Article by JJPeterson
Many moms are now making money from home using the power of Multi-Level Marketing (with products in health, beauty, etc.) Newer MLM’s have embraced the Power of 2, helping average people attain financial freedom by only telling 2 people.
A statistic in multi-level marketing is that the average distributor in MLM companies get roughly 2-3 people interested or signed up. Can you make money with MLM if you only sign up 2-3 people? Not with the older MLM’s. To be successful with these older/traditional MLM’s, an independent business owner has to recruited and train many people. We’ll discuss later how a few newer MLM companies have helped people make thousands of dollars a month only by recruiting 2 people.
I was introduced to MLM back in 1999 as a college student. I was totally sold on the MLM “circles” and can still remember the gentleman writing them down on a piece of paper as my mouth started to water. Although I was completely sold on MLM, I didn’t know how to succeed. I received a box of products I couldn’t use, some paper work, and a dream. My hopes died as 2 weeks went by and no one ever followed up with me, and I is a common mistake distributors make. Still, my dream lived on and was revived when my friend showed me the plan again 8 years later.
My friend sat me down in front of a TV while we were hanging out and he said “Hey, I want to show you something”. He popped in a dvd which had some very valid points about seeking alternate income, a lot of products, and then presented a compensation plan with tons of numbers, that just made me dizzy.
At the end of the DVD, he said, “Well, Watcha Think”. Duh, what was I supposed to say. So I said “looks good”. I then told him that I used to be a part of this specific company a few years back and maybe it would make sense at this point in my life to pursue it. I needed to think about it.
Every week, he would call me, not to talk friend stuff, but ask me if I was ready to join. Then his up-line called me and said they were ready to sign some people up and that I needed to join quickly so the new people could go under me. So I did. The guy at the top of my friends line (The Platinum) contacted me to set up an appointment with him. He wanted me to make a list of all my friends and family and he was going to come over to make phone calls with me. If you don’t get a little FREAKED out by this, you’re not normal.
I made a list and we called some people, and they were a little freaked out as well. This was probably the most uncomfortable situation I was put in, ever. Even worse than cold calling at one of my old companies. Then, he made an appointment with me to make more phone calls and showed me how to set up an automatic replenishment account for auto-shipping of my products, over 0-0 dollars a month. Ouch. On a side note, it was kind of ironic that after I left this particular business, I went out and bought a Lexus, not with the money I made, but with the money I was saving.
My friend pushed me to come to weekly meetings, every week. “Come and associate”, he would say, and bring people with you. No one wanted to come, and it was pretty inconvenient for me, BUT success is inconvenient, which I agree with but don’t lose your marriage over it.We attended some conventions packed with thousands of people. We would see the same Gurus at all the events all talking about how they were able to buy their big houses, boats, cars, and lifestyles. It got me fired up, and then when we left, we stressed out about how to get people into our business.
We managed to sign up a few distributors (friends) under us who were also uncomfortable with the process of finding new people. We had about 9 people under us, and we were starting to make some money when everyone consistently bought a lot of products. Then 7 months later, after talking to strangers, pitching to our friends, and exhausting our family, the business just stopped growing. When our team stopped buying, we stopped profiting, we were done.
The process was just too difficult for regular people to understand and afford. The 0 to sign up, the 14 page packet of information, thousands of products, the PV and BV, The Meetings, The Phone Calls, The Teleconferencing expenses, the expensive business website, The expensive products, the weekly hotel meetings, conferences, pricey training and marketing tools, and awkward conversations with friends and family ultimately drove us out of selling the business.
These newer companies have learned that the older/traditional methods of running a business from home are way too complicated, too confusing, and too inconvenient for families just looking for additional income. They understand that people shouldn’t have to pay or buy into company just to become a Representative. They have also created pay plans for the average person. It’s not uncommon for a person to make 0- 00 in residual income (every month) just by following a simple systems. Companies like GBG introduced the Power of 2 into their marketing strategy proving massive success.