How My MLM Frustrations Lead Me to A Very Profitable Decision in 2014

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Depending on where you’re at in your business, this article may piss you off… Or it may open your eyes to some harsh realities that your not being told anywhere else…


I’ll start by explaining some of my likes and dislikes about the MLM model…. Then I’ll explain how my decision in early 2014 to scrap all my MLM marketing activities to focus on other areas of my business, was the single most profitable decision in my 6-years as a home biz owner. This “decision” allowed me to make $23,046 in just 2 months from just 49 customers. Read this post all the way to the bottom to discover how I did it.


Lets start by making a few things crystal clear. I have a great deal of respect for MLM leaders. Some of my personal mentors and good friends are MLM marketers with large teams. And I absolutely love the MLM industry for one BIG reason… It introduces entrepreneurship to millions of people who otherwise wouldn’t be exposed to it, due to its low barrier of entry and relationship based marketing model.


Another thing I love about the MLM world is that it offers real world business and entrepreneurial training to people who aren’t getting it anywhere else.. Certainly not in high school or even college MBA programs. It teaches people valuable communication skills that can be of lifelong benefit to them in many areas of their life. On top of that, the mindset and personal development training offered in the majority of MLM’s are second to none.


For those reasons I love the MLM industry and I have a ton of respect for the courageous men and women, true leaders, who have paved the path for others to follow…


BUT… And this is a BIG BUT….


Due to my own experience and the experiences of many people I’ve come into contact with through working and communicating with others in the industry… I no longer believe that MLM is the systematic path to success and freedom that so many tote it to be.


Let it explain…


My own experiences in MLM


imgresI’ve been a full time home business entrepreneur for over 5 years now. I gave 3.5 years of focused building to one MLM which will remain nameless. In my best year in that company, I made right around $20,000. I spoke on stage at company events. And I was called a “top producer” by my peers in the company and also by the companies leadership. In those 3 and a half years I personally recruited about 50 people and at most I had maybe 200 active in my organization at one time.


Which leads me to one of my big frustrations. In MLM you could recruit 50 people and a few of them could go on to build you a team in the tens of thousands. The reality of that happening in 2014 is about as likely as getting struck by lighting twice on Christmas day. A much more common situation is you recruit 50 people. Half of them quit in the first 2 months. Then half of that half quit over the next few months. A few go onto build the business for a wile until they get distracted by some shiny object. And unless you “get lucky,” or have major authority due to success in something else, you can barely pay the bills from the check you get from that company.


Okay sorry for the tangent… Back to my story…


So that company decided to dissolve the network marketing aspect of their business and many of the reps, myself included, merged with another MLM in the ladder part of 2013. I started that business with a team of a couple hundred reps and my income reached a whopping $150 per month from my organization. Thank god for affiliate marketing right? I can’t imagine how many crappy jobs I would have had to endure over these past 5 years if I had to rely on my MLM income alone. Sad but true.


Recently I stopped receiving checks from that company and was even told I had to pay my monthly membership fees. Even though I have over 150 people on one of my legs, and personally enrolled someone who’s recruiting 1-3 people per week. WTF right?


My BIG frustration with the MLM model


AlecBaldwin-FrustratedI am a student of marketing. I’ve done very well for myself by learning and honing my own marketing skills. One big fundamental principle of marketing that I’ve learned is this,


“Marketing to everyone is marketing to no one”


So, why, in MLM do they teach you that everyone is a prospect? MLM leaders say things like, “If they come within 3 feet of you they’re a prospect.” or “if they have a pulse they’re a prospect.” And when it doesn’t work, you go back to your up-line and they practically insult your intelligence by saying something like, “just go talk to more people.” Yeah maybe you should go waste more time on something thats not working. Seriously?


Its as if they are so brainwashed that their company/product is the best thing since sliced bread that they are blind to the fact that most people aren’t going to be interested.


And speaking of brainwashing, lets talk about the MLM newbie for just a sec…


Many MLM newbies firmly believe that all they have to do is sponsor 3 people, who sponsor 3 people, who sponsor 3 people and in 6 months they just have to sit back and watch the checks start pouring into their mailboxes. Maybe that was the case in the 1970’s, or even the 90’s but I haven’t seen that situation happen to anyone.. Not even once, since I started in the industry in ’08.


