MLM SURVIVAL GUIDE

This is the first of a series of articles designed to help anyone who is considering an online MLM or affilliate marketing business. Check back often for updates in this series.

WHY MOST PEOPLE FAIL IN MLM

MLM is an explosive growth opportunity and it is here to stay. Like it or not! Let's review some MLM facts. There appears to be thousands of MLM companies. Some of these are MLM companies, while most of them are not. Many people have become wealthy in MLM, but about 97% of the would be MLM'ers never make it! Therefore, before we go blindly into MLM, let's analyze why 97% of the would be MLM'ers don't survive. Then let's see if we can minimize or eliminate any of these problems. Let's break down the problem in three categories.

1. MLM'ers can't EFFECTIVELY recruit new members.
2. MLM'ers can't keep his program going. It runs out of
gas and dies a natural death.
3. MLM Company has serious problems.

I believe that sums it up. Either the MLM'er can't get his program started, can't keep it going, or the MLM company itself goes "belly up."

WHY NEW MLM'ERS CAN'T EFFECTIVELY
RECRUIT NEW MEMBERS

1. THE MLM PARADOX

According to Webster, the word "paradox" means, "something with seemingly contradictory qualities or phrases." In MLM, there is a paradox that causes major confusion that must be understood and dealt with. Here is the problem. MLM companies by law cannot aggressively "push" the MLM opportunity as the main reason for joining their program. They must emphasize their products and services and explain the MLM opportunity as only a nice extra benefit. If they don't, all kinds of local, state and federal government officials will attack them. Therefore, they must be extremely careful about what their literature, advertising and promotions material states, what they say in meetings, etc. That is why we normally don't mention the MLM company name when we use examples in these reports. We do this just to avoid this kind of problem.

All MLM'ers are aware of the MLM "paradox" problem. Look, everyone knows, including the MLM companies and all the distributors that the real reason most people get involved with MLM is for the opportunity! Yet, the MLM literature and the MLM distributor cannot tell you this directly without crossing over the fine line of being illegal. In other words, it is illegal to promote a MLM company if the sole purpose is to earn profits by signing up new distributors with no regard to the usefulness of the product or service.

Where does this leave the new MLM distributor? Well, no one is officially allowed to tell him how to go out and aggressively recruit new members! Instead, he is always taught how to "promote" the product and then "as an after thought" explain the opportunity! All up standing MLM companies will follow this procedure.

TIP: Keep your lead generating methods separate from your MLM promotions. In other words, it is perfectly legal to promote an opportunity any way you want to as long as you don't tie this directly with a MLM company. That means that you can write your own advertisements, etc. and generate all kinds of leads. But when it comes time to discuss a particular MLM company, then use the official MLM literature, guidelines, etc. when presenting that particular company, products, and opportunities. In that way, you are making a clear distinction between "lead generating" and promoting a particular "MLM company opportunity."

TRICK Use an e-book/newsletter as your lead generating vehicle. That the "back bone" purpose of the e-book/newsletter campaign to generate MLM leads! The e-book/newsletter is not speaking for any particular MLM company. Instead, it provides a method of operating a lead generating "core" business that will pay for itself in qualified leads. When it comes time to "promote" a particular MLM company, let your customers request visit your MLM company(s) web page. If the MLM company you are affiliated with is worth its salt, then it will more than likely have an impressive site that will sell itself.

TRAP Don't attempt to promote and advertise a particular MLM company's opportunity before explaining the product or service. This is in direct conflict with the MLM Company’s guidelines. Instead, find people who have a sincere interest in MLM opportunities, and then direct them your company’s website.


2. MLM CONCEPTS ARE WAY TOO COMPLICATED

When most people are first exposed to their first MLM opportunity, they are over powered by the complexity and newness of MLM concepts and terms. They are confused with all those new terms such as "Network, down line, up line, Organization, Levels, Etc." Then there is the specific MLM plan that is being presented that is always anything but simple. There is too much to absorb quickly.

Then there is much suspicion. Is this a pyramid scheme? Is it legal? They have probably never heard of the MLM Company that adds to the problem. They find it hard to believe that they can really make the kind of money being discussed. They probably suspect the MLM distributor. And on and on. Right? So what happens? In most cases, nothing! They simply don't sign up'!

TIP Sell or give away your e-book or newsletter! That way, your potential candidate has been educated, and most of the initial education problems have been overcome.

