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MLM Training - Blow The "Scam" Objection Out Of The Water

Apr 4, 2008
One of the most frequent objections you can get from your prospects is "MLM is a scam." Here's some MLM training advice you can use to confidently and professionally address this common prospecting objection.

A frustrated network marketer recently asked me:

I keep getting the objection, "Network Marketing is a scam because only a few people at the top who get in at the beginning are making most of the money off the people who come in later." How do I handle this objection? I don't think I'm very good at answering this because when I look at my company - that's exactly what I see. Help!

This is a great question, here is the way I handle this objection.

First, every time you handle an objection you must follow the Objection Handling Remedy as outlined in my MLM training program Professional Inviter.

1. Listen completely through the question/objection.

2. Confirm understanding.

3. Make the question or objection valid to the prospect.

4. Handle or facilitate handling Questions and/or Objections.

5. Complete the handling and return to the previous step of the Inviting formula.

In step #4 of the Objection Handling Remedy is where you handle or facilitate handling the objection. It's best to handle the objection by comparing it to something the person knows. Engage the prospect to contribute to the conversation as much as possible - remember: If you say it, it can be argued, if the prospect says it, IT MUST BE TRUE.

If I don't know enough about the person, I'll explain the "all the money is made at the top" objection compared to the stock market and the real estate market - but will make sure I explain everything in detail just in case they don't know about either industry.

Here's my explanation:

Let's say you bought a stock for $1.00 ten years ago. Today it's worth $20. Are you making more money because you got in at the beginning? Yes you are. Every person who buys the stock after you is driving the share price up; this is actually THE ONLY WAY YOU MAKE A PROFIT.

When you do sell your shares of stock - who are you selling them to? You're selling them to someone who is going to pay more for it than you paid. You got in early and are making money off the people who come into the "scheme" later.

Let's say you bought a beachfront house 20 years ago for $100,000 and that it's worth $5,000,000 today. Are you making more money because you got in at the beginning?

Yes you are. Every person who bought real estate in that area after you did drove up the cost of your property.

When you sell your real estate, who do you sell it to? Someone who comes into the "scheme" later. So the profit you make is from people who come in later.

The truth is - in real estate and the stock market people who get in earlier do make more money because they got in at the beginning (if the stock and real estate market go up of course).

Also true is - in network marketing people who get in earlier can (notice the difference between "can" and "do" from previous paragraph) make more money.

There are many people who come into network marketing who make more money than the people above them. This is the case in my down line. There are 3 people in my downline who make more money than me.

So, to directly answer your question - every business in the world operates as this objection states "except network marketing! For an investment to be an investment, requires that someone has to come along later and pay more for it; otherwise it's not an investment.

When a person buys a pair of shoes, they're buying them from someone who got in earlier - therefore making the people who own the shoe company rich!

A person who buys a painting is buying it from someone who bought the painting earlier - therefore making them rich!

When you go to work for someone, you're going to work for someone who got in earlier and they're getting rich off of you!

Isn't it odd that the entire business world operates under the principle of getting in early and making money off the people who come in later; yet the network marketing industry is often shunned for it! Yet, network marketing can point to thousands of people who make more money than the people who brought them into the business.

And my final thought for this MLM training tip is this: Network marketing - when done right and ethically is the fairest business on the planet - build your business with enthusiasm!
About the Author
Tim Sales helps network marketers gain the skills necessary to be successful in MLM. His MLM training is based on his personal success of building a downline of 56,000 people. Instantly access Tim's free MLM training and learn the steps to achieve success at www.brilliantexchange.com/mlmtraining
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