Many people who are new to MLM have no idea the amount of commitment and work and sacrifice that it takes to build a stable residual income in network marketing. I’ve spoke to people recently who have been doing MLM for 5, 8, even 15 years who still have to work day jobs because their MLM income aren’t supporting their lives.


I’ve offered honest candid advice to newbie MLM’ers to attempt to explain to them what to expect on the path they are traveling. Often, they will shut themselves down and literally close their minds when I start talking about years of hard work and commitment. Its like they want to continue living in the dreamworld they’ve created for themselves where they are going to be making $30K a month, in like 3 months. These people have often made zero income from home and they are shutting themselves down to honest advice from someone who’s created 6-figure results in home business. Does that sound crazy to you too?


They think that just because they joined a “ground floor opportunity” or they “got in at the right time” that they are set up for a life of pleasure and ease… Often those ground floor opportunities are the riskiest of all. Because 95% of them fail in the first 2-5 years.


tumblr_inline_n5u0xtXbcw1ryxhvfWhat about the 97% failure rate?


There are a few things I don’t like about this common statistic. First, think about it. How many people that go to college get a good paying job related to what they went to college for? If I had to guess, I would say its probably right around 3%. How many people truly succeed in life? As in, they have good positive relationships, they are relatively healthy and they have reached some level of financial success. Probably 3%.


So 97% fail in network marketing, right? Actually its not that black and white. Its not as if 97% fail and 3% succeed. I think even that scenario is wishful thinking. And by the way, It all depends on what your definition of “success” is anyway. The reality is that 97% make less than 100 bucks a month. Would you consider success making an extra $100 a month? Maybe some would but not this guy.


Lets say a bare minimum full time income is $500 a week. Its hard for me to see how people could survive on less than this even though I did it for many years. The percentage in MLM who make $500 a week has got to be a fraction of 1%. If thats the case than the amount of people making $10K per month in their MLM companies alone must be like one tenth of one percent, if that. This is just my opinion mind you, based on years of experience.


What about MLM leaders?


Again, in my experience, I’ve noticed that even many of the leaders who build MLM, make the majority of their income not from the checks they receive from their company, but from selling training products to people inside and outside of their organization.


Maybe thats just how they make short term income and their MLM checks will be there “beach money” years down the road. But the bottom line is that there is ZERO short term income potential from building any MLM and anyone telling you otherwise is blowing smoke where the sun don’t shine!


The One exception


If you are a super charismatic outgoing person who loves talking to people all day and is willing to devote the next 3-5 years and focus building ONLY ONE business and you are totally OK with seeing very little results in the short-term, then MLM maybe the path for you. If this doesn’t sound like something your willing to deal with, keep reading for what I believe is a better way.


My profitable decision


Earn-You-Enough-ProfitsAbout time right? The reality is that I could go on and on forever on this topic. And there are many points I would like to make that I’m omitting from this post simply because I don’t want to write a novel and risk losing your attention. So by now you know, as I said earlier that I am of the opinion that you have about as much chance of getting struck by lighting twice on Christmas day than you do creating a 6-figure residual income in any MLM anytime soon. Sorry to burst your bubble but I truly believe I am saving you from loads of frustration and wasted time here.


In January of 2014 I made a decision to stop building any MLM and to focus entirely on online affiliate marketing. That decision was completely liberating and has proven to be incredibly profitable in the short-term. I made that decision in January, and in February and March I made over $23,000 with affiliate marketing. $3,500 of which was monthly recurring residual income.


Maybe these results had to do with the timing and high-caliber of the particular affiliate opportunity I was promoting. Maybe it was because I focused on my strengths, rather than fighting my weaknesses. Maybe it was because I’m passionate about marketing and this gave me the opportunity to focus on this passion rather than spending a ton of time on the phone with uninterested deadbeat prospects.


Its probably a combination of all of these things but here’s the biggest reason in my opinion.


Pay Attention because this is HUGE!


Online affiliate marketing is about putting your offer in front of people who are actually looking for what you are promoting. While MLM is about sifting through hundreds, even thousands of uninterested people to find the few who are looking.


Do you see the difference?


Thats why this proved to be such a profitable decision for me. I made the decision to stop wasting time with uninterested people and use technology to do the filtering for me. Sounds just crazy enough to work right?


If anything that I’ve discussed in this post resonates with you, Click Here Now to see the opportunity I decided to attach my name to, that very quickly became my #1 income stream in 2014.


If you agree with any points I made in this article, (or if you disagree), please leave me a comment below.


Until next time…


Adam Chandler




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