Tag Archives: Paying Forward

The Real Problem with Network Marketing or Multi-Level Marketing (MLM)

So, what is the problem with MLM or network marketing?

Maybe it’s the structure? But you can’t really take issue with the tiered compensation structure—almost every large sales organization in the world has that same structure. Sales persons get commission, and sales managers, sales directors and VPs get overrides or bonuses on top of that.

Or maybe it’s the fact that you have to pay to participate? But that can’t be it because that’s a standard franchising model. And I assure you, the franchise fee of most traditional franchises dwarf the sign-up cost of any MLM companies in comparison.

Certainly, there are illegal pyramid, or “Ponzi”, schemes. This is where the money is all being made off of signing up other people, with little or no real product ever being delivered. But in spite of whatever perceptions people may have, the fact is that Amway, Excel, Meleleuca, PrePaid Legal, USANA, and many others have sold millions upon millions of dollars of products to happy customers, many of whom are NOT distributors. So, there may be a perception problem. The perception is out of line with the reality.

The real problem with MLM is not MLM in itself because it’s just a business model, but some of the people it attracts. It really amounts to “micro-franchising”. It has a very low cost of entry, with the potential for exceptional and exponential revenue over time, and there are those who achieve that. But the same things that make it attractive attracts many who are NOT really qualified or prepared to become business owners. The most important characteristics of MLM make it attractive to people who:

  • have not done well in their business or profession and have little money saved up to invest
  • have no previous experience in business
  • have no previous sales experience
  • have little or no experience developing business relationships other than that of employer/employee/co-worker
  • are not satisfied with their current income
  • have unrealistic expectations of the amount of work involved compared to the revenue realized

I’m not saying that there’s anything wrong with any of these things, or that this describes even a majority of network marketers—only that it describes a disproportionate number of network marketers, and that many of them never do anything about it.

As a result, many network marketers end up:

  • over-selling the opportunity
  • inappropriately discussing business in social situations
  • coming across as desperate
  • over-focused on new recruits and neglecting existing customers
  • being either inaccurate or deceptive when talking about their business

Again, I’m certainly not saying that this describes a majority of network marketers, but it does describe enough of them to tarnish the reputation of the rest. To pre-judge someone based on the basis of a small minority of people in that group is horribly unfair, but we must realize that most prejudices have some basis in reality, even if it has been slightly distorted.

So what’s the solution?

Network marketing or MLM is a great opportunity for people to have their first business, their first sales role, etc. My point is to recognize it for what it is: it’s a business, and you are a business owner. And if you’ve never owned a business before, if you’ve never done sales before, if you’ve never networked before, you need to learn about how to do so, not just from the network marketing or MLM experts, but from established success in those fields.

Network marketers who are serious about building a business should be reading and learning about business fundamentals, the latest sales and marketing techniques, strategies for networking and business development, etc., not just swapping tips at your team’s weekly or monthly meeting. Act like a small business owner, and people will treat you like one.

 To your mlm success,

 Jake De La Cruz

 P.S. Kindly share this or re-blog or re-tweet if you appreciate it and spread the idea!

 © 2014 All rights reserved.

Network Marketing’s Greatest Hidden Asset

Unlike any other businesses, network marketing or mlm business has one unique asset: once you build it the right way and achieve a critical mass of people consuming or using and sharing your products or services, you can achieve financial freedom and a steady passive income for yourself and the generations to come – as long as the company produces and gives compensation, and your organization keeps on using products or services and sharing them to their networks. That’s one of the most powerful reasons why we are building this business: so that we can have the freedom and means to do whatever good we like to do, whenever and with people we want to spend our time with, and eventually, pass that freedom and wealth to the next generations.

 Most of the network marketing companies designed the business for easy transfer as inheritance to the next generation – once something happened with the person registered. Thus, it’s not like the transfer of a traditional business where there are a lot of transitions that will take place and perhaps, lost much of the customers or clients the previous owners created and maintained. The same people who use and share the products and services will still be there to build their business without even realizing that there was a transition.

 Thus, the greatest hidden asset of network marketing is the ability and potential to build a business empire that will stay for you and your descendants – as long as the company survives recession and you descendants serve your organization in the years after you’re gone. Remember, we are not just building a business; we are helping people achieve their dreams and be the best person they could be, and make the biggest difference in people’s lives. We serve because it’s the only way to become very successful in this business.

 To your mlm success,

 Jake De La Cruz

 P.S. Kindly share this or re-blog or re-tweet if you appreciate it and spread the idea!

 © 2014 All rights reserved.

Paying Forward

mango tree

Once, a neighbor was watching an elderly 70 years old man planting a seed of a mango tree. Curious, as he knows that the tree will take years to grow before it can bear fruit, he asked,”Old man, why are you planting the tree for? I don’t think you would be able to enjoy the fruits.”

The old man looked at him, smiled and replied, “Young man, throughout my life, I have been eating mangoes grown by other people. It’s time I do my part.”

In spite of what the “what’s in it for me?” culture think or do, let’s find a way to start planting seeds that would benefit our future children or grandchildren. We must believe that in one way or another, our life are connected.

The saying goes, “we reap what we sow.” But there are times when what we reap is not what we planted but we keep on planting good seeds that will benefit our loved ones. We sow what we want to reap.

As the Lord Jesus Christ said through the Apostle Paul, “It is more blessed to give than to receive.” We give or sow cheerfully.