3 People Who Should NEVER Start an MLM Home-Based Business
One of the biggest lies propogated by MLMers trying to build a team is….
“Everyone and anyone can be successful with MLM!”
The fact is that, while MLM offers people a great opportunity to start a business who would otherwise be unable to do so, there are certain people who have ABSOLUTELY NO BUSINESS being in MLM.
Meet 4 such people:
Meet Lazy Larry
Larry’s friends gave him that nickname because he is, well, incessantly lazy! Larry hates work. Larry’s job isn’t terribly challenging, but he has to wake up early and he always feels tired. When Larry return home from work, all he wants to do is eat his take-out Chinese food or pizza, kick up his feet, and watch TV until it’s time for bed.
Larry never exercises, so he is overweight. Larry doesn’t go out much, because it feels like too much effort. Larry hires people to clean his house and cut his grass, even though he really can’t afford it.
Lazy Larry should NEVER start an MLM home-based business.
Like any other business, MLM takes a lot off effort to get it off the ground and grow and maintain a downline. There is no room for lazy people in MLM (or any business). MLM takes WORK!
Meet Worried Wanda
Wanda is a financial mess. She works at a job that doesn’t pay nearly enough. She can’t seem to stop spending money at the mall, and her charge cards are maxed out. He husband just got layed off, and Wanda is worried that she will be next.
There are never enough dollars at the end of the month, and Wanda doesn’t know if she’ll be able to pay next month’s mortgage payment. She is worried that she and her husband will end up homeless.
Wanda should NOT be starting an MLM home-based business.
Although MLMers promise low start up and monthly costs (and they ARE low in terms of starting a business), the fact is that it takes MONEY to run a business, and no one in a financially desperate situation should ever think of starting a business. It makes no sense, but you’d be surprised how many calls I get each week from people in similar situations who want to join my team.
I tell them to get their finances in order and then give me a call. I want to sleep at night.
Meet Angry Alan
Alan is angry at the world. He has what some would consider a “tough life” — he grew up without a dad, his wife left him for another man, and he can’t seem to hold a job because he keeps punching out his boss. Alan thinks that everything that happens to him is someone else’s fault. He feels targeted, put upon, and like the world is always dumping on him.
If he gets fired, he blames his boss. When his wife left him, it was all her fault for not loving him more. When his kids don’t want to see him on “his weekend”, he blames them for not honoring their father. In other words, Alan takes NO RESPONSIBILITY for anything that happens to him.
Alan should NEVER start an MLM home-based business.
It doesn’t matter if Alan has a good deal of money to get started. It doesn’t matter if he has all the time in the world to devote to his new business venture. Alan will fail– GUARANTEED.
Why?
Because when obstacles come up, blocking his success (and this happens all the time with any business), Alan will blame anyone but himself. He will feel VICTIMIZED, and he will quit.
When starting a network marketing business, you have to prepared for the setbacks. You have to understand that things are going to go wrong, block your way, and sometimes even seem insurmountable. You have to take FULL RESPONSIBILITY for everything in your business, accept temporary setbacks, and find a way around them. If not, you are doomed before you even start.
- Network Marketing is great for people who are not afraid of work and, in fact, look forward to challenges.
- Network Marketing is great for people who are not in financial ruins and can give their new business the time it will need to grow and flourish.
- Network Marketing is great for people who take full responsibility for everything that happens in their lives.
But for Lazy Larry, Worried Wanda, and Angry Alan, well….
Let’s just say that their money is better spent somewhere else, as in…
A treadmill for Lazy Larry…
A financial counselor for Worried Wanda…
A therapist for Angry Alan!
Got any more to add? I’m sure we’ve all had people on our team or met people who have no business being in MLM, if they haven’t quit already… tell me your stories!
To your success!
Dr. Bob Clarke
Find more of Dr. Bob Clarke’s training here.
MLM vs. Direct Sales: How Would You Rather Get Paid?
If you are in MLM and haven’t seen Mike Dillard’s famous (or in some MLM circles, infamous) Coffee House Letter yet, you should definitely take a look. You may not agree with it all, but Mike definitely makes some valid points.
The Coffee House Letter has drawn some controversy from MLM loyalists. I read one blog post yesterday from someone who was incensed over Mike’s letter. His main argument was that MLM is stronger than ever, and the key to building a strong downline is in building relationships with your team.
I don’t think anyone can or would argue this point about building strong relationships, and it wasn’t the focus of Mike Dillard’s letter. Rather, it was the concept of residual income versus getting paid first (or GPT, as in Getting Paid Today).
I have been in both business models, so I think I can speak on this with some level of expertise.
