The Perils of Traditional MLM's

If you were to ask many home based business entrepreneurs if their business is "the best traditional MLM out there", of course you know what the answer will be.  The next question you  should ask is what is the retention rate you can expect?  If it is a whopping 40% you must realize that in truth it is more like 25% to 30% monthly retention rate where a member stays involved a couple of months after opting in.

Another discovery question is "how much inventory do you have to keep on hand?"  Oh, while your at it, why not ask "When can I expect to start earning lots of money".  Now ask yourself this, How much money is lots of money? 

Think about this for a moment.  Let's role play here and say that you did join your friend's traditional MLM.  Now let's see if your conclusion sounds something like this:

• Month 1 -   You work your tail off your first month in your new MLM.  You convince 10 friends and family members that "this is the best way to earn money at home" so they join your team.  
• Month 2   - You work yourself into near exhaustion and add another 10 team members by telling them that they can make lots of money by doing this at home.
• Month 3 -   You have yet to make any "real money" yourself but you try and add more people to your team.  By now you realize that your team, that was at one point 20 strong, has dwindled to 8 team members (or less).  Boy, you sure don't think much of those quitters that were on your team.
• Month 4   - You are nearing the end of your warm market. People you know don't really want ro talk to you any more because they are afraid you will just try to "sell them something".
• Month 5   - Self doubt sets in and you yourself are having trouble believing your own sales pitch.  You start to think that if the other 2 team members that you signed on last month don't stick around and you don't start making money doing this, you're going to quit.  Then you have to try and figure out what to do with all that *&%^@* inventory that you had to buy.....

Sound firmilar?  Oh maybe you've lasted for more than 5 or 6 months before you gave up.  Maybe you are one of the fortunate ones that have luck on your side and you're still in that MLM and making some money.

Fact is, luck usually has nothing to do with your success.  Realistically, if you are in the wrong vehicle you have little hope of generating enough income to not have to go find a new J-O-B.

Enough about the disadvantages of traditional MLM's.

Stay tuned for exciting information that flies in the face of most traditionsl MLM / Direct Sales  companies.

Here's to success in all of your ventures.

I remain sincerely yours,

Mike Nelson