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Tip Sheet Five: The Many Myths of MLM

With so many different parties, involved in the MLM Industry…

From the 500 different Companies offering products and services through the MLM Distribution Model…

The 30 million or more active Distributors… (many of whom are not Business People… and there's no shame in this)…

The countless number of advertising Companies, created to help you get the word out about your MLM business…

The numerous Legal and Governmental Bodies trying to regulate the Industry…

And all of those outside of the MLM Industry who have an opinion and who might be trying to safeguard their own business positions…

… so its not surprising that there is so much hype and myth surrounding MLM!

But what are these 'myths' and how do they impact our thinking?

Let's find out!

Myth 1: Network Marketers Don't Sell

The MLM Industry is predicated on Home Office/Companies developing and making available products and services to Customers. Customers can be either Distributor Consumers or just Consumers.

Distributors/Network Marketers are the Legal Agents of their chosen MLM Opportunity. It doesn't matter how you dress this up, or what words you use… be it referral marketing or anything else, the only legitimate way to make money from MLM is to sell product or services to others.

Once that is understood, we can all move on. It's an irrelevant argument. What's important now is to develop the Market in such a way, through mass training and collaboration etc such that sustainable MLM Business is developed between individuals in a way that is cost effective and profitable for as many people as possible.

There are those that tend to continue to offer income opportunities to the unwary in a way that shows the least amount of risk and effort, including the premise of not selling which of course is nonsense.

Let's get over this argument. If we're in MLM then we have to create revenue from other people buying the products and services we offer. Period!

Myth 2: Everyone is Your Prospect

Whilst there is such a frenetic amount of competition; so many different ways to join and promote an opportunity; and whilst there is so much poor performance it's clear that not everyone will be interested in becoming a Network Marketer.

That doesn't mean to say MLM wouldn't benefit everyone, it would!

There are some things that everyone does or has… e.g. going to school, driving a car, going to work, brushing ones teeth…

These are institutional activities that everyone does. It's the norm.

Interestingly, we all need money and we all go to work; so technically MLM is an occupation that everyone could get involved in.

But they don't… and that's primarily because the overall proposition and process is flawed. It's inefficient. So how can we punt an inefficient process to the masses?

Obviously we can't… but those of us that see merit in the Industry can take steps to optimise what we do so that MLM becomes more main stream.

That's why it's important to make MLM transparent! That's why it's important for all Network Marketers to take the steps necessary to collaborate and move the Industry forward.

When we do that; when more people buy product; when more people sign up to autoship at the right time; when more people become qualified Distributors; when we reduce the waste and inefficiency; and when we increase earnings… then and only then will MLM become an Industry for everyone.

Myth 3: Anyone can do this

Do what?

With over 500 different MLM Opportunities competing against each other we need to be careful about what we say.

Of course anyone can sign up to an MLM Business but that's not the point.

If we can't make the Industry attractive by reducing waste and increasing income then why should anyone join us?

Again, the marketing messages are put out to smooth things over, to make the World look attractive.

Glossing over the real issues can only go so far.

Eventually people will question the validity of the argument and then all our credibility is undermined.

Yes, anyone can do MLM… but what's the point if we don't each and all take the necessary steps to deliver the underlying rationale for having MLM in the first place?

Myth 4: We'll Build your Business

It's all very well and good having optimised business processes where a large proportion of the grunt work is automated. There's nothing wrong with this.

But when one promises things like 'we'll build your downline for you' one must question how?

Either these types of statements are geared towards people who quite frankly are lazy and have no wish to do any work, in which case, shame on the Marketing Team and Management for peddling this type of message, this doesn't help anyone…

Or worse, theses guys are just out for your money… they're rogues… and soon you won't see them for dust.

Our advice is simple… if someone is offering you riches for doing nothing… get out fast!

Instead, let's see if we can really create better processes to make MLM more efficient and sustainable over the long term for more people through real business practice optimisation, collaboration and automation… that's what the MLM Friends Platinum Club is all about and we know there's still some while before we get there.

All of us who promote MLM have a responsibility to learn and implement how best we can truly make the Industry great!

Myth 5: We have the Best Product

Sorry for being blunt… but:

Having the best product is no good if it's priced too high!

Having the best product is no good if delivery is limited or poor!

We've all seen Companies that state their product is the best… but again what good is that, if half of all the Distributors fail to sponsor anyone?

What good is that if downline attrition is through the roof?

What good is that if most people earn nothing?

Having the best product isn't going to overcome the real issues limiting MLM performance.

Nor can one Company claiming to have the best products hope to galvanise an ailing Industry on its own!

You see, any Company has a primary objective that's revenue and profit focused. Do you think it cares for one moment about the whole of the Industry? Of course not!

Every Company that has opted to sell via the MLM Model does so because it offers them value. It reduces their cost and their risk.

So when a Company says that they've got the best product, you can say to them:

What percentage of the Company's Distributor Base earns more than they spend?

What is downline attrition like?

If we're ever going to improve the MLM Industry for Distributors then we need to focus away from individual Companies for the moment.

Instead we need to focus on what the right overall business strategy to support 30 million Network Marketers is!

That's where the value is. It's not product or even marketing based!

When we collaborate together in ways which will grow revenue and income for more people then obviously the better products will naturally rise to the top.

Our priority collectively as Network Marketers must be how to optimise the Industry for all of our sakes and so we all need to increase this type of awareness before we sink down and look at the details of individual Business Opportunities.

