Monday, 12 November 2007

IV. Relationship Issues: An Experiential Problem

Learning the Hard Way

MLMs grow by exploiting people's relationships. If you are going to be in an MLM, you swallow hard and accept this as part of "building your business." This is "networking." But to those not "in" the MLM, it seems as if friendship is merely a pretext for phoniness, friendliness is suspected as prospecting, and so on. There is no middle ground here, try as you might.

While this is the most difficult point to make, it is perhaps the most important. Anyone who has any experience with an MLM has strong feelings, either for or against, and this is the problem. Polarization runs deep.

High-pressure Selling -- Reserved for Pyramids Only

When it comes to selling product, MLM sales reps are probably no more aggressive or obnoxious than ordinary salespeople. Since most are not salespeople by nature, and it is characteristic that MLMs attract few people with any experience selling this particular product or service, they usually sell through pre-fab "parties" or home "demos." Thus, sales pressure is exerted by situation, if at all.

It should be noted that when selling product, the only distinction from a real-world business is the possibility for deception due to the "looseness" of the MLM and the incentive to exaggerate claims without any accountability. Other than this, selling product in an MLM is fairly similar to selling any product in the real world.

But when it comes to getting you "signed up" as a "distributor," the MLMers get pushy and deceptive beyond the boundaries of polite social norms.

Remember, an MLM is defined by its rewarding people to recruit others in multiple levels.

"Mother, Let Me Tell You About a Fantastic Opportunity..."

Even ex-accountants are willing to practice the crudest of high-pressure selling tactics, at least when it comes to "signing people up." The end justifies the means, when it comes to getting people to come to the "meetings," where the objective is to get a materialism frenzy going at high pitch through a slick speaker or video. The reasons for this "confidence building" should be obvious by now, but here we are considering the relationship cost associated with the "success" of the MLM.

The above title is meant to be absurd. Most people, no matter how jaded, would not foist such a con on their own mothers. Even if people don't know the specifics of what is wrong with MLMs, intuition often warns us: "Don't tamper with that relationship." The first marks for recruitment are the gullible, or the "expendable" friends. But successive moral compromise, experience, and desperation... may yet lead to "good old Mom."

Never Admit You Are Wrong

Many have left high-paying jobs to "pursue their dreams" in an MLM. Having been conned so dramatically, they do not easily admit defeat. It seems easier to cling to the bad dream in an increasing cycle of desperation to make the MLM work against all odds. "Losers" at the bottom congregate into support groups, perhaps spinning-off another MLM where they can be "boss."

There is an undeniable camaraderie among MLMers. But for everyone else, "there goes the neighborhood." It is saddening to see people being encouraged against all instinct and common sense to chase after an illusory "pot of gold," but what can be done?

Counting the Cost: The First Church of MLM

Many readers will share the experience of observing MLMs divide families, friends, churches, and civic groups. Lifelong friends are now "prospects." The neighborhood is now "a market." Motives change, suspicions rise, divisions form. The question is begged: "Is it worth it?"

Especially nasty is the church situation. Will the pastor join? If not, he will take a dim view of MLM proselytizing at church functions; animosity will rise, factions will form. You are either "in" or out. If the pastor joins, then those who are not "in" will feel a little uncomfortable in this church.

A church (or any community group) can be easily torpedoed by an MLM.

Trust Your Instincts?

For most people, thankfully, the MLM experience usually ends in very quick financial failure and is then sidelined. Two possible responses are: 1) being embarrassed about participation, or 2) becoming even more intractable when the MLM has failed. You will find the latter chasing after the latest "get rich quick" scheme with similar results. "If we could have just sponsored so and so--they have so many friends--we would have made it."

Thus, there is reason for the "bad taste" most people have for MLMs. By instinct if not experience or insight, we wince at the thought of what we know will follow in the wake of an MLM. Relationships strained, factions formed, deception, manipulation, greed, loss, a closet full of videotapes, brochures, and useless inventory that "everybody wants."

Disease Alert: Beware of MLM Blindness

Apparently, it is difficult for gung-ho MLMers to see how they look from the outside. They can watch lifelong friendships unravel, churches and civic groups poisoned, the avoidance of friends and family, etc., and never see that MLM was the cause.

If you try to point this pathology out, you are treated as if you have attacked the very gospel! Perhaps for some, the MLM approach is a new gospel?

They will claim to have made "new friends," most of which are MLMers or new acquaintances who could be considered "future prospects." The shallowness of these "new friends," the stilted conversations among the "old friends," and the embarrassment, in general, for what seems clear to everyone but the MLMer go unnoticed. Callousness sets in; standards are lowered.

Of course, it could be pointed out that this might have happened anyway. Perhaps the die-hard MLMers would have ruined their friendships anyway in some other non-MLM business failure. Is the MLM really the cause, or just the vehicle?

Business failure of any type is traumatic on the relationships involved, but in most small businesses there is at least the chance of success. And this is never the case in an MLM, unless "success" can be defined as profiting off of the failures of others.

Non-MLM real-world businesses that offer products of interest to friends, family, etc., such as insurance agents and small retail shop owners, seem to be more circumspect in dealing with personal relationships in all but a few rare (and grievous) cases. But the MLMer is recognizable by duplicity of friendship overtures, overbearing glad-handing, full-time prospecting, outrageous initial deception, and social callousness. This is no accident, but rather sheer desperation. How could it be otherwise? For the active MLMer is in a hopeless bear trap: with hubris as one steel jaw and oversaturation the other.

And so the MLM relationship "bull" tramples through the relationship "china closet," blindly ruining fragile and valuable things. Some never pull out of this, figuring the coldness they experience in their emotional lives is due to some other cause than their MLM participation.

The Aftermath

One can't help but wish that the "neighborhood" could be like it once was. But an MLM storm has blown through, ruining valuable relationships with no regret or conscience. And brace yourself, another one is coming. Perhaps it is in that smiling face approaching you, or in that nice letter you just received from a "friend"?

What goes unnoticed to the MLMer is that when the neighborhood is turned into a marketplace, something precious is lost... which is not easily regained.

This aspect of the MLM experience should not be underestimated, and the reflective reader would do well to think twice about the value of friends, family, community, and church fellowship before joining or continuing in an MLM.


Summary of What's Wrong With Multi-Level Marketing

  1. MLMs are "doomed by design" to recruit too many salespeople, who in turn will then attempt to recruit even more salespeople, ad infinitum.

