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The Reason Behind Your MLM Failure

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 ┬áto do more than just sit on their hands.

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Peter Pelliccia

I'm an Aussie blogger who loves to blog and share everything that I've learned on my blogging journey, including blogging tips and ways to blog for money. I am also trying to make my way on YouTube. You can follow my progress by subscribing to My Bonzer Channel.

This Post Has 22 Comments

  1. To tell you the truth Sire I think that MLM are all scams. I know companies like Herbal Life and others use these marketing strategies, but what happens when the chain runs out and the last guy is left with nothing? I don’t think that the idea of getting rich by making others poor is the way to go.
    .-= Asswass@Polls´s last blog ..Top WOP of the Week: Grab-N-Go Espresso Prostitution =-.

    1. That’s true, which is why you should never rely on your downline. It’s best to join the ones where money can be made on your own merit.
      .-= Sire´s last blog ..Beware The Michael Jackson Rip Off =-.

    2. @Asswass@Polls, you obviously do not know anything about MLM. But I guess that makes you no different than most people :)
      .-= Mikael @ Retire Rich´s last blog ..How To Get The Necessary Done Consistently =-.

      1. @Mikael @ Retire Rich, Say Mikael, I’m sure you’ve written a post that could explain MLM a whole lot better? Perhaps you could provide a link. If you want, email me and I will link from within the post.

  2. Twitter:
    You know me, Sire, so you know I don’t believe in MLM across the board. Sure, some people can make money at it, but others suffer from the fate you mentioned, plus the idea that it’s still difficult for each person to really make money for themselves without the recruiting aspect of it all.
    .-= Mitch´s last blog ..The Secret =-.

    1. Yeah, that’s why you should never rely on anyone else making the money for you. If you happen to get some real go getters as part of your downline, that’s all well and good, but at least until that happens you’re bringing in some cash using your own initiatives.

      I hope to reach the $200 mark with Snapdollars this week, and once that happens I will ask for a check. As soon as that comes in I will do a post showing the check as proof that at least Snapdollars can bring in some cash for you.

      1. Twitter:
        Good for you, Sire. I actually tried it once many years ago with Success University, without thinking of it as MLM, and never got any money for the few people who signed up under me. Decided it felt kind of like a racket, and dropped out before my two free weeks were up.
        .-= Mitch´s last blog ..Creating Your Own Products; Let Me Talk About Mine =-.

        1. Mitch, I won’t be happy until the check arrives. Once I get it in my hands I will know they are completely legit

  3. That is definitely one of the challenges with MLM. I don’t think it is the only one but an important one indeed. What I have found through being part of an MLM company for 5 years is that it will require the same skills to be success in MLM as it will in any other business. If you don’t have or develop that skill you’ll not be successful.
    .-= Mikael @ Retire Rich´s last blog ..How To Get The Necessary Done Consistently =-.

    1. @Mikael @ Retire Rich, yep, everything takes some skill if you want it to be done properly, and also a hell of a lot of dedication.

  4. One of the problems with MLM’s is that some people promote them like you going to “get rich quick” but it takes time. Most people fail at MLM’s because they are lazy and/or quit.
    .-= Deneil Merritt´s last blog ..TechZoomIn Monthly Contest =-.

    1. @Deneil Merritt, I think you hit the nail on the head Deneil, and these people are the ones that put up a link and then sit back and wait for the money to roll in. No wonder they get disappointed.

  5. I’ve never heard of MLM before but from what I can tell it sounds like a pyramid scheme. All I know of pyramid schemes is the only people who make money is the ones at the top. But I guess at least you made a few bucks

    1. @Maracas, Sure Maracas, many of the MLM’s that you find in the ‘real’ world are sort of pyramid schemes that require you to purchase products as part of membership, and then to suck recruit others, and usually people prey on family and friends.

      Online MLM is entirely different, and many times involves no cost to join at all. Promoted properly, and if everyone pulls their weight, you can actually make money.

      1. @Sire, Oh right I didn’t realise they were free to join

  6. I am glad to see that there are actually some MLM opportunities that work. Of course, as you stated, has to be willing to work and develop or “that system just doesn’t work”

    I have never tried MLM online before. I have tried offline companies whose products I like. Never actually tried to develop the business end, though. Just used the product.

    As far as pyramids, if you work for a company, you already participate in a pyramid scheme. Your boss makes more money than you and off of your efforts as well. His/her boss make more money than either of you, (maybe combined!) off of both of your efforts. The person at the top sometimes makes an obscene amount of money off of, again, the efforts of their “downline.” And that really is how it SHOULD be.

    The armed services work the same way, but nobody says “Oh that’s a pyramid scheme.” That command/authority/profit structure is the best working one, or it would be abandoned. A new one would take its place.

    If no one ever made any money with MLM, it would dry up, blow away and never be heard from again.

    By the way, I really like your theme. Lookin’ good.

    1. What a unique way of looking at the whole employer/employee relationship. I can totally see your viewpoint.

      As for MLM opportunities, that was the one reason that SFI never worked for me. They had a lot of great products, but being an Aussie it was all too expensive importing the stuff over.

      Glad you liked the Theme, it’s just for Halloween and then I will be reverting back to the old one.

  7. Twitter:
    This is a very good post. I think it is rather confusing for someone new who wants to make money in the mlm industry online. I believe that in order to really achieve success in this industry you need to be first a really good internet marketer.

    After you become skilled in that area then work on becoming a good network marketer. I didn’t really start seeing success until I learned how to attract people to me personally. I think success comes once a person realizes that they need to be Their business and not focus so much on their company.

    Marketing online is very different from marketing offline, online it is more important to prove to a person that you have what they are looking for and for 95% of the people failing in this industry if you can learn how to drive massive amounts of traffic and make sales you have something to teach.
    .-= LarryRivera@NetworkMarketing´s last blog ..Get The Word Out Internet Network Marketing Style! =-.

    1. I’m glad you liked the post Larry, and you are right when you say that marketing on line is different than offline marketing. :grin1_ee:

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