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MJ DeMarco

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ClintonSkakun

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Yes, it's more than 90%, more like 99% of people who join MLMs fail to ever make money(or at least enough to give a damn about).

And yes, the same percentage is true for NHL hockey players, Actors and so on.

MLMers constantly "sell the dream" about recruiting an army of MLMers, who go out and recruit others.

I think the whole thing is horribly misleading to people who haven't been burned by this industry. "All you have to do is talk to people." Just like anyone who takes money from you and tells you that you can "become a big movie star" is misleading you. Most football coaches probably don't tell their players that they can all end up in the NFL.

MLMs use some highly questionable business practices. Such as selling products with a ridiculous markup, giving "discounts" to recruits and requiring(or pressuring) recruits to buy the product(s). Because of course, "how can you sell the product you don't buy yourself?" It's a catch 22. And then there're the "educational" products the company sells, the costly conventions and constant indoctrination of "recruit! recruit!"

Most of the people who join the company aren't true entrepreneurs. They join the company because they feel safe and feel the company takes care of all the "nuisance" work like paying overhead and so on. All they have to do is market. And so they're salespeople, not entrepreneurs. Another thing the "top of the pyramid" MLMers constantly remind the flock about. "We've done all of the groundwork for you guys, we've done all of the hard work." And ironically, the ones who did the groundwork are the ones driving 10 cars. The flock swallows every drop. It never occurred to them that starting a business is more than signing an agreement and dialing a list of numbers. No one ever told them, joining a company built by entrepreneurs does not make you an entrepreneur. Promoting someone else's brand makes you apart of the masses of "entrepreneurs" waiting for their next hit of motivational talk.

Following a leader does not make you a leader. These MLM leaders are geniuses, they've deluded hundreds of thousands of people into thinking otherwise. Indoctrination is big in these businesses.

MLM is just a bad business model(regardless of what Donald or RK says, they didn't become billionaires through an MLM). If you want to be an employee, go get a job. If you want to start a business, build your own brand where you have control and don't have to wave the flag of the "best business opportunity in the world."

The best business opportunity in the world is building a successful company and selling it or millions like MJ or like Dennis Felix.

Every MLM or network marketing company claims to be different and are so similar it's not funny: 1. they all claim to be different/better/not an MLM and "the best business opportunity of the 21st century." 2. they have conventions that are strikingly similar from one company to another. 3. they have a disheartening high number of "soon to be millionaires" who make little or nothing(not enough to claim income tax on). 4. "Recruit!!" is the golden word.

At the beginning no one tells these people that 99% of you will never make more than $50 at this company, or at least enough to cover what you shell out in time, educational material and product.
 

FxInvestor

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90% of people lose money in MLM.
90% of people lose money in most businesses.
90% of restaurants are losing money in first 5 years.
90% of people who want to be professional athletes, musicians, sportspersons, artists, traders never make it.

IMO, if everyone was making millions in MLM, we could end poverty and economic depression.

I could take it a bit further, 90% of those dreaming of a fastlane to millionaire status will never make it.

One can argue about the percentages, but the fact is whatever the pursuit, there is no easy route.
The majority will always be on the losing side.

I think the reason MLM gets such bad press is because of so many ponzi schemes, but there are legitimate companies and yet people fail. And it has nothing to do with MLM as a marketing system.

For that matter, almost every pursuit with regards to money has been corrupted and that is a fact.

People pushing out poor products for internet marketing, trading to make money, real estate seminars, etc.

I have never been involved with MLM, but have studied it and there is some good and bad companies out there. Same like anything else.

MLM or anything else requires investment and there will be an element of risk always.

I too was quite negative about MLM, but having listening to "Tim Sales" on Youtube, it may have changed my preceptions. He does make quite a lot of logical sense.

May be you can check out his videos on youtube.
 

