Information and Resources for Solopreneurs

How Much Money Is “Old-School” MLM Costing You?

Written By: SiteSell in Network Marketing | February 6, 2011

Network Marketing

There seems to be many hidden costs when you do MLM the old-school way. From start-up inventory fees to the associated costs of motivation seminars, expenses seem to really add up. In some cases/companies, YOU seem to be their real business, not the selling of actual goods to real customers.

Contrast that with what seems logical when it comes to what good Network Marketing companies should do…

  • provide a great product for you to sell to end-customers, who really like the product

  • provide all sorts of free information (strategies, etc.) and tools to enable you to succeed

  • not oblige you to pay anything as you build your business.

The affiliate model works this way and if you think about it, InterNETwork Marketing (via your website) is affiliate marketing with more than two levels.

Consider the following recommendations as you make your decision about representing MLM companies… 

1) If your program requires you to buy product for personal use, make sure you like the product, that it is competitively priced, and that you’d buy the required quantities even if you were not doing business with the company. Best, though, is the company that does not require you to buy.

2) Avoid programs that require you to buy products you would not otherwise buy or that require you to buy more than you would normally use. Avoid programs where “optional” involves arm-twisting. Startup fees must deliver value.

3) There are a ton of optional costs for books, tapes, conferences, training, weekly meetings, and conferences. As long as there is little or no pressure to do these, that’s fine. But it’s best to search for a company or upline that uses the Web to deliver all this… free. It is in their best interest to train you and give you all the tools you need to succeed. In this digital world, that’s both possible and reasonable.

4) A start-up fee is fine if it is reasonable and delivers something of value. It can differentiate the serious from the non-serious. But the value must be there.

Bottom line? Avoid MLM companies that make you their business. Your e-goal is to build an independent business that you own.

Start with one company, a great one that fits the way you want to work. The beauty of InterNETwork Marketing, of course, is that you can ethically manage more than one. Since all your leads are yours, and since different people will be interested in different offerings/opportunities, if a second company is complementary to the first, simply diversify.

The only way, after all, to ultimately change practices is to vote with one’s business sense. InterNETwork Marketing makes both sense and cents!

For details about diversifying your website’s income streams beyond network marketing, see this short SBI! video (less than 3 minutes)…

SiteSell
SiteSell is a privately held Canadian-based company that helps everyday people start profitable online businesses.

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