Boy, my last post on MLM and Network Marketing opened up the floodgates of Twitters and calls! So here is what I have been sharing in response to everyone who wants to learn more about using MLM for generating revenue for college (as well as other dreams and goals).
Question 1 - Do I really have to do the 5 steps you listed in your previous blog to be a business? Idon't have the time or money to do it until I am successful with the MLM. If you want to be able to deduct expenses in excess of earnings on your taxes, per the IRS, yeah, you gotta do all 5 steps. I don't make the rules. And these steps are NOT expensive or time consuming. I would recommend if you aren't going to run it like a business, stop thinking about it as a way to make money. Just enjoy buying the products or services of the MLM at a member discount.
Question 2 - Which MLM and Networking Company(s) do you recommend? This is a complicated answer so I'm going to take about 4 paragraphs to answer.
I have tried many MLMs over the years including Quixtar/Amway, VitaMark, Isagenix, Arbonne, JuicePlus, Cambridge, YTB Travel, Jafra, and several that disappeared like ForceOne. Many were great, some sucked, some were out and out rip-offs. Most were sold to me by well-meaning and excited friends. The friend who sold me the sucky one disappeared from our circle of friends out of embarrassment! But in doing this blog I realized that the 3 I am with now were not sold to me by friends! They were sold by people who ran their MLMs like a BUSINESS.
After learning how to really measure what makes a GREAT MLM it came down to 4 things: (1) upline support & training, (2) compensation plan (read the contracts!), (3) longevity, and dead LAST (4) the product or service.
Most new MLMers get it out of order by fixating on the wonderfulness of the product and not the 3 more important items. You will never sell anything without training. You will not be successful unless you understand the compensation plan contract and how to optimize your results. And you do NOT want to be on the "ground floor". You want a company that has been around a while as a successful organization because they have survived complaints and growing pains. They have the money to be there when you have built your downline. FYI - Less than 3% of people in the US are in MLM so there is ALWAYS room for growth. You do not need ground floor.
I am active in 3 MLMs. One is for basically for wholesale personal use only(NuSkin) for 4 years, two for business support (Send Out Cards for 3 years and Prepaid Legal for 14 years), and two I actually sell as an MLM business (Send Out Cards and Prepaid Legal). I am not affiliated at this moment with any vitamin or health MLMs although my sister in-laws are very successful with Isagenix.
Question 3 - Where do I find the Training I need? BEFORE YOU JOIN any MLM, meet the upline to whoever is recruiting you. Go to local training events at least 3 times and see if they are training or "rah rah" pep rallies that only teach you to sell, sell, sell. See what kinds of tools they recommend. Are they sales tools or business training tools? Can you access experts in that company even if they are not in your upline? One of the things I like about Prepaid Legal Services was the amount of business training they offer AS WELL AS the fact I am encouraged to work with local and regional successful PPL "executives" that are not in my direct upline. (There may be other MLMs that do that, I just know most I have been in do not).
Question 4 - Why should I read the compensation contract? That's a lot of stuff I don't understand. Per Michael Dlouhy of Vitamark (whom I respect), if you can't understand the contract in plain every day terms, don't join. There are probably so many wiggle words that they can take your downline away for almost anything! I would take the time to read the contract before joining. If you read something you don't understand, have the upline or home office explain it in WRITING for your files.
Question 5 - Where do I learn how to run it as a business? There are lots of good books and training tapes on MLM as a business. I recommend going to Networking Times and subscribe to their Training University. Some of it is free, others are a nominal fee. They are independent and support MLM as a concept. I wrote an article for them on using MLM to pay for college that was well-received.
I hope this helps get those of you who want to learn more about using an MLM to pay for college and anything else you want to create!
