Mick Haensler

WHY MLMs DON’T WORK(for 99% of you)

There has been a lot of hype recently in my home town regarding the spread and proliferation of MLM opportunities. I make it no secret that I am not a fan of these organizations. I’ve been to several recruitment meetings(great entertainment value BTW), read a lot of information from outside and inside the companies themselves, talked to IBO’s(independent business owners), Team Leaders, ex IBO’s and business experts and have come to the conclusion that despite the claims(wait a minute, I thought they weren’t allowed to make claims??), the overwhelming majority of people who join an MLM will not be financially successful. Big surprise huh!!!!

What may surprise you is why I think this. It’s not because of their outrageously overstated hype, overpriced services or products, potential market saturation or outdated and irrelevant business model. It’s not even because of the mathematical impossibilities of their compensation structure. It boils down to one thing for me and here it is:

The overwhelming majority of people who get involved in an MLM will not succeed because they do not have what it takes…..it’s that simple.

Being successful in any business venture, just like doing a workaday job, requires a certain set of skills and a certain mindset. If you are not currently running your own business or have not run your own business in the past, chances are you do not have the mindset to succeed at MLM. Additionally, you will more than likely not develop that mindset in a time period conducive to becoming successful at MLM. Think about it. You’ve been working a job your whole life, you’re used to being told what to do, when to do it, and in a lot of cases, how to do it. That is your mindset. You’ve been taught this since Kindergarten. Our educational system is built around it and most parents have encouraged it. In order for you to make MLM work, you will have to shift that mindset dramatically and do it in a short period of time so that you don’t get discouraged and quit.

Shifting a mindset that has been entrenched for years is an extremely difficult thing to accomplish. Not at all impossible, but difficult. MLMs know this and actually bank on it by playing to your desire for change. They also know they are ill equipped to assist you in executing real change in your life. They throw around terms like “personal development” and “the law of attraction”. They quote the likes of Zig Ziglar, Brian Tracy, and Bob Proctor chapter and verse. They will pump you up with so much positive thinking and Hoo Rah that you will beg them to take your money because you want to be a winner just like them!!! They will convince you that everything you have done or accomplished in life up until now pales in comparison to what you can achieve by signing up. But here’s the thing.

There is nothing wrong with you. Sure, you’ve got your issues, who doesn’t. You’re tired of working so hard, who isn’t. You would love to have more money, who wouldn’t. Welcome to the human race my friend!! And here’s another thing they won’t tell you…..are you ready? There is nothing wrong with having a job. That’s right!! We need people who go to work every day and there is absolutely nothing wrong with you if that’s what you do! You may have a lot of other problems but that a’int one of them. And guess what else….you’ll love this.

Plunking down $500 or $300 or whatever does NOT buy you a business, will not make you an owner of anything and certainly will not give you independence. The IBO(Independent Business Owner) is pure, unadulterated fiction. You will become part of a team whose leaders will tell you how to do it, where to do it, and who to do it with. They will encourage you to distance yourself from those who don’t support your new “business”. Most will not allow you to set up your own website without written consent(which they won’t give), produce your own marketing materials, or post on social media on behalf of your new “company”. Some will tell you what you can and cannot name your new company and who you can and cannot call on to solicit business. In other words, you just handed over your hard earned cash to buy……………………a job. So maybe you do have what it takes after all!!!

Disclaimer: While the vast majority of MLMs operate in the manner discussed in this post, not all do. As with anything, do your homework. Read every word in their Policies and Procedures. Scrutinize the Compensation Plan. Ask hard questions at recruitment meetings. And always remember. No one, and I mean no one, has ever made a sustainable living selling products or services through an MLM. The ONLY way to succeed is to recruit a downline. If you have been approached to join an MLM and are considering the opportunity, might I suggest a bit of light reading for you.    

http://ftc.gov/os/comments/bizoppstaffreport/00008-57281.pdf

  • steve

    I know mlms dont work, great article. So for those of us who want to work at home, what do we do??

    • Eightlaps

      You said mlms dont work which is true to people that are lazy or not willing have a desire to what it takes. You said what you can do when working from home, I say get out of your comfort zone and start finding people who are serous about making money. Ofcourse MLM will depent on what kind of products it sells. If it is a product that wont really interest people or is not really needed it wont succeed. There is other type of mlms such as insurance, now that is cool. Who doesnt want an insurance cover? Everyone need one should they family etc died. MLM products such as weight loss is surely not the way to go because it not that really needed compared to insurance. Have your read this article? It state exactly what you need to be succeeded in MLM’s for instance “skills and a certain mindset” If you dont have it or even better if you are not motivated it wont work. Dont come here and make an excuses when it dont work. I bet you have done nothing or you must have talk to the potential client in the wrong way. If that is the case you can however learn from other succeded people esp in sales. If someone recuited you in your mlms which you stated it doesnt work because maybe you tried in the past. You can always ask that person or even better the main partner who created the MLM in the first place for advice and you can really learn from it. Saying it doesnt work is like when youre a baby and when you are growning you still cant walk. Which is not true you grow and learn same with mlm. So stop your excuses. No wonder people has given mlm a bad name because they are lazy or doesnt want to know about it and instead complaining it doesnt work. It DOES work if all people are willing to give a shot and take action! If one of your recuiters dont want to join then thats fine keep on inviting! Its they loss if they dont wanna join. Also very very important you should join only to legimate mlm bussiness not fake mlm that would promise you millions dollars in shorterst time. That is where people are stupid to fall for it. mlm is not get rich quick scheme it takes time BUT it IS possible to get money fast if you can your goal and these people willing to do the same! Good luck my friend!