  2. For many, the real attraction of involvement in multi-level marketing is the thinly veiled pyramid con-scheme made quasi-legal by the presence of a product or service.

  3. The ethical concessions necessary to be "successful" in many MLM companies are stark and difficult to deal with for most people.

  4. Friends and family should be treated as such, and not as "marks" for exploitation.


It is hoped that by clearly pointing out "What is Wrong With Multi-Level Marketing" that many might be spared the inherent and associative pitfalls by avoiding the practice.

As well, for those who insist on practicing MLM, it is hoped that this analysis will serve as a handy framework of problem areas to be avoided if and where this is possible.

III. Morality and Ethics: A Problem of Greed

Moral Riddle: What is Ever Present but Universally Condemned?

While issues of morality and ethics can be tricky to discuss, materialism and greed are universally condemned by every major religion, and even by most of the irreligious. This does not mean people are not materialistic or greedy; in fact, the common ethical call to not be so is strong evidence that we are.

For most people, this means if we are going to be materialistic or greedy, we would rather not be obvious about it. Thus, Madison Avenue has subtle, highly polished ways of appealing to these vices without being heavy handed. We don't mind so much... as long as it is "veiled." This hypocrisy, while sad, is the status quo. So, Madison Avenue is trying to be ever more subtle in appearing not to be manipulating our immoral "bent" towards greed and materialism.

A Blatant Appeal to Materialism and Greed

Not so with the MLM crowd. Pick up any brochure or videotape for an MLM and you are more than likely to see a cheesy, obvious, and blatant appeal to greed and materialism. This is offensive to everyone, even die-hard materialists. Typical is an appeal to "the American dream." Usually there will be a mood shot of a large new home, a luxury car, a boat, perhaps a beautiful couple boarding a Lear jet, and so on.

While this need not necessarily be part of the MLM approach, it usually is.

Such a transparent appeal should make people suspicious. "Why the bait?" "Are they trying to 'get my juices going' so that my brain turns off?" "Couldn't they show people doing more wholesome things with the money they make?" "If this is really a legitimate opportunity, why not focus on the market, product, or service instead of people reveling in lavish materialism?"

But we have reason enough to know, having read this far, why the distraction is needed. Unbridled greed suspends good judgment. When the eyes gloss over in a materialistic glaze, common sense is a stranger.

Besides being cheesy and offensive to our sensibilities, this is not a big deal for participants, right? But consider that all companies must have control over the way they are presented to the public. Thus, an MLM has the right and obligation to dictate what material is used. Otherwise any agent could say whatever he or she liked about the nature of the company, causing obvious problems. Again, it would take too much time to audit and approve each individual's idea for a presentation where the goal is mass marketing. Using "boilerplate" presentations affords the added benefit of consistency. This is basic "information quality control."

The net effect is that the MLM rep is "stuck" with the company-approved video, brochure, and presentation outline.

"Not Me, I Would Never Stoop That Low!"

In 1991, some distributors in the MLM FUND AMERICA began to produce their own, improved recruitment material. They were summarily fired, which did not please them since many of them were founding members who had "gotten in early."

Later the same year, by the way, the founder of FUND AMERICA was arrested for having generated some 90% of revenues selling "distributorships" versus product... making it clear that this particular MLM was little more than a pyramid scheme.

Job Opening: Salesperson of Sin!

Do you want to be involved in the blatant promotion of values contrary to your belief system?

In most MLMs you will have no choice. You are going to have to sit through meeting after meeting after meeting after meeting. You are going to be "motivated" to coerce your friends and family to hear "the pitch." This is the way the "dream" is planted and fertilized. Get used to it.

If you are a materialist, you only have to get over the cheekiness of the presentation. But if you do not wish to promote such ideas, if you consider them sinful, then this puts you at the focal point of a moral dilemma. Do you wish to be a salesperson for materialism?

Lack of Information Quality Control: An MLM Incentive?

On the flip-side of the issue of being stuck with the recruitment "pitch" is the fact that the MLM organization is otherwise loose, to say the least. This is part of the appeal to many, to "be your own boss."

But in practice this leads to loony product claims, many of which are deceptive and some of which can be positively dangerous.

Hyperbole is a given in an MLM. When inexperienced salespeople are turned loose to sell on full commission without supervision or accountability, what else could happen?

Since MLM organizations are notoriously flash-in-the-pan, one has to wonder why any new company would choose this flawed marketing technique. Perhaps one of the things to consider is that the MLM organization can effectively skirt the Federal Trade Commission by using word-of-mouth testimonials, supposed "studies" done by scientists, fabricated endorsements, rumors and other misrepresentations that would never be allowed to see the light of day in the real world of product promotion, shady as it is.

Thus, MLM has evolved into a "niche": it can be used to sell products that could not be sold any other way. An MLM is a way to get undue credibility by exploiting people's personal friendships and relationships via "networking." This is an intrinsic moral difficulty with MLMs that will be expanded in the last section.

MLM Sales Technique: Rumors, Slander, Defamation

Hyperbole is not limited merely to product claims, however. When MLMers turn to their competitors it can get ugly indeed. Some of the most outlandish rumors of modern history can be traced to MLMs. In recent years, for example, the international rumor that the president of a major real-world corporation was a Satanist, and that the logo of his company contained occult symbols, turned out to have a commercial motive and was traced to specific Amway distributors. These were successfully sued in 1991, but the rumor persists. And how much else of the MLM negative "sales pitch" is fabrication or outright lie? Not all the negative selling claims are as scandalous or widespread as the previous example, but the MLM culture produces so much of this stuff it would be hard to prosecute it all.

Again, what else could be expected from inexperienced salespeople thrown into an oversaturated sales market on full commission and no accountability?

Negative selling is not unique to MLMs, but MLMs have a legacy of fostering a culture of credulity, of bizarre "gossip-as-fact." After all, this is a friend telling me this!

Telling lies about people or groups is slander. Systemic and malicious slander is illegal in most civilized countries. Slander is a sin listed next to murder and adultery in Biblical texts. But how will you know when you become the slanderer by repeating what you heard in an MLM meeting?

Great Men?

Another morally questionable practice that is not intrinsic to MLMs, but seems axiomatic, is the pent-up idolatry of the leaders.

