To MLM or Not to MLM?

I was posed a question the other day about MLMs, why it leaves a bad taste in some peoples mouth, the term MLM even triggers spam filters. Some programs even advertise "This is not MLM" as though that is a plus for it. Is MLM really bad?

And it got me to thinking.....

To MLM or not to MLM? That is a very good question with a lot of opinions from many sides.....

Here is mine.

Yes there are many MLM companies that pushed big dreams and fell by the wayside leaving a bad taste in some peoples mouths. Where massive amounts were made by company and upline on the sales of..... not products, but MARKETING MATERIALS!

But can that not be said of other pay structures as well?

And many people put thier hopes and dreams into a MLM company, only to see them squashed. But can that not be said of other pay structures as well?

And, true, there is attrition in the lower ranks of MLM structured companies, does this make MLM a bad marketing concept?

I must say very strongly NO!

If you look at any online program you will find a high attrition rate,

Why?

Sadly, probably about 90% of online marketers will "try" a program for a couple or few weeks, if they are not seeing big rewards, they move on to the next "hot program". So just by default you are going to have attrition. MLMers shouldn't let that discourage them, but it does. Many good marketers give up because so many of there downline drop out, leaving them feeling as though their hard work is for nothing. But it IS to be expected with any type of marketing system.

Is that a negative on MLM? Or is that just a reflection to how life really is? One of the natural laws of online marketing that you will encounter, and should expect, IF you actually market anything....

One thing a good MLM does do, IF you want to become successful, is promote TEAMWORK. Which teamwork is a good concept even if you aren't doing MLM. Many affiliate programs are "multi-tiered" systems. Never have figured out the true difference between multi-tiered and MLM..... But any one that is in your downline that you earn a commission on deserves your help and support! After all, the more successful THEY are the more successful YOU will be. A good MLM is structured to encourage this team building knowing that the company will benefit with a marketing force of strong teams supporting it.

A good marketer will be willing to help, even if the person they offer help to isn't in their downline, even if that person isn't in the company they are promoting!

In my opinion MLM is the best marketing system when it is coupled with a solid product or service, a good pay structure, and is backed by an honest and straightforward company. And though a "newbie" may not be as successful as someone with years of experience, if they are in an organization that "shares", they will get their training and will grow in knowledge as well as growing their business.

As with any business online or off, to become successful in MLM marketing will require dedication, work, perseverance, and being approachable and helpful. You will have up days and down days, as in any business. But in a good MLM structured team you should also have a team full of support above and below you to celebrate the good with and get support through the bad. It is a people business!

Lynn Harris began online marketing in 1998 after wading through the hype for a year. He is now editor/webmaster of HotBizTips.com. A site and newsletter aimed at helping the new to intermediate online marketer.

http://HoBizTips.com © 2005

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