What do you want from a network marketing company?
If you are like most people looking at home based business opportunities, you want an opportunity which offers you a really good chance at success, right?
Please put everything you have ever heard or read aside for a minute and consider the following 3 dirty little secret about MLM you have never heard or read:
Dirty Little Secret About MLM # 1:
This secret is about products and how long any network marketing company may last.
A company which has products that are solid performers with a good sales history, but that are not cutting edge can be good – you can be sure that you will be able to sell some of the products.
Conversely, you may find it harder to sell products which are widely sold and consumed by many different companies – and for the obvious reason – competition.
A new “buzz” product – one people can get excited about can fly out of your hands – at least in the beginning. It is possible that a new product will sell fast for a while – only to fade if it becomes apparent it isn’t performing as advertised. Nothing can destroy your business faster.
What can you do?
If you can find a company with a product that is relatively unknown in the market, but that is quickly growing in popularity – and that product has already caused many people to talk about it and write about it, you may have found a product “rave wave.”
A past example of “rave wave” would be liquid minerals during the 1990s.
My wife and I joined a company in 1996 which was relatively new and had a new product. After using the product with our family we quickly experienced real results. Nothing is better.
Once we had results with the product, we were easily able to find others to share the good news with – and that resulted in sponsoring 300 people in just over one year – and our group grew to 10,000 over the next few years.
Yes, we had tried to build a business with another MLM company that did not have a new and exciting product before we marketed the liquid minerals. We worked super hard with the first company for a year. Our income was $1,500 after 12 months. It was too slow and not much fun.
Should sharing a product be fun?
If the product is exciting and gets results, sharing it with others is exciting and fun. If the product (no matter how good it is) is not new and doesn’t get relatively exciting results, your business will not be fun – it will be WORK!
The end result of our second network marketing or MLM experience was earning over $1 million in 4.5 years – even though we stopped actively “working the business” after just 14 months.
What did we do?
Our children were young. We home schooled them. We did 4H. We took them on a 5 month vacation. We felt almost like “aliens” walking around in a society that was “living for the weekend” because we didn’t have to work…
Did the product sell for a long time?
We still use that product today, 17 years later… and we still get results with it. The opportunity to sell the product through network marketing faded because eventually, the product was everywhere. The company no longer exists. We got our last check a few months ago – it was $89. Our peak check during the third year was $24,561.
What is the dirty little secret here?
Many network marketing companies succeed fast because of a hot product, but don’t last because they fail to find new and exciting products as each product enters the mainstream of the market place and competition rises.
Does that mean network marketing is a bad idea for a home based business?
It is a bad idea if you expect a company to provide you an above average income for life. Yes, there are a few exceptions in the industry. Were we dissapointed when the excitement stopped and our group faded away? Yes, of course we were. We decided we would never “do” MLM again. That was 17 years ago.
In the time since, we built a large real estate company which peaked at 148 agents.
What happened? The boom that collapsed in 2008 put an end to our office. Suddenly, no one was buying real estate, but we still had to come up with $30,000 a month to pay the bills of the business. We “fed” the business hoping for the market to change – it didn’t change!
Hindsight is 20 / 20.
What did we learn? We learned that conventional business contains more risk and more down side than network marketing.
If you join a company that eventually fades away, you don’t have to spend a ton of money desperately pushing on a string. And of course, you don’t need much money to start a network marketing downline in the beginning either.
Sure, we made a lot of money with the real estate office – and lost a lot of money too! When our MLM business faded away, we still made money until the last check.
Yes, we still sell real estate – but the thrill has been gone for a long time… and so, we have reexamined our years in network marketing – they were the best years of our lives.
What about the people we got involved in MLM? Yes, we made relatively good money, but what about our downline?
You (and we) cannot control everything.
What about all the agents we had trained who could no longer make a living selling real estate? They found other work. Were they better off for having learned to sell real estate? We think so. Many are still selling real estate. Most are grateful for the education and for the relatively easy commissions they earned during the boom. They know the crash wasn’t our fault.
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