In FUND AMERICA, the "approved materials" showed what a great man the founder was, depicted the depth of his management experience, showed him in mood shots, etc. It is easy to swoon in admiration of such a powerful, visionary man, dedicated to bringing this wonderful opportunity to common Americans like us.

It turned out he was a criminal fugitive from Australia, where he had been run out of town for doing the same.

But you would never guess it from the company material. A great man.

There are more than a few MLM "executives" like this who will pop up tomorrow in the MLM du jour. MLM exploitation can be very profitable and the jail sentences light. Let the MLM "dream" buyer beware.

I have been taken to task for making this point too strongly--and do not wish to imply that all MLM leaders have criminal records--but it does pay to do some research here. Are the idols you are being asked to worship in MLM worthy of respect, or contempt? Have they been prosecuted or sued for exploiting people in the past? Have they done prison time?

Do not expect to hear the full truth in the MLM video.

Pride and the Secret Closet: Vanity and the Way MLMs Grow

"Mr. Prospect, now you aren't required to buy more than three product units, but why bother joining unless you plan to succeed? Besides, all of our products are 100% money back guaranteed."

"Hmmm... To ask for a refund, then, is to admit defeat. Others appear to be doing O.K. at this. I'm no failure! Perhaps I should go to another motivational seminar or strong-arm and alienate one more friend to join. I wasn't fooled! I'm no failure!"

So, the "inventory" and "recruitment kits," never viable, collect dust. They become a pile in the back closet or attic, a trophy to pride being unable to admit that greed seized the moment.

Back to the Pyramids: Innovative Marketing or Organized Crime?

It is generally agreed that to mislead people in order to get their money is morally reprehensible. It is labeled "theft" or "fraud," and those who do it should be punished. No one is naive enough to suggest that you can't make money at it. Crime can pay, at least temporarily.

Pyramid schemes are illegal. They are illegal because they are exploitative and dishonest. They exploit the most vulnerable of people: the desperate, the out-of-work, the ignorant. Those who start and practice such fraud, should, and increasingly are, being punished for their crimes.

But add a product for cover, and call it an MLM, and people are willing to swallow its legality. Is this true? Really? Who says so?

The Feds versus the MLM Gang: The Other Side of the Story

It is a fact that a few large MLMs have survived against the best efforts of law enforcement officials to shut them down, spending millions of dollars to protect, lobby, and insulate themselves. But the same could be said for any organized crime. It is difficult to stop once it becomes so large.

And MLMs look so legitimate to the public, so decent. So many nice people are involved. Surely, it can't be illegal! The people lower down may even defend the very organization that is robbing them, hoping that they might get their chance to make "the big money" later.

But if it looks like a duck, walks like a duck, and quacks like a duck, it probably is a duck. Unless it is an MLM, and then it is NOT a pyramid.

The Feds generally see it differently... when the ML (multi-level) aspect begins to eclipse the M (marketing) of products or services.

People can make money in an MLM, undeniably. The moral issue is: Where is the money coming from? Selling product? Then why not sell the same product in the "real world"?

But everyone knows that the real incentive is the pyramid aspect, and the product just the excuse to make it legal, or at least the MLM promoter would like you to believe it is legal.

The Mob and the MLM: A Stretched Analogy?

Talk to a mobster, and he will tell you that he is "merely misunderstood in his benevolent intentions." "We are just trying to 'build our business.'" "It's all a conspiracy to make us look bad." "The Feds are out to get us because they are jealous or afraid of our new way of life." "Why, look at all the good we do!" "We are looking more legitimate every day." "Here's a statement from a famous DA that the Mob is really a good organization and no harm ever comes from it." "We've even got a minister to endorse us now!"

Propaganda and MLM Expansion

The MLMers of the new millennium are starting to sound a lot like the gangsters of yesteryear. In an era where management science and the law generally condemn MLM, they've "got their own experts," from academia or law, who are "on the payroll." Confidence, remember, is key.

Regardless of all the vehement denials, MLMs are all to some extent pyramid schemes, and pyramid schemes are illegal. Sure, some are "getting away with it," but so did the Mafia for decades. It is hard to stop a juggernaut, especially one that has taken such pains to look legitimate and misunderstood, that is highly organized, and that has so much money from its victims to propagandize, lobby, and defend itself. And so the exploitation goes on.

If these guys show up in your neighborhood, you are either "in" or "out," family or target, friend or foe. Suspicion rules the day; everyone has an "angle"; greed supplants innocence. The "neighborhood" is turned into a marketplace, and may never recover from the blow.

The ethical questions remain: Are MLMs a morally acceptable way to make money? Are they--and will they continue to be--legitimate?

MLM Proselytizing: Beneath Begging?

If money is needed that badly, why not simply ask friends and family for help rather than taking money from them under false pretenses--and also selling them a bill of goods? By "sponsoring" them, you have not only conned them and profited at their expense, you have made them feel like losers, since they are not able to make a success of the hopeless MLM concept.

Once seen, only the morally blind, or consciously criminal, could continue in such a "business."

But wait, perhaps you could recruit... your mother!

Moral Inventory

By way of review, the prospective MLM initiate has to face and resolve these ethical issues:

  1. Do I want to be involved in encouraging people to be more materialistic?

  2. Do I want to sell a product that perhaps couldn't be sold any other way?

  3. Do I want to be a part of an enterprise famous for slander, libel, and rumor?

  4. Do I want to be a part of a company that may employ criminals as marketing experts?

  5. Do I want to make money off my ability to convince people that an unworkable marketing system is viable?

  6. Do I want to be known among my friends and family as a person who tried to con people with a thinly veiled pyramid scheme?

If you can answer these questions "yes," training is available... But remember that God is watching, even if you never get "successful" enough for the Feds to notice you.

II. Pyramid Structure: An Organizational Problem

The Un-Pyramid

For most MLMs, the product is really a mere diversion from the real profit-making dynamic. To anyone familiar with MLMs, the previous discussion (which focused so much on the fact that MLMs are "doomed by design" to reach market saturation and thus put the people who are legitimately trying to sell the product into a difficult situation) may seem to miss the point. The product or service may well be good, and it might oversaturate at some point, but let's get serious. The product is not the incentive to join an MLM. Otherwise people might have shown an interest in selling this particular product or service before in the real world. The product is the excuse to attempt to legitimate the real money-making engine. It's "the cover."

Intuitively, we all know what is really going on with MLMs. Just don't use the word "pyramid"!

