Why The Old MLM Fails

Multilevel marketing is interesting 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 pay 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 less than you are paying monthly to be in the program. 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 hoards of new people joining every day?

The truth is that even if your sponsor creates that avalanche of new people your one or two dollars per month on those people still does not add up to much. 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 second program and is no longer producing that “spillover” that would increase your bottom line.

So what can be done to remedy this? You need a MLM system 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 system where high profile professional recruiters cannot cut and run with all that fast start money and instead actually help their people succeed.

To make this happen, 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 conceived a few months ago called Unselfish Wealth. It is an great 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

By: Robert Thomson

Raymond Noud is a lens creator at Squidoo. You can experience his work or make your own free Squidoo site by going to www.squidoo.com/lensmasters/-Ray-.

Article Directory: http://www.articlewisdom.com

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated