Multi Level Marketing - Set Up for Failure?

For many people who are interested in starting their own businesses, multi level marketing companies look like a good option. These kinds of companies promise that they have a proven formula for success and that all you have to do is pay a fee to get started, and they will let you in on all of their secrets. Sounds like a “can’t lose” plan, right? That might especially seem to be the case when the multi level marketing company is one whose name you recognize – that is only likely to increase your confidence that you too can cash in on their success. But are these multi level marketing companies really all they are cracked up to be? Many business experts argue that the answer to that question depends on at what stage you enter the multi level plan. Multi level marketing plans might have a shelf life, and entering at the wrong time could set you up for certain failure.

 

What is this shelf life all about? Well, according to some experts, the nature of multi level marketing plans inherently leads to market saturation, which causes you to fail. The reason behind this is that multi level marketing companies’ emphasis on constantly recruiting new members. The parent companies are always on the lookout for new members, and conduct membership drives and advertising programs constantly. Likewise, they offer incentives to all of their representatives for recruiting new reps. If you join a multi level marketing program and you recruit a new member, you will likely receive a bonus for getting them to sign up and then you will likely get a cut of all of their sales.

 

What’s wrong with that? Imagine what happens if you are very successful recruiting new representatives in your area for the multi level marketing program of which you are a part. Pretty soon, your town will be crawling with reps, all trying to sell the products you’re trying to sell to the same limited group of people. The market in your area will be completely saturated, and soon, you won’t be able to make the sales you need to keep your business going.

 

That is why the key to making money rests in when you get into a multi level marketing program. If you are one of the first in your area to join the program, then there will be a window where you can make some money. But eventually you will become a victim of your own success, and you’re capacity to earn will be reduced.

 

The obvious solution would seem to be recruiting fewer reps. However, many multi level marketing programs require you to perform in this way, and your income may depend on it. With this in mind, before you invest in joining any such program do your homework and find out what kind of presence there is in your area. If there are already several reps in your town and you think it will be hard to sell in the way you need to, then look for a new multi level opportunity.