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MLMs have received an unduly bad reputation. In some cases,
people have abused a good idea for their own selfishness, and in
many cases, dishonest practices have perpetuated that bad
reputation.
However, that was the fault of individuals. The basic concepts
behind the MLM method are not only sound, but brilliant. Done
right, an MLM produces a broader base of wealth across more
people, offers expert and personal involvement closer to consumers,
and provides an easier platform for small businesses to grow and
prosper.
There is no get rich quick, no get rich without effort, and no overnight
success. However, by the simple power of geometric progression, or
network marketing, an MLM business can create wealth for multiple
individuals. Marketers within the network become both the
advertising and distribution base for the company. These are two
areas that incur tremendous expense for traditional companies. In an
MLM, however, instead of an expense to the company, the money
becomes a wealth creation vehicle for people. Not to mention that
the company itself need not spend money directly on advertising, and
only pays distribution expenses (commissions) after sales have been
made.
MLMs also create many experts and leaders who master the art of
both sponsorship and customer service. From the onset of joining an
MLM, people must embark on the road to becoming a leader if they
are to become successful. Followers and tag-alongs do not last
because they do not reach any sort of income level that will make the
business profitable for them. The very nature of an MLM creates
leaders because advancement is not possible without developing the
businesses of downline members. In this way, a leadership structure
that supports all members expands the company without the need for
formal business training other than that which comes specifically from
the company, and is specifically related to the company.
More direct and personal service to the consumer is possible as well.
MLM salesmen are far more knowledgeable of their products than the
average department store clerk, and in being closer to their customer
are better able to meet their needs. Advertising itself is often done on
a more personal basis, and not brought to bear on people in the
traditional media blitz manner.
MLMs offer distinctive advantages for companies as well. Even
small companies can afford to market their products in this manner
because, as mentioned before, advertising is not an expense as it is
done by individual marketers, and distribution costs are deferred until
after a sale is made. As well, a huge distribution network is not
necessary to move product UNTIL the demand for that product has
already been created.
In this way, the functionality of a product can determine its own
success. If it's a good product, it will sell whether the start up
company can afford an initial media blitz and pre-sale distribution or
not. In the same way, an inadequate product, or unprincipled MLM,
will eventually be weeded out through failure.
The only thing holding back the advance of MLMs at this point is that
unjust bad reputation it has been tagged with. Greedy individuals
often create glitz filled companies that offer the wealth of network
marketing without any sort of real product. These 'flash in the pan'
organizations are the ones responsible for mistrust in consumers, and
should not only be avoided but torn down for the good of all honest,
hard working, MLM members everywhere.
As you can see, company, consumer, and marketer all benefit from
this growing trend. MLMs should NOT be seen as pyramid schemes,
but as a method of distribution for companies, as a provider of more
personal customer service and product knowledge to consumers, and
a leadership and wealth creating system for marketers.
With these benefits brought to the forefront, I believe those of us
willing to do the work and endorse products we believe in will find
not only greater wealth, but a greater sense of pride and happiness in
our industry as well as our lives.
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