Any Experience with Multi-Level Marketing, Network Marketing, Direct Sales, etc.?

**PakRT** · 01-03-10, 23:54

Anyone here have experience with a multi-level marketing business? This is also called a “network marketing business” or “direct sales business” in some places.

This scheme has you join a business selling products - for example, home wares or health goods - directly to friends/acquaintances and they, in turn, sell to their friends/acquaintances. In this way you build a network of sales people and you can get a commission off what everyone “below” you in the network sells. Those who are ”above” you in the network receive a commission from your sales and the sales of your sales team.

Some famous brands already sold here in Indonesia in this direct sales or networked business style are:
* Amway
* Forever Young Indonesia
* Tupperware

Now, the newest company product sold this way in Indonesia is FreeLife. FreeLife currently sells Go Chi berry juice which is making a big stir in the USA and elsewhere. The berry comes from China and is supposed to be very healthy. I think it was promoted on the Oprah! Show.

I was skeptical until I saw that Donald Trump has just opened his own network sales company selling customized vitamins and other health goods.

I am not selling or promoting anything in this thread. I just want to know if anyone has had experience or knows someone who has had experience in selling in one of these networks anywhere and if “yes”, did you/he/she make any money?

**Mas Fred** · 02-03-10, 06:37

I have never bothered with these things.
It always strikes me that you need a real product to run a sustainable business.
If the business relies on selling down to other resellers, it's bound to end up bad somewhere in the tree.
If Mt Trump is at the top, he stands to make a fortune but the mugs at the bottom loose out by buying crap stock they have zero chance of reselling.
This all blew up years ago in the UK as pyramid selling. A few people made a small fortune at it must a lot of people lost their shirts. I believe it was all made illegal over there but I can't check because my internet connection is so slow at the moment. It was then renamed MLM and changed slightly but is still the same scam.
http://www.ukskeptics.com/article.ph...id_selling.php

Pyramid scheme: An illegal multi-level program wherein people pay an entrance fee for the sole opportunity to recruit others to do the same.

MLM just sells some worthless crap instead of an entrance fee to con their way around the law.

MLM is fine if you are at the top and don't give a rats about the people you con.

**ohmdafyd** · 02-03-10, 07:28

My younger Bro spent some years with an International MLM Company, dreaming the dream they promote so heavily... he's much better off running his printing Business now...

Only those who dream up the idea and the really early adopters make any money, the rest work to provide it for these elite few, I met one of them once as he pranced off his Yaught to work the punters and show them that they too can live the dream ...

**PakRT** · 02-03-10, 07:54

MLM is fine if you are at the top . . .

That's what I was thinking.

However, a more finely tuned statement might be this: you've got to be (1) in early enough on the product launch in your area, or (2) otherwise high enough on the sales totem pole, with (3) a product having potential because it really *is* good or useful, to carve out a niche for yourself as a sales team leader.

Before I realized that Donald Trump had started his own MLM company, I read a quote of his supposedly made during a popular TV interview program. He said “If I lost everything and had to start again, I would find myself a great network marketing company and get to work!”. That, taken at face value, makes sense. Sales has always been where one can make the most money and you wouldn't be starting out "cold" trying to flog a totally unknown product. You'd have a support team above you (your sales "captains") and below you (your team) to work with.

That said, Donald Trump does stand to make another fortune because he is at the top of the sales pyramid. I read that Warren Buffett, another U.S. billionaire owns 12 companies; three of them are multilevel marketing companies.

Someone in an article I just scanned asked the rhetorical question: "Why do billionaires love MLM companies"? The answer is that over 90% of the money in the MLM industry is made by the COMPANY’S OWNERS and Trump, Buffet, and Kiyosaki (Amway) know this!

Maybe we should find some healthful berry here in Indonesia and start to sell it as a as networked sales product.

**Carrot Cake** · 02-03-10, 08:27

An exception if you are using the product yourself. I become a member of Sophie Martin, Oriflame and Tupperware only because I use their products a lot and, as a member, I could buy those product at least 30% less than the catalog price. Pay 25 - 50K each year and save 30% of everything i buy from them. That's a good bargain!
I am not good at MLM thing. I have been Oriflame member for about 5 years (addicted to their pearl blush-on and silky body lotion), and i have zero down-line. Still, they let me stay.

