Since I’m already wearing my flak jacket and helmet (on loan from Chris Owen), I figured I’d stir up some more controversy. Apparently, I love
shaking up the hornets nest. So here’s MLM marketing controversy number 27.
Yep, They Suck!!
You can’t market your MLM or network marketing company with paid traffic without a good funded proposal system. There in lies the Suckiness of MLM and network marketing. Most companies don’t pay enough front end commission for you to be able to cover your marketing costs. The only way to operate one of those two business models with paid traffic is at a loss for several months until some of your down line is producing.
Free Still Has It’s Place (Even If It’s Not Free)
Hence my agreement with Wayne Vassells comments on my post last week. Free (or not so) traffic is a neccessary evil when marketing your MLM or network marketing company. You have to rely on these traffic sources before being able to move to paid traffic, unless you have a tried and true funded proposal system (i.e. MLSP, CCPro, or Harmonic’s new system). Without one of these tested systems, you will be spinning your wheels for a while testing with paid traffic.
Paid Up Front Is Better For Me …
The solution: Direct Sales. I guess it’s not really a secret that I prefer DS to the other alternatives. Hence the blog name right? I can afford to spend $7-$8 per lead because my business pays over $1,000 for a $3K product. Sure the backend isn’t as good as MLM, but I can turn up the traffic and basically gauge my income by the spending on PPC. I am not relying on the 3 out 100 I would bring into a traditional MLM or NM to make me successful or help my income.
And, They Still Suck!!
NM and MLMs Suck, but I am still building one on the side just to prove that it can be done. I am getting there, but I won’t have a full recollection of the total costs until I am there. Here is one other thing that you could do (Hint: I’m doing this) to use paid traffic for your NM company as long as they offer some moderately expensive products ($400+). I focus on selling the products that will allow me to cover my expenses and just run through the numbers. There is X amount of consumers that want additional income, but might not be searching for that when they come across it.
The last statement goes back to my point from four or five posts ago about working your business tangently and not on the same front as everyone else was trained to do. Remember, the effectiveness of all the “Goooooo Rooooooos” tactics get watered down after about the 1,000th copy of their course is sold (give or take a few courses). <— This is why going after the low hanging fruit and let the numbers work themselves out is one of the best ways to go. For the most part, the numbers are the numbers, and that being said, I would rather get my numbers outside of an ultra competitive market.
BAM!!, That – Just – Happened! MLMs Suck!!! Network Marketing Companies Suck!!!
Thanks,
Eric, Elvis Has Left The Building, McMillan
P.S. Thank You, Thank You, Thank You Very Much
P.P.S Living Tangently Will Make Your Business Explode
P.P.P.S Bring On The Comments


{ 8 comments… read them below or add one }
Hi Eric,
This is definitely a controversial statement!
I think, for me, it is best to have a mixture of direct sales AND a good Network Marketing business…
Because you just can’t beat the residual income aspect that MLM promises.
But making some up-front cash from direct sales? That is a HUGE part of what it takes to be successful, as well.
I’m looking forward to seeing what other people have to say about this…
Success,
I have managed to strike a chord with most of the regular visitors to this blog. I agree with you that the backend money from NM is phenomenal, but people get sold the quick and easy dream. However, in order to be successful, people need to focus on that here and now money that is offered by direct sales and build their NM company over time. I guess it’s like having your cake and eating it too. One just takes longer than the other and that’s why there is such a high fall out!
Keep it coming, I definitely agree with this assessment!
Hey Eric,
You sure are bringing up a topic that will stir up things. Since you like to play with wasp, once in a while you do get stung.
If you don’t have a balance of upfront money to help out with the cost of your marketing and generating residual income in the back end. Then you are either going to be a constant selling machine to sell stuff up front and have to do it everyday. Or generating a residual income but having to pay for your marketing upfront and collect the residual income later.
That is why having a well balance machine will pay off. Can it happen overnight…Heck no! There is a learning curve.
Chat with you later…
Josh
Hey Eric,
You’re right, there is too much sold on how great this industry can be. Definitely not an approach that should be taken.
What really matters is if the person isn’t in it for the right reasons then why even bother.
There has to be something much more than that. It has to strike a chord.
Jerome Ratliff
OOOOhhhh!!!… this definitely will stir up the bee hive…
I’m actually not using any funded proposal, upfront direct sales model at all, because I’ve chosen to focus all of my energy on the back end residual income. Sure I’m missing out on upfront cash, but I don’t mind that.
My view is whatever you focus on, you’ll get most of. If you enjoy direct sales and focus your energies on that, you’ll do well there. Focus on residual income, that will expand too, with a little more patience
Take care,
Wayne
It is good to see you have a clear vision and understanding of where you business will go and what kind of time frame it will take to get their. The whole point to my post was that MLMs and NM companies sell a lie to people that they can generate a residual income in weeks and months, not years like is reality.
You can make a ton of money with those companies, but you need to fully understand the time frame in which those are going to take to come to realization.
Thanks for stopping by,
Eric
Eric… stop sugar coating it! say what you really mean!
If there is anyone you haven’t pis*ed off i’m sure you can get them with your next post
Haha love your style.
But you have me thinking, at what point exactly does NM become DS? I mean… there are a ton of pay plans out there ad they all reward in varying levels?
I personally favor one with a balance between front and back end (could make a joke with that).
Thanks mate,
Matt
Oh boy,
You just hold on to that flak jacket for a while. You may be needing it.
I am a direct sales guy myself. I just don’t have the patience to mess with huge downlines and tiny residuals.
I want my money today, and I want full control over it. I do like to throw the funded proposals in the mix. But I will take top tier direct sales over mlm any day.