Adapt to ExperienceMulti-Level Marketing Businesses

Joining a Multi Level Marketing Scheme?

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Most of the people who try MLM Fail

Most MLM companies are built on a faulty model, in my view. The reward scheme of the company is entirely focused on increasing the size of the downline. If this worked so that large numbers of people were successful, the growth of companies would be so massive within a very short time everyone would be a member. This isn't what happens.

It can be argued that within five years, 90% of all business startups fail. So the large failure rate in MLM, should not be a surprise. I don't think that's a valid argument. When you join a MLM company, you also join their system, and the system should give you some protection against failure. Unfortunately those who succeed, rise on the efforts of those who tried and failed.

A severe weakness of the MLM method is that distributors have no control over what the company management does. Distributors gain entry into the business for a small financial investment and the investment of quite a lot of time and effort. If they are successful, as distributors, and in enrolling and training a downline, they may be able to earn an income. (As I said most of those who try fail.)

If you have succeeded, there's no control over what the company management do. They could choose to sell the business for instance, or to make major changes to the compensation structure, and leave distributors with a bleak future. Owners and the management of the company might be expected to enhance the wealth of management, rather than the interests of customers of distributors.

Many MLM companies have quite special products. Do you own homework. Find a company where the incentives are correctly allocated. Find a company where the owners and management are committed to the customer base and the support of distributors.

Among the thousands of MLM Companies these have come across my desk, recently.

Melaleuca the Wellness Company: I turned down an invitation to join this MLM company 12 years ago. I have a friend who's a long time user, 80+, who is fit and healthy and ready to go. Maybe I made a mistake.

Go Fun Places:
A referral system to encourage travel and shopping. Maybe it will, but not my choice.

StemTech Health Sciences:
A blend of an extract from Aphanizomenon flos-aquae, fucoidan from Undaria pinnatifida and an extract from Polygonum multiflorum leads to a significant mobilization of bone marrow stem cells. This product, Stem Enhance, increases the release of Stem Cells in your body and was first marketed in 2005.

Their upgraded product (2015) is called SE3™, which is a blend based on an extract from the plant Aloe macroclada, it still contains AFA and fucoidan from brown seaweed Undaria pinnatifida (UPF) for the mobilization of bone marrow stem cells. In addition SE3™ has extracts that help your telomeres conserve their length, which in theory at least should delay the aging process.

Mannatech
My contact credits Ambrotose Powder, with helping him recover from cancer. Even though the product is expensive, he's happy to continue using it. Mannatech produce many products recommended by my contact, including:
• Advanced Ambrotose® capsules
• Advanced Ambrotose® powder
• NutriVerus™ powder

The company has had a well documented history, including in the past controversy over it's sales methods and it's claims. This seems to have forced the company to do more rigorous science, and I expect, greatly improving the product line. Here is the company homepage. You can see what Wikipedia says here.

LifeVantage Corporation:
The Webb-Waring Institute for Cancer, Aging and Antioxidant Research, University of Colorado Denver Health Sciences Center, Denver, CO 80262, USA, reports.

Protandim: A composition consisting of extracts of five widely studied medicinal plants was administered to healthy human subjects ranging in age from 20 to 78 years. Individual ingredients were selected on the basis of published findings in animal testing. ... Blood was analyzed before supplementation and after 30 and 120 days of supplementation (675 mg/day). Erythrocytes were assayed for SOD and catalase. ... We conclude that modest induction of the catalytic antioxidants SOD and catalase may be a much more effective approach than supplementation with antioxidants (such as vitamins C and E) that can, at best, stoichiometrically scavenge a very small fraction of total oxidant production. Original Listing Here.

Syntech Global: Industrial companies around the world have been saving millions of dollars by using Xtreme fuel treatment, for many years. And now it Syntek is available to everyone.

Customer Service Failure: My general comment about all the MLM companies I know about, is their total ignorance of the modern principles of customer service. The focus is on building the down-line, hereby creating members who are largely people trapped in the system, buying products monthly, but not really making any money. A distributor who I respect told me that his up-line was totally incompetent. They had no idea how to sell the product, what they did was appeal to people's greed and sell them the business opportunity. The 98% failure rate of new distributors isn't acceptable. Beware.

Sadly that also applies to the company StemTech Health Sciences, in which I have a small interest.

MLM depends on sales for success. The products most MLM companies have are good, but overpriced.

When you make sales to your own down-line instead of a retail markup, you get paid a small royalty, and many people in your up-line also get a small royalty payment. That's supposed to encourage them to help you. In my experience the up-line has no idea what to do, that's "helpful". What they recommend, creates sales, but also creates a long line of people who were promised something that failed to deliver.

What we need to do is create customers who buy the product because it's good, and even though it's overpriced, who will continue to be customer for a long time. (We can't change the pricing policy.) What we can do is reduce the effective cost of our own purchases by developing a down-line. How to do that while giving the customer full knowledge and support is a trick very few people have mastered, perhaps nobody. Sadly companies are ignorant about what customer service means, and continue to promote themselves in ways that make good customer service difficult for distributors to offer.


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