MLM, or Multi-Level Marketing is where companies enlist people to sell a product. They are also sold on the downline ideal, where they sign on other prospects thereby earning a percentage of everything that they make. The more people you have in your downline the greater the earning potential.
It is somewhat easier to be successful in MLM in the real, offline, world because you come face to face with your downline, with whom you can provide the proper training and inspire them to perform. Amway is most likely the most well known MLM system, one that most people would be familiar with.
It’s a little different when you try and build a successful online MLM empire. While there are some that do quite well at it, I’m of the opinion that the majority, including myself, don’t do all that well at it.
The problem is that most of us do not actively participate in any given program. Initially we may land on a squeeze page, or read a brilliant post, describing how we can make heaps of money promoting a particular product or site. We are also promised that this program/product is so good people will be clamoring to join and we will earn a percentage of their sales, and in a short time we will be making so much money that we can tell our bosses to shove their job up their ass.
So we in out turn write a brilliant post enticing others into joining this great money making venture, whilst rubbing our hand in perpetual glee as we watch our downline growing. The only problem is that there is no money coming in.
That is where the problem lies. Everyone is busy signing people up, but no-one is actually out there pushing the product, and if they’re not making actual sales they are not making money. So in essence you’re making, say 5%, of their sales, and 5% of nothing is a big fat ZERO.
I’d like to use SnapDollars as an example. My two posts, Making Money With Snap Dollars & Updating The Update On Snap Dollars were so well written that it convinced two people to become part of my downline.
As you can see by the image below I have managed to earn over $175 since the last post. You may wish to read Updating The Update On Snap Dollars to see how I accomplished this.
You may also notice that my downline have done very little to add to my earnings. This is because while I’ve been proactive, earning my sponsor money, my guys have been sitting on their hands doing sweet F all, and therin lies the problem.
So, it’s not enough to simply sign up people to any given program, you also want to make sure that they know that they have to do more than just provide a link to sign up others who in turn sit on their hands. They have to convey the message that the only way to actually make money is to sell more than just the MLM idea. They have to get behind the product or service to actually make the money showing proof that there is money to be made, in the hope that this will inspire their downline to do more than just sit on their hands.