Are you interested in Network Marketing, Multi-Level Marketing (MLM), or Direct Selling as they now call it. But don’t want to introduce your family members and friends to this money-making opportunity? Because it is better to consolidate the Sales? Or especially in Asia where being in Sales has a rather negative impression…
History of Network Marketing: Multi-Level Marketing (MLM)
It is a very powerful sales model (it still is) that was eventually abused and exploited by companies selling anything that could even be of no value for a premium.
Basically, you can profit by recruiting people known as your “down-lines” to sell products. When they sell, you get a percentage of the commissions. When they recruited their own “down-lines”, when their “down-lines” made a sale, you get a share of the commissions too.
This goes down multiple levels, thus the name multi-level marketing. Depending on individual companies’ commission models, you can profit a number of levels down.
With this model, usually people associate this to a pyramid scheme as the product usually are not of any concern. pyramid schemes generally do not have tangible products to sell.
Similar to Pareto Principles, generally the top 20% would account for 80% of the commissions. While the rest could just be buying products to keep their “membership status”.
Why it was renamed to “Network Marketing” was because it got so bad that people are turned off at the mention of “MLM”. And Network marketing companies will be quick to disassociate themselves from MLM and pyramid schemes as they are considered illegal in many countries:
- USA’s FTC on Multi-Level Marketing Businesses and Pyramid Schemes
- China’s Regulation on Prohibition of Pyramid Selling
- Singapore Multi-level Marketing and Pyramid Selling (Prohibition) Act
How do Network Marketers or MLM Marketers Recruit Others?
Usually, network marketers will invite you to their company’s “recruiting grounds”, Once you are there, their up-line/senior (especially if they are new, just starting out) will apply their “high-pressure sales tactics” on you to join them in this money-making opportunity. Generally focusing more on the potential profits you could make than the quality of the products.
The first customer would usually be yourself, as you need to be the “buying proof” to convince your prospects of the product you are selling. Your up-line will “sponsor” you part of your payment through their commission. Then they would recommend that you approach your family members and friends, sponsoring them similar to what your up-line did.
The problem lies here as family and friends are most likely not interested in these money-making opportunities. And chances are “they do not understand it” and mostly dismiss it as a scam, which the up-line network marketers tend to strain the relationships with their hustling.
How To Succeed At Network Marketing With An MLM Sales Funnel?
“MLM is NOT for Everyone and Anyone!”
Check what Russell Brunson, CEO of ClickFunnels, has to offer by harnessing the power of the internet so that you can find like-minded people online to start your network marketing success without the need to approach your family members and friends.
Do sales funnels work for network marketers? No network marketer should be without this FREE book:
Coffeezilla Take on Amway, PHP, and Venma
Coffeezilla is someone i turn to for deep dive into Fake Gurus, Financial Frauds, and Scams.
In any money-making opportunities, the top would “make it”, living the dream, and selling the dream, while the bottom performers are losing money, and earn less than a McDonald’s or Walmart employee – A few hundred dollars in commission in a year could just be the results of the thousands of dollars they invested into the opportunity…
In the realms of Kingdoms, the King and the Pawns live in the same castle, or in chess, they are on the same chessboard and go back to the same box… Regarding the above video, Patrick Bet-David actually responded to Coffeezilla for more than an hour in a 3hr The Drip session.
2023 Update to Network Marketing and MLM for Fellow Singaporeans
Surprised to see my country, Singapore’s Channel News Asia covering MLM – The Legalized MLM companies and their dream income plan…
Products with miraculous cures? 10 years down the road, whatever cancer we get, we can’t even link back to what we are doing now that might have caused it. And in a similar ironic fashion, the easiest “deflection” of such claims is that we are not taking enough of it.
What i believe is that diseases like cancer is something that accumulates over time, so don’t expect short-term miracles, even though there are always exceptions in this world. But even chemotherapy where it kills cells good or bad would take 3 to 6 months.
And on miracles… I believe in miracles too, but only when we work on it. I am not a religious person but i believe in “God helps those who help themselves”.
“Don’t give up. In the end, a person’s will is what makes a miracle.” – Dr Romantic, Korean Drama
If selling is your passion or purpose, don’t let anyone stop you. The skills in sales is what make Apple an amazing company today. But don’t buy into dreams (Tens of Thousands per month, Bungalows, Fancy Cars, Luxury Goods, etc). Buy into the doings (What are you doing? Why you are doing it? and How you are doing it?).
Money can be made with many opportunities these days and wherever the money goes, all kinds of people, including very bad people, follow.
Bottom line: You get to decide.