Saturation

Multi level Marketers cannot understand saturation. I think that most MLM practitioners are emotionally invested and the mathematics of the systems by pass their understanding. Facts are that if you recruit 10 people and they each recruit 10 people thats 110 people recruited. Thats most of the people in the block I live in. Now if they each recruit 10 people thats 1110 people in the system. That is most of the people in the neighbourhood I live in. If they recruit 10 people each 11110 people. Thats as many people as a small town.

In only 4 levels everyone in town has been recruited. Heres the good news though 70 - 90 % of those people are going to fail, so Saturation can never be achieved.

Supply chain

According to American statistics less that 1/2 a % of goods get sold this way. People will have to change the way they think and shop in a big way for MLM to actually gain a foothold. Why pay more for a product that you would in the local supermarket just because you might make some money out of it. This also takes away the immediate gratification emotion of deciding I want something, I go an get it. If I was to rely on my network, it may take a week before I get my goodies.

Religion

MLM becomes a religious movement when the devotees have faith in the possibilities despite all contrary evidence. They preach to their families and friends and gain the same results as if they were preaching Islam to Christians. Their friend circle start avoiding them because of the continual efforts to sell, sell, sell.

Part time business

As someone who has been self employed for many years I can tell you unequivocally, there is no such thing as a part time business. Studies have shown that MLM needs to be attacked as you would any other business. You need dedication and lots of time. But you still have a higher failure rate in MLM than in a normal business environment.

Trust

Approach anyone with your great business plan and the first sentence you will hear is “Pyramid Schemes ha”. Invite friends and family to dinner so that you have a captive audience and watch their eyes glaze over. Family may not refuse another invitations but your children’s god parents will.

The truth of the matter is that as a product owner this should be a great way to market, but because of the 5 reasons mentioned above this is not the easiest way to promote your business. Too many people have heard of someone who had their fingers burnt, too many people know someone that had religious fervour who is now broke.

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