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article · December 2022

What goes around comes around

We have seen this many times. A New Companies launches. Big names are involved, huge fast-track records are generated, celebrated, and promoted.

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We have seen this many times. A New Companies launches. Big names are involved, huge fast-track records are generated, celebrated, and promoted.

Huge Visions are communicated and first Billions are produced fast.

Fast forward 5 years, after a huge Peak, the Volume collapses, and the Company gets sold.

Why is this pattern happening to many MLM Companies over and over again?

Short-term thinking

“ you give up on the best you can have long-term when your focus is on what you want now.”

Most new MLM Companies are so obsessed with producing a quick Track record or a Top Income producer they can promote, that they use all the strategies that may give them quick results, but will kill all their small distributors in the long-term, who are their working backbone of daily business!

Binary Bonus Plan

It's interesting that not 1 Top 10 Company is using the Binary Bonus plan, but 80% of new Companies think they need this plan to attract “BIG Leaders .“ The Problem with the Binary Bonus plan is that most of the money is fueled to the top leaders while the small partner is bleeding out since they have only one strong leg, whereas binary pays very little or no commission.

Big Starterkits / Crazy Autoships

Companies with 5.000€ plus Starter kits or auto ships with several hundreds of Euro of monthly Cost, which their partners are forced to buy to not lose all income or even not lose all teams are the first step to self-extinction.

These Companies are like Vampires, first their drink their Partner's blood, and then they wonder why all are dead.

Lack of product value / Lack of Customers

When Companies have a “ product “ or “ service “ that would never sell in the “Normal World“, they never have rebuying customers, so small partners without teams make no money. Eventually Motivation without Money vanishes, they leave, and great kingdoms collapse.

This is not so hard to understand.

Autoship buying partners are not customers!

They are mainly buying for qualification purposes and will stop buying once the volume drops. That’s the circle of destruction.

If this is all you have, say goodbye to the Future.

Is there any good Companies in MLM?

Sure, they are plenty!

Look out for any company with a strong Customer focus and Reasonable pricing.

Ask the leaders how many real Customers they have, and what percentage of their income comes from true rebuying Customers, then you know all you need to know.

If you make a rank list of companies that reached 1 Billion in the strict end customer sales, you have a Big Player for the long-term future. Everything else is just short-term noise.

Editor's Note :

Christian Wiesner is one of the world leaders that write for this resource. He makes a good point when he recommends doing your homework when choosing a company. This is YOUR business, one of the most important things you can do as the owner of YOUR business is find out all that you can and do your homework, ask a lot of questions, and get the answers that you're seeking!

The Network Marketing Magazine is a resource to find your answers. Also, contact our contributors to help guide you. One that we recommend, is an expert that we call "The Greatest Networker in the World!" His name is Russ DeVan, check out his articles to get a great insight into what to look for in developing a very successful business, you can start in this month's issue. Another great leader, teacher, and contributor is Ghazala Jabeen. Ghazala is one of the best teachers anyone in network marketing and business could follow for success in their business. Do your homework!

George Madiou

Founder & Publisher

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