During my MLM experience, it took us months to build a downline where we were receiving a decent residual income each month. And truth be told, over half of that income came from one consultant.
One month, this consultant just disappeared, apparently moving to another opportunity. This was exactly the scenario that Mike Dillard painted in his Coffee House Letter, and it was devastating to our team.
We are currently involved in a Direct Sales opportunity where the commission structure is much like that of the mortgage and real estate industries. Our main commission flow each month is from the direct sales of our company’s products, and we get paid UP FRONT for these sales.
There is also a one-level residual income built into this commission structure, giving us both direct and residual income each month.
The best part of this commission structure is that we get paid today, not waiting for residual income to build up. And we don’t worry about someone leaving our organization for another opportunity. If someone does leave (and this doesn’t happen often), we have already received the commission on his main product purchase(s) to gain entry into the program. If we lose the residual income from this person, it will sting but not be a major hit on our monthly income.
There are merits to both the MLM and Direct Sales business structures, but having experienced both and given today’s unstable economy, I would much rather get paid upfront, today rather than wait for residual income to build.
What do you think?
To your success!
Bob Clarke
November 11, 2008; Cresskill, NJMLM Success: Make the Effort to Attend a Live Event
I’ve heard it stated that those people who attend their MLM or direct sales company’s live events have a significantly higher chance at succeeding than those that don’t attend.
Why would this be true?
I just returned from the Second Live Marketing Event in Dallas, Texas sponsored by Carbon Copy PRO Marketing. I’ve already reviewed the event in a recent post, but today I’d like to get more into the mindset of attending live events.
What do you get at a Live Event that you can’t get sitting behind your computer?
- Informational trainings and company updates
- The ability to put faces to names of those you have become familiar with in your company
- The chance to form friendships and brainstorm with people in your company
- Many times there will be promotional discounts on company materials
- Time away from the drudgery of every day life and, usually a renewed drive to work your business.
These are all great advantages to attending a live event, but I’m not sure they can explain why people who attend these events go on to success at higher rates than those that do not.
I believe that it is not the attendance at the Live Event per se that subsequently drives a person’s success in their business, but rather something far more basic.
I believe it has more to do with a person’s mindset and drive.
This is a person who understands the importance of self improvement, education, and training in building their business empire.
This is a person who understands that no man (or woman) is an island, that we need to work with others to really make our business thrive.
This is a person who does not hesitate to spend money to advance their business.
For all the above reasons, I believe it is not the attendance at the live event that makes the difference between successful and unsuccessful home business owners.
It is the intent and willingness, the mindset if you will, of the person to take their business to the next level by attending an event that really matters.
The event might be fantastic, with exceptional training and full of “golden nuggets” of information to take home, like the Carbon Copy PRO Marketing Event I just attended.
Or the live event might be lacking in substance, a little boring even….. it matters little.
What truly matters is the EFFORT you took to attend.
This is what distinguishes those that succeed and those that don’t in the MLM and Direct Sales business arena.
Carbon Copy PRO Marketing Event — New Strategies, Inspiration, and a New Porsche
Wow! I just got back from a live training event and here are the details….
That’s all I can say. I have been in the Network Marketing industry for quite a few years now, and I have never been to company live events that actually TEACH people HOW TO MARKET. Until now.
Carbon Copy PRO’s Second Live Marketing Event in Dallas was held on Saturday and it was an amazing mix of new strategies, tips, and great discounts on coaching from experts in the world of marketing.
And they even gave away a new Porsche!
Here’s a glimpse at the schedule of events (non-inclusive):
- M.J. Durkin of Sales Judo Academy started things off with terrific tips on how to prospect, build your list, and secrets of leaving great voice mails. Many nuggets here, folks.
- Jimmy Davis and Dennis Karganilla of MLM Goldmine, the masters of Web 2.0 provided their own gold nuggets for the audience with their tips on making MySpace and YouTube work.
- Howie Schwartz of Conversation Domination continued the Web 2.0 theme and showed everyone how he routinely ranks on the first page of Google using Web 2.0 methodologies.
- Cherie Yvette, the Urban Cowgirl, unveiled for the first time her new Pay Per Click software that will revolutionize the way everyone optimizes their PPC campaigns. Amazing stuff at an amazing price.
- Natalie Stahl of Platinum 7 Consulting presented her Weekly Action Plan, providing consultants with a formal plan that will turbo charge their online businesses. Natalie also outlined the outsourcing services available exclusively for Carbon Copy PRO members.
- Kep Herriage and Karl Bessey, co-founders of Wealth Masters International, provided an overview of WMI’s unbelievable financial education and wealth creation products available to Carbon Copy PRO members. Given the current financial climate, these products and strategies couldn’t be more important.
