MLM Myopia and a Call for Wider Vision

The Multi-Level Marketing (MLM) business model is difficult to make work.  The success rate attests to this.  Or, conversely, the failure rate in the 90%+ range attests to this.

Regardless, many people intrepidly espouse their love of 1) the product or service, and/or; 2) their aspiration for time and financial freedom.  The inherent “rub” is simply a repeat of the first sentence:  it is difficult to make work (and) many starve-out due to lack of success – which translates to lack of organizational growth... and in turn means no profitability or income.

There is a way to fix this problem.  First, let’s compare and contrast the MLM business model with Affiliate Marketing where there are immediate payout, "cash now" offers.

As most know from the name of the industry, MLMs have many levels.  Typically, there is an up-front incentive bump like fast-start-bonuses for recruiting new enrollees, and then in the following month, percentages kick in for whatever rare gemstone, precious metal, or quasi corporate “rank” an MLM company ascribes to.  For example, precious metals would start you out a "rank" of  Bronze, then Silver, Gold, and Platinum.  Gemstones are typically Emerald, Ruby, Diamond... etc.

With each of these “rank advances”, the MLM team member gets increasingly larger portions of the pie, based on organizational size or business volume.  (And) typically this comes with a personal monthly volume requirement (subscription) to remain “active” in the compensation plan.  Yes, this monthly commitment is an elaborate subscription... which is great (everyone loves subscriptions) if you one can make the overall business model work.

Juxtapose this to Affiliate Marketing where there are many platforms with “cash now” components and pay 100% (and) with additional leverage features enabling/incentivizing organizational growth.  The MLM “fast start” bump is somewhat analogous to this in that it is an initial cash infusion to your business.  However, in the subsequent months, there is a huge difference in getting (say) 7-10% on your first level as a Bronze, then adding 3-5% when you reach Silver... etc. (sweeping generalization is acknowledged given other incentives in MLMs). In contrast, however, with Affiliate Marketing, the 100%’s keep coming to infinity if one is astute in driving organizational growth.

Based on many, many Affiliate Platforms, this “cash now” feature can sustain and support any MLM slow-growth curve.  As such, with a diversified portfolio of offerings, one can combine their MLM love-of-products with Affiliate Marketing cash infusion programs.  In doing so, you create a sustainable business growth trajectory for your MLM.  Said differently, you create an insurance policy so that you don't "starve out" of an MLM business.

Now, if you have "made it" in your MLM, congratulations!  Take this as advice for those you recruit in the future.  It simply makes sense for the 90%+  In addition, many of the moderately priced, mid-tier Affiliate Offers serve as lead generation tools for (the often) more expensive MLM  initial investment starting points.

So, to close, let me state the premise here clearly:  in a portfolio approach to income, MLM Businesses can (and many times should) be complemented with Affiliate “cash now” offers to sustain the growth curve of the MLM (and) to act as a lead source for any offer in your portfolio.

Hope this helps and makes sense.