TIP Be selective! Don't try to sell your MLM program to everyone. Instead, spend your time selectively by e-mailing or phoning if you like, to only those that have already requested your e-book/newsletter.

3. POTENTIAL MLM MEMBER CAN'T DECIDE WHICH MLM COMPANY
TO JOIN

Put yourself in his shoes. If he has been investigating MLM companies, he is sure to be confused with all those offers and different companies! If he can't decide, he just doesn't sign up with any MLM company! Does he? Well, if you a strong e-book/newsletter package, and you are promoting only to those that have it and read it, you have a very important advantage.

TIP There are literally thousands and thousands of MLM distributors who will jump at the chance to tell you which companies you should get into and promote. If you want more "advice", there are many books written by the "experts." Understand one thing, every book and magazine article that you read and everyone that you talk to will almost assuredly have some sort of "vested interest." In other words, they are either openly or subtlety trying to get you to sign up in their program! They will be quick to explain that there are "golden rules" and guidelines to follow. Some will tell you to stay away from "ground floor" opportunities since they are too risky. Others will explain that this is where the big money is. Some will explain why matrix MLM programs are better than others - and visa versa. Some will adamantly advise you to be active in only one MLM company - "be loyal" is their motto. Others try to sign you up in multiple companies. Still others have put together "Down line Building Teams," and will invite you to join them. They do all the work (You simply send them money). With all this "good" advice, what is correct?

I have noticed one thing about all these "good" advice sources. They never seem to ask me what my goals are. What is it that I want? How in the world can someone give another person advice before he understands what the objectives are? What is it that that you really want? When? How much can you afford to spend? How much risk are you willing to take? What MLM programs and products do you like? Before we even think about selecting a MLM company, let's review the real world about MLM companies and opportunities.

Most new MLM companies never make it through their 2nd year. This is because they are not properly financed, don't really have a good offering, or the federal (FED's) government shuts them down! The reason that the FED's shut down some of these companies is that there is a lot of unscrupulous people in MLM, mail-order and in fact, all kinds of business.

MLM is no different from other companies that frankly have about the same survival length. New companies in any business, MLM or not, have a tough time getting through the first few years. The people that promote MLM companies never seem to get around to explaining the real facts to you. But you need to understand the dark side as well as the "rose colored glasses view." Sound scary? Well, if you were to invest $5,000 to $25,000 like some MLM companies would like you to do, yes it would be scary. The correct word is probably "foolish." Now let's take these facts and see if there is really a low risk, high potential waiting for you.

So, back to the question, "How Do You Select The Right MLM Company?" This is like asking. "What stock should I buy?" Brokers, advisement firms, and the like will be quick to give their advice. Wouldn't they? And why not - they all earn a fat commission or other fees. Do you think any of them really care about you? And if they really believed in their own "advice." why don't they mortgage their homes and buy in themselves? The fact is, "No one knows!" And that is true with MLM companies and buying stocks! A standard solution does exit however: Diversify! Spread your investment around! Why put all your eggs into one basket?

Now all of this doesn't mean that you should select your MLM company(s) with your eyes closed. There are some fundamental rules and guidelines for you to consider.


1. Enroll into at least 2 or 3 MLM programs. This just makes good business sense. There is no guarantee that any MLM program will survive, so let's not be naive about this. Safety is in numbers! Although we have chosen these companies, one could go sour. But they all won't go sour... at least at the same time. And in the
mean time, you should be making money with the one or two companies that you're in.

2.Make your core MLM company one that is at least five years old and is the best one that you can find.

3.Get into MLM companies that you have total confidence in. There is nothing quite as frustrating as trying to promote a product or a company that you don't really believe in. Stick with the winners with a few years of success behind them!

4.If you are interested in hard offline advertising, make sure that the MLM company(s) that you select have inexpensive literature that you can send by mail in a cost effective manner. This just makes good mail-order sense!

TIP Concentrate on your method of lead generating, instead of trying to sell everyone your MLM company. Let the MLM MACHINE do your lead generating and "selling."

TRAP Don't be a "MLM junkie" without a plan. Human nature is to entice you into many different exciting "ground floor" MLM opportunities. These can be fine, but you will lose your shirt if you don't have a coherent plan that makes sense. Work this program and its offering to the fullest before you take off in other directions.