Why Mlm Usually Does Not Work

By Author: Raymond Noud
Total Articles: 3698
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Multilevel marketing is fascinating because with all of it's complexities is is also quite simple once you correctly factor in human behaviors that change the outcome.
Many multilevel marketing or MLM companies offer an excellent compensation plan, Good products or services but still are almost impossible to make money at for the average person. This article explores why that is, and what you can do about it.

Most MLM companies are set up with what is called a forced matrix. This system limits everyone to a set maximum number of level one members. All others you recruit after that go beneath those level one members. However you still get a one time fast start bonus on every member you refer. You typically also make a monthly commission on all members as well usually amounting to one two or three dollars per month per member.
They also offer special matching bonus payments that you get once you have twenty or thirty paying members but those special perks are out of reach for most novice recruiters.

The problems begin when you find that you can only recruit a few members and the money you make is ...
... just not enough. You are told by your sponsor to get out there on the internet and place lots of ads and you will get rich. But no matter how many ads you place, or how much you spend on expensive advertising the numbers just do not add up. And where is all this spillover that your sponsor said would happen due to the avalanche of new people joining every day?

The truth is that even if your sponsor creates that avalanche of new members your one or two dollars per month on those people still does not add up to squat. But remember your sponsor gets a fast start bonus on every one of them.
Now once your sponsor has brought in all the new people that he can, his huge email list begins to dry up and he too is starving for more fast start bonuses. So what does he do? He joins a new MLM program and proceeds to get as many people as he can to jump ship and join the next one or he simply gets those who did not take him up on the first offer to join the second one leaving you with no support whatsoever. Your sponsor is now promoting the new program and is no longer producing that spillover that would increase your bottom line.

So what can be done to fix this? You need a MLM company that pays new members more at the front end of the system to give them a boost. It should be set up in such a way that your sponsor has a vested interest in your success, a situation where your success is his success.
You need a mlm company where high profile professional recruiters cannot take off with all that fast start money and instead actually help their people succeed.

To achieve this, what if all those spillover members could count as personal recruits to who ever they land under? In other words what if your spillover members paid YOU the fast start bonuses? Well there is just such a new system that was started a few months ago called Unselfish Wealth. It is an excellent system and is creating wealth for everyone I have talked to. Thank you for reading my article and you can read all of the details of this exciting system by visiting my site at: http://www.squidoo.com/unselfish_wealth