Muli-Level Marketing, Pyramiding and Lessons Learned
When I joined the MLM called MTV In 2011 and Vantage International in 2012, little did I know, I would wake up to a Multi-Level Marketing giving me lessons for a lifetime. The lessons by which I carried with me till today.
To be in MLM is also like to be in an online business. It is a question of transparency, authority, reliability and integrity
1. The soul of an MLM is not the product but a great Speaker or Mentor who will make you believe to things unbelievable through the magic of compound return of investment by the power of 2.
2. Everyone who joined is encouraged strongly to recruit 2 or more. The 2 recruits are 1 on the right and another 1 on the left. Both of them shall recruit with the same passion as I have taught them and each one of them should recruit at least 2, the same should be done by their recruits and that goes on and on. I have personally recruited over a 100. And my down lines each one of them kept recruiting 2.
3. The product was internet based technology which was very attractive at that time. People were not actually looking forward for the product. I would say it has lost its value when different Internet apps started to give out the same for free.
4. The end result of the MLM became a pyramiding scheme since there were no more value to the products we were selling, everyone were earning money from the recruited new members not from the profit of selling the products.
5. What I learned is we must be watchful not to become a part of a business that take advantage on the naivety or gullibility of your prospects.
6. I learned that to be more "thick face", the thicker your money will be in your pocket. Thick face means you were able to talk in front of many strangers and explain the marketing strategy to them convincingly, so well and without any :"stage fright" There were members who testified and show off their documented earnings which was earned for a short period.
7. Mastery of your business and 100% confidence is the key in convincing people.
8. The products in the long run will help you weather the challenges if the product are indeed high value products. Sadly my first MLM product were rendered of no value when it reached the year 2013. By July of 2012, I announced that I was not a part of the MLM. The backlash was immense because I was one of the up line that had so many down lines. Although there were excellent leaders left in the group, plus the founder and the head of the MLM was still there. That leader never failed to say I would be left behind and I would regret in the end.
9. I was justified by 2013 saying the trend didn't favor the MLM products they were passionately selling. By the end of the same year the leader and the founder have left the country and brought with him a large sum of money including the payables he had to give me. Many of my friends who were still there were shocked.
10. I learned to be watchful and have to believe in myself. Take action immediately even if it means losing so many supporters.
11. MLM with a useless product is called pyramiding. The main source of income is only through recruitment.
12. Pyramiding is illegal by any shape or form.
13. I joined VI with quality products such as skin care, accessories for both genders, perfumery, healthy living products, clothes and many more. It became a hit when I created a Structure of MLM and it spread like wild fire because they could buy what they wanted and still earn from buying it. That is the marketing strategy. Marketing plan was approved by the mother company. I basically taught from 1 to everything about the MLM structure, plan and system.
14. Human greed is the main culprit of downfall of every genuine MLM.
15. Do not cut the hands that feed you. I voluntarily quit. This MLM failed eventually.
16. Never exchange your integrity for whatever amount of money. I was earning well from my employment and some other businesses including real properties. Why would I let anyone cut me off unfairly.
17. Do not let anyone disrespect you. Your reputation is better than loads of cash.
18. MLM is a big opportunity to learn human interaction. Do what you say, and say what you do is the key for a good business relationship.
19. Do not forget to help those who trust and believe in you.
20. You will see great friends along the way and discover so many hypocrites, opportunists, users, and manipulators in any MLM ventures.
Recent Comments
146
I liked how you summed up the MLM business. Some are good. Some are bad. And others are scams.
Sadly, even in the MLM companies that have a great product, reasonably priced, less than 5% of it's business associates earn stellar amounts. Usually more than 50% earn nothing.
Those that do have to work very hard to train their team. When people realise they have to work hard, they quit.
The best MLM company's focus more on their competitive product line, as long as they have one. Avon, Mary Kay and LegalShield come to mind.
Those who's products are over priced, are Ponzi schemes cloaked in a legal loophole so that they can barely escape being shut down.
If you join an MLM company as a business associates, make sure you enjoy the products so much that you can get them at the associates discount. You don't have to succumb to any pressure to recruit others into the business if you don't want to.
And if you want to share the products with others and create a business, use Affiliate marketing techniques so you don't have to bug family and friends.
My advice is to not go into MLM to create a business as the odds are stacked against you. Do what we do here. Affiliate Marketing. We can promote any product we like and don't have to pay fees for doing that.
Thanks for sharing the lessons about a touchy subject Florentine.
Cheers.
Edwin
Yes i very much understand this... i have been in so many MLM ventures. I was terrible at it, i hated recruiting which is the main thing in most of these programs. They wanted me to recruit family and friends and every single person you see every second of the day! EAT, SLEEP and BREATH the product 24/7, i just couldnt do it and be a robot repeating the same salesman brochure type speech all day.
Excellent post! I was almost recruited yesterday into what I consider a pyramid scheme. This person also had a "thick face" and was very convincing; well she had me motivated long enough to sit and listen to her try to convince me to pay the upfront start-up fee. She withheld the name of the product until the end of her presentation. Finally, when she said the name of the product, I was no longer interested. It was a product name that I had seen too many times on all of my social media feeds. It was a product that I had seen friends and family members try to sell and recruit to sell. It was a product whose market had become too saturated. Therefore, I had no interest being talked into a decision I would regret later; just as she had no real interest in the product.
That was a very good round-up, Florentino thank you for sharing your insights.
I was talking to an MLM refugee yesterday.
Getting involved was one of the quickest ways she has found to loose all of her friends and acquaintances.
She is starting to rebuild her life, and focusing on new ways to generate income. There is so many stories, some positive and some not so positive.
Alex
MLM has a very good way to earn money at least in principle if the products are worth the price and has genuinely better quality than similar products. And the company has professional way of remitting commissions. And the system is foolproof.
See more comments
Great information, Florentino. Been there and I say I will never ever promote anything than just myself.
Someone said in the comments they want you to recruit and sell the products 24/7, to every single person you ever meet. I find that really stupid. Took me some time to "wake up" though :)
Lesson learned.
Exactly. Thank you I appreciate your comments.