Myth 6: You have no belief

Home Offices want you to have 100% belief in their products and opportunity; which given you're their Agent is not unreasonable; as clearly they want you to continue to promote their product.

What's not reasonable is the concept that Network Marketers fail because they don't have enough belief in the Business and don't follow so called 'tried and tested' processes.

Most 'tried and tested' processes are geared up to keeping revenue within the Opportunity; they're not designed to maximise Distributor earnings.

That's why all of us as Network Marketers need to fully understand the difference between being a Sales person for an Organisation compared to being the CEO of your own MLM Business.

In the former your roll is to maximise sales for your chosen Biz-Op…

In the latter your role is to maximise your income opportunity no matter who you choose to promote…

There is a world of difference between the two!

Myth 7: We have a Proven System

It's well known that over 95% of Distributors fail to make their Home Business successful; so how what's happened to all of these so called 'proven systems?'

It's evident that they don't work!

Clearly, if we continue to look inwards at the way MLM Home Offices want us to react and work, then collectively we're not going to focus on changing things for the better.

The proven systems that MLM needs tomorrow must not be limited to individual Companies, as these are only interested in themselves. Rather tomorrow's proven systems must be driven by a collaborative mindset that supports the welfare of all Distributors, and as such must override the systems that individual Companies provide.

How we get to that must be driven by Distributors alone as our interests are clearly different to that of any Home Office, which is of course to maximise our income in the best possible way.

Myth 8: You have a Business

As a MLM Distributor, and therefore as one of the Sales Agents of your chosen MLM Business you are no more than a self employed sales consultant. Of course you have rights in law, but you don't have a Business.

Instead, your Business revolves around your Personal System, Influence and Relationships.

If you have no system apart from the one your Home Office gives you; and if you have no downline, revenue or income then you have no business at all.

Not withstanding, 30 million individual Business Systems would create as much chaos as no Business Systems or 500 Business Systems that are only servants of each individual MLM Company…

No… something else is needed. A catalyst to bring as many of the 30 million or more Network Marketers together so that through mutual understanding and organisation more people can come together to build the ongoing sales and revenue that underpin residual income.

That's the power of the MLM Friends Platinum Club… to first create the awareness and then build the structure across the best opportunities available to us as Network Marketers.

Myth 9: Just take the Product and Promote the Benefits

Your Home Office wants to lock you in to their product for as long as possible, that's why autoship was developed. However, just doing this isn't going to improve your chances of making money.

For the average person who can't piggy back their MLM Business on the back of another (e.g. a Chiropractor selling health products to his/her Clients); then just advertising your MLM Business online, or promoting your healthier self or showing others that you've saved some money on your utility bill isn't necessarily going to draw sufficient numbers of people into your 1st Level Downline or beyond quickly enough to make a significant difference.

This shows you that just taking product on its own for the next 1 to 3 years isn't going to develop your business… no more is required to develop the levels of business needed to provide the bigger incomes.

10: We've got the Best Leaders

There are some great Leaders in the Industry that develop business for individual Home Offices, but there are few who take the high level view and looking for ways to really energise and grow MLM as an Industry for the masses.

We really now need to think about what we want Leaders to do?

Should Leaders be people who develop Individual Training Needs to their downline teams?

And if so what does that make everyone else?

Maybe we should be looking at MLM Leadership in another way?

Maybe we need to stop talking about Leaders and start talking about Stakeholders.

You see all Network Marketers… all Distributors are stakeholders of the Industry whether they've got a downline of 10,000 or a downline of zero.

As such it's in ALL of our interests as Stakeholders to identify the best way we can all move forward.

If this is the right approach to increase MLM revenue and efficiency for all Stakeholders then Leaders as we traditionally think of them probably have a limited shelf life going forward, don't you think?

Myth 11: Take Massive Action

The traditional methodology of MLM is sign up, then make a list of everyone you know and then go and approach them. This is the massive action of decades ago that offline Networkers were taught.

In today's online world, massive action is likely to mean 'go and advertise to the World.'

Trouble is, we already know that the online environment is highly ineffective and inefficient; costly too if you don't know what you're doing!

The problem is, we're all so institutionalised into doing what our Home Offices tell us that we've forgotten to look at the bigger picture.

Instead of working out how we can work with other Network Marketers we've embarked on a massive competitive spree with the very people we need in our downline.

So what now?

How about we initiate massive collaborative action instead?

Myth 12: You've got to be an Internet Marketing Expert to succeed today

The word is that to succeed in Online Network Marketing today we all need to be Internet Marketers; but why is that?

Well, for a start Network Marketers are fragmented all the way around the World, dotted about in little enclaves…

And we can't find each other!

So instead we spend an inordinate amount of time looking for each other…

And when we do, we thrust our chosen MLM Opportunity in front of our Prospect and wonder why they don't want to join us????

So then we look to talk to more people faster until we find the few people we need in our downline.

Imagine…

30 million people promoting 500 different MLM Opportunities using countless different Internet Marketing tools and solutions!

It's little wonder we're so inefficient and downline churn is so big!

So do we need to be an Internet Marketing Expert to succeed? Or should we just create a different MLM environment that delivers the same result but faster and for less cost?

Here at the MLM Friends Platinum Club we prefer the latter.

We believe that MLM can be improved upon.

If you believe the same, then you can do something abut it.

You can join us…

We'd love to see you and maybe we can do some real business together some day?

What do you say?