So, as the title says, I did some more digging today investigating various MLM Income Disclosure Statements – at least what info I could find – and I basically found what I was expecting. That THIS ONE pretty much sums up ALL MLM Income Disclosure Statements.
To sum up my findings in a nutshell, 99% of MLM distributors earn less than $1000 per month and 94% earn less than $500 per month.
Now, it’s important to understand that I’m a fan of and a full-time professional in this industry so I’m not bashing the industry at all. I’m a firm believer that for the most part the MLM industry does not fail the people (ie. distributors) but rather it’s the people who fail the industry.
What do I mean?
Well, I think that the majority of people who get started with a home based business have no real plan or desire to actually “WORK” the business. The majority either get started because their friend or family member told them to OR they have dreams of creating massive wealth without having to do anything. We call this the “Lottery Mentality”. Pay the entry fee and then cross your fingers and toes and “HOPE” you’ll get rich somehow!
I mean, the entire industry is based on the individual being able to recruit other like-minded entrepreneurs into their business and build a large organization. Where this goes critically wrong is that the average distributor/rep only ever recruits 2 people (and usually they’re related to them and only got involved to throw their favorite Uncle a bone). Why this is the case is something I haven’t completely figured out yet.
The MLM industry isn’t completely without blame here either. By parading the Top 1% on stage at events and promoting them on their websites they give the “illusion” that anyone can do this and that it’s really not hard. I will tell you that it is not easy to build a duplicating sales organization of apathetic non-salespeople!
The people who take the stage at your company events work REALLY HARD on their business. They’ve learned how to talk to prospects, how to market online and offline, and most importantly how to recruit. If you think that the leaders don’t work hard and that they just magically ended up on stage because they told 2 of their friends who told 2 of their friends…
You’re just kidding yourself!
There’s no other industry that I’m aware of where you can start a business for a few hundred bucks and have no overhead or employees (yet still have really great tax deductions) and create the kind of income that you can in MLM. But it’s not for everyone and because the start-up costs are so low there are people who get involved (over 90% of them apparently) who probably are not cut out to be business owners or maybe they’re just not ready yet.
A shift in mindset among the masses to believing that they can achieve and then having the willingness to do whatever it takes to make their dreams come true will turn these numbers around. I doubt it will ever happen but one can always dream 🙂