Some interesting truths about MLM’s

Hi peeps

As a long term network marketer i thought i’d just give a bit of insight into the business. Explain how things work and more importantly help people decide if MLM is right for them and how to determine a legitimate MLM company from a ‘Pyramid’ scam.

Firstly, all MLM companies have a Pyramid structure just the same as any other large company. Before you sign up to any MLM opportunity make sure you’ve done your homework! Google the opportunity, find out what people are saying and ask yourself these questions bulleted below:-

  • How much does it cost to join up?
  • Do i get products on sign up? Are there any products at all?
  • What value do the companies products have? Are they any good? Are they tested?
  • What are other people saying about the company?

So, you’ve asked yourselves the questions above.

Firstly could you sign up for free? If so, what kind of company has such a low value on it’s distributorship that they give it away free! If it’s free, walk away! No serious company lets you join free.

If you get some products with your sign up pack, it’s a bonus, you have something to use/sell right away. Particularly with nutrition products, having something to demonstrate and let people try is always a good thing.

If the company has no visible products, what are you signing up for? Walk away.

Every distributor should be able to show you what they do and how they do business which includes showing you some form of products. Even energy company MLM’s can show you whose service you are selling.

Check out the companies products online, how good are they?, are people complaining?, are they being sold at the correct price?. You’d be surprised but some MLM’s sell products that are available elsewhere for less!!! How could you be successful in that company?. Particularly with nutrition products, how are they manufactured and to what standards?. From a lay point of view, the best ones would be FDA compliant, manufactured to Pharmaceutical grade and if used in Sports, must be fully tested by HFL Sports Science and WADA approved for Pro/Elite (Olympic) level use.

This is the point where you can determine the value of the company as a whole. The products are good and they’re selling them because their customers would rather have the product than their own money, simple!.

Now you know the company has value, it’s ok to sign up. If their product is good and it’s selling then the marketing plan is sound. The royalty cheques are flowing downwards and the product is selling well and the distributors are selling good volumes. This makes the company sound, stable and sustainable in a business sense. This allows you to continue building your company’s network, retailing and earning royalty cheques for years to come. Fast flying companies are fine in the first 2 years but often disappear leaving you flat with no income or royalties.

Some companies manufacture their own products and some companies have such high end products, particularly in the nutrition range, that they have to have them manufactured by another company. Both options are fine but it’s nice to know which one is working in your chosen company.

Before you finally get pressured in putting pen to paper, thats right actually signing a legal document because thats the only way you should be joining an MLM company! Check to see what other people are saying about the MLM company. Some people just quit because they don’t put the effort in so thats fine, just normal laziness. But if they worked hard for a while and couldn’t earn well, find out why! Were the products arriving in un-saleable condition. Were the royalties poor? cheques late arriving? not getting their royalties at all?.

Normally when you join an MLM you’ll sign a copy of their registration form and give them your money. The form will normally be a multi-sheet carbon copy. You should be keeping the back copy of the set and on the back it should have the terms and conditions. It can often be hard to read but it’s fairly standard and should also be present along with the company rules in their marketing manual. If they don’t have a manual to give you, don’t sign up!

One particular type of company to avoid is the MLM opportunity that allows you to pay into a company pot which is used for advertising. The companies advertising tags customers onto your account and you get royalties based on the products sold to that customer, for life! Sounds good doesn’t it! You don’t have to sell, the company does it for you! You also earn extra money on your investment which you pay every month, then after 12 months you get all your money back plus a little extra! You’re making money every which way and you’re doing nothing! Sounds too good to be true right! Well actually for the first time in your life it isn’t! It works well and you earn well from it. But theres a problem……all the advertising is really TV/Radio advertising. When something bad happens, 911, Hurricane or Tornado etc The news blackout kills the companies advertising and theres nothing anyone can do about it. This halts sales completely for that period and it takes time to recover but worse the royalty cheques stop as well and you may never get that money thats lost. A nice opportunity but with a fatal flaw that can halt the business with no chance of recovery.

So now you know a bit about the company you’re thinking of joining, the next question is a serious one. What is the longevity likely to be? You can tell this quite quickly, how did you get introduced to the company? Was it through a clever media funnel/attraction marketing with a fancy video on a website? Or was it through traditional MLM methods someone advertising locally, word of mouth, perhaps someone flyering in the high st?.

As a general rule of thumb, traditional MLM methods build slower, training people correctly and only introducing people to the business opportunity that value it and can make it work for them. This means a long lasting company that will be around for decades to come.

Attraction marketing tends to launch companies like a rocket and after a few years it fizzles out. If you were in early it’s fine but coming later, it’s over before you’ve got started.

It’s now important for me to mention that a true MLM marketing plan allows everyone to do well regardless of when they came into the business. The reason being it’s fair and legal.  Someone who’s in at the start may have the most distributors but someone that joins after 3 years has less distributors but has learnt from the company leaders and has trained/duplicated his downline distributors to selling better volumes and has consequently made themselves into a top earner. Not everyone can be a million pound a month top earner but everyone can make a living in MLM and if you’re committed you can earn yearly incomes in a monthly royalty cheque. It’s really down to your effort. There is no magic key i can give you to make you a good distributor, every type of lead generation works but not necessarily for you. You need to find your own way to do your business, that is affordable and profitable. Commit the right amount of time to your business, do it consistently and with a plan.

One important thing with any business is the ability to talk to people. We’re not all sharp when it comes to introducing ourselves, products or the business opportunity but you’ll learn how. For example, i could tell you 87 health benefits about my main product and i’d forget the 88th! Sadly as with most things in life, the 88th is the particular benefit that you want to hear! So my best advice would be to listen more than you talk, add only constructive and useful chat into the conversation and that way their questions will be answered and you will definitely talk to them and cover the key points.

A lot of MLM’s have people convinced that you need to be a sales person. This is dead wrong, being able to sell is not a key to being successful. Making friends and just being known as being a decent business person in your community is enough to get you started. Talk to everyone you meet about what you’re doing and don’t sell it in any way, just sow the seed. I get customers from just drinking my nutrition drink publicly, no talking/selling required!

Did you know that the two most important Nutrition MLM’s were founded the same simple way? Herbalife & Arkworld were founded by two dynamic individuals that acted as the lead distributor for their companies, walking and talking every day in the high st wearing a simple white badge.

You may find it pretty silly, grown people wearing badges! But the truth is that it’s a sign of an MLM company that works in a simple way and is thus easy to work in. These companies are the industry benchmark and are built for the long haul!
I hope this quick post helps you make a slightly more informed decision when joining an MLM.

Lastly, a key point…..whatever you choose, make sure you’re a leader in everything you do. Find new ways to distribute the products, be dynamic…be first to invent the method! If you act like a leader, you’ll earn like a leader. Act like a follower…..well you know the rest!

If you can, find a new company that’s honest, genuine and just getting going. Be their top distributor, work local….think GLOBAL!
If you have any specific questions, please e-mail me directly at

Thanks for reading my page!

Best of luck in whatever you choose

One comment on “Some interesting truths about MLM’s
  1. lifestylefocus says:

    If you’re looking for a new MLM with high quality products then Arkworld is perfect for complementing any existing range of vitamins or anti-aging products.

    If you would like to know more about retailing Arkworld products to your clients please let me know and i’ll do all i can to help you.

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Lifestyle Focus Arkworld Distributor
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