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MLM: Can It Be Profitable?

Aug 18, 2007
Multi level marketing has created millionaires, so it should be a profitable, reasonable business to duplicate, correct?

After all, clicking through the various internet business opportunities on the internet, one would believe that they are very popular because they work. Multi level marketing can be very profitable, but unfortunately not for everyone.

Taking a hard look at the business of MLM can reveal a few flaws that can help people understand why their MLM business is not taking off.

Multi level marketing requires, above everything, an active downline. This means that through on venue or another, you have to find people who are not only willing to join under you, but who can also provide people who are willing to join under them, and so on down the line.

People who are ultimately very successful at MLM marketing have usually done one of three things.

1. If they are a successful business person, or a person of significant credibility, they already have a large potentially profitable base to choose from. There are some people in this world who simply carry credibility in the way they walk their walk and talk their talk. Not all of us have that, and it really can not be taught. These individuals are already successful, at least from all outward appearances, and are able to pursuade people to their business with relative ease.

2. Many people spend years cultivating a e-mail list. Sometimes this works and sometimes it is difficult. If they have been successful at helping their cultivated e-mail in making some money, then they can get their active sign ups relatively easily simply by sending out a few, well crafted e-mails. This method may or may not work for people.

3. Anyone can build a successful downline if they have the appropriate funds to sink into a massive advertising campaign. With enough funds, they can make sure their website pops up within the first several listings on Google and can afford to take out large, dominating advertisements on work at home websites.

This may call for an advertising budget into the thousands, and they have to continuously maintain it. After all, they may be successful at getting people to sign up but chances are they are not going to be as successful in keeping people active unless they roll up their sleeves and drag it out of their prospective downline.

Multi level marketing has become so over saturated that people tend to grimace with anticipatory pain when they realize they are being pitched to join an MLM program. The term immediately conjures up both images of great success and images of significant failure.

Unfortunately, the great failures of MLM marketing are becoming more the norm than anything else. While there have been tremendous successes in multi level marketing, there are more failures and more people who cling to their business by their finger nails than there are those who even have a slim chance at success. The MLM industry has led to other various industries, including lead marketing, MLM building (where they swear to build your downline for you) or MLM telesales.

Those who are looking for real, long term success are now starting to look well outside the MLM arena.
About the Author
Derek Vanderpool is a successful business entrepreneur with 13 years business management experience. Derek can be reached at his website which is http://www.wealthsuccesssystem.com
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