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BobFirestone
Forums Member
Joined: 1 Jul 2009
Posts: 144
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#21 · Posted: 13 Aug 2009 02:06
getagrip: Oh, I like Matt too - I know he's a good guy and he might even belong to one of the few good MLMs out there
This is really the big issue of MLM as an industry or profession is finding one of the few good companies. If you show me 100 companies 98 of them are bad. It could be the product is low quality or over priced or just bizarre and unnecessary. It could be the company or the management. Or it could be the pay plan isn't right. Or the only money is made off of the recruiting bonuses not the sales of product.
I just read your story about the "nice girl". That was really funny.
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getagrip
Joined: 20 Feb 2006
Posts: 2079
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#22 · Posted: 13 Aug 2009 02:54
Good points, Bob - I guess there is good and bad in any industry. Glad you liked the story! 
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happywife
Joined: 14 Aug 2007
Posts: 1485
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#23 · Posted: 13 Aug 2009 17:37
I'm not a big MLM fan as a general rule, but I do happen to be part of an MLM company as well. I didn't have to pay any start up fee to join because I was making a minimum purchase of 2 products that I intended to use.
The company does have a membership fee (either $15 or $25, can't remember) if you just want to join without purchasing any products (don't see why you'd bother).
I learned affiliate marketing first, and I've tackled my MLM more with an affiliate marketing mindset, I suppose. I am not really working at getting people into the business opportunity. Instead, I'm recommending the products on my health site as a solution to various health issues.
As a result, I make decent commissions, but I don't/won't make nearly as much as I would/could if I was getting business builders under me. One day I suppose, when time permits, I'm going to have to start focusing a little attention to that side of the equation.
To me, the sign up fee isn't the big difference between affiliate marketing and MLM. The big difference is the purchase requirements.
With affiliate marketing, I'm not required to make any monthly purchases to qualify for the commissions I've earned in a given month. With my MLM (and any other I assume), I do.
Fortunately, I happen to use and enjoy the products myself, so it's no biggie. Also, no matter how 'high' in the company I go, I'll never have a huge purchase requirement - the most being about $150ish.
So, it works for me. I think it's important when 'recruiting' business builders in an MLM that you make sure the prospect has a genuine understanding of how the system works and what all is involved and required. Otherwise, you really don't do yourself or them any favors in the long run.
I agree that there are both good and bad MLM type programs. I would approach going into one with the idea of whether you can see yourself using the products for many years to come. Otherwise, you'll have a lot of stock in your garage after a while. 
Just wanted to add my own little penny's worth.
Blessings,
Angie
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Matt Zenittini
Joined: 16 Jan 2009
Posts: 454
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#24 · Posted: 13 Aug 2009 17:44
happywife: Otherwise, you'll have a lot of stock in your garage after a while.
Well said  . I always buy the products I can eat lol. Also the vitamins. Yes expensive, but it makes me feel like I'm not wasting my money to get my PV because I use them :P.
Matt
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BillMaverick
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#25 · Posted: 13 Aug 2009 23:09
mountainmom5: Plus a whole heck of a lot of work!
Well said, more work than most disclose
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Matt Zenittini
Joined: 16 Jan 2009
Posts: 454
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#26 · Posted: 14 Aug 2009 00:07 · Edited by: Matt Zenittini
writingmoney102: it is against the law to charge more than a couple of hundred dollars for a business opportunity.
Lol, do you happen to have sources to back this up?
writingmoney102: anytime you have to hunt for people to sign up, you should run the other way.
Actually, if you "hunt" to sign people up.... Then you are a "beta" and you will not succeed in MLM =].
Read Magnetic Sponsoring... Great book.
writingmoney102: I don't know why people still fall for this crap.
Ohhh, you got me there.
Why don't you ask one of the following people that:
Donald Trump
Robert Kiyosaki
Warren Buffet
Roger Barnett
It's funny the way some of the most successful people in the world are all in Network Marketing when it's such a total scam  . I mean I CAN'T believe they fell for it!!. That's so funny that billionaires are sucked into it just as we are. =]
Maybe you should do your research before spamming threads.
Thanks
Matt
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BobFirestone
Forums Member
Joined: 1 Jul 2009
Posts: 144
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#27 · Posted: 14 Aug 2009 02:27 · Edited by: BobFirestone
Matt Zenittini: writingmoney102: it is against the law to charge more than a couple of hundred dollars for a business opportunity. Lol, do you happen to have sources to back this up?
Against the law is the wrong choice of words.
In the U.S. there is legislation regarding the amount of disclosure that must be presented to perspective business opportunity buyers prior to getting started and $500 is the line in the sand.
If the startup kit is under $500 there are minimal amounts of disclosure required which is why in most MLM's the agreement is only a page or two long. And why so many charge exactly $499.
If the startup kit is over $500 the company is required to provide a large disclosure document including things like actual income breakdowns and lists of current participants that perspective business owners can contact. If you want to see what this type of disclosure looks like inquire about buying a traditional franchise.
The $500 is only the distributer kit (or what ever the company is calling it) not product. A MLM can offer a $999 starter package with a $39 kit & $960 of product.
This leads to the issue of "front loading" which is against the law. Front loading is where a company requires you buy thousands of dollars of product to get started. A company can't require you buy thousands of dollars of product, but it can offer it. To ensure compliance most companies offer multiple startup packages with different inventory investment levels or just a distributer kit.
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Matt Zenittini
Joined: 16 Jan 2009
Posts: 454
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#28 · Posted: 14 Aug 2009 03:07
Thanks for clarifying Bob.
That makes very good sense.
writingmoney102: Plus, most MLM companies what you to make an "investment" of 250-1000 dollars. But what most people don't know is that it is against the law to charge more than a couple of hundred dollars for a business opportunity.
So lets not spread nasty rumors .
Matt
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Matt Zenittini
Joined: 16 Jan 2009
Posts: 454
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#29 · Posted: 15 Aug 2009 23:54
BillMaverick: Well said, more work than most disclose
It's like going in for a job interview.
Ask about your job description and understand it well.
If you don't ask and then find out you have to take the trash out.
Don't complain =]
Matt
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Empowered
Forums Member
Joined: 10 Jul 2009
Posts: 5
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#30 · Posted: 6 Sep 2009 02:18
I'm not an expert on MLM companies like some of you, but I am involved with one. This company, of which I am an independent affiliate, offers a great opportunity to supplement your income with your own domain name, your own website with web hosting, and 10 email accounts all at an affordable cost. Like any system such as with affiliate marketing there is definitely ground work to be done prior to making any money. Nevertheless, the system does work. Just like all companies aren't the same, neither are all MLM companies. All business should be evaluated on their own merits.
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