Promised the Moon with Your Home Based Business?
Don't feel too badly. Many people trying to start a home based business were promised the moon but have been left with a dim reflection of themselves in a pool of failure. It's tragic that over 95% of home business workers, who have been lured by the slick marketing of MLM or multi-level marketing companies, have had their dreams dashed and have become discouraged and quit trying. By the end of this article, you will learn the difference between a bad business model, traditional MLM and a superior business model that leaves no one behind and guarantees success in a home based business.
Traditionally, MLM companies have been primarily recruiting companies growing the ranks of their distributors to ridiculous numbers that can't support the business long term. The number of distributors grows too rapidly and they begin competing with each other for the same slice of the pie. In order to justify having so many distributors, the company charges astronomical prices for its products, so that everyone in the food chain can be compensated. Customers are then faced with buying what become luxury items instead of reasonably priced products. When that happens the decision to fill up the car or heat the home takes precedence and the MLM company sees a decline in sales. And then the worst happens. The companies distributors begin to fall by the wayside. Remember the 95% failure rate? It is inevitable that this will happen.
MLM companies are simply bottom feeders. They churn up the market, sign people up, get them to commit to expensive auto-shipments knowing that most recruits will quit after several months. But that's ok because they know that as people quit, others will continue to join. And somewhere way up high in the organization the founders are doing quite well for themselves. Unfortunately, the picture at the bottom is pretty grim. And to add insult to injury customers begin seeing equivalent products at major retailers or on E-Bay for 75% less.
The business model we have just looked at is premised on recruiting and duplication. In other words, new recruits are expected to perform at the level of the company's best performers who are usually professional, experienced sales people who live, eat, breathe, and sleep MLM. The average recruit is somebody who wants to make a little additional income and get a discount on their own products. The likelihood that they will ever duplicate their sponsor's success is very, very slim.
Now let's talk about the superior business model mentioned earlier. Why not focus on a smaller, leaner distributor organization for the home based business? Why not focus on growing customers and not distributors? Now there's a novel idea! Customers actually buy products and fuel the business with cash. Distributors aren't left with empty promises and hype. This model exists and is very successful, so before you find yourself buying the moon, use a little caution in selecting your home based business. Here's a final tip: the moon isn't for sale anyway and neither is the Brooklyn Bridge.
Joe Goldsmith, Business Consultant, The Ultimate Team
Email: jfgoldsmith@comcast.net
Telephone: 978-223-1097
Skype: jgold21
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