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Oh No! Not Another MLM Business!

By: R. E. Bloom

How come it is that even though businesses that pay people commissions to sell products to their family, friends, and others are heralded as such horrible businesses when anyone in marketing would agree that word-of-mouth advertising is the best way to sell products?

Well, interestingly there are some who have been in the industry for a good twenty years or so, including myself, who have seen a trend that just may be the cause, or at least a good share of it, to this bad reputation.

I call it DEFAULT.

This is something that has been experienced by us all in the industry. We get into a program and set it all up just right. What a blessing it is! We have money coming in that we never knew possible. The birds are chirping and the blooms of the day fill us with awe and wonder. The, suddenly and without warning, everything diverts back to DEFAULT. Storm clouds close in. Appointments are missed, all decisions are delayed, hours are lost, emotions run on high, and a ton of other things go wrong. Simply because of DEFAULT.

You might be surprised to realize that nearly every business on the planet has a pyramid as their business model. That's every business, not just network marketing ones. Let me explain. At the very tippy top of the company is the head honcho, Mr. President. Then, below him are his few trusted managers, those managers also each have a few trusted managers, on down to the plain old employees. The top guys get paid the most, the little workers, like the janitor, get paid the least. Sure looks like a pyramid to me!

But then a neat network marketing businesses comes and changes everything up, at least that's what they say.

"We will show you a better way to do business, one where you don't have to remain at the bottom all your life. You too can enjoy the lifestyle of the CEO, vacation when you want, travel where you want (and in style), have time with your family..." and on and on they croon. Then they draw circles and explain how it all works (on paper).

And so you try it and everything goes incredibly wellfor a short time. Then suddenly, a dark day dawns and you find that everything you've worked so hard to set into motion is gone, all gone, and everything has turned back to DEFAULT. You find yourself again at the bottom of the pyramid just like if you worked at your local retail store stocking shelves.

Most people don't realize that nearly every network marketing plan is designed with a DEFUALT button. This causes it to go back to the old pyramid style of big CEO at the top racking in the cash and little guys on the bottom scrounging around for whatever little money they can make. This DEFAULT system works with various methods. They're called by a variety of names, but we'll list only four here. I think you'll recognize them.

1. Jump Start: The company knows most people won't go beyond the initial "buy-in". So they sell you a package and gets profit from the "introduction packet" they sell you and free advertising you give them because you are "pushed" to tell everyone you know and to do it fast.

2. Breakage: if you don't meet your monthly quota then you have to forfeit your "bonuses" or "points" and then the company keeps the money.

3. Break-away: when you "advance" to a higher level you leave behind some earning potential you had struggled hard to achieve. The company keeps the money.

4. Exhaustion: The company wears you out quick by requiring monthly quotas of new people enrolled knowing full well that you will eventually get tired and give up. Because the average recruit will only be able to enroll 2-3 people, the new enrollment requirement is kept high. When you leave because you're too tired, the company gets to keep all those new people and the money they're bringing in.

So that's a brief description of some of the systems that most network marketing programs use. They actually intend to cause your business to DEFAULT back to the conventional business pyramid "scheme".

The best news however is that not all network marketing opportunities do this. Find one that really specializes in helping the little guy rather than trying to make them fail.

Article Source: http://www.articlegoldmine.com

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