We have all at some point been in search of the MLM truth. An industry that is hyped and promoted as it is, it can be difficult to get a reliable answer.
The current economic times have either displaced people from their steady incomes or has caused them to start looking for alternate ways to make money as their fear of losing their jobs increases. Many people are looking to a home-based business, more specifically an MLM business to satisfy their additional income needs.
The investigation process can leave many people scratching their heads as to what is a legitimate MLM business opportunity and what is a scam. They want truth and they want it now. The purpose of this page by removing all the hype, speculation and present to you the MLM truth exposed.
“Time will either promote you or expose you.” How this pertains to the MLM industry and an MLM business opportunity is a simple one. Look at the history of the industry and when investigating an MLM business opportunity, carefully look at its history.
History of MLM Industry
With all the stories, myths and hype that are circulating regarding the MLM industry, it is understandable why you may be skeptical about the MLM truth. However, you could be doing yourself a huge injustice by believing the rumours and myths and not doing the investigating yourself.
First of all, do not categorize all MLM opportunities the same. Even if you have not been successful in MLM before, or have heard stories of people losing a lot of money in MLM, that does not mean the MLM industry, and the business opportunities in it are not successful.
The MLM industry has been around since the mid-1940s and continues to grow today. Yes there are MLM opportunities that do not survive, and yes people will lose money on these opportunities, but that does not mean the MLM industry is a scam and pyramid scheme.
The truth be told 99% of all MLM opportunities will fail in their first year. Of the 1% that makes it to their first anniversary, only 95% make it to their second anniversary. So, looking at a company that has a history and is still growing is a win-win situation for you. This is one MLM truth that you cannot overlook.
The first way that you can protect yourself from an MLM business opportunity failure is to look at an established growing company. You can then have the stability of an existing company while still have ample growth potential.
Let’s compare this to another industry, one that can be just as challenging and that is being a restaurateur. The myth about restaurants is they fail at a rate of 90%; that is 90% of all restaurants that open fail within the first three years. This is just a myth and it has been proven to be a rate that is closer to a 60% failure rate.
While that is still high with more than half of all restaurants failing before their third year, there are still new restaurants opening up every day. You don’t hear people saying that being in the restaurant business is a scam, you simply hear that it is very difficult.
The same is true with MLM opportunities. The MLM industry would not be growing as rapidly as it currently is if the business model did not work. Furthermore to open a restaurant would be at least a 6-figure investment. Conversely, to start a successful MLM business, your investment can be less than $1000.
History of MLM Business Opportunity
Moving from the history of the MLM industry to the history behind a specific MLM opportunity will very clearly tell you where they have been and where they are going. Presentations are great for getting very high-level information regarding an MLM company, but most times they are filled with hype and promises and will not contain all the MLM truth you are looking for. Looking at a company’s history will clearly show what they have accomplished.
No presentation, no hype, no flashy sales video can speak louder than the history of a company. While investigating the MLM company’s history do not solely look at their past as you must understand how to use the information you are finding.
Any legitimate MLM business opportunity will share with you their sales numbers and most time sales numbers do not lie. While there may be underlying profit issues in the revenue generated in the company’s past, the sales numbers will show you what has transpired. Once you ask for the sales numbers a secondary question will be profitable as every company has to make a profit to be in business.
The reason for asking for sales numbers first is that you want to see that they are continually increasing. The sales numbers need to be increasing on two fronts. First, the sales numbers should be increasing in new markets. This type of expansion will show that the company is successfully expanding its global footprint.
The second method of sales number growth that you should see is in existing markets. Many companies are great at promoting how they are moving into new and exciting markets, yet the markets that they have already launched are slowly declining. What this will tell you is the product mix does not keep customers long term.
The excitement of a new product will get customers to buy once, but then the excitement quickly fades and so do the sales numbers. The obvious scenario that you are looking for here is growth on both fronts; new and existing market growth, another key MLM truth to keep a record of while investigating.
Return on Your Investment
For any legitimate MLM business opportunity, there will be an investment. You are starting a business and any business that tells you it can be started without any investment should raise questions immediately.
When looking at the investment required to begin an MLM business your ROI (return on investment) is like no other business on the planet. This is because, with the right MLM business, you can see a return on your investment after the first month of operation.
Key Factors of MLM Business Opportunity
Three key factors will determine a long term successful MLM business opportunity versus a flash in the pan. These key factors to look for are as follows and in this order; leadership and support, compensation plan and products. Understand that regardless of compensation plan or products, it is the leadership of the distributors and the support that they receive that will ultimately grow the business, not the company.
Having the proper leadership and support will then allow you to maximize your compensation plan. The products have to be high quality and in high demand. Getting back to the sales numbers will tell you what you need to know about the products and how they are received in new and existing markets.
The truth about MLM is that it works. It has been working for the past 70 years and continues to gain momentum on a global basis. New and emerging markets are coming on stream every quarter and for those that have positioned themselves in the right MLM business opportunity they can see substantial income gains over the next 3-5 years.
If you need help deciphering what is best for you, contact Engineered Lifestyles. We have the experience, the knowledge and the ability to help you make the right decision for you.
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