Tuesday, January 20, 2009

Misconceptions about the MLM Industry

"Keep steadily before you the fact that all true success depends at last upon yourself." - Theodore T. Hunger

Earlier on, I was going to write more about Platinum Networkers. I know I’ve got a whole post dedicated to them, but I feel that there’s a lot more to what Platinum Networkers does for their members which i have still to write down. Instead I’ve decided to write about the misconceptions about the MLM industry, especially in Malaysia.

I decided this while I was listening to one of our team members talking about his difficulties in making calls to potential recruits. These recruits signed up on his website, but wouldn’t pick up the calls when he tried to contact them to make appointments. This was during a Platinum Get Together session (more about that later).
It was while he was talking about his experience that I started to think about all the unfair generalizations and misconceptions about the MLM industry and those who participate in the industry. So, I decided to write my views on this topic.

Direct Selling

The general perception about MLM anywhere in the world is that you have to do direct selling. You have to go out there, meet people and try to sell the product. I guess the perception came about way back in the 70’s. I remember back then when Amway distributors went from door to door selling their products. They would go from house to house either trying to sell their products or to recruit new distributors. I remember my mom used to buy some of Amway’s products from a friend who was a distributor.

This perception of MLM was true back then, but not now. Most MLM companies have evolved to a point where you no longer have to do direct selling (although some still do). MLM companies now have structured their business plan to focus on recruiting new distributors. They stress more on the consumption of the products by the distributors rather than the selling of the product by these distributors.

For example, the 4Life Research business plan emphasizes the “Prosumer” concept. It’s a concept where the distributor is both the producer (seller) and the consumer of the product. The distributor isn’t required to sell any of the products, just consume the products themselves. New recruits are also encouraged to do the same and distributors earn from their consumption of the product and the consumption of their downlines. No selling involved. But of course you can sell the product if you want to.

Low Quality Products

I have to admit, there are some low quality products being marketed through the MLM industry. But this is basically a generalization and doesn’t apply to all products. In fact, I’ve mistakenly joined some MLM’s in the past market low quality products and have left once I realize my mistake. Although there are some scrupulous companies marketing their low quality products through the MLM system, not all of them are. In fact, if you were to study the industry closely, you will find something worthwhile. 4Life Research products are one of them. The products are so good that they can in fact sell by themselves.

I gave a sample of 4Life TF Plus Advanced to a friend of mine 2 weeks ago. She’s a sceptic. She’s not interested in MLM, in fact, she tries as much as possible to stay away from MLM companies or their products. So when I mentioned to her about 4Life TF Plus Advanced and that I wanted her to start consuming them (She had a flu at that time) she wasn’t very thrilled, especially since they came in capsule form. But she said “For you, I’ll do it” (She’s a good friend). I met her again a couple of days ago and now she’s quite happy to taking TF Plus. I promised her I’d try and get her a bottle of RioVida (Since she hates taking tablets or capsules) and I know once she’s tried that, she’ll probably sign up as a preferred customer (That’s if she doesn’t want to do the business).
Since I’ve got some more of the 4Life TF Plus Advanced, i think I’ll give some of it to one of the biggest sceptics in my family, my Dad. He’s done a lot of MLM’s before with his sister, one of my aunts, and has generally been unsuccessful. The main reason is because of the quality and effectiveness of the product. Most of the products can’t do what the producer claims they can do. Now it’s time for me to give him a try.

So, if you do want to join an MLM company or Network Marketing company to try and makesome extra money, try to do your own research. Research the company, the products, and the effectiveness of the product. Try to surf the net for testimonials or discussions in forums about the products. Research the claims of the company producing the product and the background of the company too and i guarantee you will find a gem like 4Life Research.

Hmmm... looks like this post is getting a bit too long. Think I’ll stop here for now and continue this topic in the another post.