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The Realities Of MLM. What People Do And Why They Do It!

Not every one who comes into your business will do something or even do anything for that matter. Surprise! These are just the realities of the Multi-level Marketing business.

There’s a basic rule of business, which applies to the MLM industry as well. It’s called the 80/20 rule. It means that 80% of the people do 20% of the work and vice versa - 20% of the people will do 80% of the work!

Please understand that I’m not saying that the following will always happen, I’ve just found that, generally speaking, this has been my experience. It will give you a sense of some of the reasons why 95% of people in MLM fail.

People fall into three main categories of distributors in this industry. They are:

  1. “Wholesale Buyers”
  2. “Producers”
  3. “Stars”

Obviously the “Wholesale Buyer” would be a person in the type of MLM opportunity, which requires distributors to buy an inventory of products to sell or use themselves. This is a person, who for various reasons won’t duplicate!

“Wholesale Buyer” Characteristics:

  • 30-240 days (1 – 8 months) life expectancy in the business
  • Puts in about 4-6 hours a week, if any.
  • Doesn’t want to build a team, just wants to retail the product. (Belief system lacking in the opportunity)
  • Not “teachable”
  • No proper contact list.
  • Doesn’t do 3 way calls (“Don’t talk to my people” attitude)
  • Not willing to follow a process
  • Very objectionable.
  • Doesn’t want to work.
  • Doesn’t make the time
  • Not consistent
  • Doesn’t follow up
  • Doesn’t attend Info briefings/Trainings (If their particular MLM Opportunity has them)
  • Belief system lacking
  • Makes excuses
  • Buys other people’s negative stories.

The “Producer” Characteristics:

  • A person who can be developed
  • Who’s excited
  • Who is willing to give this their best effort!
  • At least 90-360 days (3 – 12 months) life expectancy in the business
  • Puts in about 15-25 hours per week in the first 30 days.
  • Wants to build a team/business
  • Completely understands the concept of “The Credibility Factor”
  • Initiates and establishes relationships with key successful people in his/her up-line organization.
  • Allows other people to help them with their prospects.
  • Does 3 way calls.
  • Has Goals.
  • Wants to work
  • Willing to pay a price/sacrifice in time/effort.
  • Understands the Time/Money graph.
  • Follows a plan consistently.
  • Follows up.
  • Can duplicate with the right training. (Has Leadership qualities)
  • Teachable
  • Completes a proper contact list of at least 100 names within a 48 hour time period.
  • Willing to learn.
  • Follows a Process.
  • Attends briefings and trainings.
  • Strong belief system.
  • Will stand by products/services, opportunity and company.
  • Doesn’t buy into negatives.

The “Star” characteristics:

  • A person who’ll do this with or without you! Even though might start out part time, puts in a full time effort!
  • Life expectancy … as long as it takes!
  • Wants to build a team/business.
  • Understands that it will take time and effort and subsequently will put in all his available time and effort so as to achieve results ASAP!
  • Sees this as a chance of realizing or getting back his/her dream.
  • Recognizes the “big picture” immediately!
  • Teachable.
  • Learns very fast.
  • Is very goal oriented. (has written goals)
  • Initiates 3-way calls consistently.
  • Good work ethic.
  • Initiates action/follows a plan.
  • Is consistent and persistent
  • Follows up.
  • Has a “self employed” attitude.
  • Can duplicate.
  • Is a leader.
  • Has a strong belief system.
  • Willing to pay a price/sacrifice.

Miscellaneous – Just the way things are:

  • Generally, the average person who joins the business and wants to work can/will only show 5 people the opportunity within the first 90 days, on their own.
  • Since (generally speaking) one in 9 people shown the opportunity will join, therefore the average person does not sponsor 1 person within 90 days.
  • If that person does not see some tangible results in the first 90 days, they either quit or become chronic. (Just going through the motions, attending meetings etc)

So what do we do with this information in order to use it to our benefit? Well, all the top distributors will tell you that it’s important not only to understand these realities but more importantly … to accept them as “Just the way things are!”

Once you do that, you’ll develop the “sort” rather than “convince” mindset that you must have to succeed in this industry. After all, once you find the right people, they’ll do it with or without you!

See, despite all the above "realities" the "pros" are making an obscene amount of cash in this industry.

Therefore obviously they have learned to use these realities to their advantage..., which causes them to do the things that the other 95% of MLM'ers are not.

To YOUR Success!

Colin Moses is a 10 year MLM veteran. © Copyright 2000 - 2001 by Aqua Enterprises.
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