Network Marketing

[StefanA]

Within a few years I took everything he taught me and was making 150k a year (Even though it wasn't MLM producing that income it was from what I had learnt in the business that gave me the skills to land a better job and entrepreneurial spirit to move up quickly) so whilst I was living the good life and my friends were still studying at Uni or in dead end jobs I had already bought my first property. I am absolutely certain that if I didn't get into MLM I would still be living in housing commission struggling to get into the property market and on a low unskilled salary.

I'd be interested to know how you made your $150k pa.

I also was making big bucks and having success when mates were still at uni. I did it through associating with highly ethical successful professionals with a positive can do spirit. They steered me towards personal development, self respect, positive mental attitude stuff, affirmations, and spiritual development, without having to sell anything.

The biggest lesson I learned from them was the more valuable your product or service to mankind, the less time and energy you have to spend marketing it, and the more success you create.

I'd be more impressed with Amway etc if their primary reputation was for true medical, scientific, and technological innovation, rather than 'marketing' high margin stuff that relies on highly subjective customer satisfaction criteria, like health and beauty products, and overpriced second rate household cleaners.

But profit margins are high when marketing the 'perception' of greater value for products with low input costs. And it is such products that are the mainstays of Amway.

More importantly, true innovation requires true inspiration. When MLMs move from getting wealthy by marketing the perception of value, and actually discover/invent truly innovative products or services, then I'll be more inclined to have a closer look at their life philosophy.

 

[Macca]

Hi Tom,

While reading your post my thoughts were that it was the fact that you associated with positive minded go getters that lead you to achieve.

Then along comes Stephan and nails it down.

Peer groups rub off on us, witness any group in any suburb. If you "hang out" with yobbos you either are a yobbo or will shortly become one. Associate with ambitious people and you either are ambitious or will be shortly

I am no longer surprised by the influence peer groups have on people, especially teens and early 20s, the evidence is quite compelling IMO

If MLMs attract ambitious people then I guess being involved does give some benefit after all.

 

[Rolf Latham]

I am no longer surprised by the influence peer groups have on people, especially teens and early 20s, the evidence is quite compelling IMO

If you have teenage kids, its not compelling, its self evident

ta
rolf

 

[Indifference]

I do know that a lot of people believe it to be a pyramid scheme but it can't be considering these companies are registered businesses across Australia and the World, so please keep the pyramid comments aside and work on the facts here.

Well, if you have already closed your mind to the facts, then this thread is worthless.

Santa Claus is real.... I promise....

Sincerely, good luck.

 

[Mick C]

This is how i see MLM-----

Person 1- How about we start our own MLM...You give me $500 to join this so call "Company ", we will re-sell coke can's for $2 each, but every 2 cans ppl buy we will give them a free $1 lotto scratchie....

Person 2 - ok, so how do i get paid?

Person 1- every can you sell i will give you $0.20 ...sounds good?

Person 2- not really...

Person 1- Well to make it more interesting- if you recruit 5 ppl to join this company i will double that commission to $0.40 per can

Person 2- That's amazing!

Person 1 - Since your my 1st "victim" i will promote you to captain! so every 10 person you recruit i will TRIPLE the $0.20 commission to $0.60 for every can sold! + you will get a bonus $0.05 for every can your "team member/ business partner" sells as well!

Person 2 - WOW!!!

Person 1- Now if you do the math blah x blah x blah x blah ( insert pyramid) in 1 years time you will have a passive income of $100,000 per month! wow ...all from recruiting 10 suckers in!!! because they will recruit another 10 suckers as well...


Person 2 - $100,000 !!!

Person 1- Now go through your phone book/facebook/mobile and start calling your frds and family!!!

Also remember it's $500 to join and there's also a $10 per monthly fee- what for??...no idea.

What am i selling again? no idea... recruitment fee?

-----

Keep on dreaming and walking...

P.s - im def NOT a fan of MLM....

Regards
Michael

 

[Piston Broke]

It seems some of you don;t really know what a pyramid scheme is.
Amway is just as much pyramid scheme as multiple REAs sharing comission on a sale is. Finance selling/broking is not much different either.
MLM is hard shitty work
MLM is not for everybody.
As for annoying everybody, i ask:
Is there a business book or course out there that does not say "tell everybody about your business?"
But given low entry levels it of course is bound to attract a very low level of skill, which either improves or get quickly weeded out.

@ Mick C
Your biz is no different than a pyramid with the same bank at the top and all you people taking commissions all the way down.
How many commissions does a single loan attract?
Sp how many hands/levels do those funds pass before they get to the end user?
And who is on top of the pyramid?
You are in the MLM biz, your biz is more a pyramid/ponzi scheme than Amway ever was.

