MLM Myths…Truth Or Lies?

June 11, 2009

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Truth and Lies in Network Marketing Business

I must say that there are so many rumors that surround the MLM industry that I decided I’d like to address them for those of you who are taking a serious look at this industry.

First let me begin by letting you know a little about myself and why I’m involved in this industry.  I had been a successful business manager and accountant for major rock stars around the world for 35 years.  Now if you could imagine I had offices in New York City, Los Angeles and associate offices in London and had 13 employees and massive overhead and huge business and financial responsibilities with my clients.

About 20 years ago my wife Ann, who was a management consultant when we were living in NY City, was working 60-70 hours a week… talk about stress.  She wanted to change her business life so she could have more time freedom.  As a result of some exploration into different businesses, she chose the MLM industry while I continued with my business management practice.  Well, lo and behold when Ann started her MLM business, it took off like a rocket ship and in less than a year she replaced her “job” with an income that exceeded her previous earnings, and had her own home-based business off and running.  She built that business into 13 countries with over 100,000 consumers and team members… it was the largest international distributorship in our prior company.

About 8 years ago I decided to sell my practice and join Ann full time in the MLM industry… and since then we’ve built a very successful business with our current MLM company and are currently in over 40 countries with our international teams and a 3 year old company that is already in 50+ countries.

Well, as you can imagine with my background in accounting and financial management services, I’ve been able to get a “birds-eye” view of many business opportunities, and in my professional opinion the MLM industry offers the most wonderful potential for anyone to become successful and achieve not only financial wealth, but financial freedom and all that comes along with that success.

So, my opinion of the industry is one of complete respect and admiration and I’m proud to say that I’m an MLM (network marketing) professional and can stand in front of anyone and give them 100% honesty about the TRUTH behind the MLM myths and set anyone on the path of truth about this industry.

Now having said all that, let’s clear the air a little here and examine the various “myths” that surround the industry.  The following are probably the top 10 that many people have heard before:

  • 1. All MLM companies are Pyramid schemes. I love this one… look, a pyramid scheme is what’s known as a “money game” and in most instances do not have a product or service attached to the “scheme”. They are illegal and most states and countries do all they can to BAN them. One thing more to add about this MYTH is that there are “illegal” and bad companies in every industry, and both good and bad people who perform services in different industries… most MLM companies are legitimate and have real products or services that add VALUE.
  • 2. The only people to make money are those who get into the company “early”. This is so ridiculous… how can a company that is a legal entity, conducting a legitimate business succeed with only those who “joined early”? Since there are products or services being sold (OF VALUE), then there are obviously customers who enjoy the products as well as team members who enjoy the products and are pursing the “business opportunity” attached to the MLM company. Everyone has the same opportunity regardless of when they joined… the difference of success is dependent on the efforts made by each person… some are obviously more successful at both sales and marketing than others. The same is true in any industry where commissions are paid for sales. If a company is nothing more than a “scam” then I can understand the theory of those who get in early are the ones who make the money… but the company is an illegal operating company and people need to be wary… frankly, these types of companies are usually out of business in under one year.
  • 3. You must recruit your friends and family into the MLM company. Let’s think about this for a second, if YOU considered this MLM opportunity to be a sound business, why wouldn’t you want to share it with your friends and family? Why wouldn’t you want to offer this wonderful gift that you found for yourself to your family and friends… that just doesn’t make sense to me… I WANT my friends and family to enjoy the potential success they can have in this wonderful industry. BUT, there’s no free lunch here… there’s no guarantee that they will be successful… success requires work…We should note here that this industry is called NET WORK MARKETING…not NET SLEEP MARKETING… like any business to succeed you must put in time, effort and commitment… if not, then LOWER your expectations for successful results!
  • 4. You have to peddle your products door-to-door. No, No, No. That’s where there is a difference between the MLM industry versus the DIRECT SALES industry. Companies like Kirby vacuum, Fuller Brush and a number of others do peddle their products going door-to-door… but that’s NOT what the MLM industry practices. Today we have the benefits of the internet and telephones that allow us to be in communication with “prospects” to introduce and “share” our MLM business and products.
  • 5. You must buy an “inventory” of products. There are some companies that require a sizeable amount of what I refer to as “front end loading” of products in order to earn your large commission. This type of company usually has a higher commission rate plan than many others. That type of plan/company usually appeals to those who are great at “retailing” lots of products. Most MLM companies suggest that you order enough products for yourself and family and have some on hand to introduce to new prospects.
  • 6. You must have a “salesman’s personality” to make any money. Successful MLM people are usually not sales personalities, but love to “share” with others and introduce something they like and feel good about… including their MLM business and the great products marketed by the company. In fact, most sales personalities in MLM have difficulty building “networks” since they’re programmed to “sell” rather than share and create a network of others that do the same. And frankly, most people do not want to either sell or “be sold”… but sharing with others is a great way to market!
  • 7. A large amount of capital funding is required. The MLM industry has an assortment of companies, some which have a small investment requirement and others having a larger one. The option of course is yours and what appeals to you… both financially and what products “speak to you” that you can endorse. Unlike so many “franchises” that requires usually hundreds of thousands of dollars as an initial investment, the MLM industry promotes business opportunity for the average person without making a substantial investment and you have none of the related issues of a franchise, including employee’s wages, unions, and related overhead costs to run the franchise… but all the upside potential of unlimited income based on yours and your teams efforts.
  • 8. There are many “fly by night” companies in the MLM industry. If you look at the number of companies across the country that has gone into bankruptcy, you’ll see that all industries are impacted by business and financial challenges… not just the MLM industry. I advise everyone to choose wisely the company that they “join” and invest their money and time into… and to do your own “due diligence” before you make that investment. Make sure that it’s a “good fit” for you.
  • 9. All these MLM companies are “get rich quick schemes”. I love this one… YES there’s a HUGE POTENTIAL for you to “get rich” quickly. But guess what folks; it’s going to require a considerable amount of your time, effort and commitment to do what’s necessary to achieve that success. And honestly, to achieve BIG success make take a number of years… is that what you’d call “Get Rich Quick”??
  • 10. “It’s A Ground Floor Opportunity – You Must Join Today”. When someone says: “Ground Floor Opportunity – Join Today” … What are they really saying? Is it: (1) “People who join after me have less chance of making money than I do” OR (2) “The company will be useless in two years time”. Would you want to take a year or two to build a good residual income, only to have that income disappear? And what would happen to those who join in six or seven month’s time? A good business opportunity should actually improve with time and exposure.

There you have it folks… now let’s be wise and please do your research and remember “knowledge is power”…BUT, action will get you the results you’re looking for.  So I hope I’ve been able to enlighten you about this wonderful industry that I’m so proud to be a part of… now go out there and achieve the success and financial freedom and lifestyle you’ve been searching for!

To get the real innovative marketing knowledge and training, so you can be at the cutting edge of using technology to build your network marketing business correctly, visit our website.

I’ll leave you with this famous quote “The greatest gift that extraordinarily successful people have compared to the average person is their ability to get themselves to take action. It’s a gift that any of us can develop within ourselves.”

Wishing you success…every day…
David Feinstein

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