Chances are, if you are older than 15, you've been approached by someone who had the "absolute opportunity of a lifetime", or some way to make huge money in a very short amount of time.
I'm talking about home-based businesses, specifically, network marketing, or multi-level marketing.
In recent years, the reputation regarding MLM and network marketing has gone from bad to worse. And with the average household debt approaching the $8,000 mark, most people are looking for ways of generating some extra cash. So starting a home-based or MLM business sounds like a pretty good idea, right?
In fact, it sounds like a great idea once someone makes the decision to start researching their options. Just look up "home business opportunity" on any search engine, and everyone and their mom has a multi-million, self-automated system for generating the cash you need starting yesterday. At first glance, it looks like a person couldn't lose.
Well, here's a fact: over 90% of ALL home-based businesses and network marketing businesses fail. And I say "fail" as in the owner generally loses hundreds or even thousands of dollars before quitting.
How do I know this?
Because this is exactly what happened to me.
That's right, I'm an MLM veteran, and I know first-hand the B.S. that exists in this industry.
When I first got involved in networking businesses, I spent thousands of hard-earned dollars trying to get my businesses into profit. Eventually, I did build a number of very profitable businesses working from home, but it sure as hell wasn't because of anything my company or my upline told me.
The purpose of this article is to expose some of the more harmful lies that are fed to distributors, and examine what doesn't work well, and what works extremely well. As I go through and debunk some of these myths, I will also be including some common-sense truth, so that if you are thinking about getting into this industry (or if you are already involved), you can take stock and start asking some good questions that deserve good answers.
First, let's get on the same page: I'm not anti-MLM, or anti-home business. I think that the home-based business is the very definition of entrepreneurial capitalism, and I absolutely love idea of a person embarking upon a venture, starting from scratch with a few hundred or a few thousand dollars, and turning that into a fortune. I'm pro-home business.
But I am anti-B.S. It absolutely disgusts me the amount of bad information that exists in this industry, and I am convinced that people involved with MLM and network marketing programs fail not because they are stupid, not because they are lazy, but because the training and education these companies provide is of pathetically low quality. I believe, 100% without doubt, that if network marketers received the training they needed and deserved, that 90% failure rate would flip to a 90% success rate. But enough about that, let's get started.
MLM LIE # 1: "THIS COMPANY IS GROWING AT AN AMAZING RATE! IT'S GROWN 10 MILLION PERCENT IN THE LAST 6 MONTHS, SO YOU BETTER HURRY AND GET IN, BECAUSE IT'S THE NEXT (insert name of large corporation here, e.g. Microsoft, Wal-Mart, whatever)"
These types of statements are what is commonly referred to as "hype", and unfortunately, too many people get suckered into this line of thinking.
Here is the truth: IT DOESN'T REALLY MATTER HOW FAST THE COMPANY IS GROWING.
I'm sure you're asking "what do you mean it doesn't matter?"
Well, the reason it doesn't matter is because an MLM or networking business is not a stock option. In other words, if you are viewing a networking business as some sort of hands-off investment vehicle like a mutual fund, you're wrong. A business is a living entity, and it takes effort (lots of it) to make it profitable. Your concern needs be be on your personal distribution channel (your downline) as opposed to the companies' growth.
No matter how fast or slow the company is growing, here are two questions you should ask yourself. The answers to these two questions will be of far greater importance in determining how fast your own downline will grow:
# 1) How Do You Treat Your Business?
Do you have an actual plan on how to grow and develop your business, or are you just going to "wing it" and hope that it actually makes money? Are you hoping that your company will grow your business for you, or do you have the skill set to go out there and build your business from scratch?
The answers to these questions will reflect your attitude towards your business. If you treat your business like a hobby, or like a big gamble at the poker table, then you will probably fail. If you don't know how to build a business from scratch, then no problem. Find someone that does know how to do that. But make sure you treat your business as a viable business, and make sure the people you learn from do the same.
# 2) Are You Passionate About Your Product?
And I'm not talking about the opportunity to make money. I'm talking about the actual product or service that you company offers. Do you use it? Do you love it?
You should.
Because if you simply enrolled as a distributor to make a million bucks, then you need to re-think your motivation. For most people, the desire to simply make money will not outweigh the cost of sweat equity necessary to build a business from ground zero. So make sure you love your product or service. A lot.
Do yourself a favor: flush the hype, and take an honest look at yourself and answer the two above-listed questions. Do that, and you will have taken the first step towards joining the ranks of those that do succeed in this business.
