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1/28/2012

Multi Level Marketing (MLM) worth it or scam?

When joining a multi level marketing or more commonly known as MLM program there are a few things you should look at before joining to avoid scams and fly by night programs.


1. How long has the program been around?
2. Is the product or service useful or worthless?
3. How does the pay plan work?
4. Is the system easily duplicate-able?


A MLM being new doesn't necessarily make it bad or a scam but new MLM's come and go all the time, if it is new you need to do a little research before blindly jumping in, Google the program if you have doubts. The longer a program has been around the better.


If the person trying to get you to sign up has no contact info available that should also send up a red flag. If the program is legitimate they should have no problem providing their contact info. Many people will leave off their contact info on the promotion page and just have a form for more information, this is to avoid getting spammed and that's fine but when you get the information on the program from them their contact info should be there, A phone number is a big plus.


Take a close look at the pay plan, if they promise you thousands for doing nothing you can bet it is most likely a lie, one of the scams that is common is promising a bunch of money for doing basically nothing, those are scams meant to get your information and sell it as a marketing lead. They get thousands of sign ups then close the program and sell all the leads they generated.


Another pay plan to be wary of is the powerline type. Powerlines build down in 1 straight line placing one under the other, it looks like you have a massive downline and you may get e-mails telling you just that while you are a "pre-enrollee" trying to get you to upgrade into a paid member.


Those are not scams but what isn't told to you is that in order to make money off of all of those people under you, you must first qualify by sponsoring a set number of people and then it is usually only down to the next qualified person in the powerline. There are usually levels and you must sponsor a set amount of people to reach each level, it isn't a scam but it is much harder then they let on.


You also should take a look at the product or service the MLM is based on; ask yourself, "would you actually use this product or service?" Would anyone you know find it useful or want to use it? If the answer is no then the attrition (drop out rate) will be very high, what happens is when someone is not getting sign ups instead of staying steady at it they will drop out, why should they pay for something that is essentially worthless to them?


If the product or service is something they are using then they are way more apt to stick around and give it a real shot.


The program also needs to be easily duplicate-able, this is not as easy to determine as the other things, a few things can affect this; the start up cost and the product are a big factor as well as the pay plan and is your sponsor offering any assistance?


Once you have found a program that fits all of those criteria and you join it you then have to promote it, one of the #1 mistakes made by thousands of would be MLM business owners is promoting the affiliate page provided by the company. That might work for the very first people to join but as the program grows that page will quickly lose its effectiveness.


What you want is to use your own lead capture page that is hooked into your own auto responder system. That auto responder will be your bread and butter in getting your sign ups, but remember what we talked about earlier; you need duplication from your team.


You need to be able to provide your team with the same tools you are using, the same page and the same auto responder. Some teams try this but one thing that is left out is helping that team member set up their auto responder, the responder does absolutely NO GOOD if it has lousy letters going out to prospects. You also need to show your team where and how to promote that page otherwise it is worthless to them.


I am in a great team right now, we have a team page hooked up with an auto responder that is pre loaded with 14 days worth of letters to our prospects, and we have ads that we just copy, paste and send. We also show our team where to send those ads, both paid and free. The program has been around 7 years and was listed #37 on INC Magazines top 500 fastest growing companies in the USA.


This system is very effective; I looked around and tried a few programs until I found this one, the product, the pay plan and the duplication are the best I have seen or used. You can check it out here => http://viralurl.com/troysplace/RWF


Source: http://www.easyhits4u.com/articles/multi-level-marketing.html

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