My Thoughts on MLM, Network Marketing, Quixtar, etc.

If you read my post about my “MLM Encounter” you’ll know that I am currently not involved with any MLM.  I HAVE been researching MLM, Quixtar, Amway, etc. and have some thoughts about the business model and the idea of MLM in general.

Here is the definition of MLM as by the intellects at Wikipedia:

“Multi-level marketing (MLM) also referred to as Network Marketing is a business distribution model that allows a parent multi-level marketing company to market their products directly to consumers by means of relationship referral and direct selling.”

The incentive to join an MLM is that you get a commission on whatever you sell AND you get commissions on whatever the people ‘underneath’ you sell.  This means that you need to recruit individuals to join your MLM company and teach them to sell and market your products, but also to recruit others.  This keeps a constant revenue stream coming in for a successful MLM participant just as long as the people beneath either keep selling, or keep recruiting other individuals to sell.  The PROBLEM I see is that no one wants to be that sleezy salesperson to ANYBODY.  People join an MLM of high hopes of selling their product and recruiting others so they can live off the income they get solely from their MLM en devour.  Their excitement about joining pushes them to purchase the startup kit for their specific MLM (Anywhere from $200 upwards of thousands of dollars) and then once the actual selling/recruiting comes into place, they lose steam.  The individuals on the ”upward line” of the MLM benefit from the recruit purchasing the startup kit.

Things I like about network marketing and MLMs are that you can do so many different things to market yourself, your website, your products, etc.   Most MLMs are online now and they will give you your own website to market your products.  This is great because you can use things like Google, making Youtube videos, MySpace, Facebook, etc. (ALL FREE) to drive traffic to your website.  Hopefully the increased traffic turns into great leads for your MLM or sales for your product.  The reason I like MLM is that it truly is a fantastic business model for those who do well to earn substantial residual (constant streaming) income.

I feel that the key to becoming successful in MLM is to truly put a ton of effort into it.  I am a salesman by day and I feel that if you’re constantly out there in front of your potential customers, you’ll be able to make sales (granted you’re not selling a crappy product/service).  If you are to join a MLM company towards the beginning of it’s inception and truly put 100% effort into growing your business by marketing and recruiting, you can earn that income stream that you desire.

Although I decided not to join Quixtar, I do respect them for their drive towards their dreams.  The Quixtar reps that truly market themselves, their product, and their company and drive to get recruits in their pipeline have my utmost respect.  Many people see these folks as pyramid scheme jockies and feel that they are being hassled by them.  They are like any other salesperson trying to sell their products and make a buck.  I respect their business model, their drive, their passion, and their goals.  If you ever attend a Quixtar meeting, you’ll see that these people are truly devoted to their dreams of leaving their day jobs and becoming wealthy.  Although, I share that same passion, I am taking another route.  I do feel that their recruiting tactics are questionable (I was solicited at Best Buy on valentine’s day), and the thought of myself marketing their products makes me squeamish.  I do, however, respect their drive and the business model.

So, my plan of attack will be to make a TON of money in my own way and then devise a profitable MLM business model that markets products of my choosing.  Hey, just because I don’t want to start off at the bottom of the totem pole, doesn’t mean I never want to be the guy at the top!