Why Look at MLM?
People join MLM companies for many different reasons. Here’s a partial list:
Join MLM as a social activity
MLM is a great place to meet people and have fun. There are business meetings, training meetings, cruises, cookouts and fireside chats where you can meet lots of new friends. Conversation topics are normally business and personal-growth related. I know many people who have found their spouse in MLM because there are so many people and so many events one can attend. Every 12-18 months most MLM companies hold national or international conventions where people meet from all over the world. This is a great place to meet people. Personally I’ve made friends in over 20 different countries. It’s rare to find an organization outside of MLM with as many opportunities to meet people and socialize. Another aspect of social activities is working with friends and/or family members. I’ve seen very often that couples would like to work together in their own business - MLM offers that opportunity.
Join MLM to help people
Suppose the MLM company you join helps people with weight management. As you get trained in how to sell products, you learn a lot about the subject of weight management. This knowledge allows you to help other people with weight management issues. I’ve also known very wealthy people to join MLM because they want to help people earn more money and achieve the lifestyle they’ve enjoyed. Rarely can a person who has become wealthy in a traditional business be able to help their friends also become wealthy; MLM is the exception. When you’re able to help someone overcome a weight management problem that they’ve struggled with, or help someone improve their skin condition, or help someone achieve financial freedom, it’s very rewarding because you know you’ve made their life better.
Join MLM as a retirement alternative or addition
Today in the United States only 40% of people who work actually have a retirement account. Of those who have a retirement account of some kind, the average account balance is $29,000.00. This will not afford the average retiree the money to pay predictable expenses (mortgage payments, utilities, food, auto expenses, etc.). The $29,000 certainly won’t afford any unpredictable, catastrophic expenses such as medical costs. MLM offers a way for a person to create an income as an alternative to standard retirement plans or to augment their current retirement plan.
Join MLM to transition into business ownership
Most people work as hard as they can in whatever job they can find to keep up with expenses. They feel trapped because they HAVE to go to work to pay the bills. MLM offers a way out of the typical job trap because a person can work their MLM business part-time until they earn enough income to quit their full time job - if they desire to do so. I’ve met professionals who have replaced their income through MLM, but love what they do so much that they continue in their old profession - but without the stress of having to make living with it. Personally, I’ve seen doctors, artists, school teachers and architects do this.
Join MLM to achieve your dreams
Most people have dreams that are often hidden underneath “not enough time, money, or know-how.” Whether it be music, art, dance, benevolent causes, a horse ranch, cars, boats, flying, diving, traveling, golf - dream lists are endless unless one has quit dreaming. People
often join MLM to build a business that allows them the freedom and flexibility to pursue their real dream.
Join MLM to live where you want to live
I’ve met several people throughout my travels that joined MLM because they fell in love with a particular part of the world and wanted to live there, away from the “rat-race lifestyle.” That you can work from home in MLM is very enticing to many people. Not only can you work from home with MLM, but you can work from ANY home. I have met people who live on a boat and build their MLM business.
Join MLM to create wealth
Yes, wealth is available to people in MLM. It will require as much effort (and results) as creating wealth using any other business method. You cannot shortcut the effort in the creation of wealth. But with MLM it doesn’t require as much start-up capital expense as with most other wealth-creation options. I did not write that it would require NO start-up capital; just less. Incidentally, I have accomplished all of the above through MLM. It is absolutely doable!
Why Corporations Like MLM
As Harvard-educated Professor Charles King and I discussed, all businesses, churches, politicians, schools, etc. know that word-of-mouth advertising is the most effective and efficient form of advertising. It’s effective because the advertising is coming from a trusted source - a friend, a family member, an acquaintance; it’s efficient because the company does not have to pay for advertising that doesn’t reach the customer.
If a company sends out 1,000 post cards telling people where their store is located and only 1% of the 1,000 come into the store, then 99% of the advertising was wasted. If a company spends 450 million dollars on an advertising campaign but only sells 100 million worth of products, they have lost 350 million dollars. Corporations love doing business with MLM companies because they only pay for results. They pay no advertising expense until the product is sold.