"You see, if you can convince ten people that everyone needs this product or service, even though they aren't buying similar products available in the market, and they can convince ten people, and so on, that's how you make the real money. And as long as you sell to a few people along the way, it is all legal." Maybe...

But the way to make money in all this is clearly not by only selling product, otherwise you might have shown an interest in it before, through conventional market opportunities. No, the "hook" is selling others on selling others on "the dream."

Math and Common Sense

MLMs work by geometric expansion, where you get ten to sponsor ten to sponsor ten, and so on. This is usually shown as an expanding matrix (just don't say "pyramid"!) with corresponding kick-backs at various levels.

The problem here is one of common sense. At a mere three levels deep this would be 1,000 people. There goes the neighborhood! At six levels deep, that would be 1,000,000 people believing they can make money selling. But to whom? There goes the city! And the MLM is just getting its steam going. Think of all the meetings! Think of all the "dreams" being sold! Think of the false hopes being generated. Think of the money being lost.

It Will Fail??? It Cannot Fail???

Nothing irritates a die-hard MLMer more than the preceding argument. If you point out the absurdity, for example, that if "the pitch" at an Amway meeting were even moderately accurate, in something like 18 months Amway would be larger than the GNP of the entire United States, then listen closely for a major gear-shift: "Well, that is absurd, of course. Not everyone will succeed, and so the market will never saturate."

Well, which is it? Are we recruiting "winners" to build a real business, or planning by design to profit off of "losers" who buy into our "confidence"?

During "the pitch," anyone can make it work. "It's the opportunity of a lifetime." "Just look at the math!" But mention the inevitable saturation and the losses this is going to cause for everyone, and then you'll hear, "Of course it would never really work like that." "Most will fail," you will be told, "but not you, Mr. Recruit. You are a winner. I can just see it in your eyes."

If you are a starry-eyed recruit, it will grow as presented. If you are a logical skeptic, then of course it would never really work like that.

But the dialog usually never even gets to this. The fact that MLM is in a mad dash to oversupply is largely chided as mere "stinkin' thinkin'." Expert MLMers know how to quickly deflect this issue with parable, joke, personal testimony, or some other sleight of mind.

New Solution: A Retarded MLM

Some modern incarnations of MLMs attempt to address this particular problem by limiting the number of people you can sponsor, say, to four. But the same geometric expansion problems exist; the failure mechanism has just been slowed down a bit. And now there is the added problem of even more unnecessary layers in the organization.

The claim that an MLM is merely a "common man" implementation of a normal real-world distribution channel becomes even more absurd in this case. Imagine buying a product or service in the real world and having to pay overrides and royalties to five or ten unneeded and uninvolved "distributor" layers. Would this be efficient? What value do these layers of "distributors" provide to the consumer? Is this rational? Would such a company exist long in a competitive environment?

Confidence Men and the Shadow Pyramid

The age-old technique of "con men" is to create "confidence" in some otherwise dumb idea by diversion of thought, bait, or force of personality. The victim gets confidence in a bogus plan, and, in exchange, the con man gets your money. MLMers are very high on confidence.

Since the brain inevitably intrudes itself into the delusion that an MLM could ever work, spirits drop and attitudes go sour. But this depressive state can itself be exploited. As doubts grow when the MLM does not do what recruits were first "con"fidenced to expect, then a further profit can be made keeping the confidence going against all common sense.

Thus, a parallel or "shadow" pyramid of motivational tapes, seminars, and videos emerges. These are a "must for success," and recruits are strong-armed into attending, buying, buying, and buying all the more. This motivational "shadow pyramid" further exploits the flagging recruits as they spiral inexorably into oversaturation and failure. The more they fail, the more "help" they need from those who are "successful" above them.

So, MLMs profit by conning recruits up-front with a "distributorship fee," and then make further illicit money by "confidencing" these hapless victims as they fail via the "sale" of collateral material.

Special MLM "Job" Offer: A Losing Proposition

Would a rational person, abreast of the facts, go to work selling any product or service if he or she knew that there was an open agenda to overhire sales reps for the same products in the prospective territory?

What do you think? Is this a good "opportunity" or a recipe for collective disaster?

So, as the saying goes, "Get in early!" This is a rationalization on the level of "getting in early" on the L.A. looting riots. If profit from the sale of products is fundamentally set up to fail, then the only money to be had is to "loot" others by conning them while you have the chance. Don't miss the "opportunity," indeed!

Where is the money coming from for those at the top? From the sucker at the bottom... as in every pyramid scheme. The product could be, and lately has been, anything.

The important thing is to exploit people while the exploiting is good, if you want to make quick money at MLM.

What's Wrong With Multi-Level Marketing?

Bad Image or Bad Reality?

"Let me tell you about an incredible ground-level business opportunity," and you are invited to a house or to lunch for "a discussion." Funny enough, you feel sick in your gut that there is some hidden agenda or deception. "Probably a multi-level marketing (MLM) organization," you think. Suppose it is? Should you trust your instincts? Is there anything wrong with MLM?

This article will analyze four problem areas with MLM. Specifically, it will focus on problems of I) Market Saturation, II) Pyramid Structure, III) Morality and Ethics, and IV) Relationship Issues associated with MLMs. Thus, you can properly assess your "instincts."


I. Market Saturation: An Inherent Problem

Back to the Basics

A tutorial on market saturation hardly seems necessary in most business discussions, but with MLM, unfortunately, it is. Common sense seems to get suspended when considering if MLMs are viable, even theoretically, as a profitable means of distribution for all parties involved. This suspension is created by a heightened expectation of "easy money," but more on that later.

New, Innovative?

MLM can no longer claim to be new and, thus, exempt from the normal rules of the market and the way goods and services are sold. They have been tried and, for the most part, have failed. Some have been miserable failures in spite of offering excellent products.

Marketing innovations are not rare in the modern world, as evidenced by the success of Wal-Mart, which found a more efficient and profitable way to distribute goods and services than the status quo, providing lasting value to stockholders, employees, distributors, and consumers. But this is not the case with any MLM to date, and after 25 years of failed attempts, it is time to point out the reasons why.

Don't Some People Make Money in MLM?

First, we will analyze the "driving mechanism" of MLMs. We will detail how they are intrinsically unstable, guaranteed by design to oversaturate the market with no one noticing. We will look at why MLMs can never equalize into profitability the way companies in the real world can, so that the result will be that the organization as a whole cannot, even in theory, be profitable. When this inevitable destiny occurs, the only money to be made is not from the product or service but from the losses of people lower down in the organization.

Thus the MLM organization becomes exploitative, and many high-level MLM promoters have been shut down, the "executives" incarcerated, for selling the fraud of impossible success to others. Other, larger MLMs have survived by hiring large batteries of attorneys to ward off federal prosecutors, even bragging about the funds they have in reserve for this purpose.

The unfortunate "distributor" at the bottom is the loser, and once this becomes apparent beyond all the slick videotapes and motivational pep-talks, good people start to get a bad taste in their mouths about the whole situation.

So, yes, money can be made with MLM. The question is whether the money being made is legitimate or "made" via a sophisticated con scheme. And if MLM is "doomed by design" to fail, then the answer is, unfortunately, the latter.

But how exactly does this happen, and must it always?

Doomed by Design?

The first question is this: Is any company choosing this marketing strategy destined to fail, to degenerate into an exploitative venture, regardless of how good the product is?

To see this clearly we must go through an, otherwise, obvious and elementary discussion of how any business must be careful not to overhire, overextend, or oversupply a market.

The Real World

Any business must carefully consider supply and demand. For example, if the ReVo Corporation thinks that it will have a full-fledged fad on their ovoid sunglasses next summer, perhaps they should plan to build and distribute, say, 10M units. This involves gearing up factories, setting up distribution and dealer networks, and carefully managing the inventories at each level so that ReVo will still have credibility with their distributors, retail outlets, and the public the following year.

If it turns out that there is a "run" on ReVo products, and they sell out in mid-June, then they have miscalculated demand and will miss out on profits they could have made. The more serious problem, however, is overestimating the saturation point for the product. If they make 10M units, and sell only 2M units, this may be the end of ReVo as a company.

The all-too-obvious point here is that management of supply and demand, and keen insight into realistic market penetration and saturation are crucial to any business, for any product or service. Mismanagement of this aspect of a business will eclipse good market access, excellent product design, human resource assets, production quality, and so on. Simply stated, a failure to "hit the target" of supply and demand can ruin a company if the market is oversaturated.

Market Dynamics and the End of the Cold War

Interestingly, the issue of supply and demand is what brought the USSR to its knees. By design, the Soviet government tried to macro-manage supply, where bureaucrats would decide how many potatoes were needed, how much toilet paper, etc. Assuming these bureaucrats did the best they could, unfortunately their efforts to deliberately manipulate the control "knob" of supply and demand was not good enough. Notwithstanding their good intentions, they were usually wrong, which created huge shortages and surpluses, and led to a massive economic collapse.

Seeing the disastrous end of market naiveté in Russia should help clarify the fundamental problem with the MLM approach. In the real world, the profit of a company is directly related to the skill and prescience of the "hand" on the "supply knob," so to speak. In the USSR, that "hand" could not react fast or accurately enough to market realities through the best efforts of the bureaucrats.

With MLMs, the situation is much worse. Nobody is home. Even the Soviets had someone thinking about how much was enough! If the bureaucrat in Russia was having a hard time trying to play Adam Smith's "invisible hand" in setting the supply level in the Soviet Union, then an MLM "executive" is in a truly unfortunate position. Not only is there no one assigned to make the decision of how much is enough, the MLM is set up by design to blindly go past the saturation point and keep on going. It will grow till it collapses under its own weight, without even a bureaucrat noticing.

MLM is like a train with no brakes and no engineer headed full-throttle towards a terminal.

"Everyone Will Want to Buy This Product!"

All products and services have partial market penetration. For example, only so many people wish to use a discount broker, as evidenced by the very successful but only partial market penetration of Charles Schwab. Not everyone wishes to join a particular discount club, or buy gold, or drink filtered water, or wear a particular style of shoe, or use any product or service. No one in the real world of business would seriously consider the thin arguments of the MLMers when they flippantly mention the infinite market need for their product or services.

The Demand Problem: Of Widgets and MLMs

Imagine a neat new product called a Widget that will sell for $100 (a fixed price, to keep it simple). Now, while everyone could use a Widget, not everyone will. Some will be afraid of anything new. Some will be loyal to existing brands. Some will want to buy an inferior product for less money. Some will want a more expensive product for prestige, regardless of quality. The reasons go on and on, and the fact is that only "X" Widgets will sell at $100.

The question for would-be marketeers is... what is "X," and how can it be predicted to maximize profits? The fact that "X" is hard to pin down does not mean that it does not exist, and every Widget built beyond "X" will end up producing a problem for the organization. The market only wants "X" Widgets at $100. What are you going to do with your extra inventory of Widgets beyond "X" that no one wants, and the sales people you hired to sell them?

No one can perfectly predict "X," and the situation is not nearly as simple as considered here, but the objective for marketeers is to forecast "X" as closely as possible in order to provide lasting value to all parties involved: to avoid missed opportunities as well as waste, loss, or failure.

The MLM Forecasting Approach: Ignoring the Target

Who has an eye on "X," the point of market saturation at a given price, in an MLM? Well, the funny thing, or perhaps the tragic thing, is that "X" will be reached and exceeded without anyone noticing or caring.

Let's just suppose that "X" has been reached today in a particular MLM; the number of possible units sold at this price has just been exceeded, and you happen to be a starry-eyed prospect sitting in an MLM meeting listening to the pitch. Now consider: Does anyone in this company know about "X"? Does anyone care? Is the issue being suppressed on purpose for some other motive? Since we are supposing that the market saturation number "X" has been reached, everyone joining the MLM from now on is buying into a false hope. But that is not what the speaker will be saying. He will be telling you, "Now is the time to join. Get in on the 'ground floor'." But it is all a lie, even though the speaker may not know it. The total available market "X" has been reached and nobody noticed. All the distributors will lose from here on out. Could this be you? How could you possibly know at what point you will become the liar in an MLM?

Pop or Drop

Perhaps a better paradigm than the runaway train analogy offered earlier of how MLMs perform over time is this: a helium balloon let loose in an empty room with a spiked ceiling, where product quality is analogous to the amount of helium. The better the product, the faster the balloon will rise, accelerating unhindered, towards disaster. The other option would be the case of a lousy product, in which case the balloon will sink of its own accord, never getting off the ground. To be sure, equilibrium is not in the cards, except perhaps as an accident, and then only temporarily. MLMs are intrinsically unstable. For any company that chooses an MLM approach, it's pop or drop.

