Bar the Doors & Oil the Shotgun

Each week I critique an online business opportunity in my weekly newsletter The Affiliate Review, and each week the email responses are amusing and predictable.

When the review is a positive one, I get almost no response at all. Presumably my readership either agrees with me or assumes that I am just plugging the programs for my own financial gain, and in a few cases, this is true.

However, let me make it very clear that I am not a card carrying member of every program that I endorse.

I firmly believe that if you try to work too many programs at once, you end up doing justice to none. Two or three good ones is more than enough!

The amusing part comes from the response to the negative reviews.

Each time I write a negative review, I get flooded with emails from the participants of those poor assaulted programs.

Those who regularly read my articles or subscribe to my newsletter, have probably come to the conclusion, that I am not a big fan of MLM companies.

The truth is, however, that it is not the MLM part that I take exception to. On the contrary, its the numerous companies that hide behind the MLM shield to make a profit... And the masses be Damned!

The basic concept of MLM is not only sound, but brilliant!

Lets take a look at this concept...

Lets say a company markets products that are both used and needed by the majority of the public. Obviously, the best products to market are consumables, those products that are used and then reordered. This creates a continuing market share, from their existing customer base. All the company has to do now, is build on that base.

Enter the MLM concept.

The main focus of MLM companies is in the building of their sales force. The concept being that if every member can recruit a handful of members and they all buy their own products, instead of buying them from someone else (which only makes sense, why would you buy a product, that you sell, from someone else), then the end result is an exponential growth of customers, that are buying the companies products, i.e.; I get six, who each get six, who each get six, etc.,
(you do the math)

To further stimulate sales, the company pays each member a percentage of the product usage, down through a number of levels, those being members who recruited members, who recruited members, etc., etc., all consuming their own product line.

The company sells their products without having to advertise and jump through all of the expensive hoops that Non-MLM companies have to deal with, and their members not only get the products that they need in everyday life, but also get paid to use them and to convince others
to do the same.

However, in order for this scenario to be successful an sustainable, it MUST adhere to the criteria of the following two Cardinal Rules...

1) The products MUST be as good or better than those bought in the traditional fashion, and

2) They MUST be competitively priced.

These, I think, are the areas that all too many MLM programs come up short.

Now I dont want all you MLMers, out there, to get your bowels in an uproar over this and start sending me mail bombs. Im not targeting any programs in particular , but if this makes you mad, then I must have hit a nerve, and perhaps you should take a closer look at your particular choice of endeavors.

There are good companies and bad companies in every segment of marketing and the trick is to settle on a good one and stick with it until you achieve success.

All too many of these companies focus completely on the building of their downlines to the exclusion of their products, altogether. By law, they have to have products, but to the companies that fit into this category, any ole product will do. They just keep harping on the easy income that everyone will make if you can get enough people to
by into their hype.

The problem with this train of thought is obvious. When their members get tired of buying inferior products without seeing any appreciable income, they move on to something else, leaving the ones who are desperately trying to make it work, in a constant state of replacing the deserters.

The breaking of the other Cardinal Rule is equally devastating, if not as quick a death.

Many MLM companies will jack up their prices to cover the loss in profits that they incur by paying their downline percentages, and sooner or later, the members of these programs get tired of paying exorbitant prices for their necessities. All to often, even if they do manage to make a little money, its usually only enough to offset the
difference in price.

Yes, there are tens of thousands of people who are very successful in both of these categories of MLM, but I have to ask this question.

Which would you rather do?

Sell quality products, to people who need them, at a competitive price and give them the chance to profit by passing on that opportunity to others, or Work towards becoming one of the relative few that get rich
from ripping off the masses by selling them overpriced, inferior products and unfounded dreams.

The choice is clearly yours.

Look closely at the programs that you are approached by, and try to choose one that can benefit both you and your downline.

Rule of thumb...If you wouldnt be happy to buy their products just for the sake of using them, then you should probably just keep lookin!

Remember, this is a business, and no business endeavor should be entered into lightly.

If youre going to put your time and energy into a program, make sure you truly believe in it and are not just buying into the hype!

Your future, not to mention your reputation is on the line!

About the Author

Len Thurmond is the editor & founder of The Affiliate Review A Weekly Free Publication dedicated to bringing you the truth about online businesses and marketing tools. Theres a new Sheriff in town!!!

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Len@TheAffiliateReview.com
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