The MLM system...

I know I said I wasn't going to write anything until I joined the business. But then I thought since I already have this blog, I might as well write something. It might not even be related to the 4Life Transfer Factor business. It just might be my own personal thoughts.

Thus, that was what happened with the last post. I wrote that last week. I don't usually post anything that personal on any of my blogs. In fact, it took me a whole week before I decided to post that. I wasn't too sure if I wanted anyone to know my most intimate thoughts. But since I already had it written, and I didn't have anything else to say, I thought I'd just post it.

Now that that's over, I guess we can get back on track. By now you'd probably have guessed that I haven't joined the business yet. I have however attended one of their presentations. This presentation was by a group within the 4Life organisation called Platinum Networkers. They are mainly based in Malaysia but I think they will expand internationally pretty soon.

Platinum Networkers is led by Cheanu Chew, a veteran of network marketing. He's been with 4Life for about 3 years and and has been involved in network marketing for 7 years. He was formerly an accountant who just got sick of counting other people's money and making them rich. So he ventured into network marketing to make money for himself. I guess he's one of the top network marketers in Asia.

Most of the 4Life Transfer Factor business in Malaysia follows your standard multi level marketing model. This standard MLM model basically requires you to recruit people on your team. These people will then in turn recruit others to be under them, thus making your team a reverse christmas tree. Those who join the MLM progam, will be required to maintain a certain number of points every month. This is done by purchasing products from the company.

In order for you to earn commissions, you will have to recruit other people to join under you and these people will have to recruit more people under them. All these people who join under you will then have to maintain their points requirements and so will those who join under them. Only then will you earn commissions which is usually a percentage of the points accummulated by each team member (I'll explain in more detail when I explain the 4Life Transfer Factors business compensation plan).

This MLM system has made a lot of people a lot of money. The system works. The only problem most people have in this system is that they are required to do a lot of talking, they have to meet a lot of people, and in some cases, they even have to sell the products, i.e. direct selling, in order to succeed.

In my opnion, there are 3 important factors which make up a successful MLM system.

1. Any product can be sold using the MLM system, but having a good product is the biggest factor that will determine the success of the MLM system. People join MLM systems because of their potential earnings, but if the product promoted through the system does not meet their requirements, they will leave.
2. The compensation plan is also an important factor in determining the success of the system. People who join an MLM system would want a reasonable return within a specified time frame. If they do not get what they think is worth the effort they put into the system, then they will also leave the MLM system.
3. Finally, teamwork is also an important factor. In any MLM system, if people don't get the support they need to make the business work from their uplines or even their fellow teammates, they will leave the system too.

These 3 factors are very critical when it comes to deciding the fate of the MLM system. The success or failure of the MLM system rests on peoples opinion of the product, the compensation plan, and the support they receive from their upline, teammates and the company.

What Platinum Networkers has done is to take this system, and put it on the internet. So rather than the members having to do all the talking and the selling, the internet does it for them. This isn't a new development in the MLM industry. There are a lot of other products out there using the internet to promote their MLM system. But what's important is that this method works, and most of those who use this method doesn't really have to do much. Everything is automated. I'll explain how this works in another post.

As for now, suffice to say that the MLM system works. Millions of people out there are making a comfortable living through the MLM system. Most are earning a residual income from the system while holding on to a full time job. Some are earning from the MLM system from the comforts of their own home.

P/s: I hope Cheanu doesn't mind me using his photo. I hijacked it off his website www.cheanu.com