Multi Level Marketing - Who Makes Money?

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  • investingmominvestingmom Posts: 0subscriber
    Who makes money in MLM`s?  Of course, your upline does! Hahaha! Here are some of the MLM programs I`ve been a part of.Shaklee-Still a member, still purchasing, i could sell memberships too, it only cost me $20 bucks, but as a College student almost 11 years ago, boy that was a lot. I sure am faithful to their products though. (no money made)Metabolife-spent lots of money, people were actually losing weight, but  not me. (lost on investment)Equinox-Again spent lots of money, went to the meetings, nada, wasted time.Photomax-currently a reseller, cost me $500 bucks last year, you really have to hustle to make money. (I`ve made none, still using products)Pre-Paid Legal-Bought Affiliate on sale for $50 bucks, attended some really inspirational meetings, loved the social life, sponsored some family members. Got really excited, got rejected, got discouraged (inactive affilate, no money)So, I am now trying my hand at online businesses. So far, looks promising.  I`ve already learned a few tricks of the trade in online marketing. So, I started off with this site: www.investathomemom.comWhich then lead me to this site:  www.mothersdreambiz.comBoth of which have very great support and an automated online program that I couldn`t help but try them both.Give me 3-6months and I`ll be able to tell you if I lost money on these ideas.
  • beetracerbeetracer Posts: 0subscriber
    Thanks, Leedsfan. Your reply to Rich`s question is comprehensive.
    I`ve read this somewhere "To be successful, study those who are successful and what makes them tick. Further, study also those who have succeeded then failed as well as those who tried but never succeeded - what and why they failed."
    In network marketing, we hear people (big and small) succeed in the business. And there is no reason why we can`t succeed in it if others have. Because others failed, that does not mean we will also follow their track. We can change our destiny by changing tactics and be aligned with our strategies.
    That is why "Step 1 - Create a Life Plan of 10 Steps to Open for Business" is very important. What you really want in Life?
      There are also other great site about network marketing, proving that it is the trend of the future. BTW,  I  visited you site and found a link that I also frequently go and a subscriber, too.
     
     
  • Invest2earnInvest2earn Posts: 0subscriber
    Hello  Rich!
     
    i do believe in MLM  business, but we have to find the one that`s right for us, in earnning money and helping our communities.  Have you heard about  Miligroup, Inc?  We offered to create wealth and protect our asset , this is our vision.  I am new to this company, but they offered education in Real Estate, Mortgage, Life/Health Insurance, Credit Repair,  and Short term mortgage planning. We have many offices in Cali.  It`s  a great Idea for everyone of us to know how to buy/sell house and mannage of money. 
     
    This information is only my opinion, to find our more ....let me know.  Everyone have a difference idea and need in life. This is an oppornuty for everyone!  Knowledge is power. it`s drive us to where we want in life if you apply.  Thank you so much for your times!
  • N23CN23C Posts: 4subscriber
    Hey there rich..everyone here is right to some extent...MLM is in some way what you make it.  What i have found in my 3 unsuccessful attempts at MLM is that they people who make money right away or those you here about the most within the company have already been successful in a prior line of work, thus giving them many many contacts to promote there new business to.  In MLM its all about numbers.
  • AsiaOrBustAsiaOrBust Posts: 3subscriber
    I know I`m getting in really late on this thread, but I just figured I
    should toss in my own thoughts.  Somebody might find them useful. 
    When I hear people talk about "good"
    and "bad" MLM companies, I don`t generally agree with the reasons for
    the distinction.  Most people talk about incentive structures,
    training, etc...  But the
    truth is, mathematically, the ratio as to how many people make money
    versus how many don`t should be just about the same
    regardless of the system.  A few make a lot of money, most don`t.  But
    that`s not what makes a company good or bad, or even an MLM opportunity
    good or bad.
    In my mind, a good company is any company that creates value.  It
    provides new value to its market, not just an elaborate system for
    moving money around.  Adding value
    means manufacturing a product or offering a service that somehow
    contributes to an increase in your market`s standard of living.  This
    can include MLMs, but which MLMs it includes is relative.
    The reason it is relative is because, as a direct seller, you yourself
    comprise your company`s target market.  If you`re contemplating an MLM
    opportunity, you need to remember that you will be encouraged to buy
    your own product, just as you will encourage your own downlines to buy
    theirs.  You must ask yourself if the product itself is worth what
    you`ll end up paying for it.  If the MLM sells high quality soaps, do
    you want a higher quality soap?  For some people the answer is `yes`
    and, in their case, a direct selling business is simply a bonus
    opportunity on top of a rational purchase.
    I think a great example of a unique value add comes from Quixtar.  I am
    not an IBO, but I think it`s an interesting model, because essentially
    what they are selling -- their unique value add -- is their supply
    chain operation and their delivery service.  If you like the idea of paying a little more for your
    consumables for the convenience of receiving them at your doorstep on a
    fixed schedule, then being an IBO and having the opportunity to make money from it is simply a bonus.
    Now, a BAD business is one that doesn`t offer any real value to its
    market.  A company that makes money without creating value through a
    legitimate product or service that your market desires is not a real
    business.  MLMs that sell `marketing software` or `motivational
    products` are purely exploitative.  The only reason anyone buys
    marketing software through an MLM is to learn how to sell more
    marketing software so that more
    people can sell marketing software ad infinitum.  The only reason
    people buy large quantities of motivational products is the same.  In
    these cases, purchases aren`t based on rational consumer behavior; it`s
    simply gambling.  Unlike normal gambling, however, it doesn`t come with
    any entertainment value -- only a high probability of disappointment
    and monetary loss.
    Whether an MLM is a good or bad fit for you is completely up to your
    preference as a consumer.  To know whether an MLM is a good or bad company, however, you need to ask yourself where the value add is.
  • entreplanetentreplanet Posts: 3subscriber
    I have a genuine question:Who makes money in Multi Level Marketing (MLM) businesses? I know, I know - it`s "the hottest business opportunity ever!" But for this topic, spare me the rah-rah stuff. I am posting this question to get to the bottom of whether people are really making a profit in their MLM efforts.I am not doubting it - I just want the real, un-puffed-up story.
    The MLM company makes the money. Everyone else gets to make them money.
  • entreplanetentreplanet Posts: 3subscriber

