The Problem With MLM For NetPreneurs

Yes, there's a problem out there with MLM programs... not the good ones... the scams.

In fact, Budding NetPreneurs really need a good network marketing opportunity in their portfolio...

Network marketing opportunities can give a NetPreneur significantly more income than most any 2 or 3 tier affiliate program because of the potential for "viral" income growth as a distrbutor base grows.

If you can find a viable opportunity and build a team, you have a good shot at building true residual income.

But there are many pitfalls in finding one that viable opportunity.

First, MLM-like "opportunities" have exploded as the internet has matured. Some are, at best, "Digital Money Games" with products of questionable value where the main attraction is the income, not the product or service being sold.

So how do you identify the best MLM's, those Top Picks?

Here's the litmus test I use: Would a real person buy this product or service at the price being offered to the end user even if they couldn't earn a penney by being associated with it?

It can be a premium product at a premium price, but it needs to be unique and at a reasonable price even if it's a premium product.

Here's the second test I use: Could a distributor make a living just selling the product if they never recruited anyone? Not everyone can sell, but *could* a living be made by simply selling the product? Yes that still applies whether you're MLM sells shampoo, vitamins or financial products. And in the best companies, this is still completely "doable".

I'll give you some examples so you can recognize the bad ones...

I remember one prepaid phone card scam in the late 90's where the cards were being sold for $1 per MINUTE of long distance when the cost for regular long distance was only *10 cents per minute*.

The only people buying into the program were distributors wanting to get rich quick. It's long gone.

Another time, there was a program that offered people "Free Groceries". In reality, they offered $500 of grocery coupons certificates per month for a $50 monthly membership fee.

Then you had to REQUEST the coupons and then REDEEM them at the store.

There really weren't any FREE Groceries.

At best there were discount groceries.

But not discounts you couldn't have found on your own!

And by the way, the coupon books you received for $50 per month could be purchased in bulk for $1 a piece.

Can you say "RIP OFF"?

I guess another rule I've developed is this...

If I can figure out how to run this operation myself without any specialized knowledge or with a product that I could find for myself in 10 minutes using a search engine, it's probably NOT a long term viable opportunity!

For example, free vacation offers imprinted with your company's name, address, and phone number and offering "back end" redemption bonuses can run from 10 cents to several dollars a piece depending on where you order them.

Some so-called "MLM's" make a business of packaging inexpensive premiums like this (e.g the grocery coupon deal I mentioned already), charging a monthly fee (where all the money really comes from - not from legitimate product sales) and then getting you to think there's something "magical" about what they're doing.

Sadly, it's all smoke and mirrors.

In the digital world, the opportunity for scams like these is multiplied.

Anyone can have a slick looking website these days.

Hey, there are even digital chain letters now offering "speical reports".

It's just like the old days... except in HTML.

So beware!

Having said this, there ARE viable MLM opportunities "out there".

Just make sure that if you purchased the product yourself but never earned a dime, you would not feel cheated!

What's the best way to promote these MLM products on the web?

Sometimes a pay per click advertising campaign works well.

Sometimes building traffic to a website that highlights your products is the way to go.

At other times though, there's simply too much competition from your fellow distributors. That's great for the pay per click search engines... some products wind up costing $5 per click for a bottle of vitamins that may only pay a $10 quick start bonus!

(Do the math, unless you have a huge conversion ratio, you're losing money unless your customer stays on autoship FOREVER!)

The solution? Merging your product sales with a targeted information product that sells in it's own right.

That's a topic for another story, but to see what I mean for now, visit:

http://1stHowToWorkAtHome.com/Niche

Happy marketing!

(c) Chuck Huckaby

About The Author

Chuck Huckaby publishes http://1stHowToWorkAtHome.com and the Work At Home Secrets Ezine. They're the Budding NetPreneur's "Escape The Rat Race Portal". With so much content, it's like getting a no cost ebook on every page!

In The News:


pen paper and inkwell


cat break through


Business Team Leadership: Pull Them, Dont Push Them

This article is primarily directed toward people who work at... Read More

4 Unfortunate Myths About Online MLM

Experts and newbies are alike in misunderstanding the way online... Read More

How to Build Your MLM Business by Not Talking

In my last article entitled "How to succeed in MLM... Read More

Increase Business by Squashing Your Fear of Phones

Phone skills are very important when you have your own... Read More

The Multi-level Marketing (MLM) Trap

In the search for the quickest way to get rich,... Read More

What are MLM Leads?

Multi-level marketing (MLM) is a type of direct marketing that... Read More

MLM Network Marketing Success Training: MLM Success-The Biggest People Principle in MLM

MLM Network Marketing Training -MLM Success- The Biggest People Principle... Read More

Network Marketing Problem ? Are Your Downlines Leaving You?

First of all, let's take a look at your effort... Read More

Guaranteed Tour Takers or Guaranteed Signups

When you join a MLM opportunity they give you usually... Read More

Opt-In MLM Leads Are Good Prospects To Grow Your Business

Opt-in MLM leads are one of the best ways to... Read More

Success In Online MLM Business

Meaning And Functioning Of MLMMultilevel marketing (MLM), also known as... Read More

What if You Could Design the Best MLM Pay Plan

Here is the Challenge. You need to design an MLM... Read More

Quality Beats Quantity Every Time

Back in the early days of developing my home based... Read More

Residual Income, a Myth?

I'm writing this in response to the every distributor in... Read More

Financially Free with Network Marketing?

Are you also curious, but skeptical, about becoming financially free... Read More

Who Else Wants Their Share of Residual Income Without Having To Go MLM?

(or how I increased my monthly revenue while sitting at... Read More

Increase Sales through Store Consignment

Placing your products on consignment in a hair salon, clothing... Read More

Clueless About Network Marketing?

A year ago, I began reading about real estate and... Read More

MLM Recruiting- The Top 10 MLM Prospecting Tactics for Success

You gotta have people to talk to in MLM Prospecting!INFERNO... Read More

The Three Primary Strengths Of Network Marketing

Network Marketing, 'MLM', and Multi Level Marketing are all terms... Read More

Network Marketing: Extended Definition

Entrepreneurial spirit is sweeping the Nation's interest at a phenomenal... Read More

MLM Training- The MLM Leadership Secret of PersonaLeadership by Doug Firebaugh

The MLM Leadership Secret.Let me ask you a question:What do... Read More

7 Tips for Building a Successful Downline Team

Have you ever joined a program that seems to be... Read More

Choosing A Network Marketing Opportunity - 5 Red Flags

Although network marketing offers the potential for long term residual... Read More

The Benefits of MLM Leads Lists

An MLM leads list is simply the list of prospective... Read More

Tips for Success in Network Marketing

Network marketing has a fantastic range of business opportunities. First... Read More

MLM Training- The Secret of the Daily Success Actions of the MLM Millionaire

Millionaire.Has a nice ring to it, doesn't it? We interviewed... Read More

The Lurking Affiliate and MLM Junkies

Ever since the introduction of money making programs became available.... Read More

MLM Training- The New MLM Distributors Getting Started Checklist

A List for MLM Success.That is what I am talking... Read More

Network Marketing Advertising Draws Interested Leads

Network marketing advertising is necessary to attract quality leads to... Read More

Are You Looking to Get in on the Ground Floor of the Next Amway? Here Are 7 Things to Look For!

Just like a Penny stock market investor wants to Find... Read More

Building Large Volume of Potentiel Customers is Critical

How many opportunities to expose people to your business do... Read More

The Launch of the Next Wave in Affiliate Programs, Network Marketing, MLM, Direct Sales and Internet

For years, industry experts have been predicting that video was... Read More