The other reason corporations like MLM is because they’re paying for advertising that benefits the consumer. Let me explain: if a company (such as T-Mobile) hires celebrity Catherine Zeta Jones and pays her 20 million dollars, that 20 million doesn’t benefit the consumer. As charming as Catherine Zeta Jones may be, she adds no value to the consumer. In network marketing, that same 20 million dollars goes to distributors who have (hopefully) mastered the product and are able to explain it to the consumer. See this diagram for a visual.
MLM companies pay for production, not for coming to work
The word production means “something produced.” If a non-MLM company hires a sales representative to sell their products, they normally pay the sales rep a salary plus commission on the sales of the products sold. They do this prior to knowing if the sales rep will sell anything at all. If the sales rep never sells anything, their salary is a wasted expense. In multi-level marketing, the company ONLY pays a commission when a product is actually sold. That’s paying for production instead of paying people to come to work whether they produce a sale or not.
Conversely, if you’re the type of person who seeks ways to hide from producing, you’ll hate MLM if you continue that same non-productive activity.
Best possible use of your time
If you are a productive person, you will want what MLM offers. You can create a pay raise any time you want. In addition there is little or no limit to how much money you can make.
But most importantly, you’re multiplying your time instead of expending it. There are three things you can do with time: Expend it, invest it, and/or multiply it. As an employee, you’re expending your time. Expend 8 hours, get paid for 8 hours. In MLM, you train another person to do what you do - that’s investing your time. You work 8 hours, the person you trained works 8 hours - you’re [theoretically] getting paid for 16 hours of work. If the person you trained trains someone else, you’ve multiplied your time. Don’t brush by this statement… IT IS THE REASON MLM IS SO POWERFUL. Most people don’t understand this part.
Recommended next page: How to evaluate an MLM company.
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this is an excellent article enlisting all the reasons why one would want to join mlm and even why corporate america loves mlm. i remember getting referral $$ for refering my friends to sprint and (then) at&t a couple of years back. now even i can leverage the same power of word-of-mouth publicity for my benefit.
Excellent article covering many important points.
This article is excellent. Only those individuals willing to learn about thier products and then work diligently toward their goal(s) will succeed. Their benefits can far exceed those individuals located above them in their M.L.M. business.
Once again, a great article. A must read for anyone looking for that reason to join.
-Doug Lee
I was excited to see you point out that people have motivations to join mlm other than building wealth. Every persons motivation is uniquely important.
Thank you for publishing the reasons in DEPTH for MLM! Perception of the industry changes dramatically once you are involved with an integral company and you begin to experience so much more than you ever imagined! Your reasons show the vast potential and dig into the depths! Thank you!
Excellent information!! I am sharing it!! Thank you!
I just really love the simplicity of your articles. Everything is broken down into a complete {common sense} way of thinking. You make the industry stand out as something to be proud of.
As professional as usual. I joined mlm as a retirement alternative. As merchant marine captain in mexico we do not have this benefit, how to survive after retirement? mlm is the response to this, and as a professional I want mlm be done professional also, a lt of friends failed on my sea career and they talk to everyone that sea careers are “bad” but after 20 years for me is marvelous and have a great life, mlm is my relieve to that life in future. -Travel, positive friends, good life for my family. Thanks “viva Mexico”
Great reasons for to be involved. Wake up those dreams and go after them.
You know in the MLM business a lot of the companies thrive on hype. I never did like that part of it. You ar providing a way to educate people without the hype. Articles like this are really good for our industry. Joe K
Great information!
I can tell you one thing Tim.The MLM Zealots are definitely going to hate you for this.Well Done!!!
I’m so glad I found your site. I have learned so much and feel so much better about my own ability to do MLM.
Very well said. Regardless of your reason I ask you: where else can you work for a living; choose your own hours; choose who you work with; choose how much money you make and get recognition? In my 40 years I have only found MLM to be the place.
