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Oh No! Not Another MLM Business! |
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Written by R. E. Bloom
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Wednesday, 14 May 2008 01:43 |
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Why do businesses which operate solely on the idea of rewarding those who share product information with friends and loved ones have such a bad wrap, when anyone in marketing agrees that word-of-mouth advertising is the most powerful advertising out there?
by R.E.Bloom
Why do businesses which operate solely on the idea of rewarding those who share product information with friends and loved ones have such a bad wrap, when anyone in marketing agrees that word-of-mouth advertising is the most powerful advertising out there?
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'll name it DEFAULT
It's something we've all experienced. You get into a program and specifically fit it your needs. How wonderful everything is! The birds sing in the bright sunny sky. The blooming flowers fill your nose with lovely fragrance. Then suddenly, one day something terrible happens and all your settings are returned to DEFAULT. Frustratingly, there's no way in the world to get your old settings back except by starting everything entirely over again. You lose hours, miss appointments, delay decisions, feel stressed out, and everything goes to pot. Why? Because of DEFAULT.
Nearly all businesses run on the pyramid plan-not just MLM types. At the top is the CEO, the president, the great leader. He or she has a few trusted associates who help run the show. These operate at the second level of operation, and usually receive a slightly lower pay. They, in turn, have others who report to them. And on it goes until at the very bottom, and at the lowest pay scale, rests the largest group, the factory workers, laborers, cleaner-uppers. To get from the bottom to the top of the pyramid is very rare in conventional business. But everyone knows that this is just the way businesses are run.
But then a neat network marketing businesses comes and changes everything up, at least that's what they say.
"Just stick with us, and we'll show you the best business in the world. In our business, you don't have to stay on those bottom levels and get paid less that the president. You can enjoy living like a CEO, have vacation whenever you like, travel the world in style, and even have oodles of time to spend with your family" and on and on and on they tell you. They draw circles all over a piece of paper and who you how it's possible.
Everything works like they sayfor a little while. Suddenly you awake though and find that your American Dream, the one you've set all up and gotten organized just right has reverted back to DEFAULT. Once again you're down at the bottom of the pyramid, looking up wishing for more just like in normal businesses.
An interesting thing about nearly every network marketing plan out there is that it's created with a DEFUALT button-something that makes it revert back to a normal pyramid business plan similar to Wal-mart with the top making big bucks and the bottom people basically overworking trying to make ends meet. This DEFAULT system is done by a variety of methods. I'll only list four here. Although you may hear them called different names, I think you'll recognize what I'm talking about.
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: when you have to give up your "points" or "bonuses" because you didn't meet some monthly goal. The company keeps the money.
3. Break Away: When you're promoted to a higher level, you have to leave behind some of your earning potential that you worked hard for. The company will keep that money for their own pockets.
4. Exhaustion: The company wears you out by requiring constant new "enrollees". They know you won't stay long because you'll get so tired of finding new people to sign on. When you leave, they keep all those enrollees and make money off them, without having to pay it to you!
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.
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