I know a lot of people who really dislike Multi-Level Marketing of any kind (whatever you call it – direct/pyramid selling/scheme, referral/network marketing etc I challenge you to outline the difference). In fact they hate it. These haters – whose sole exposure is limited to an overzealous distributor in my experience – have picked up on the fundamental problem with MLM.
Inelegant sales.
Let me preface my argument with a disclaimer that I am no longer actively using MLM as a vehicle for wealth creation. Many years ago, I joined Amway& Network 21 and reached a certain level where I was making a small income. Like many a distributor before, and after me – I gave up. The reasons are not so relevant to this article, so if you feel inclined let’s have a beer or wine one day and discuss.
But why do I still think MLM is awesome? When combined with an excellent training & development program, I’m yet to find one that sucks!
They have great products
I purchase many products via MLM, simply because they are awesome!
The business model is a sound one
I love the idea that your average Joe, with limited resources and skills can enjoy the self actualisation of running a business, without the exorbitant costs and risk in time & money of setting up product development, distribution etc etc.
You purchase from the little guy
Yeah sure Amway et al are big businesses. Now. They got that way by starting small, just like every other big business today. What makes them different is that they redistribute the profits in a much fairer way. At the end of the day, your purchasing from a mum/dad with bills to pay just like you.
The people are fundamentally good
Like I said – mum/dad just like you. Trying to have a ‘fair go’ – so how Un-Australian of others to rubbish them.
Having said all that, lot’s of people hate them, and I kinda get that too.
Which leads me to why I think lot’s of MLM distributors fail. Yes, it’s inelegant sales, most haven’t had sales training, a lot like to think they don’t have to or want to sell, which is a recipe for failure.
It really comes down to purpose, vision, mission, values.
Many MLM’s have the purpose, among other things, to help others, reach financial freedom, avoid pain of mundane, distribute great products, retire early etc. And many subscribe to the values of these MLMs many are creating a healthier, wealthier community. Collaboration where individuals come together for a common cause. Helping and serving others. When you break it down, these are all great values and many people who hate MLM share these common values.
The problem exists in the mission of MLM, the vehicle used, HOW the purpose is realised and values experienced. Crudely put, MLM works when people sell and buy product, not when they join you on the road to financial freedom and help others come with you.
Ill give you an example. I was approached (again) recently by a distributor to join him on the way to helping others and financial freedom.
When I said I wasn’t passionate or interested in the product, he sarcastically remarked – “what, you don’t like helping people?”
Aside from the desire to smack some sales sense into the guy, I responded thusly (I’m paraphrasing)…
“Yes, I do. And I do. Of course. But that is not HOW an MLM works. An MLM works when you sell the product, and I know, that if you are not 1st and foremost passionate and believe in the product your selling you will most likely fail. 15 years of sales, and I am yet to see a successful person who is not aligned with the product they’re selling.”
The problem with MLM is recruiting of distributors who are aligned with the purpose, the vision and values, but not the mission. The mission is to move product. You are not selling “the dream”. You don’t realise the dream by getting people to join you – you realise the dream when others buy & sell product, and they recruit other people who buy & sell the product. It’s a great way to do business.
But stop kidding yourself, that it isn’t about sales. When you get an objection about the product, don’t answer it by talking about the dream. Even if you recruit them, they are going to fail cos their under the illusion they can just spread the word and all is well. You gotta sell the product. As well as the dream, but most people will buy that baby!
So. Message to that guy if you’re listening. Learn how to sell elegantly will you? Cos it’s an awesome business system and you’ve probably got a great product as well. So get good at sales. And just be cool will ya? 
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