Sicerely, I would never grasp the core ideas of MLM without Tim Sales. I wouldn’t say, “If I wouldn’t have seen Brilliant Compensation, I have never been in MLM”. But the truth for me is that without Tim Sales I would never comprehence the possiblity that THERE IS First Class MlM, and it’s actually possilbe. As far as improving people lives, both from the seller and the buyer sides, there is absolutely no business that can be compared with MLM, and that is the EXACT reason why MLM enables to make to so much money. The more value it can generate to other people lives (customers are the first here), the bigger paychecks one get get.
Thank you Tim!
I like the Why Corporations Like MLM. Good choice.
Great website! MLM is allowing me to dream again!
Thanks what a great explanation and the information you are giving people to help them understand the industy.
Tim
In future these artcles will be seen as GREAT MILSTONES that reshape mlm professionally.
Personaly, Helping other is my motivator for joinng mlm.
Great Work.
There are some points here that I did not even think of! This paints a bigger picture of what goals I want to set for myself! Thank you Tim!
Tim
As always, thanks for a job well done! You’re real asset for anyone looking to navigate the waters of mlm. I’m thankful to be part of mlm because my wife was a distributor when we met, and what a great experience it has been. I appreciate the opportunity to have benefited from your resources and teachings because there have been some pretty confusing and challenging moments. Thanks for the honesty and integrity that you bring forth.
Was it John Wooden who said, “Ability is a poor man’s wealth?” The amazing thing about MLM is how a worthy sponsor, upline and company WANT you to acquire that ‘ability’ and will positively do their utmost to infect you with all that they have. As long as you hold up your end of the bargain which is to work at it.
Impressive clarity about simple truths. Helps me remember why I chose network marketing.
Great explanation and information!
Gives an excellent summary of why a person should consider a Network Marketing business.
Great Explanation!!!
Thanks Tim,
I’ve been to many websites teaching network marketing. Your’s is the most generous and professional. As they say “the best things in life are free” its all in your site.
I am very positive that my network team will grow couple of years from now. By that time I want you to come here in our country (The Philippines) and I will accomodate you first class.
I will keep on watching your contribution to our industry.
Until then,
With much respect.
This article tells it like it is without hype. Those who won’t explore network marketing after reading this are cheating themselves.
This is an article to show prospective business partners all the possible reasons people get involved with MLM for real and true reasons.
Everyday, i always come back here to your site, because i want to learn everything about MLM. i love to teach and i love to sell but most of all i believe i shall be a success in MLM. You are equipping me with everything else i need to make a mark to all my acquaintances who dislike MLM. They thought i was chasing impossible dreams. I think i had found the right MLM for me.my problem is- they have not started it yet in the place where i am today- UAE.
ONCE MORE- Great Thanks to you Tim Sales for being generous and for loving the same industry i love.
Thanks ,glad i landed here.
A heartwarming perspective on network marketing. Thank you, Tim, for making MLM so easy to sell and to feel good about.
This is great information source. I could not explain exactly how MLM works, I just know that it does. I usually have to resort to just trust me for awhile and you will see. This does not work well in a society that has so many false hoods.
Thanks for the help. I’ll just send skeptics to the irrefutable facts.
Thank you Tim, for taking the time to lay out in simple, easy to understand terms how to answer the objection we as starting distributers face every iime we talk to a potentially serious prospect. They so often set themselves up as failures even while they are asking us to sell them on building a future for their own dismal lives. Most of us are becoming so skeptical now, in this country of America that we fail to even recognize the American dream anymore.
Foreigners come here, see this opportunity, they win; and we critize them harshly. When we could have had it first.
geart article Tim. Running in my mind are few querries.I have a question if anyone could answer this for me, is this happening in PAKISTAN??? Dustribution , direct selling is happening but IS MLM happening in Pakistan.IF yes then Who ?
tnx for sharing great information `bout MLM…..