Multi-level Marketing: To Be or Not To Be an Investor?
by Homerun Nievera, CDE | Negosentro.com |
Network marketing — or MLM — has been around for decades. Many have made millions but many more have went bust. The question remains — should you dive into the MLM/Networking business? Is it really worth all your time and money?
Recently, another one, Emgoldex, has been embroiled in deep controversy. Tough industry to go into unless one is well-informed.
So we went around to ask people on “What would you advice a person wanting to enter the Multi-level MarketingNetworking world?”
Here are what they said:
COO and Co-Founder
1Life Ventures Corporation
MLM or “Networking” as commonly known by many is a business platform which can be best described as “WIN-WIN” both for the company and the person who wish to engage in it. The traditional business as we know it also uses a “networking” set-up with the hitch of providing a bigger share of the profit to the capitalists and giving fixed income to the so-called “manpower or employees”, whereas in a full networking business concept, the company owners and the members alike can and may earn upto millions of pesos. One must first scrutinize the ins and outs of the company that he or she wishes to join, learn how to maximize the earning potential and how to teach others do the same and If these things can be accomplished.. DO IT!
Blogger and Internet Business Owner
I never did see the value of networking That’s the way I see networking. You convince them to join so you could earn on their efforts.
Atty. Victor F. Bernabe
Bernabe, Bido and Tacorda Law Office
My advice to that person who wants to join or invest in Networking or be a networker are these:
He or she should first check and see to it that the business is registered with all the government offices such as but not limited to the Securities Exchange Commission, the City where the business is located, the barangay where the business is located, the Bureau of Internal Revenue and if its a networking business pertaining to food or medicine etc- check if its registered with the BFAD. My second piece of advice is that the investor or networker should check if indeed there are products involved and that this is not similar to pyramiding or any other scheme where the investors are defrauded- He or she should check the brouchures, the products, the office and factory, etcetera.
Vice President, Western Guaranty Corporation
Past President Rotary Club of Paranaque Sucat
My advice to a person wanting to do an MLM business: You have to subscribe to the idea of getting paid for someone else’s work because this is how 90 percent of MLM practitioners (MLMP) are paid. You will eventually realize that you will be focused on the idea of making money off someone else’s labor. On the average, you will make, say, 10% on a sale you personally or directly make, and 1% on sales from your downline. This means you have to count on people under you doing ten times the work to make the same income. This rarely will happen because your recruits will do the same thing you did and recruit new people under them. Research into the company you consider joining: compensation, product or service, customer service or product guarrantees? Do they want you to sell a product or service, or their business model? If more time will be spent recruiting than selling, the MLM is more likely to be short-lived. In an ideal MLM company, the MLM spends more time selling than recruiting and earns more in selling than when recruiting.
Don’t get hyped on joining right away, study and learn about the compensation plan, products and the owners. Try the products if you want, because most of the stable MLM have products that have fair market value. Then make your prospect list and share it with all your heart.
There are a lot of MLM Company nowadays and before joining you need to know the capability of the company, how it will benefit you and the product . I’ve been with FLP, Amway, Herbalife, Green Barley and Emgoldex… no matter what company it is… success will depend on the effort of the person who will join and if he/she will pursue on their goal which is to earn money.
I am not in favor of networking or pyramiding as some call it because I believe that only the uplines make money. I also sometime refer to as a scam. The downlines are left to fend for themselves. The uplines leave the selling to the downlines.
Insurance and Financial Adviser, Manulife
Direct Distributor, Lifestyles Asia Pacific Philippines
If you are to enter into networking, the following must be taken into considerations: MLM Company must be debt free must be present in at least 15 countries must be the manufacturer of its own products higher potential to build global market in line with your life’s vision and mission Products must be unique must be proven for its effectiveness must be consumable reasonably priced addressed emotional needs necessity.
President of Powermax Consulting Group
Managing Director of Creativemax Advertising and Merchandising
I have rubbed elbows with some of the top achievers in this field and they manifest at least three distinctive shibboleths. First is the burning desire to achieve something explosive, or put another way, a healthy discontent with average performance. In addition, they sincerely believe in their products – which will only happen if the products are truly and unassailably good, not just hyped by the owners. Invariably linked to the two traits is the willingness to “fire”, not just “aim” ad infinitum, which means, they belong to the elite few who take intelligent and decisive action, and the noisy many who just talk, talk and talk and have nothing but verbal diarrhea.
IT Director and Scuba Diver
Be smart enough to choose the right company! There are load of networking companies established these days who offer different type of products, commission scheme, perks and benefits. First and foremost, make sure the company is legally operating in the country. Second, find out what can you get from them the same as what they can get from you. Please bear in mind, you need to have a win-win situation here. Lastly, you must try and love the products and services yourself before you’re going to sell or market them, put your heart on it or it’s useless to sell something you don’t know or you never love doing.
Multi-level Marketing Coach
For many that join an MLM company, this will be their first exposure to massive rejection. One needs to understand that their job is not to convince everyone, rather it is to find those that are ready to change their lives.
Divina Joy Ayungo
Founder and CEO, DJKA Accounting Services
Blogger at divineayungo.com
Trainer and facilitator at Institute for Integrality Inc.
Author, How Savings Saved My Life.
My advice for people who want to enter the MLM/Networking world is to investigate about the company that they want to join in. Never invest an amount that they cannot afford to lose and never forget to forge relationships first before the money.
What about you? Why would you go into Multi-level Marketing? Or why not?
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Homerun Nievera is a serial techpreneur, digital marketer and professional speaker.
Apart from managing tech enterprises, Homerun is the publisher of ablogazine network that delivers niche content to its audience.
He also a Certified Distance Educator from the University of the Philippines and has launched Edusentro.com with the objective of bringing free education to under-served areas everywhere.
As a blogger, Homerun writes across various topics but looks into techpreneruship as his main course.
He seeks to help entrepreneurs build their digital presence and make a difference. Follow Homerun on Twitter @bnievera