators, and that pushy behavior from over zealous people appears to be what it's all about to the uniformed person. For example a CEO is someone who knows how to communicate with people. He is someone at the top of the pyramid of a corporation. All complaints and all problems always go to the CEO (at the top). Therefore, they have people skills. A CEO in New Zealand took an MLM product on a road show for a year before they opened in their country and once they opened, he became a six figure earner in 12 weeks. That's because he knew the hard work it would take to get his business off the ground. His CEO experience is a people skill business. If you have the capacity to listen and truly care about fulfilling the needs of your customer or prospect, first... you will succeed in Network Marketing/MLM. In contrast, I've seen exceptions with very shy people who have learned how to show up for their business consistently and lead from the background of their business as they raise up business leaders. They too, have become successful in Network Marketing. I was making100 dollars residual and my belief is that it's not something to be scoffed at. It's valuable, because in comparison, you would have to have 47,000 dollars in your savings account at 3% interest in order to have that 100 dollars residual. How many people have that much money floating around? - So, I did not quit nor become discouraged because I started out with very little. The point is, you have to have capital for any business that you own to get it off the ground as well as your time. In comparison, if you invest in a gym or a franchise, it's thousands and thousands of dollars to half a milliion on average and you have to wait up to 5 years to make your investment back. People who work full time do not have the option to invest in a franchise like that, but with Network Marketing, they can. A traditional franchise requires employee headaches, accounts payable, accounts receivable, and your full time attention. So, these full time workers join a Network Marketing business with a relatively low start up from maybe 300 or even 3,000 and manage their time in order to build a Network Marketing/MLM business part time. They do this work around their job until their part time income is enough for them to quit their job and proceed in working their Network Marketing business full time. No, it's not easy in the beginning of any business that you start, but the process can be a growing experience and become fun. Meaning, Network Marketing is a "self development course" disquised as a business... which, many of us successful business builders agree upon. It's important to understand that once you have leverage, meaning ongoing residual income from raising up leaders in your downline organization (which is approximately 2% who are business builders), and they are making a strong income... You have walk away residual income. This means, that you have a life style that you've worked very hard for in the first 3 to 5 years out of your life, which appears to be the easy life for those who do not understand the appearance of what "seems" like an overnight success. A great resource to understand Network Marketing/MLM is "The New Professionals" by Dr. Charles King, Economics Professor at the University of Illonois, Chicago. This book is explaining how CEO's and Ph D's are leaving their profession because of the leverage and time freedom Network Marketing/MLM as a business vehicle, can offer them. It also talks about the fact that it is an over 120 billion dollar business world wide and it "works." Another resource is "Brilliant Compensation" DVD or Audio at Brilliant Exchange.com Excellent educational on the power of leverage and what Network Marketing really is. It helps unconfuse people and un mix a mixed message.
Laura J
RUN...don't walk away....RUN!!!!!
Just curious..
Good question. I am a very bad salesman, in fact I dont like to do sales. Fortunatelly, I found the company that pays me to create a market...so if you see, recruiting is essential. There are companies that pays more if you do sales. I prefer a company that pays me more RESIDUAL income. So I prefer to recruit people...than do sales. When you sales 3000-4000/week...maybe you are not able to do a million/week, but if you have more people in your Network...you can move Millions...so you tell me, Is it better to gain 10% of 4000/week? or Is it better to gain 10% of 50 million/week ??? Banks, or any other company, must recruit people to do sales...why MLMers dont? To gain money, you have to learn...to do something, either to do sales or to recruit. The great thing...is that anything in life you need to do...you can learn it. And we...in MLM can help you to learn this skills while you gain money. In fact, we can do it with you...until you learn to do it by yourself. Anyway, I think everybody must learn to do sales...included me.
Edi
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