3 reasons why Network Marketing is doomed to fail
Network marketing/Multi-level Marketing (MLM) is a crappy concept. While I have always thought so, I could never quite put a finger on what that was… Having tried it for a short while a long time ago, I speak with (limited) experience.
My take is that MLM was created with the intention to induce a viral effect… very much like buzz marketing. But it went about it in all the wrong ways…
Mistake #1. Creating a need around a product – some MLM product’s arnt too bad at all.. Like aroma therapy for constipation, some funky tasting tea to clear your colon.. bla bla bla.. seriously, how many of us need this crap? much less need this crap monthly.
Mistake #2. Playing with emotions – notice when MLM people try to convince you, they start messin with your emotions… they say shit like “do you really wanna live like this for the rest of your life?”, “Don’t you wanna own your own business?”, ”Can you afford to support your kids and parents when you get older?”. The funny thing is that most of these people never made it themselves… they always refer you to their “upline” for proof of success… They hardly ever sell the company.. and when they do, they compare it with other crappy ass MLM companies.. “we sell aromatherapy, they only sell soap” WTF?
Mistake #3. Messing around with trust – The fundemental social flaw with MLM is that it messes with the trust you’ve gained for yourself over the years…. The reason why you trust someone who gives you a movie reccomendation is coz he has nothing to gain from it… So there’s no underlying incentive for someone to reccomend something to you other than goodwill. But MLM screws around with this, and when people know there’s an underlying incentive, they WILL steer clear of you…
On that note… I will end this little story…
on March 15, 2007 on 7:15 pm
Doomed to fail? Interesting.
Apparently you forgot to look at facts.
1. Growth in Network Marketing sales have outpaced growth in retail sales over the last 2 years.
2. Network Marketing (direct sales) has doubled in the U.S. in the last 10 years.
on March 15, 2007 on 7:35 pm
MLM is doomed to fail unless you develop skills….something many teams do not teach. The business structure is there. The question is “how do you work it in a way that is comfortable for you?”
on March 26, 2007 on 11:19 pm
Cool! kabababrubarta
on April 1, 2007 on 5:39 am
Ty, Growth of network marketing sales have outpaced retails sales because retails sales has reached a comfortable stable plateau. Perhaps you could compare sales volume? It is growing.. because there will always be gullible people who buy into the system thinking they can make a quick buck. After awhile they realize they were foolish and drop out… Do you have any stats on the drop out rate for MLM? I’m sure its outpaced growth in retail sales as well.