Truth About MLM

   The Truth About MLM

By Bill Soriano

After ten years and four different Network Marketing (MLM) Companies, I feels that I has accumulated more than enough knowledge about the industry to write this report, but more importantly to share it with you.  

My intent is not to knock or put down the MLM industry in any way. He only want to make sure that people fully understand the truth before they decide to get involved, and that they have looked at several non MLM type home-based business’s as well. This web site is an example of another type of home-based business and there are several more examples of such here on PhatDad’s.Com.

The first truth you need to know about MLM is there is about a 95% failure rate. What that means is that 95% of the people that get involved, either do nothing, quit, or try like hell but never show a profit. Showing a profit means this. Once you take all the expenses involved in running your business. Advertising, tapes, postcards, brochures, gas, telephone charges, products, websites, etc…then subtract them from your commission check plus any retail sales,if there is anything left-over, That’s Profit. If you don't have any then you are part of the un-lucky 95% i'm referring to. 

 

The second truth you need to know is that the products no matter how good they may be, are overpriced. I know the story; MLM knocks out the middleman, so that the company can sell directly to its distributors at a lower price. Get Real! MLM may knock out the middleman, but it doesn’t knock out your up-line, that like you, if your lucky enough to sponsor anyone into the business, gets a small slice of every pie sold. In order for everyone to get a small slice the company has to over price the product or they would never be able to stay in business, let alone provide all the other resources that you need them to. You pay much more for the product even at distributor price than you would if it went through a middleman. And to try to sell the product at the retail price is next to impossible, unless you’re a sales type. Which bring me to the next truth.

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The third truth about MLM that you must be aware of is in order to be successful you will have to be willing and able to sell. Now I know what your up-line told you “This business sells itself”, all you have to do is get people on the call or have them listen to Joe Super Stars audio tape or send them to the website and they will sell themselves”. Again, Get Real! No matter how you introduce people to this business, at some point you will have to have a conversation with them either in person or over the phone and you will have to do some convincing or selling as I call it, and the whole time you are talking to them you are selling yourself as well. The problem is that even if you can get prospects to this point in the recruiting process. This is after endless calls, leaving message after message, following up 2 maybe 3 times, most people will not be able to close the deal because they are not sales types and they do not want to be. It’s just that simple, and you are lied to from the very beginning when you are told that you will not have to sell. Why do you think they tell you that? Simple, because they know that most people will not even remotely think of getting involved if they have to do anything even close to selling.

 

The Fourth Truth you need to know is that when your up-line tells you that all you need to do is get 3-5 people into the business and you’ll be set for life, They are literally lying through their teeth. The 3-5 people figure is somewhat correct, what they neglect to tell you are, you will need 3-5 true business builders, these are people who will spend the money and the time on promoting the business and more importantly are strong sales types and like to sell. You will probably need to personally recruit 50-100 people to find your 3-5 true business builders. Imagine what you would say to them if you knew the truth up front. Especially after you look at your list of contacts that you are planning on calling, this list has probably shrunk considerably since the last MLM venture you were involved in. Now you need to personally recruit 50-100 people and you don’t even have that many names on your list.

 

The Fifth and final Truth that I want to share with you is that the MLM business that you are thinking of getting involved in is not duplicatable. Your up-line will try their best to convince you that it is but the simple truth is, that its not, and the reasons for that are the first four truths above. Those four truths blow the duplicatable business lie right out of the water.

I sincerely hope that I haven’t upset anyone with his 5 truths. I just wants to make sure that people are aware of them before they embark on their journey in MLM.