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In my experience, MLMs do represent firm marketing theory. The belief that it is more lucrative for a company to deliver products through a network of continually growing "warm contacts" then through traditional marketing channels makes a lot of sense to me. The resources generally set aside for interruption advertising is usually significant - at least it would be for any business that is able to employ a MLM business model to begin with - and to roll that into incentives for sales and recruiting can be prove to be quite effective. I have been involved with a couple different MLMs over the years (my parents were deeply involved with a popular MLM for a few years back in the 80's) so I do have experience with the model. I am also a marketing consultant so I comprehend the differences between this sort of business model as it relates to the individual as opposed to conventional small business marketing plans. I have consulted with the leaders of large sized teams on how to effectively communicate with their teams, as a major portion of the challenges connected to implementing a MLM company model involves the geographical restraints that come with having a sales force spread out all over the place. The main issue that I have discovered with most MLMs is the same thing that gives them life – often it's all about the hype. It is not often that a multi-level marketing opportunity actually presents a firm turn-key venture. The majority of the people that I had the pleasure of meeting during my time involved with MLMs had quite a lot of things in common: 1. They were generally frustrated with their lives as they were - they didn't like their work, they didn't like their lifestyle, etc. 2. They were looking for a way to earn an income outside of the "normal job rut" 3. They felt like they belonged to something bigger than themselves when part of "The Business" 4. 95% of them tend to stop when the hype wears off - before they achieved the goals that they put before themselves at the first "meeting" (the goal list never changes - it just forwards to the next MLM that appeals) 5. If they are honest, they probably would tell you that "this isn't the first MLM I have been involved with..." Now don't get me wrong - I don't think that there is anything particularly bad about any of the things listed here. In fact I fact I have at one time or another fit into every point my self. Unfortunately, it seems that most leadership I have been in contact do not really care about the majority of the people (I would guess 95% of them) recruited into their organizations. It is kind of like strip mining - the top management of most MLMs construct hyped-out recruiting programs to work through as much basic material (recruit prospects) as achievable to find the 5% of ones who will truly reproduce the model. Along the way they discover and cultivate out of that 5% motivational speakers, real sales people, event organizers etc. etc. that construct the foundations of their actual business - which ultimately is to push product. What I have noticed, nevertheless, that I find particularly troubling is the actuality that many of the business models I have seen are in fact indoctrinating their sales force into a market. Many MLMs sell a majority of their products directly to their sales force! Their key market is the same individuals they lure with ideas of freedom and prosperity, when in fact they are being sold soap and a book of the month. And what a faithful market they make! Back every month to buy the next book or another roll of toilet paper... at least until the hype wears off... hmmm...could this be one of the main reasons for the hype? Good question I think. As far as marketing planning goes in my modest view, a MLM business model could be the ultimate distribution force for practically any product - if the leadership could actually get beyond the great potential to multiply their own wealth, make available solid sales training and incentives for their team members to encourage sales outside of the organization and be careful of the long term affects of too much hype.Make Money With EZ Wealth Solution
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