Speeding up the process or just prolonging the pain?
As business people we are told to do a business plan and have short term goals and long term goals, personal and for your business, MLM (Multi-Level-Marketing) people have the ‘end goal’ drilled into them too.
So when a good friend of mine decided to ‘really go’ for his MLM business here in Thailand I truly wished him all the best as I would anyone, but then I began to question my loyalty to him as a friend.
This prompted me to do a little bit of research into how well he could hope to do at his MLM in Bangkok and how long it probably would take him, and my findings found me a little shocked. I wondered whether I should try to put him off, which would go against every doctrine I was taught in entrepreneurship, wish is to give faith and encouragement to everyone, no matter what they are doing, as long as it’s legit and wholesome.
Here was my research:
First off there is no work permit for Foreigners doing Multi-Level-Marketing in Thailand and I am surprised the companies accept money of people with Tourist visas and Education visas, I am told; “well the government will not worry till you are making a decent amount,” but surely, technically you are working without a permit right?
Research over 50 years of MLM tells us there is 98% attrition rate in MLM as in; for every 100 people you sign up; 2 will go on and make vast fortunes for themselves and for you as their sponsor. The magic number MLM companies always play with; is 6 people who will live the dream for themselves and you.
6 People who work really hard and move up the echelons of the organisation will give you the life you have always dreamed of, that’s what MLM sells! So to find 6 insanely hopeful, ambitious, open minded people, you need to sign up 300 people who come in and get their starter pack, visit the office and go on a few seminars, start selling etc.
On average most people can sell one in three from appointments made, of whatever it is they are selling, this applies to any business. Therefore to sign up 300 people we need to make and attend appointments with around 900 people. Of course MLM is a legit business, well the ones backed by the DSA are, and all the audited ones will tell you ‘It is a 2-5 year business’ so they are being true.
I just wonder how many of the people who join realise it’s a ‘full time job, on top of your normal daily full time job’ to get anywhere within 2-5 years? Unless of course you are lucky enough to have 5 years money set aside to live off so you can do it full time from the offset.
You need to be showing circles, the MLM term for sharing the business, 15-20 times a month at least to be within the 2-5 year boundary. 15-20 times a month sharing your business to people, of whom 1 in 3 will join and then 98% of those joining will fail and waste your time, to find the 2% who will go on and do well seems to abrade everything I’ve been taught as a business person.
In business I was taught to target market, blanket marketing is now one of the worst things you can do and is one of the biggest reasons business start-ups fail. The idea that you can buy in a database and cold call has now been proven to be ineffective. The top leaders in the MLM industry I spoke to recognise this, so during seminars the members are trained to ask the right questions to people to see if they have ambition, well who at a networking event is going to say:
“Actually I am quite unambitious really; I just want a job so I can pay the rent” of course not they will extoll themselves as anyone would.
You have to be able to see through the b/s and that makes the MLM business even harder.
The business owners or distributors (That’s what it says on their business cards they got for free) are also trained to embrace new mediums to find new people:
Online marketing and Social media, I can personally vouch, will bring in the leads on a full time basis, full time being at the PC for around 30-40 hours a week, and I have done for 8 years now.
On average with social media now I can make around 2-3 appointments a week, which can take another 10-20 hours a week to attend these meetings I have made including travel, and even at that rate it would take 6-8 years to get to that tally of 6 people who are doing well not forgetting the first few months that were bereft of any kinds of leads whilst branding myself in business.
But to be fair to MLM’s my Dad worked for 40 years and never got wealthy in a job!
I teach people how to glean 5-8 appointments a month from Internet marketing, yet I still have to attend physical networking, on its own SMM won’t get your business where you need it to take care of you!
So taking all this into consideration, should I tell my friend to put down the phone, close the Facebook page and find a different business, or should I continue to support him even though I think the odds are so stacked against him? In reality it will take 8-10 years or more at the rate he is going at 2-3 appointments a week
He is really motivated and has paid a lot of money for week long cult like seminars where they get him to scream and feint so that he believes his true desires are what will get him the life of his dreams, that, and selling some lady skin creams, we mustn’t forget that, because that’s where the money comes from to pay these people on their stages with big wheel barrows!
What really concerns me is when they say “It’s not about the product, it’s about the business,”
Well I’ll ask Dexter Jeager that next time I see him if that’s true.
If you want to learn how to make an extra 5-8 good warm appointments each month through social media for any kind of business contact netmediathailand