MLMs vs. the Real World

The basic question that needs to be asked is this: If this product or service is so great, then why isn't it being sold through the customary marketing system that has served human society for thousands of years? Why does it need to resort to a "special marketing" scheme like an MLM? Why does everyone need to be so inexperienced at marketing this! Is the product just a thin cover for what is really a pyramid scheme of exploiting others? But more on that later.

From Contracted, Protected Distribution... to Mayhem

Imagine that Wendy's became suddenly possessed by the idea that "everyone needs to eat," and opened four Wendy's franchises on the four corners of an intersection in your neighborhood. Who would benefit from this folly? The consumer? Certainly not the franchises; they would all lose. Wendy's corporate? Perhaps temporarily, by speculative inventory sales while the unfortunate franchises were under the delusion that they could all make money. But in the end, the negative image of four outlets dying a slow death would likely offset the temporary inventory sales bubble. Even the most unreflective of the hapless franchisees would think twice about doing business in such a manner again. This is why real-world distributorships and franchises are contractually protected by territory and/or market.

Again, the simple fact is that even the most successful products will have partial market penetration. The same is true for services. Demand and "market share" are finite, and to overestimate either is catastrophic.

So why are MLM promoters obscuring this? Who is in control of the supply "knob," carefully and skillfully managing the size of the distribution channels, number of salespeople, inventory, etc., to insure the success of all involved in the business? The truth is chilling: nobody.

Imagine trying to write a computer model of how MLMs work, and you will see this point most vividly. An MLM could never work, even in theory. Think about it.

The People Machine

Chernobyl had a control system that failed. MLMs have no control mechanisms at all.

Where is the "switch" that can be flipped in an MLM when enough sales people are hired? In a normal company a manager says, "We have enough, let's stop hiring people at this point." But in an MLM, there is no way to do this. An MLM is a human "churning" machine with no "off button." Out of control by design, its gears will grind up the money, time, credibility, and entrepreneurial energy of well-meaning people who joined merely to supplement their income. Better to just steer clear of this monster to begin with.

There is simply no way to avoid the built-in failure mechanism of MLMs. If a company chooses to market this way, it will eventually "hire" (with no base pay and charging to join) far too many people.

Thus, the only "control system" will be the inevitable losses and subsequent bad image the MLM company will gain after it does what it was designed to do: fail. And sooner or later we have got to stop blaming this particular MLM company or that, and admit that the MLM technique itself is fundamentally flawed.

Tips and Tricks How to be Successful in Multi Level Marketing Business

Now a days some people are skeptical about MLM, though it still creates a lots of bucks for some MLMers.

I’ve been doing in MLM business for the last 2 years, and now I feel that MLM is just ordinary business. When you work hard for it, you’ll get it! Especially when you know how to do it in right direction.

And no business in this world is gaining without failing at first.
Here are some tips and tricks to help explode your MLM business. And to help those who skeptical or never-gain in MLM business.

One of biggest challenges that face MLM'ers is a steady flow of good leads. Thanks to the Internet, your leads can be free! Here are some tips and tricks to get your leads free.

1. Start an MLM Ezine - This is a simple way to get free leads... and better yet, high quality leads. Starting an Ezine is simple, maintaining one takes commitment. For those starting out I would suggest a monthly Ezine, this way you'll get experience and have time to carefully plan each issue before your deadline approaches. Of course, you should have a website that gets a fair amount of traffic before you launch your Ezine.If you set up a website that gives advice to MLM'ers you'll quickly build a nice MLM Ezine membership. Once your membership builds into the thousands you will be able to charge for advertising too, while keeping your offers in front of your readership at the same time.

2. Offer Free Stuff - Create software, eBooks, or offer free incentives. If you create a software package that would help MLM'ers in some way, and offered it free, you could easily provide a link from your software to your website. There are plenty of places that will be happy to list your software such as download.com. Imagine, once your software has been downloaded by thousands of people how many people would see your offer.
You could also provide a form that requires them to fill-in their name and email address so you can capture their information and do your follow-ups. This method alone could make your downline explode!Create an eBook about MLM, offer it free, and distribute it the same way as I explained above. Make sure your eBook provides valuable information and as it spreads, you will get a ton of leads. By the way, these strategies are known as viral marketing. Your products, if designed well, will spread like a GOOD virus over the Internet quickly and it's a powerful way to gather leads and create sales for your MLM project.Offer free incentives such as a sample of your product line. Or, use a good universal product that works well for any offer.

3. Write MLM articles for Ezines. Ezine publishers are always looking for good content they can use for future publications and if your article is accepted you'll be able to provide a link to your Website. Tip: Write an excellent MLM eBook and take part of the eBook and send it to MLM Ezine publishers. Then provide a link in your article so their readership can download your eBook. Just one more way to build credibility for you and your project, not to mention another great distribution channel for your eBook to be placed before a large target audience.



CREATE A SYSTEM FOR YOUR DOWNLINE TO DUPLICATE
The only way you will successfully build your downline deep is by giving your downline a step-by-step guide to follow detailing a system for recruitment and guidance. Here is a step-by-step guide I provide my downline. Maybe you will discover something you can use to help your downline.

Step 1
KNOW YOUR PRODUCT
Before you begin to market UMS, you NEED to know your product. This is absolutely critical if you expect to be successful.Here is exactly what you should know.You should carefully read every Web page on your new UMS website. DON'T SHORT CUT THIS! Why? Because this will make you an expert of all that we offer as well as all the commonly asked questions. It is YOUR responsibility to help your downline and if you don't know answers to commonly asked questions, it makes you look foolish and inept. Why would a potential prospect want to sign up under you if you don't know the answers totheir questions? So, spend the time it takes and read through every page on your new UMS website.Read everything inside the members area. This is also as important as knowing all that is contained on your Web pages.It's NOT important you download everything in the members area... what's important is you KNOW where everything is located. For instance, where to check your stats, where you can email your downline, where you can accrue your paycheck, where you can add a hit counter on your Web page or place a banner ad, where you can learn how to improve your ad copy, where you can get started and email your warm market, etc.Your goal is to become a pro tour guide!

This is the most important thing you can do for yourself BEFORE you start to market. So, get started now and I'll show you how this will pay off big time for you!!

