Why Mlm Companies Don't Want You To Succeed

By Author: Andrew Mccann
Total Articles: 75
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MLMs are in the business of making money. They (with very few exceptions) could not care less if you succeed. In fact they want you to fail, it's good for present and future business.

How can this be? Logic says that if they have more members, they make more money. Well, let's look at how they operate.

The MLM makes money by keeping the difference between membership fees and the commissions paid out. The best member for the MLM is one that is signed up by the MLM itself. Because there are no commissions paid out. So the MLM does a lot of advertising for itself to get a huge top line where they don't pay out any commissions.

The next thing they do is to make it difficult to qualify to earn commissions. Examples: your first two sales go to your sponsor (probably the MLM); you have to sponsor two new members every month to stay qualified; you have to sell a certain amount of product each month to stay qualified; you have to sponsor five members to start getting commissions.

So you have to do a great selling job while competing, not only with other MLMs, but also with the MLM you joined!

Let's ...
... look at the situation where you have to sponsor five members to receive commissions. Assume that the monthly membership is $50. You join and pay $50, and since you got in early, there is great enthusiasm for the MLM, so you sponsor 4 new members. That's great for the MLM because they now have 5 members paying in $50, and NO commissions going out. In the second month there is still great enthusiasm so your downline sponsors 4 each, but that 5th one is really hard to get because you are now competing with your MLM, your own downline, and all the other MLMs out there, for a new member.

So, there's you and your downline, 17 people strong, sending $850 per month to the MLM and getting nothing in return.

Now pretend that there are 100 like you that joined the MLM. Now the MLM is getting $85,000 per month and paying out $0 in commissions. It's a license to print money.

Since you only need one more member to start earning commissions, you are likely to stay with it for another month, so the MLM makes more money. When you do quit, the MLMs make it your fault, which actually inspires you to try again with another MLM. After all, it's a piece of cake to find just 5 people; especially with all the help the MLM gave you.

So you join another MLM, which is probably run by the same guy that ran the other one. So, you lose money again.

How do you stop the slide?

Find an MLM with a real product that is appealing to a lot of people.
Find an MLM with a product that you like and can get excited about.
Find an MLM that pays commission on EVERY sale that you make.
Find an MLM that provides true assistance in sales.
Find an MLM that pays out a large commission, 60-80%

And the best way to avoid wasting all your money on MLMs is to become an affiliate for products that you like and use. That's right, the advice from this author is to avoid MLMs entirely.

The only way to make big money in an MLM is by being able to bring in a large following from your own lists. How to build that list, and getting people to trust you are best left to another article.

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Author: Andrew Mccann
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I started writing articles since 2001 and have been enjoyed doing it. I was graduated from the University of Cardiff with a bachelor degree in education.