Thursday, November 15, 2007

The PROS and CONS of MLM

While there exists ample proof that making money from home is possible, the best way to do it remains a mystery. Every home business opportunity brags that it is the best, revolutionary, most lucrative way to make money from home. Of course, they can't all be the best. A new concept known as Multi-Level Marketing (MLM) hit the social scenes of the 1950's with the Amway company. Since then thousands of companies have used Direct Selling as a means of getting their products to the masses without the expense of traditional advertising. There are leagues of people that claim to MLM as the best way to make money. I set out to be honest about the Pros and Cons of MLM
To be positive, let's start with the PROS:
The idea behind MLM is based in the concept of Network Marketing, people telling people telling people all by word of mouth. This generates a large pool of new friends and colleagues that think the way you do and are motivating and supportive. Also, making mo! ney in MLM doesn't just depend on your own efforts, you are credited for the success of any person or persons in your downline. Once a team has been built, you are paid for the efforts of others and residual income is created. As people that you have recruited do the same, your growth can work exponentially. Because you are in control of how much you make, you have unlimited potential for income.
These are usually the concepts that draw people to MLM, but with a nearly 95% failure rate, we would be ignorant to dismiss the CONS:
The first con is the antithesis of one of the pros, being that you are depending on the efforts of others to help grow your business, you can recruit until the day you die, but if your 'recruitees' are duds, you will never have a team large enough for substantial income. This leads into the next con: The residuals paid by the companies are ridiculously low. No matter the product or service you are selling, many companies offer as little as 0.! 25%, that's right, 1/4% on the retail price. So even if you ha! ve a mon thly recurring customer that is paying $60 for your product, that comes to a beautiful 15 cents a month. Get ten $60 customers, you make the company $600, and they pay you $1.50. Some MLM companies brag a whopping 1-4% residual payout. This leads us to the next con. Confusing and constantly changing compensation plans, bonuses, promotions, etc. You may never actually know what you are going to make and good luck staying on top of it well enough to explain it simply to a potential recruit. Some MLM companies have so many products and services that you cannot possibly focus on one to market, while others have such ridiculously unpopular products that the probability of getting month after month recurring customers is slim to none.
That great money can be made at home is true. If you are lucky enough to be one of the few successful MLMers, then congratulations. For the rest of us, though, that want to make money from home without having to be exceptional, lucky, or a pheno! menon, there is a company that is not MLM, pays 100% profits, and puts you in complete control of your earnings, and it can be found at:

Your Home Based Business


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