Step 2
Don't think about reading this if you haven't finished Step 1. FINISH STEP 1 FIRST! You won't have much success if you just pick out what you think you should or shouldn't do. Every step is CRITICALLY important and nothing should be skipped or avoided.INTRODUCTIONSOk... at this point you should be a PRO TOUR guide... if you completed Step 1. You should be able to answer 99% of all questions asked by any prospects interested in signing up under you. Is that the case? Are you a pro tour guide now? If not... go back to Step
1.It's very important you understand what it really takes to be a pro tour guide. A pro tour guide NEVER tries to sell anything. They don't ask for the sale. They don't ask closing questions. They just point out benefits. That's all. They are just talking in an easy matter-of-fact manner. They are just being themselves and not trying to be a sales person.Think of being a pro tour guide as this... have you ever moved into a new home and given your friends the five minute tour? You didn't try to sell them your home did you? You just pointed out where everything was in your home... right? It didn't make you feel uncomfortable to show them your home... did it?

The point here, this is all you have to do to be a pro tour guide. Just show people your new home (website and members area inthis case) and just be yourself and be proud of your new home. It's OK to be excited... just don't over do it.When I show people my members area I even go as far as to tell them to download anything they want. I tell them this just before I hang up the phone. I know you might think this sounds crazy but I'm crazy as a fox. I do this because this gives me a psychological edge over them. Most people hate to feel like they owe people something and not pay them back.

Think about this... I just spent my time with the them, I left them my phone number so they can contact me at anytime, I showed them that they can easily do the same thing as I have done... in other words, I showed them I'm real and so is the opportunity... and to top it all off, I told them they can have anything they want while they are inside.



works.Here is the order in which I walk people about when I contact them by phone. I first show them the UMS website and point out to them the free downloads provide the leads they need in order to be successful. I then point out the help section and tell them 99% of all the questions people might have... the answers are found there. Then I take them through the members area. I point out the navigation system... the tabs located on top. The fact everything is database driven... it even knows who I am when I login. Then the links off to the left of each tab so they can download the software, reports, etc. Then the stats area, the "proven formula" and the email program to send a message to friends, then the place where they can email their downline and last, the edit personal info where they can accrue their paychecks and add a banner ad. That's it. I then give my phone number and name again so they can contact me anytime should they have any questions or need any help. Then I tell them feel free and download anything they want.That's how you get sales.

If all you do is arrange 2 calls per day and follow the directions above, you will get 14 people per week. That adds up to 420 people per month on your front line... do you think that will help to make you successful? Talk about the easiest part-time job... you just found it.The next step is to introduce yourself to your up line. Simply go to your new UMS website and go to the opportunity page. Scroll down and you will see a table that contains those sponsors who are above you.Send a short email letting them know you just signed up and give some background information on yourself and ask any questions you may have AFTER you have read through the Help section on your UMS website.

Send an email, something like this...Hi (their name),My name is (your name) and I just signed up under you. I'm new to the Internet but I do want to be successful. I'm willing to do all I can to help build my downline, so any advice from you will in turn help you out. I live in Southern Ca, married with 2 children and spend about 2 hours a day surfing on the Net. Your experience and advice will be well received.Sincerely,(your name)(your email address)It's important to form a bond with your upline sponsors. Why bother, you ask? Those who spend the time forming alliances will create an unstoppable force. They will have learned from each other, help others who join later from making mistakes and develop the fastest growing networks of all.

WHAT YOU NEED TO KNOW BEFORE YOU START YOUR MARKETING CAMPAIGNMost people make the mistake of competing with everyone else when trying to market an opportunity. They write the same type of ads... "Make a fortune with this blah blah blah"... "Earn 10 gazillion dollars in just 1 week"... etc. Isn't that what you see all the time? If you bring people in with this method, you will have trouble ever succeeding in the long run.First of all, what is setting you apart from the rest by using that type of marketing method? Even if you bring in people this way, you will find out most of these people will struggle, get frustrated and soon give up. They expect to do little and get rich quick. Sorry to say, that isn't reality and when they realize it, they quit.You MUST set yourself apart from the marketing rookies... (I call them marketing rookies because they are ignorant of this simple fact... they believe people respond enthusiastically by saying "they are getting rich quick and so can you").

The fact is... if they look at your offer (after you run an ad about making big money), they are looking at your offer in a defensive posture. Your prospects will want proof of your success, they will want more questions answered than if you bring them in with a different approach... what I call a "buying posture".So, how do you bring people in that will eagerly buy from you without asking you 50 thousand questions?Use a time tested system that has worked consistently for as long as people have sold things.What is that system... you ask?It's called the 2 step system.And here is how you separate yourself from the rest by using it.Offer something free to start with. Something that would be attractive to the masses. Something that gives value.

We have 2 different free offers you can use immediately. Both offer tremendous value. Both accomplish step 1 of the 2 step system. You get their leads. That's the key! Get their leads and you are on your way to getting more sales than just trying to get people to your website in the hope they will buy right away.Why offer something free to get leads?You are breaking down their defensive posture. You will deliver something free.. no strings attached. It will have value. You will be on their good side.

You will have proven yourself as to be someone they can trust. You have separated yourself from all the rest who only want to take something and never give anything back in return. Is this making sense so far?Ok, you got their lead, now what?Remember, I said to become a pro tour guide? Here's where it pays off.Next, you do a follow up.

Don't be anxious and send something right away. When you chase money it never comes. Instead, wait a day or two and then do a personal follow up.Here is what you do. Send an email. Something like this...Hello (first name),You just downloaded "Superior Marketing Tools & Tactics" (or the vacation cert) from my website.I sincerely hope you found the software useful (or, I hope you enjoy your free vacation).If you want a better way of earning money on the Net or just need traffic to your existing site and would like to know how you can earn a nice passive income in the process, I can help you!When I discovered the Ultimate Marketing Solution I was skeptical at first.

I decided to try it because they have a strong money back guarantee and it costs just $38 (not a huge risk).To my amazement, the members area has so many great products and marketing tools I was stunned.It takes something great to get me excited and this site is truly great! For instance, you get 4700 books and reports that can bring you a ton of traffic once you know the secret on how to use them. I discovered if you place these reports on a free website you can get over a 1000 visitors per week, not to mention a lot of fresh leads. This alone has been well worth the price.