AllenCrawley

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A few years ago I almost join a MLM network. I didn't get how people were making money. After listening to a couple of Grant Cardone's Networking Marketing Mogul interviews I have a different perspective of it. It's definitely one of the the five seedling wealth creators that DJ Marco, the distribution seedling company. I suggest you listen to one the the interviews that Grant Cardone has with on of the top Network Marketing Mogul.

I do find it funny that you did LITTLE to make it work and complain about it. Just like with anything you do in life you can't expect to stick with something for a little bit and put little effort and expect it to make you wealth. Just like with any business if you're in a MLM company that provides products or services that is very competitive, it's going to be hard to dominate it. Be selective with the MLM company you join that has a specific niche and be sold on the products/service they sell. If you aren't sold on it how are you able to sell others to it?

You should also reference this thread:
https://www.thefastlaneforum.com/community/threads/mlm-debate.28457/
 

ClintonSkakun

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My Mom, my Dad, my uncles and aunts. Some friends, relatives, random aquantances have joined these MLM companies at some point in time, and some still are.

While they all claim to be different they all sell the same thing, the false hope. The hope that someday you'll make as much as the guy at the top. The let down is disapointing, it makes you feel as if you're a looser or someone who "was just never meant to be an entrepreneur."

The sheeple who join these companies sink thousands of dollars and years of time into the false hope that, if they stick with it, someday they'll be rich.

I know MANY people who have, at some time, joined a MLM company or are currently in a MLM-type company. And are any of these people rich? Do their "opportunities" make them a living? Only a very few... by few I mean 1%.

I was one of these people. I was recruited into Quixstar, Monavie and a few others. I sunk a sad amount of time and money into them. While I did very little to make it work I was constantly along side a crowd of people who seemed to have an endless battle. Some people, in the company two or more years, still made nothing, even when they were working hard. Why is that?

You can make some money with these MLM companies but keep in mind that 99% of recruits fail. It's best to invest in your own brand, keep your control and own a real company instead of mistaking joining for owning.
 
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Trent

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The sheeple who join these companies sink thousands of dollars and years of time into the false hope that, if they stick with it, someday they'll be rich.

LOL at 'sheeple' -- it really is a game of leader and follower. If you can dupe the most people into buying into the dream, you win.
 

kurtyordy

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90% of people lose money in MLM.
90% of people lose money in most businesses.
90% of restaurants are losing money in first 5 years.
90% of people who want to be professional athletes, musicians, sportspersons, artists, traders never make it.

actually, from the research I have done, less than 1% of those involved in most mlm's make anymore per hour than they would at mcdonald's

using your example above, mlm's are like someone saying to you that they will show you for a fee how to become a professional athlete when they weigh 900 lbs.

I personally hate mlm's because they prey on the weak minded who can least afford the true fruit of the mlm (i.e. loss of time and money)
 
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CEBenz

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I admit to being part of one, but only because I'm wondering if I can make a few bucks extra since a friend of mine was wanting to sell some through his website.

I too was recruited to Quixtar years ago. And the problems I see are:

1) Lack of disclosure about the realities
2) Lack or margin (how to make much at a $1.50 or so an item which is slightly over 10%)
3) Many times there is an expectation that you buy their informational products and whatever recurring service they get affiliate funds from (quixtar used to have a phone service that I'm sure they got $10/mth for each person paying for it.)
 

ClintonSkakun

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I admit to being part of one, but only because I'm wondering if I can make a few bucks extra since a friend of mine was wanting to sell some through his website.

I too was recruited to Quixtar years ago. And the problems I see are:

1) Lack of disclosure about the realities
2) Lack or margin (how to make much at a $1.50 or so an item which is slightly over 10%)
3) Many times there is an expectation that you buy their informational products and whatever recurring service they get affiliate funds from (quixtar used to have a phone service that I'm sure they got $10/mth for each person paying for it.)
I was with Quixstar a while back, seemed so glamorous after going to all the conventions. It was a lot of fun meeting new people and so on. But as a business opp, I don't see it paying off. I payed for the energy drinks and bars and eventually it went out of business and went to Monavie and I also bought into that. I went to the Monavie conventions with my brother in law and sister. Eventually after a few more burns with MLM and network marketing I finally read Millionaire Fastlane and came to the truth(the most important thing).

