Monday, 7 December 2015

The Yet Untold Secrets of Multi Level Marketing

Too many articles, threads, write ups, books, on multi level network marketing model, why people should embrace mlm, how multi level marketing has the potential to give financial freedom, create sustainable passive residual income, etc but many really dont reveal the truth on how exactly the model works and what exactly people should look out for before joining a particular company.
As we all know the multi level marketing is a distribution model based on LEVERAGE.
Leverage is an increased way of attaining something.
Now i am going to list out exactly what no one have said or given out in this industry cus many run away from it, many dont want to be told the truth.

Here we go;
1. Autoship/Reorder- Multi level marketing or Network marketing is a distribution model where registered members grow sales network around a PRODUCT or SERVICE. The work of an mlm member is to EDUCATE consumers on products or services. Dont be decieved by anyone the service if its has to be, must be from the registered members to a parent company and not from the company to the external.
NOTE: If there is no product reorder monthly or service reoffer you cannot have RESIDUAL INCOME. Passive income in network marketing only comes from when you have built a network of sales persons around a product/service and you get commissions on each reorder monthly in your network so, IF there is no Autoship/Reorder you cannot have residual income. (Fact). So for people who say i dont want to do autoship monthly then you also cannot have residual income.
The Million Dollar Question is the quantity of product reorder you are required to purchase monthly, is it for sales or consumption. Look deeply into this, if the quantity of products your company requires you to buy monthly can u consume all in a single month, if u cant then you have to do compelled sales and network marketing should never be about sales. Why? because why would you have to do sales for a parent company when you are building a network of sales persons around your product. 
Network marketing is very very sensitive, this point is the reason why many people run away from network marketing because if they would still have do sales while building a network they would prefer to just stick to being a marketer to a parent company that would pay them commissions based on the sales they make. 
In Nigeria, the ugly truth is that Networkers really dont want to do marketing and Marketers dont even want to hear networking because why would i join a network marketing company when i would still be compelled to do marketing and sell products and expect a company to pay me when i can go become a marketer for a bank and get paid directly for my activity.
Network marketing model is based on a "Use and Share" system not "Use and Sell"...You should NEVER have to do sales if you choose not to. Your product autoship/reorder should be for comsumption not sales.

2. Points Volume- Here i may have to hurt some people, because even some giant mlm companies got it all wrong here. Everyone agrees that network marketing is about about Leverage. As i stated before leverage is an increased way of attaining something. The ugly truth that is very hurting is that leverage should NEVER be about your activity, i mean NEVER, but should be about the activity of the team you grow or network you build. Many multi level marketing coaches worlwide always give a quote but they really dont understand the fundamentals of this quote. They say "network marketing is about leverage, i'll rather earn 1% of the the effort of 99pple than earn 100% of my own effort as in a JOB". 
Now watch this, if you earn 1% of the effort of 99people all you have to put in is just 1% making a total of 100% output. So why do i have to put in 40%-60% of my own effort in sales and buying large quantity of products monthly.
A true leverage system should never be about your activity, sales, purchase but about the activity of each person in your network (Your network is your net worth). 
Hence this points;
a. If you can buy your way to a top rank in your network marketing compensation plan, its not a true definition of leverage (Sad). Some company has marketing plan, some has compensation plan. A marketing plan pays you on the volume of products you and your network buys and sell while a compensation plan should pay you only on the collective volume of products your network buys and use excluding you. Some mlm company claims to have a compensation plan but when you study thier plan to the core you will find out its only a marketing plan. 
b. I have witnessed and studied over 6mlm companies "so to say" compensation plan and i see that in some companies, you can register today with large some of money(investing) and become a top ranked leader and they claim to give you exchange of products for the value of your money. The main aim of the company is to move products through its distributors YES but it should be through the network, there should never be a room for individuals to move large quantities, if there is i wouldnt say its wrong but its not a true definition of leverage and its giving room for investment then what happens to those who cannot invest so much?? To me its ripping out. Thats why you get to hear some people here in Nigeria say stuffs like "am not interested in network marketing, i lost over N500000 in a company in the past" and i go very pissed because of that.

3. Any company that does not give you exchange for you registration fee either in product/service is a Ponzi scam/Pyramid Scheme.
According to The Free Dictionary the definition of a Pyramid Scheme is “A fraudulent moneymaking scheme in which people are recruited to make payments to others above them in a hierarchy while expecting to receive payments from people recruited below them. Eventually the number of new recruits fails to sustain the payment structure, and the scheme collapses with most people losing the money they paid in".
Any company that pays only on recruitments/enrollments is a pyramid scheme and CANNOT offer RESIDUAL INCOME.
4. The goal of mlm in Nigeria has been shifted to the wrong direction, people embracing ponzi/pyramid schemes and their goal in joining a company is for bonus and incentives. Let no one decive you, do the calculation yourself, car awards, travel trips are just by-products of a sincere mlm scheme and not the goal. Ponzi schemes goals are bonus and incentives but little did you know that before a pyramid scheme gives you a car bonus they have made way more than that on you. The goal of a sincere mlm company shoud be creating residual passive income, and in this process as you grow, bonus and incentives comes along with this. 
If you think you Ponzi scheme offers residual income not bonus take this; At the point of collect a car lets say your total earning is $5000, after you collect the car does that $5000 keep coming into your account monthly, if not then no residual income offered.

I hope to a little extent i have been able to show you what exactly you should look out for before joining a company. 

Learn more on multi level network marketing in Nigeria
Mr Paul