    The MLM company makes the money. Everyone else gets to make them money.

    If individuals weren`t making money, the Company, by definition would not be making money. Simple mathematics show your soundbyte to be nonsensical.
    How can you purport to have a website for entrepreneurs and come up with a post that offers so little? I noticed there weren`t any posts on your site, so perhaps that explains it?

    First of all, the website is new hence no members. Second, MLMs CAN make some people money but mostly not. It`s not a matter of IF the individual is making money, but rather, how MUCH they are making. If the MLM makes $100, the MLM rep will probably have made $5. By mathematics, it takes a lot of money to be sent upstairs before any real income can be shown in the MLM rep`s pockets.
    There may be exceptions to the rule, like everything else. Take 2by2 or Infinet. I`ve been to meetings for both MLMs. They throw in the best looking sales reps with expensive suits, Ferraris and Porsches, and hold meetings at fancy hotels claiming how much money can be made. It`s much like the get rich quick schemes on tv...if it was so easy to drive a Ferrari, why don`t you all have one?
    MLMs sell the "dream" of being rich. Perhaps out of 1000 people on the MLM, maybe 2 or 3 will be successful enough to drive a Ferrari. Maybe 10-20 can support their living from it. The bottom line is, MLM do not sell a real product. Only a "disguise product." The real money is made by recruiting other members and taking in fees. Again, the fees are sent to corporate, and a small percentage kept by the reps.
    The bottom line: lots of work for little money. The ones who hit it big can hit it BIG. The rest will hit nothing or pocket change.
    I`ve been involved in a few MLM in the past (quixtar, 2by2, inet, amway, etc.) The main issue with MLMs are that the compensations for recruitment are far greater than the compensations for sale of the actual product. This not illegal per se, however should be looked at skeptically. This same comment was also made on several occasions by the FTC.
    For example, with Quixtar, I can make a commission of $1 by selling you this $10 toothbrush. But I can make $100 if I recruit xxx more members.
    MLM is like a franchise. And the product you`re selling is more franchises. It is the sale of a business opportunity in exchange for a fee, which is sent to the MLM corporate, and partially paid out to the sales rep.
    Is that response better?
  • AsiaOrBustAsiaOrBust Posts: 3subscriber
    .AsiaOrBust12/12/2007 2:28 AM
  • WebJunkyWebJunky Posts: 8subscriber Member
    i make money and a lot of it. a lot is relative and to me $1,500 is a lot considering the amount of work i put in. that is 1500 monthly i am making now and growing. that said it is a lot of hard work and patience. but over time the rewards are great. i did this while maintaining a significant career.  i dont believe in paying for the info that is free and available online.  www.easyextramoneyonline.com is 100% free and delivers only the top paying screened survey companies so you dont end up wasting your time.  make sure you read the section on tips and strategies to grow your earnings.
     
    that all said i agree with Leedsfan. very good post and premise. do whatever you want, but treat it as a real business and you will see results.  this is assuming you didnt pick an obvious loser like an airline company for example.  that reminds me of a joke....what is the fastest way to become a millionaire? anyone?
     
    find a billion dollars and start an airline.
     
    good luck to all...
  • honeycrippen12honeycrippen12 Posts: 0subscriber
    MLM is one of the world's most misunderstood businesses in the world. It is not a get rich quick scheme. You'd make money only if you devote time and effort. But the end result is great.
    Fantaz mlm
  • addyj672addyj672 Posts: 8subscriber
    MLM is costly thing to do if you have a small business. But if u can afford it then do it. It will be new experience for you.
  • saravanansaravanan Posts: 389subscriber Silver Level Member
    Multi-Level-Marketing, direct selling, Network Marketing, tiered compensation plans is another way of saying "profit share". For ease of this article, I will simply refer to these terms collaboratively as "Network Marketing". 
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