My point is two fold, here:
- If you are a member of Carbon Copy PRO or Wealth Masters International, you missed something HUGE here. You missed a chance to pick the brains of some of the absolute experts in online marketing, providing THE MOST CUTTING EDGE STRATEGIES.
- If you are a member of other network marketing opportunities, think very strongly about attending a live event. Statistics show that new members of an opportunity that attend a live event within the first few months of joining have a much higher chance of success than those that do not attend a live event.
Oh yea, I almost forgot. The leaders at Carbon Copy gave away a prize for the person who sold the most Business in a Box product since it’s introduction a few months ago. The winner got…. well, you can see it. Again, WOW. Lucky guy!
Glad to be back, guys. And ready to roll.
To your success!
Bob Clarke
October 19, 2008, Cresskill, NJ
MLM Success: No Experience Necessary?
If you spend any time on Google or the other search engines, you’ve undoubtedly seen ads for home businesses where it is boldly stated…..
NO EXPERIENCE NEEDED!!!
Well, I guess it is true that you need not have any prior experience in sales, marketing, or business ownership to START your home business. But SUCCEEDING as a home business?
Well, that’s another story.
I consider myself a fairly smart guy. Ph.D. in physiology at the age of 26, postdoctoral research at Harvard Medical School, Associate Professor at Cornell University Medical College.
But when it came time to start a home business with my wife, Rosemary…… I was MYSTIFIED.
I mean, this was a whole new world!
I had never sold anything, never marketed online or offline…. but I was told that there was NO EXPERIENCE NECESSARY to start a home business, so I dove right in.
What did I find? What everyone other network marketing newbie finds…
Confusion, Frustration, and Bewilderment.
Listen up guys… NO matter what anyone tells you….
THERE IS A LEARNING CURVE when you start anything new…. including Network Marketing.
How big is this learning curve? That depends.
- It depends on how much time you’re willing to spend learning your new craft.
- It depends on your level of experience when you start your business. Obviously, the more experience you’ve had, the farther up on the learning curve you will be.
- It depends on the business opportunity and how much in-house training they offer, and the quality of that training.
The last one was the reason we chose our current business, because they offered online training and education above and beyond anything we had seen (or have seen since) in the industry (the business is Carbon Copy PRO, and this isn’t a plug, just the truth).
But it still took TIME.
No getting around it… it just does.
Are you willing to invest in YOU, to get the training and experience you need, and be patient for the results?
I hear so many stories of people quitting their home business opportunity just before they are ready to reap the profits of their hard work. They become inpatient and disillusioned.
YOU CAN BE A SUCCESS IN NETWORK MARKETING.
IT MAY JUST TAKE A WHILE.
To your patience and dedication,
Dr. Bob Clarke
October 6, 2008; Cresskill, NJ
MLM Success Secrets: Can I Make Fast Money?
The quick answer to this question is: NOT USUALLY.
You’d be surprised how many people I talk with who really want to start a home business, or so they think. But when I really start asking the tough questions about their motives for wanting to be a home business owner, things often get a little dicey.
My first 3 questions are always the same:
- Do you have any prior sales/marketing/home business experience?
- How much capital are you willing to spend to get your business started and positioned in the compensation plan?
- What is your monthly income goal and how quickly are you looking to attain this goal?
By the time I get to the 3rd question, you can just see the eyes starting to glaze over. It’s about this time that they realize that a home business is going to mean HARD WORK and some MONEY to get it going and maintain it until a profit is seen.
It’s also at this point that I lose alot of prospects, but that’s okay with me. I’d rather find out now than to invest a lot of time in training and mentoring, just to have them drift away from disillusionment.
In the next few blog posts I will examine each of these factors in more detail, but in general, here’s the truth in making money with a home-based business:
- You’ll make money faster if you’ve had prior experience in sales and marketing, or if you’ve owned a business before.
- You’ll make money faster if you buy into the opportunity at a higher level in the compensation plan (consider this your capital investment).
- You’ll make money faster if you have a marketing budget that will allow you to get the word out. In general, the more you can spend in marketing, the more extensively your product will be in front of people, and the more sales you will make.
We’ll discuss these more in future posts, and how you can shorten your learning curve if you are lacking the experience that will put you in the winners circle.
To your prosperity!
Dr. Bob Clarke
October 4, 2008; Cresskill, NJ
Why is the MLM Failure Rate So High?
It’s generally accepted that approximately 97% of all MLM home business owners will spend more money than they make. This results in nothing more than a fairly expensive hobby, and ultimately results in MLM failure.
Why?
I posed this question to several of my colleagues in the home business industry and, to my surprise, there was an overwhelming similarity to their responses.
