Mlm-Always Take A Parachute When Climbing A Pyramid

For those of you not in the know, MLM stands for Multi -Level Marketing(also known as network marketing companies/ pyramid systems).I've been in 2 and investigated 30 of these companies that left a bitter taste in my mouth.And I mean bitter.

Let me give you some insight to help you avoid most of them.But it's in my opinion, you should avoid them all.

In a nutshell ,MLM is a system of selling products and services through individuals who pass on paying customers to the MLM Company they represent. They then get paid by the MLM company the agreed amount for bringing the customers to them. So the more paying customers you refer ,the more money you'll make.

If you then turn a certain number of those customers into your agents who work under you, whom then turn their customers into agents under them and so on,you'll also get a percentage pay-out from your agents(your down-line)profits.In other-words, a residue income.

Sounds simple,doesn't it?All the best scams do!Here's where good old common sense goes out the window.

The truth is almost all customers passed on to MLM companies are made into agents.Do you know what this means ? TROUBLE!

If you've know a bit about economics ,TROUBLE equals: The Law Of Diminishing Returns.If you don't know any economic theories,it equals: too many cooks in the kitchen or three is a crowd .Simply put,over saturation.

Let me paint you a picture. Suppose there's a bright blue bucket under a tap, and in the bucket is the finest tasting concentrated chocolate mixture known to man. For the chocolate to be shared to the people who want it,the tap is turned on , water pours into the bucket.

Now you've got a lot more satisfied people whom get to taste this amazing cool chocolate drink.

But there's a problem. The bucket is now overflowing and the chocolate doesn't taste like it used to. In fact ,there's no taste to it at all. It's just plain water. People don't want it any more. But the water is still pouring.

OK,if you haven't figured it out yet,the water represents the agents,the chocolate the product and the tap is the MLM company.Your next logical question should be,"why don't they just turn off the tap?"

Here's the answer:If they could,they wouldn't be able to get any more of that green stuff-profits. And guess what?It's not profits from the product making their stomachs still swell anymore.That's all washed up.It's from every new and existing agents still representing the company.

But the biggest problem is that no one knows how to turn off the tap.What that means is that on paper there is a central controller:boss,CEO,directors(tap twisters);in practice,the central controller has not got the power to regulate the flow once it's in full operation.

Think about it for a minute.You're the CEO of an MLM company and you suddenly decide you're not going to take on any more agents.That will be okay for some,but not for most of your existing agents.They are the ones who are not at the top of the company but much lower down.The ones who make your company the most money.

If they are not getting any more agents under them to make themselves a dream of becoming wealthy one day,they will quit.This will shut down your company.

As long as there is a constant pouring of agents selling the dream of financial freedom to others,the tap keeps flowing.And the people at the top,the brains behind it all, and early comers to the company,will always gain .The people in the middle and the bottom are just getting peanuts, if any at all.

You see,even if a MLM company has a good product to market,that's not their aim. If it was,they would be selling it in a retail store in the real World. No my friend,that's just a cover.

Their real aim, and the real engine of the business is You....and a lot of people like you to keep the scheme running. By selling others on selling to others on a dream to be wealthy by doing the same thing,is the oldest scam in the book.

It doesn't matter that people are not buying the product as much as they used to or not at all.Hell,there are MLM companies out there that don't even have a physical or viable product to sell and are just blatantly selling the system.

So let me repeat it to you,it's not about the product.

Like any product in the real world,demand must never be lower than supply.If demand falls,then supply has to be adjusted to meet it or else it's goodbye to the business...eventually.

In MLM cyber-space world ,it's a whole different ball game. Supply can takeover the demand for the product because,like I said, as long as there's a constant supply of paying agents coming into the scheme,there's no need to worry from the people at the top.The reality is -the agents are both the product and the income.

All a MLM rep has to do is keep on feeding the lie to the agents that the product is still hot and people are still willing to market it. Easily done by approved company's video, brochure, and presentation outline,seminars,meetings upon meetings,show you the beautiful house,the flashy car and the grinning faces of the top earners who own them,themselves giving motivational lectures to you -the bucket filler.

If you've ever been to any seminar meeting arranged by a MLM company,you'll find the product barely gets mentioned.It's more about recruiting strategies and sales predictions.Throw in a whole lot of pep talk,and you've got yourself a way to keep your agents hooked.

Is this brainwashing?You bet it is!It knocks down your common sense from shouting out at you,"Stop!Pack your bags and run!",to ,"If they can do it,so can I." So you keep on recruiting other suckers with the same bull that got you hooked.

Greed is a strong motivator.

Which leads to how do you make it in MLM? For you to succeed in any MLM opportunity, you've got to get in first while it's scorching hot. Not 3,2 ,1 years down the line,not even 6 months down the line, in my opinion.

It's a first come,first serve opportunity for those who are quick off the mark and know when to jump off with a standby parachute when it starts to shut down.

Remember these 2 simple home truths :

1.If you buy into an MLM plan you'll find your only customers are other distributors, not the public.

2.MLM companies are always going to fail in the long run.This is a historic fact.If you were to do a check on 200 MLM Internet companies that started operating 5 years ago,you're going to find only 3-10 of them are still operating...barely.

However,if you researched the new MLM Internet companies now in circulation,you'll find that 80% of them are new repackaged models of the old.Same owners),different products),doing the same scam.

The MLM companies that have been around for years only make money for those at the very top and that's because of what I've just talked about:money is still coming in from the losers at the bottom.

So do yourself a favour, stay away from them.

written by Ayo Andrews

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