When starting an MLM business there are several facts you should be aware of which can make the difference in your success or failure. For most people owning their own business it's a pipe dream, just like hitting the Mega Million Lotto. The truth of the matter is that your chances to be successful are about the same.
Pipe dream or not, it is true that one can make a very substantial income in MLM opportunities. MLM commonly know as Multilevel Marketing generally does give the average individual a chance to own their own business with very little start up cost and all the tax advantages of a true business; this is a fact. Also one must understand that there are a lot of hidden costs and investments that one must take under consideration.
o Business Supplies
o Meeting Rooms
o Gas
o Travel fees
o Conventions fees
o Products (Mandatory monthly requirements)
o Motivational Tools
o Recruiting expenses
These are some of hidden trenches that lies waiting for those uninformed individuals, as well as the fact that less than 5% are truly successful.
It is said that you can make your own hours in Multilevel Marketing and work your business part time or full time and still achieve success, if someone tells you this run for the hills. When it come to MLM, one has to contact countless numbers of people to find, hopefully I must say, one that truly works the business and be as committed as you.
Now lets talks compensation plan. This is the part that most people get really excited about, and for those that are successful, rightfully so. Most MLM's fall under one of the following compensation format, Uni-Level Matrix Plan, Force Matrix Pay Plans, Binary Plans and Breakaways just to name a few. These plans are great if getting paid small percentages for all your efforts is your cup of tea. Lets look at the example below of one of the more popular MLM companies:
Qualification Commissions' % paid per level
1st 5% 5% 5% 5% 5% 5%
2nd 5% 5% 5% 5% 5% 5%
3rd - 10% 10% 10% 10% 10%
4th- - 5% 5% 5% 5%
5th - - - 5% 5% 5%
6th - - - - 5% 5%
7th - - - - 5% 5%
8th - - - - 5%
9th - - - - - 2%
Compression - A seamless process that creates a full nine-level commission payout even if specific, individual levels may not include a qualifying member. Due to the complexity of the compensation plan I chose just to show the percentage payout.
If one is to achieve a substantial income according to the above compensation plan one would need to sponsor 100's of distributors. If I was to ask if you would come to work for me part time or full time and I'm going to give you 5% of 0 for every hour worked, surely you would tell me where to go with my job; so why is it that you would spend countless hours, months and years working to build an MLM in which your chance of success is less than 5%?
Do not rely on these programs to generate wealth for you. Depend upon yourself instead. If you are looking for a self-proclaimed leader to lead you to financial liberation using one of these business models, your chances to succeed will be slim - and this is according to statistical facts, NOT my opinion.
