The 7 Truths About MLM Opportunities

If you heard about various mlm opportunities and happened to stumble upon this page. most likely you've heard a lot about the industry of network marketing and had enough information to be skeptical.  Maybe you had enough information to actually make a decision but you keep hearing things to make you question if you've chosen the right company.

All MLM companies have one thing in common

. . . you have to talk to people

You may have heard stories about how you can make $10,000 dollars residual income in a couple of months and all you have to do is sign-up and people will do the work for you. You may have heard it is easy and anyone can do or it you may have heard it's a pyramid scheme . . . 

The Truth About MLM Opportunities

To ease your skepticism there are undisputed truths about MLM companies you need to know.

1. Lowest Risk / Highest Return

MLM companies have the lowest risk with highest return when it comes to working for yourself.  The majority of MLM companies have start up fee of less than $200. At the same time the majority of them have opportunities for you to achieve bonuses within 30 days that exceed your start up cost, thus making you profitable.

Most traditional businesses would require thousands of dollars and possibly a business loan to get yourself off the ground and running. Some people may tell you that it only cost $100 to start a paint company or landscaping company, etc.

They aren't lying. It cost that much to register the business. However you have to pay for supplies, insurance, and possibly LLC fees to be able to do the work and that's when the expenses go through the roof.

MLM companies have no overhead costs which makes it easier to be profitable right away.

MLM Opportunities - Lowest Risk / Highest Return

2. Not Pyramid Schemes

MLM companies aren't pyramid schemes. However there are many pyramid schemes disguised as MLM companies which makes it hard to tell the difference.

MLM companies and pyramid schemes both have a triangular organizational structure. People who aren’t knowledgeable about the difference between the two will merge them together and call all of them pyramid schemes. The main difference between a legit MLM company and a pyramid scheme is MLM companies have viable products and services that are sold to the general public.

Pyramid schemes only pays you when you recruit.  In addition, pyramid schemes have no viable product or service that are sold to the general public.  If they do have a product it would be a requirement to buy and sell to every person paying to be in the pyramid.

MLM Opportunities - Not Pyramid Schemes

3. Simple But Not Easy

When you join an MLM company you will realize that the system is simple but it is not easy. In general the main idea is being able to introduce others to the products and opportunity.

Many companies have a system put in place to make it real simple for you to do. After all, you're dealing with people.  You are dealing with mlm rejection on a day-to-day basis and people (in general) aren’t used to that. Even if you do manage to have somebody join your team, you have to be able to guide them and lead them.

Many people aren't leaders either. Even though you can learn the business and learn how to be a leader many will be overwhelmed by the emotional aspect of it all and just quit. Many people join an MLM company under the false expectation that all they have to do is show three people your opportunity and their business will take off on its own. This is not true. The system that the company has in place is simple, but the work itself is not as easy as you would expect.

MLM Opportunities - Simple, But Not Easy

4. Income Is Not Guaranteed

Many, (if not all) income disclosure forms of MLM companies will state that income is not guaranteed.  In addition, only a small percentage see a substantial amount of income. This is true. However, there is another side to that . . . that is the reason WHY people don't see the income.

These six bullet points are just some of the reasons why but aren't successful in this industry:

  1. Sign up to be a representative then quit a week later out of buyers remorse
  2. They sign up to be a representative, talk to 4 people. Those people tell them “No” they get discouraged and quit
  3. They sign up to be a representative to please the upline with no intention of talking to people
  4. They sign up to be a representative but don't have a circle of friends and family to talk to so they get discouraged and quit
  5. They sign up to be a representative but just moved to the country and only knows three of their immediate family in the area
  6. They sign up to be a representative but have a few customers and reps is there downline. They aren't able to lead them. People in their downline quit.

There are many more reasons why people don't see an income.  All of these factor into the equation. There's one thing that all MLM’s have common.  That is you have to talk to people.

The fact that a small percentage only make money, does not mean that MLM does not work. It just means that the necessary requirements weren't achieved in order to make that income.

MLM Opportunities - Income is Not Guaranteed

5. Difficult To Control Representation

One thing about multilevel marketing that the industry could barely control is the representation.

The reason network marketing companies don't use mass advertising is because they want to save money on traditional advertising methods and rather use independent representatives to market their products.

The benefit of mass advertising is that the corporate headquarters have direct control over the claims and representation of their product. When MLM companies use independent representatives to advertise their products they take the risk of the independent representative getting the information wrong.

Independent representatives have training by the company on how to properly represent the company and products. However, because of greed and desperation you will have representatives stretch the truth and do not run their business with integrity just to get a few people to join their team and get bonuses.

MLM Opportunities - Difficult To Control Representation

6. Some Of The Best Benefits In Any Industry

Multilevel marketing companies have some of the best benefits of any industry.  In many job positions in the world, the more you get paid (plus benefits) that means the more time that your job requires of you.

In the same sense, the less time that your job requires of you that equals the amount of less pay and benefits you get. MLM companies offer you the opportunity to be able to replace your linear income with residual income and completely retire from your place of employment within 4 to 5 years (on average).

In addition, free your time to do things you like to do instead of putting a limit on the time you have with a fixed work schedule or a few weeks allotted vacation time per year.

MLM Opportunities -  Some Of The Best Benefits In Any Industry

7. Most Start Ups Fail within 5 Years

Many start up network marketing companies fail within the first five years. It is not that MLM does not work. It is because the MLM industry has some of the strictest rules and regulations that are placed on it by Federal Trade Commission.

Within that start up phase many MLM companies have to go through a lot of red tape in addition to finding representatives who are leaders to launch the company off to a fast start and provide them with a solid foundation.

In order to avoid this some startup network marketing companies will seek out solid leaders from other network marketing companies and offer large bonuses and contracts for them to take their existing team and switch companies.

MLM Opportunities - Most Start Up MLM's Fail Within 5 years

. . . Truths Don't Stop Your Success

Knowing these truths doesn't change the fact that MLM works.  In addition, these truths shouldn't affect your ability to succeed in any of the mlm opportunities you choose.

All MLM companies have one thing in common . . . you have to talk to people.  however, the only difference that would affect you is your ability to choose the right company.

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