Network Marketing also known as MLM or Multilevel Marketing if done correctly, probably represents the best opportunity for any person to become financially free and successful without the benefit of a large financial investment. For this reason it is directed and marketed as an industry, to the masses of people who are trying to find their out of the wage slavery trap.

The whole idea is that by building a team of other marketers who either purchase products for their own use and try to find others who do the same, or build a team of marketers who distribute products to their own groups of consumers, with each consumer having the “privilege” to build their own team of distributors, you can leverage the efforts of thousands of people and earn an incredible income in a very short time period. This is achievable and makes a lot of sense if approached correctly.

Simple judging from the 97% failure rate of all of the people who have tried this, there are serious flaws in the way this is being attempted.

How MLM is being marketed

I don’t mean to imply that the 97% of would be Network Marketers that fail, are lacking something. That is hardly the case. Many do have the necessary spunk to get the job done. The problem is with the industry itself and how it is being marketed to the masses. MLM is marketed towards your short term emotional state. If you have been to a Network Marketing presentation, you will usually find that there is music playing and often some type of video or graphic display to take in while you are waiting for the presentation to begin (designed to relax you and make you receptive to the information). These presentations begin with a person who is touted as being already successful in the particular company that is being shown. He tells his “story” about how bad he was doing before his sponsor presented him with the opportunity that you are being presented with. There may be pictures displayed of wonderful vacation destinations or beautiful houses or cars. What does all of this have to do with offering you a business proposition that makes sense for you? Nothing! This is simply pandering to your emotions.

The Back End

Usually, the floor is passed on to the presenter who delivers the “back end” of the presentation. This is where they talk about the money and how you will benefit from the plan. This consists of a far too brief explanation of how you will start by just finding 2 or 3 people and it will mushroom into thousands, each paying you a small percentage of their earnings. There are several different configurations to this “compensation plan”. There are also usually a number of people referred to who have achieved some type of remarkable “fast start” benefit with this plan. If it is a new company, you are usually presented with the opportunity to either get in early or work with the founders or both. Neither getting in early nor working with founders is going to have much of a beneficial impact on your business. Your outcome will be mostly based on your activity and that of the people in your downline, not in your upline. But the bottom line is that it is designed in such a way as to dangle the big carrot of fun work for 3 to 5 years and you can walk away and continue to reap the financial rewards.

Why This Is Wrong

What they don’t tell you in the vast majority of these presentations is that you will become nothing more than a sales person for the company. Or possibly have to stockpile products to meet monthly quotas. You will be told to make a list of everyone you know and try to get them to a similar meeting where they will be presented with the same emotionally based presentation and be asked to decide to start a business based on their emotional response to the information coupled with their affinity for you as a friend or family member. Is any of this a logical way to decide to get into business? Not for me. This is the main reason why people drop out when they are faced with the reality of Network Marketing. They were blindsided.

Once you sign up, you will be told to do what your “upline/sponsor” tells you to do which in most cases consists of making a list as described above. You will also be asked to endorse and push the company’s products to the same people on that list, whether they get started or not. It happens every day. What they don’t tell you is that with this approach the learning curve is so steep that it is almost vertical. They also don’t tell you about the most important thing of all. You must develop the mindset of an entrepreneur. An Alpha Marketer who understands at a deep level that everything good or bad that happens in their business is their responsibility.

How to Make Network Marketing/MLM Work

What I have described has happened to me and virtually every other person who has ever joined an MLM company. After several years of listening to upline/sponsors telling me to make that fateful list and give them a copy. Why do they need a copy? Because if you should decide to drop out, they will have your list of people as business prospects.

Don’t get me wrong. Network Marketing is still a great concept and works for a great many people. The first thing you need to understand is that just because you have a passion for a given product or company it does not mean that others will have that same passion. What you should do first is study the market place and find out what there is a real need for. Actually, it would be great if you could take your emotions out of the equation and focus of the needs of your proposed customers whether YOU need what you are offering of not. Business is not just about making money. It is about filling a real need and making money as a side effect of filling it.

Once you find a need and a company that is lawfully and ethically filling it, find a person within that company who can teach you how to market your solution to the people who need it. Another way to do this is just to seek out someone who is lawfully and ethically successful because they know how to market an MLM business using technology and a system of software tools. Take the time to learn the system and master at least one online marketing method. I guarantee they will not ask you to start out with a list of everyone you know. This advice alone could save you 3 to 10 years because approaching MLM the wrong way will lead you that far down the wrong path.

What You Will Need to Learn

Online Marketing is by far the best way to leverage your marketing efforts, bar none. You will need to learn and master one or two online marketing methods to gain some momentum. You can then go on to learn other methods in the future. Any one online marketing method is enough to build a business. However, the more you learn and master, the more valuable you become and the more money you make. Below is a list of the major marketing methods being employed today in online marketing. This list is always evolving but these will be useful for many years to come…

  • Article Marketing
  • Search Engine Optimization
  • Google Pay Per Click (Google Adwords)
  • Google Content Network
  • Video Marketing
  • Forum Marketing
  • Blogging
  • Facebook Marketing
  • Twitter Marketing
  • Networking
  • HubPage Marketing

In Conclusion

Network Marketing or Multilevel Marketing is probably the best way for a wage earner (or someone who is facing the decision of what to do with their life), to start a business with little or no capital. Network Marketing is not being presented in a way that encourages the evaluation of the business in a logical manner. The best way to approach MLM is to find a qualified mentor first and then proceeed with caution to find a company to work with. There are many different ways to approach online marketing. You should choose one or two to pursure and master before trying to learn others. Network Marketing can be done successfully if approached correctly.