**kverz** · 02-03-10, 08:49

I used to join Amway because me and my family used their products. I was also offered one Canadian health product but when I tried it, I dont like it and then one is Vitaplus health drink. I was earning quite well with that product and everytime someone joined in my network I get money as well... My friend was very keen on it and she is earning quite a lot but as for me, I dont really take it seriously. I think it also depends if the product is good.

It started joining that company when I have myeoma in my uterus and after a month of drinking vitaplus,its gone, so I get a slot to get discount because me and my husband likes the product. And then I offered it to friends with all sorts of health problems, including loosing weight and they also get positive effect, some also joined my network. After a while I have many orders but the company stocks cannot compensate the demand and most of time I have to wait for months to get it. Til, I got lazy and we moved to Indonesia so I dont know what happened to it.

**exiledgooner** · 02-03-10, 09:33

last eid my brother in law was trying to sign up various family members for some mlm scheme he was involved in. never seen him so animated before ...

**Pimpin** · 02-03-10, 16:23

Yep join MLM and live it every waking moment annoying friends, family and everyone you meet. What a life. People get so addicted to that business they turnoff everyone and alienate themselves. I've seen people who can't talk about anything else but their products, uplines and downlines. Total bores.

**TheJester** · 02-03-10, 20:55

I am embarrassed to admit I did Amway once.

I think their products are actually decent and work as suggested, but they are horribly expensive. The other problem is as suggested by others here. I think the system can actually work, but you need to convince others to buy the products and sign up too. Basically it is an expensive supermarket membership system where, if you have enough people below you, you end up getting the products for free.

You: I would like to discuss a business opportunity with you
FoF: Really? What is it?
You: Let me come around later and we can go over it
FoF: What is it about?
You: A fantastic opportunity to be free
FoF: (suddenly realises what is going on) *Groan*...uhhhh, I am busy later... *Run like hell*

Great way to lose friends...

**think_tank** · 03-03-10, 16:23

Originally Posted by PakRT

Anyone here have experience with a multi-level marketing business? This is also called a “network marketing business” or “direct sales business” in some places.

This scheme has you join a business selling products - for example, home wares or health goods - directly to friends/acquaintances and they, in turn, sell to their friends/acquaintances. In this way you build a network of sales people and you can get a commission off what everyone “below” you in the network sells. Those who are ”above” you in the network receive a commission from your sales and the sales of your sales team.

Some famous brands already sold here in Indonesia in this direct sales or networked business style are:
* Amway
* Forever Young Indonesia
* Tupperware

Now, the newest company product sold this way in Indonesia is FreeLife. FreeLife currently sells Go Chi berry juice which is making a big stir in the USA and elsewhere. The berry comes from China and is supposed to be very healthy. I think it was promoted on the Oprah! Show.

I was skeptical until I saw that Donald Trump has just opened his own network sales company selling customized vitamins and other health goods.

I am not selling or promoting anything in this thread. I just want to know if anyone has had experience or knows someone who has had experience in selling in one of these networks anywhere and if “yes”, did you/he/she make any money?

We use MLM as part of our overall marketing scheme, it's very effective as the original idea works of WOM (word of mouth) marketing.

There are however many things that you need to know before your MLM (Multi Level Marketing) turns into a Mighty Large Mistake.

If MLM isn't used well it can damage your products reputation.

Three major things you need to remember is:

1. Your MLM Personal should not be making a living out of it, it should only be giving them member benefits and good ones at that.
2. Your MLM personal should not feel like you're using them, rather that you are giving them an opportunity, this also goes for the Potential Customers they are coming in contact with. The PC should feel he is also gaining a benefit out of speaking to an MLMer rather than going direct to an outlet.
3. Your MLMers should already be loyal and satisfied customers so that they have passion in your product and they can speak from experience. This turns your MLM scheme from WOM (Word Of Mouth) marketing into WOMBAT (Word Of Mouth Buy And Tell) marketing, which is where the real money is. Otherwise a MLMer approaching you is just another sales person only more annoying because they are your friends/family. If you follow the three steps above instead of your friend being a new-born salesman they will be John who is getting extra benefits from his provider if I use his discount coupons and save money signing up.

That's my two cents worth anyway, MLMs are a tricky business and should only be used as a supplementary marketing technique, otherwise they can really backfire when you try to bump up the tempo.

-Think_Tank