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Apparently I’ve ruffled some feathers lately talking about business models that work with online marketing and ones that don’t.
Personally I prefer a top tier business where you can make enough money when someone joins to cover your advertising costs and make a healthy profit. Rather than a low ticket multi-level business where the profit margins are much smaller because so many people need to get paid down the line.
And last week I published a blog discussing the “Lifestyle Business Model” and how most home business owners are setting themselves up to have nothing more than a time-sucking sales job, rather than a lifestyle business.
You can certainly make good money in MLM but you’d better get use to doing home parties or making hundreds of cold calls per day because thats what people who make big money in MLM are doing.
They are NOT doing online marketing because online strategies take too long to learn and are not duplicatable.
The MLM model is also built around teaching duplicatable sales methods so that a lot of people will make a little money… Usually just enough to stay hopeful and connected.
Now you may be saying something like, I know people getting wealthy building MLM’s on the internet.
But do you, really?
Are those people actually making their money promoting the MLM product or opportunity itself?
Or is the bulk of their money being made selling some “recruiting system” or training program teaching others how to be successful?
If you were to really look at their businesses behind the scenes you would probably see less than 10% of their income coming from the MLM company itself…
Maybe in the low 6-figures but certainly not millions. If they are in fact making mid to high 6 or even 7 figures, I would venture to guess that the VAST majority of that money comes from selling tools, training and systems to their team members and to other networkers and NOT from their recruiting or team building efforts in their MLM.
And remember just because someone is recruiting people into a company, doesn’t mean they are getting rich, or even making a full time income.
Don’t confuse “recognition” with financial success.
The MLM model is built around recognition.
I remember getting recognized on stage at a MLM company event years ago and thinking,
“Wow all these people think I’m really successful with this business but I’m only making like $1,000 a month.
Thank god for my other affiliate income streams otherwise I would probably have to go out and get a real job”
If someone is recruiting 2 people per week (What most would consider “crushing it” by today’s industry standards) and only making $100 a pop, are they really getting wealthy or are just getting recognition and maybe enough money to break even in their business?
The point is that certain business models (like MLM) are not designed to be built in a scalable way on the internet. The commissions simply aren’t big enough on each sale. And I’m not going to leave something as important as the success of my business to the hope that other people will produce.
I certainly don’t want to have to spend years recruiting and building a team and then spend just as much time “motivating” others and trying to get them to duplicate my efforts.
So if you want to make a million dollars with online marketing, at least make sure you are in a business that can do that, without costing you all your time.
My new Laptop Lifestyle System is a lot of things… it’s my answer to not finding another business, product or system that fits my needs and my desired lifestyle. It’s also a heck of a lot more fun then anything else I’ve found and gives me a lot of opportunity for growth and surround myself with people at a much higher level in business than myself.
Is it for everyone? No.
It’s not as cheap as a lot of stuff out there to get started with… Which means it’s not “cheap” in the bad sense of the word either.
We do things right and don’t apologize for the fact that our standards are harder and therefore more expensive to participate in. But our results reflect that for our members.