Today we are going to attempt to answer the question “why do people join MLMs even though the statistics say they’re gonna fail?”. Here are the top seven reasons why people join MLM’s.
Why Do People Join MLMs – Here Are the 7 Top Reasons
- Number 7- Peer Pressure-There are eighteen point six million people that are involved in MLM direct sales.
- Number 6- They are real businesses. MLM direct sales does not necessarily mean scam, just because it’s an MLM doesn’t mean it’s a scam. It could be a legitimate MLM business.
- Number 5- There’s a low cost investment. MLMs give you the opportunity to build a direct sales force that could lead to a great income.
- Number 4- It’s a big business. MLM direct sales are a thirty four point nine billion dollar industry.
- Number 3- Discounts on products. People can get products they love at a discount when they belong to an MLM
- Number 2- Extra income. People say that they do it to earn extra income but number one is the real reason which is
- Number 1- People are desperate. They want to leave the work till you die corporate system.
Why Do People Join MLMs- The Glass Ceiling
Let’s face it guys, if you work for a corporation you hit what is known as a glass ceiling. That’s the truth. Only one percent of people in corporations actually make it to the CEO level. That’s according to the Wall Street Journal .
The CEO’s of the world are the ones that actually get rich. Everybody else is going to hit an income ceiling. They’re going to get to a certain level and then stop. No Matter how hard they try, they are going to keep their same job title until they retire or are down sized.
What’s the big pay off for working 60 hours of week, without taking a vacation? An annual cost-of-living pay increase and that’s it.
They’re not going to get a massive ten, twenty or thirty percent raises. So let’s say you have hit that glass ceiling and you can’t live on your current salary.
Is it going to get better? No, you’re never ever going to be able to live on it in the future either. Inflation is never going to let up. In fact the inflation rate compounds annually.
That’s why people are desperate. What is the solution you might ask?
Well I’ll answer that question a little later.
Why Do People Join MLMs- The Problem With MLMs
Here’s the problem with MLM sales. According to the Direct Selling Association the average income of people in MLM direct sales was a total of $2,400. That’s not even enough to go to on a good vacation.
Most people either make less than that or they actually lose money altogether. There is a 50% attrition rate in the first year alone among new MLM recruits.
After five years there’s a 90 percent attrition rate. What does that mean? It means that MLM reps are constantly recruiting and training people that will be mostly gone after the first year.
Most of the MLM reps exhaust their warm market networks within the first six months. That means that they are trying to recruit people so that they can use them to recruit from their warm markets.
On top of the recruiting challenge, is the fact that your networking business is a hundred percent dependent on the success or failure of the underlying MLM business.
If that MLM business that you’ve been working so darn hard to recruit people into, ends up going belly-up, your business is gone.
Now let’s move on to that solution I was talking about earlier.
Why Do People Join MLMs- A Better Business Model
Instead of investing in a sale’s system that doesn’t work. Invest in one that does. The one that does, starts with creating digital assets.
Digital assets don’t just pay you once but over and over. These assets once created are independent of world markets. These assets create brand loyalty and build trust and rapport.
These assets are set up to sell products and services in any and all niches. What am I talking about?
I’m talking about content marketing. Content Marketing allows you to sell affiliate products and many other business products as well. You may be thinking, “well you just have to make sales over and over again”.
I would say no, you don’t, your digital assets do. Your assets don’t go away and they continue to work for you 24 hours a day, seven days a week.
You may be wondering what is content marketing?
Why Do People Join MLMs- Content Marketing Defined
Here’s the gist of it. Content marketers act like a publisher. They put out content that people in a specific niche actually like to read and share.
It’s not advertising. You answer questions and offer solutions to the problems that real people have.
It is through a long-term relationship that built over time, that allows you to redirect your readership to specific niche based products that help people solve their problems.
Content marketing can be created on Blogs, Videos and Podcasts.
The goal is to educate, inspire or just entertain. Content marketing is the long game of building product sales.
Why Do People Join MLMs- MLMs are the Past but Content Marketing Is the Future
MLMs have been around for a long time. I think at one point they made a lot of since. Now, however, I think it represents the past. Direct sales can be done well, directly. The internet has opened up a whole new world for online product sales.
I think that affiliate marketing done through content marketing represents the future. People will continue to have incentives to sell products. Instead of wasting time recruiting other marketers, however, affiliates will have more time to make content and sales.
Companies that wish to sell directly to the public can simply go to an affiliate platform and register their products for sale.
I hope this helps someone that is tired of losing at the corporate game and tired of beating their head against the wall in the MLM game.
If you are ready for a change and want to get off of the corporate hamster wheel then please click on the image below.
As found on Youtube