How do people doing MLM/Network Marketing justify trying to make money without doing any real sales volume?
Even minimum wage sales jobs that high school students are doing require realistic volumes of sales…at least 3000-4000/week.
If MLMers were required to actually sell the equivalent of even the minimum wage sales people they would quit in droves.
So essentially MLMers are doing less personal sales than minimum wage salespeople yet they will tell you MLM is about sales and not making money by recruiting people. Well, if they are not doing real sales volumes, then they are making money recruiting. HMMM.
How do those in MLM justify this?
Brad H - the question was clearly addressing the money made by recruiting versus sales. Thanks for completely avoiding the heart of the question.
What could I have expected though, this is normal MLM mentality; when confronted with a question you don’t like, change the subject. Nice work.
Laura J - A+ for your long and seemingly educated answer. However, a few points I want to bring up. A good portion of your answer describes the benefits of building a customer base. If you have a large customer base providing you residual income that is terrific, but if that was the norm in MLM than this question would not need to be asked.
The clear point is directed to bulk of people making (or trying to make) money by building a downline. Surely if everyone built a massive customer base first, then it would indeed be about sales, not recruiting. But the fact that nearly all MLM compensation plans reward recruiting over sales speaks volumes.
If you are making more money from your customers than you represent an extremely low percentage of MLMers. If you want to suggest that everyone be like that, then bravo, but we know the reality is people try to make money on recruiting instead of sales in MLM.
Thanks for your answer though.
Edi - Thank, but you clearly missed the point. If you are recruiting and not selling, what value do you offer to the company?
You admittedly don’t know how to sell, so your value is not in teaching anyone. The difference between a bank or any other company that recruits sales people is that the people being paid to recruit and train them have clear value else they would be out of a job.
Merely making money recruiting is the very definition of a ponzi scheme.
Sorry to be harsh, but what you described IS the exact problem with MLM.
Artis
Tags: Compensation Plans, Customer Base, Downline, Droves, Heart, High School Students, Making Money, Mentality, Minimum Wage, Mlm Marketing, Mlm Sales, Network Marketing, Norm, Personal Sales, Residual Income, Sales Jobs, Sales People, Sales Recruiting, Sales Volume, Salespeople
April 19th, 2008 at 3:51 pm
RUN…don’t walk away….RUN!!!!!
April 20th, 2008 at 9:03 pm
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April 23rd, 2008 at 1:15 am
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April 26th, 2008 at 9:15 am
Good question. I am a very bad salesman, in fact I dont like to do sales. Fortunatelly, I found the company that pays me to create a market…so if you see, recruiting is essential.
There are companies that pays more if you do sales. I prefer a company that pays me more RESIDUAL income. So I prefer to recruit people…than do sales.
When you sales 3000-4000/week…maybe you are not able to do a million/week, but if you have more people in your Network…you can move Millions…so you tell me, Is it better to gain 10% of 4000/week? or Is it better to gain 10% of 50 million/week ???
Banks, or any other company, must recruit people to do sales…why MLMers dont? To gain money, you have to learn…to do something, either to do sales or to recruit. The great thing…is that anything in life you need to do…you can learn it. And we…in MLM can help you to learn this skills while you gain money. In fact, we can do it with you…until you learn to do it by yourself.
Anyway, I think everybody must learn to do sales…included me.