 

[Aaron_C]

It seems some of you don;t really know what a pyramid scheme is.

The definition is:

(1) A pyramid scheme is a scheme with both of the following characteristics:

(a) to take part in the scheme, some or all new participants must provide, to another participant or participants in the scheme, either of the following (a participation payment ):

(i) a financial or non-financial benefit to, or for the benefit of, the other participant or participants;

(ii) a financial or non-financial benefit partly to, or for the benefit of, the other participant or participants and partly to, or for the benefit of, other persons;

(b) the participation payments are entirely or substantially induced by the prospect held out to new participants that they will be entitled, in relation to the introduction to the scheme of further new participants, to be provided with either of the following (a recruitment payment ):

(i) a financial or non-financial benefit to, or for the benefit of, new participants;

(ii) a financial or non-financial benefit partly to, or for the benefit of, new participants and partly to, or for the benefit of, other persons.

Of course Amway et al get around this on the strict legislative definition. Doesn't mean it isn't pyramid-esque in nature.

@ Mick C
Your biz is no different than a pyramid with the same bank at the top and all you people taking commissions all the way down.
How many commissions does a single loan attract?
Sp how many hands/levels do those funds pass before they get to the end user?
And who is on top of the pyramid?
You are in the MLM biz, your biz is more a pyramid/ponzi scheme than Amway ever was.

LOL you are very funny. Guess we don't need importers, wholesalers, markets or even retailers. Everyone better go grab a spear and kill our own fish and meat because the middle men are one big pyramid scheme! Such tripe.

 

[Mick C]

@ Mick C
Your biz is no different than a pyramid with the same bank at the top and all you people taking commissions all the way down.
How many commissions does a single loan attract?
Sp how many hands/levels do those funds pass before they get to the end user?
And who is on top of the pyramid?
You are in the MLM biz, your biz is more a pyramid/ponzi scheme than Amway ever was.

Going by your post; 80% of business works in the manner you describe - farmer- > sells potato to coles -> sells it to us. Who on top of the pyramid? how many hands/levels do those funds pass before they get to the end user?

Go take a shower buddy.

Like most business, of course it involves marketing and networking- but not to the extent that Amway business model operates.

We make our income from selling the product ( mortgage) not by sourcing new brokers . Yes Amway sells products as well- but one just needs to go to their networking talk and speak to a rep, to understand what they are really interested in selling?? which makes them more $$$??


And to answer your commission question- average 0.6% of loan amount - The commission passes ONCE only; flat fee with aggregator.

Regards
Michael

 

[Piston Broke]

FTR I am not a member of any MLM organisation. I was but was for a short time lmany years ago.

The definition is:

(1) A pyramid scheme is a scheme with both of the following characteristics:

(a) to take part in the scheme, some or all new participants must provide, to another participant or participants in the scheme, either of the following (a participation payment ):
A broker need to pay a stack of fees to "partecipate", not just one.

(i) a financial or non-financial benefit to, or for the benefit of, the other participant or participants;
A broker works for a mentor who takes the commissions he earns and/or charges fees

(ii) a financial or non-financial benefit partly to, or for the benefit of, the other participant or participants and partly to, or for the benefit of, other persons;
A/A
(b) the participation payments are entirely or substantially induced by the prospect held out to new participants that they will be entitled, in relation to the introduction to the scheme of further new participants, to be provided with either of the following (a recruitment payment ):
This is also called "affiliate program" or "introducing fees".

Of course Amway et al get around this on the strict legislative definition. Doesn't mean it isn't pyramid-esque in nature.

LOL you are very funny. Guess we don't need importers, wholesalers, markets or even retailers. Everyone better go grab a spear and kill our own fish and meat because the middle men are one big pyramid scheme! Such tripe.

You can either analise the biz model, or throw you own opinionated tripe around.

Go take a shower buddy.

Like most business, of course it involves marketing and networking- but not to the extent that Amway business model operates.

We make our income from selling the product ( mortgage) not by sourcing new brokers . Yes Amway sells products as well- but one just needs to go to their networking talk and speak to a rep, to understand what they are really interested in selling?? which makes them more $$$??

And to answer your commission question- average 0.6% of loan amount - The commission passes ONCE only; flat fee with aggregator.

Regards
Michael

If you think there is only one (0.6%) commission on the money your clients receives all the up to where the loan is issued or "created" you need to learn about the biz your in. A "fee" is no different to a commission.
Your product is service for which you act as an agent earning a commission.
The "mortgage" is not your product, but that of the issuing financial institution.
You don't have a "product", never had one. Only a service.
You make your commissions by introducing new people to the a pyramid/ponzi scheme that relies on a continuous influx of new costomers. If loans stop, the whole system falls over.

Amways distributors physically own the product, then sub distribute, retail or use themselves.