MLM might be ok for a few extra $$ but I don't see any long term pay off. Too much control is claimed by the MLM company and not enough is given to the individual/"entrepreneur." I want to move to Las Vegas and these types of businesses don't give me that kind of control. How many ferarari owners do you walk up yo and they say, "I joined 'insert MLM company' and made guzillions!!!!"
 
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FxInvestor

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@ Clinton,

You make some valid points, however you will definitely agree that even MLM's are in the sales and marketing business. Who in their right mind will tell their prospective clients that they have 99% failure rate.

It goes the same with each and every business, health, weight loss, make money and million other products. Why do you think there are millions of internet marketing products on the market which are selling at 20-2000$ when they dont have any over heads.

Cmon, no one is forced into an MLM, yes true its hard sell techniques and everyone does have the right to decide whether they want to join or not.

I have gone to several seminars and decided not to join because I know my limitations.

Products are overpriced, agreed, but it has nothing to do with the reasons why people fail to make money in MLM.

Due diligence is part of every investment.

Seriously, what is not hyped nowadays?
 

FIREFOX

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Here is a thought...

You know how everyone you have met involved in a MLM is SO PUMPED about the endless possibilities of wealth right? Some of them may have received a few fast track bonuses from there first sells or recruits. They tell you or you have heard of an amazing MLM conference or launch meeting that just left them so pysched, that they felt they could take on the world??? You can look at them and see the ENERGY glowing around them.

Now, imagine if that same energy was harnessed into their own wealth creation. Imagine if that same energy was used to fuel multiple business ideas out of the ether. They are now the individuals at the helm of prosperity...not this silently hidden deception that makes someone else rich.

This takes an up-shift of thinking into the FASTLANE! :fastlane:
 

Matryx

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While I did very little to make it work I was constantly along side a crowd of people who seemed to have an endless battle.

A few years ago I almost join a MLM network. I didn't get how people were making money. After listening to a couple of Grant Cardone's Networking Marketing Mogul interviews I have a different perspective of it. It's definitely one of the the five seedling wealth creators that DJ Marco, the distribution seedling company. I suggest you listen to one the the interviews that Grant Cardone has with on of the top Network Marketing Mogul.

I do find it funny that you did LITTLE to make it work and complain about it. Just like with anything you do in life you can't expect to stick with something for a little bit and put little effort and expect it to make you wealth. Just like with any business if you're in a MLM company that provides products or services that is very competitive, it's going to be hard to dominate it. Be selective with the MLM company you join that has a specific niche and be sold on the products/service they sell. If you aren't sold on it how are you able to sell others to it?
 
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fhs8

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If you think joining an MLM is a good idea then I have a bridge to sell to you. George Parker would sell the Brooklyn Bridge and because there were too many stupid people out there he sold it about twice a week. The people who bought the bridge from him would set up toll booths because they really did believe that they bought the bridge.

Joining an MLM is worse than joining McDonald's. You ARE a sidewalker if you're in an MLM. The only people buying products are the distributors in MLM. Why do you think 99% of the emphasis is to recruit people rather than selling products? The reason why is because if you contact 500 people to buy an MLM product at best maybe 10-20 people will buy it because they are family members that care about you.

My mom a while ago had to deal with a crazy old MLM lady who would go DOOR TO DOOR on every business in town to recruit people. She entered my mom's business and tried to talk to every employee in the store, would call the store, and send emails. Asked for our personal phone numbers. Asked if we knew anyone else who would be interested etc... Claimed to work 16+ hours for 7 days a week and went to every business in the city and even other cities. I believe her because one time I was in Wendy's and she came in from the street and started bugging everyone.

We would see this person every few months and my mom asked how are things going. The impression was that she was struggling to pay bills. We put up a no solicitor sign and never heard from the idiot again. That's MLM for you.
 

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