Choosing The Right Multi-Level Marketing Company To Promote (written March, 1998)
There are many factors to consider when choosing which MLM opportunity to promote. The one variable, which I will discuss today, is whether or not the MLM company has proven itself as a viable and long term money making opportunity. All too often this topic is overlooked and it is crucial! A distributor’s future is 100% dependent upon the success or failure of the company that they have decided to promote. This is contrary to the popular myth that the distributor is in “total control” of their success by whether or not they “work” the opportunity. If the company goes under, there goes the distributor’s efforts. I will discuss in the next paragraph a very important fact a distributor should know before they decide to jump aboard the next golden opportunity to Disneyland. Unfortunately it is consistently overlooked by so many good people.
Has the company proven itself? What do I mean? Well how long has the company been in business? Have any of its distributors reached “the ultimate?” Two important questions, because facts are facts! More than 90% of all businesses go out of business within the first few years. That’s all companies in all different types of industries. MLM companies are probably more like 99.9%! However I do not have any proven statistics to go by, but I am currently looking at a very popular direct mail publication from September of 1990 – less than 8 years ago, and it shows that of the 64 ads being advertised, there is not one opportunity that was being advertised that still exists right now! Not one! That is 100% failure! Don’t get me wrong. I’m not suggesting that you don’t get involved with an MLM opportunity. Quite the contrary. All I’m suggesting is that you get involved with the right one that will give you the chance you deserve. If you do join into a new company that begins today, do you realize that you are giving yourself a 99% chance of failure because it probably will not exist in a few years? This means that if you joined right now, your chances of being successful are about 1% – and that has nothing to do with you at all. 99% chance of failure before you even “work” the opportunity. You probably have better odds playing the stock market or the lottery. I personally would not get involved because I like to think that I do have 100% control over my future. It doesn’t make any difference whether you are at the top, bottom, middle, or anywhere else. If the company goes under, your efforts and every dollar you spent is wasted. Keep this in mind when that next great opportunity is on the horizon.
The myth of working a program for a few years and then sitting back to reap the benefits – you heard this one before – haven’t you? Well if 99% of these MLM companies are going under within a few years, how do you “work hard” for a few years and then reap the benefits? Doesn’t happen – does it? Hasn’t happened – has it? In fact every time another MLM company goes under, all your efforts and all the money you invested into that program has gone to waste. Now, I don’t know about you, but that would make me angry and it has. The reason I know what I know is because I have had large organizations in MLM companies that have gone under and with it – all my efforts and all my money I invested went with it. It was my fault. Before I started with them, I knew there was a 99% failure rate, but I decided that these companies were “debt free” and “rock solid” and so on and so forth and you know what, it was not to be. I learned that if a company is “debt free”, there is something wrong. Why? Because nobody on this earth is “debt free”. You need to borrow money to get the things your company will need. Like space, equipment, telephone lines, advertising, etc. So keep in mind that before you begin with any company, make sure it has proven itself first – the test of time!! And make sure, it doesn’t try to “lure” you with ridiculous statements, like “debt free” and “rock solid”.
Please don’t misunderstand me. Some companies that have proven themselves do go under and some new companies that will start today will prove themselves over time to be great opportunities. I like my odds better with the proven companies, though. There is a far less chance to lose your money if you really want to “work” the opportunity.
If you are going to get involved with new MLM companies, look for one that has consumable products and/or services, a company that has proven management, a company that has gotten the Post Office’s approval to promote through the mails, and most of all, a company that has good training materials. Research before you invest. Then invest wisely. Just like you would in the stock market. Be careful not to fall for “unbelievable” claims. If you don’t believe it, it probably isn’t true. In addition see if you can help the new MLM company somehow – some way. You can call them and help them by asking what you could do to help them achieve the goal of staying in business and you don’t need to be compensated directly for your efforts. Think about it? Would you rather put some extra time and effort into a new MLM company to help them stay afloat in the 99.9% failure first few years or see your money and effort go to waste? I think the lesser of two evils is to help them. Of course, it’s up to you.
Please keep in mind that companies in every industry go under every day for any one of a multitude of reasons. Most all of them unforeseen and completely legitimate. It is not easy to run your own business and all too many people give it a try and fail. Again because it probably looked like something else and it was much tougher than originally anticipated. So before you join into any MLM company, I would encourage you to make sure that the company indeed has withstood the test of time.
Thank you very much for reading my article. Peace & God Bless.
The author of this article is Larry Costello, President of All-American Print & Mail, 2200 Wilson Blvd #102-57, Arlington, VA 22201.