Sunday, July 25, 2010

Know anyone around town that participates

in an MLM company?

I have a few thoughts I've been meaning to post, hopefully you find this useful!

Take any (yes, ANY) MLM out there...whether it's Mona Vie, XanGo, ACN, Agel, Amway, Creative Memories, Scentsy, Avon, Evolv, FDI, Fortune Hi-Tech Marketing, Freelife, Herbalife, Isagenix, Max International, Organo Gold, Vemma, World Ventures.....and any of the other 9983 MLM/Party Plan companies that I didn't mention here.  So yeah..take any of those and check this out:

Draw a triangle

The people at the tippy top make money
The rest spend money

Is that wrong?

In my opinion, NO...that's not wrong...necessarily.

Let me explain.  If the masses (the "average" people at the "bottom" who only spend money...month after month after month (assuming they don't cancel/quit)) are receiving VALUE for their money spent up front and each month, then everything's good!  That's business!!

The problem with MLM in general is that typically the masses who are just spending, aren't receiving value.  Their budgets got messed with when they made what usually is an emotional impulse decision based on hope for their future.  The only way to come out ahead in MLM generally is to recruit others.  The inherent value in the product or service is either too low or too obscure to be appealing to the masses long term.

The classic MLM business model is fatally flawed - it's not sustainable primarily because the masses aren't receiving real value for their dollars spent.

So check out what we do in Melaleuca:

Draw a triangle

The tip makes money
The rest spend money

25 years of documentation proves that the masses are well served!  Even though most aren't making any money...even though most "fail" (yes that's arguable here, since we also document that over 50% of people enrolling with Melaleuca state that they come here just to shop...switch stores), they come back month after month, year after year out of loyalty to the brand because of the amazing value.

Cool huh?  Thoughts?

Use this basic acid test approach to any MLM person you run into!  Be kind, and cut through the marketing and hype to the bare bones bottom line.......we know for a fact that a few will make money while most only spend.  So is there real value for the masses?

Have a great Sunday afternoon!
Kristian Hoenicke

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