The NUMBER ONE reason that most experts gave for the high MLM failure rate?
UNREALISTIC EXPECTATIONS. People getting into the business for the wrong reasons, and expecting unrealistic results.
Who is to blame for these unrealistic expectations. I believe the fault lies with both the new business owner and the network marketing industry.
Many people start a home business NOT to build a long term source of income but to make money quickly. They need money to pay bills, to pay off debt, or for some unforeseen emergency.
They read the HYPE on the internet, or get caught up in the excitement of a presentation, and sign on the dotted line.
Next thing they know, they find out they have to spend more money to purchase more products or to get higher into the compensation plan to make the kind of income they need.
They soon find out that there are a whole set of skills they need to be truly successful, including sales, copywriting, and marketing skills that take most people years to acquire.
And they get frustrated.
What they really want is quick money, a lot of money is as little time as possible.
They did not sign up for the long term plan.
But that is what a home business really is. It’s NOT a get rich scheme, it’s a get rich slow scenario.
And we in the Network Marketing and MLM industry are also to blame. Because of the HYPE.
We set people up for their unrealistic expectations based on our “hypey” ads, our misleading sales pages, and our broken promises of full and complete training.
That’s the bad news.
The good news? There ARE companies out there that deliver what they promise in terms of training and support. There ARE companies that cut the learning curve down dramatically with their systems.
But even so, it still is going to take the inexperienced marketer some TIME to acquire the necessary skills to succeed in their home business.
That is why I make sure that all of my prospects UNDERSTAND UP FRONT that they will need to work at their business, to treat it like a business and not like a hobby, and to learn skills they may not have at the moment.
I make sure my prospects understand, REALLY UNDERSTAND our company compensation plan, so that they are not blindsided by any additional funds needed to get their business off the ground.
Do less people sign up with me because of this. UNDOUBTEDLY.
Does it bother me? NOT A BIT.
Why? Because the ones who don’t sign up are the ones who would drop out within 6 months anyway. They are not really looking for a home business. They are looking for extra cash. And most times they don’t really want to work all that hard to get it.
What am I left with? A team of serious entrepreneurs who understand that it takes time to attain success and that sometimes money has to be spent in order to generate more significant earnings later on.
And these people are HARD WORKERS. They are not looking for a free lunch.
They are my kind of people!
To Your Success!
Dr. Bob Clarke
September 30, 2008; Cresskill, NJ
Free MLM Home Business Opportunities?
My parents always told me that nothing is for free. Nothing comes without a price.
How right they were, especially when talking about MLM home business opportunties.
This blog is about TRUTHS, so here’s one for you:
THERE’S NO SUCH THING AS A FREE LUNCH!
How does this relate to Network Marketing and MLM? Plenty.
I hear from those “interested” in starting a home business all the time….
When will I start making money. I need to make XX dollars in a month right away. Oh, and by the way, I have no money to start and advertise.
Well, here’s what I have to say to that — PLAY THE LOTTERY OR SELL A KIDNEY.
Nothing is for free in Network Marketing.
What people don’t understand is that in just about every opportunity I have ever researched, there is a baseline entry price, the lowest price you can pay to get into the business, but to make the REAL money, you need to “buy up”.
In other words, you need to put down more money to get to a higher compensation level so that you can get the higher payouts when you make a sale.
This is how the BIG MONEY is made in MLM and direct sales.
So, sure you can start your business with as little as $100 in some companies, but you won’t make much money at that level. What they don’t tell you is that you need to shell out another $1000-2000 to get to the next compensation level.
And that’s fair — but people act surprised.
It takes money to make money. Or something as valuable as money.
Take the case of free leads in advertising. Is there such a thing?
Well, it’s true you can get free leads by putting up videos on YouTube, writing Squidoo lenses or HubPages, or authoring articles. But unless you know what you’re doing, you won’t get many leads.
Why? Because you need to have the training to do these things well. How do you get the proper training?
Not the training you get on YouTube. I’m talking about learning from people who have had real success using these Web 2.0 marketing methods.
You get that kind of training with money. Nothing free about that.
Rosemary and I learned how to generate our own FREE LEADS by training with the brilliant Dennis Karganilla and Jimmy Davis of MLM Goldmine. I mean, these guys could make your head spin with their knowledge of Web 2.0.
We payed out money gladly, because we knew that it would pay for itself several times over. And it will.
But the point I’m making is that it costs money to get the training we wanted to become really proficient at generating our own free leads.
Nothing is for free.
Don’t expect it, and you won’t be disappointed.
This is the truth.
Until next time,
Dr. Bob Clarke
September 25, 2008; Cresskill, NJ
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