MLM Secrets From the Pros

In Multi-Level Marketing (MLM) there is only one thing that separates the novices from the pros: the pros know three MLM secrets that safeguard them against signing on with MLM businesses whose salespeople are doomed to fail.MLM Secret #1: If the company's product isn't the focus, the business is probably less than legitimate. Even if it is perfectly legal, it has gone against the spirit of selling a viable product and toward the ambiguous territory of selling a scheme. The only reason for a company to seek a large sales force is because it wishes to sell a lot of product. So, a large sales force combined with a diminished focus on product inventory is a serious red flag.MLM Secret #2: High incentives to bring on new sales people means you will make little on your own or your referrals' sales commissions. When the company is structured such that profits are better for referrals than they are on basic sales commissions, both you and those you referred will abandon the core business in favor of referring others. Eventually, you will learn that you cannot earn or maintain attractive profits because you will run out of people to refer. The budget required to generate a steady stream of sales referrals usually exceeds the corresponding financial gain.MLM Secret #3: The more complex it sounds, the more wary you should be. It's not that complexity is fundamentally bad. Yet, the basic concept of MLM is painfully simple: the more sales people there are to sell a product, the better. Representatives should be poised to make plenty of cash on product sale commissions and referrals alone-if it seems like a company is overselling strange money-making channels, it could be a signal that the MLM business is an ethically questionable scheme.