MLM IS A GOOD BUSINESS MODEL
Reality Adjustments For MLM Critics
By Rod Cook B.s., M.H.A., M.B.A.
"The MLM Watch Dog"
I have been around the MLM Industry
almost 40 years now and can never understand why critics of the industry cheat
and lie to make MLM ?Network Marketing look bad. What is worse yet is most
of them have never "worked" a true MLM ?Network Marketing company
but they have become "experts." I did a recent "google"
of "MLM." I went ballistic! Over 50% of the first 20 pages were negative
toward MLM. The majority (over 80%) of the critics had no working experience
with an MLM company. They did no research. They just decided to "be a critic"
of MLM ?Network Marketing! Amazing what trash can get on the Internet these
days!
The First Big Lie
-- Nobody in MLM ?Network Marketing makes you any money! What a lie! In a good
company the people that stick around and work make money. Big gobs of money?
No not at all! Extra part time income for a house payment, a car payment or
putting the kids through college is "blessed" money! Some even consider
making enough money to get products or services for free is good enough! A trip
to an MLM ?Network Marketing national convention can be the vacation of a decade
(especially if in a nice place)! Will people
make big money (6-7 digit incomes)! Yes! The same 2-3% that do in any industry
that work and study hard.
Dealing With The Big MLM Basher Lies -- Instead
of doing "drivel" research like most of the MLM ?Network Marketing
Basher Frauds I started a 6 month study of occupations in industries that were
similar to MLM ?Network Marketing. The same amount of time to learn, the same
individual characteristics required to succeed, and last but not least and investment
of time and money that fit the same framework.
Here Is A comparison Of Failure
Rates
I love charts, they take statistical
information that simple minded honest Colorado boy抯 like me can understand.
A picture is worth a 1000 words! Look at this! MLM ?Network Marketing looks
good!
MLM Has A Lower Dropout In Comparison (of studied
Independent Contractors) MLM on the left
runs a 70-72% average drop out of new distributors annually (varies by company).
Why? Very easy entry! Most good companies charge little or a reasonable amount
to join (less than $500). Administrative joining is easy ?just sign a Web form
or piece of paper. No hassles, quick and easy! The great beauty of the MLM industry
is that it is easy entry to try something that attracts you. It is part time.
The bad part is that it is so easy that too many people do not take the grand
opportunity seriously. It is disposable money that they would spend on beer
or a new dress. There are no repercussions if they quit the MLM ?Network Marketing
Company! See: http://www.mlmwatchdog.com/Rpt_TheRing.html
Mortgage Loan Officers (often independent contractor
salespersons) Three mortgage brokers that
employ these loan officers told me that after months of study, on the job training
and taking the test that the majority 75 ?80% dropout. The amount of bodies
that we could count among 2 out of the 3 brokerages showed 75% drop out. The
third one was higher but not included because of statistical anomalies in independent
contractor record keeping.
Real Estate Agents (independent contractor salespersons) They
spend about $1000 to go to school. They spend $250-500 to get their license
in most states. After this 75-85% percent drop out without ever selling a house.
This is NOT a part time, work and learn process! This is a starve till you make
money process! This research came from one of the best sources! A Real Estate
broker that owned a real estate school!
We Could Go On and On! My,
my, my -- in just about any direct contact field for the transfer of goods or
services 60% or more drop out. Non MLM? Just about the same number of people
drop out of College their freshman year (after spending $8-20K of Mom and Dad's
money)! A friend of mine sent his daughter to medical transcription school for
$2500 and 3 months of her life. She transcribed 10 tapes and quit! Get real
if you try to bash MLM ?Network Marketing. Do real research and real statistical
comparisons! When I came back from Viet Nam I tried selling Life Insurance.
I had 6 guys that started with me. In 3 months we had all quit and made zero
dollars. Oh ?yes, we sold 6 life insurance policies because at that time you
had to buy a life insurance policy on yourself to be eligible to sell a policy
and make money. Our trainer got the commission money for us failing! Don抰 get
me started on 300 pound microwaves in 1969 that sold for $3200.
Pyramid Schemes Yes,
there are a lot of them out there. They are not MLM ?Network Marketing. A Pyramid
Scheme is a criminal activity. It is easy to tell the difference. MLM bashers
do not have the experience or are too lazy to do the study to know the difference!
Thanks to the MLM Watch Dog http://www.mlmwatchdog.com
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