The income opportunity that comes with all you get is just the icing on the cake.If you have just 5 minutes, I'll show you exactly what you'll receive as a member.If you have 2 phone lines and can surf and talk at the same time, I'll give you a personal tour of my members area. Think about this... I earn $5 for every sale. Why would I spend my time and money to show you this? The answer is simple. This program works and I'm more than happy to share how well it can work for you.I won't try to sell you. I promise! I will simply show you all the excellent tools and services that you will benefit from and how to use them to your advantage.

Simply return this email with the best time to reach you (your time zone), along with your phone number and I'll be happy to walk you through my members area... it will only take a few worthwhile minutes.I look forward to meeting with you.Sincerely,(your name - email address - phone number)Now you become the pro tour guide. Point out all the ways the members area can benefit them. Show them where the stats are displayed. Where they can email their downline. Where they get started. Where they can update their personal information. Where they can accrue their paychecks. Where they can place a banner ad... etc.

I have NEVER failed to bring someone in using this 2 step method. I even tell them to download anything they want while they are in the members area. Why? Because they can't make money with the program unless they sign up. Also, they know they have someone they can contact, someone they can trust and cares about them... it works.Another tip for you is this. You don't necessarily want a ton of people signing up if they never plan to work this. Quality is better than quantity on your first level. If everyone in UMS went on the Net and searched all the MLM sites, your lead source will last a very long time. The strategy would be to tell them their site looks great and you have something that won't compete against it, but rather help them with their present offer. They can always place a banner and work UMS passively.

What's funny about this business is there are a handful of women who are doing very well in UMS. They really believe in this and they are very enthusiastic. Their excitement is contagious. They have never worked anything else, online or offline. Women can be another great source to target.

Step 3
Don't think about reading this if you haven't finished Step 1 and Step 2. FINISH STEP 1 and 2 FIRST! You won't have much success if you just pick out what you think you should or shouldn't do. Every step is CRITICALLY important and nothing should be skipped or avoided.HOW & WHERE TO ADVERTISE YOUR UMS OPPORTUNITYBefore you get crazy and start advertising, whether it's free advertising or paid advertising, you need to understand how to write effective ad copy. This will have a huge impact on your success.

There is an entire section in the members area devoted to how to write effective ad copy. Be sure to read it. I consider this vital to getting results and you should learn as much as you can about this. The better your ads... the more sales you will get!So, assuming you have ads that will work and will pull in people like a team of mules to your site... where do you start to place these ads?My experience for free advertising is to focus on Yahoo free classifieds. More people scour through these ads than any other website hands down. The strategy is to post 10 differently worded ads each day and stagger the times in which you post them. I'm often asked... if everyone posts ads in Yahoo won't that hurt our chances to get sales? The answer is NO! The fact is, it takes people as much as 3-7 times to see an ad before they act upon it.


Also, if people see a ton of ads about our offer what does that tell them? Our program must be good! It offers credibility and you will get your fair share of sales if you consistently place your ads. But, the key is to be consistent and be disciplined in doing so.Don't waste your time posting to FFA pages. A complete waste of time. Don't join banner exchanges! I could educate you why this is true but the fact is, it's a total waste of time. Trust me on this.You can get your own FFA site to gather leads.

The trick is to wait a couple of days before you respond back to those who posted ads to your FFA site. I know of people who have built good downlines just by using this method. One person I know gets over a 1000 leads a day!Everyone would like a simple, take-no-time advertising solution. The lazy way to advertise. Just buy posting software and your finished in just minutes... right?... WRONG! There really is NO such thing as an effective software advertising method. If you short cut this area by just using software or posting sites you will have little success.The quickest way to get results is to pay for advertising but you must have good ads and your ads should change from time to time.

Ezines are one of the best places to pay for advertising. The key is finding Ezines that match your target audience. You can find these sources inside the members area.Here are some ads you can use for Yahoo free classifieds or Ezines...AD 1DON'T Download This FREE Marketing Software!Don't do it unless you want a stampede of visitors rushing to your website.Don't do it if you think you have to pay for software in order to getresults... this is 100% FREE and it works like crazy!Don't do it if you are already making plenty of money... this can onlyfatten your wallet even more! $195.00 Bonus Included.AD 2NEW RELEASE! Superior Marketing Tools & Tactics V1.7100% FREE! for a limited time. Don't delay... get the latest marketingtools and tactics to EXPLODE TRAFFIC to your website before your competitiondoes! Extremely powerful! $195.00 Bonus Included.AD 310 GOOD REASON'S WHY YOU NEED THIS POWERFUL FREE MARKETING SOFTWARE1.

You'll get an easy step-by-step guide on how to pull over 1000 people per day to your website FREE... (you won't spend a dime in advertising costs).2. What Ezines are best to advertise in to get the most from your advertising dollars.3. Viral advertising tactics that most people never thought of. To see the other 7 go to:AD 4Get Your Free Vacation!Your can select from 26 fun-filled resort destinations. We are giving away thousands of free vacations no strings attached. Fun books valued over $1000.00 included. This offer may not last long... so rush over right now and take advantage of this amazing free offer!Another great strategy for those who don't want to pay for advertising is spend your free time locating MLM sites. Quality is better than quantity on your first level.

If everyone in UMS went on the Net and searched all the MLM sites, your lead source will last a very long time. The strategy would be to email them and tell them their site looks great and you have something that won't compete against their offer, but rather help them succeed faster.They can always place a banner and work UMS passively.There is a right way to do this and a wrong way that will create SPAM complaints. The right way is to add their URL (website address) into your email and NEVER grab a bunch of emails and then bulk send them. Each email should be a separate email containing their URL as proof you visited their website.

DON'T FOLLOW-UP IF THEY NEVER RESPOND! This will get you into trouble as well.Here is an example of an email I would send...Subject: (just place their first name all small caps... 100% will be opened).Body: Dear (their name),I came upon your website (place their http://www.address.com here).Looks great, I really like the design!How are you doing with the program? Have you made serious money and if so how much?You may be interested to know... I have free software that will show you how to triple your sales in just 30 days.

No cost whatsoever and it will help you market your site more effectively.Just go here if you are interested and I look forward to your reply. [place your UMS URL here]Sincerely,(your name)NEVER SPAM! No matter if you think you have a legal right to do so. You will get terminated from the UMS program by just generating complaints. All backbones (those who host websites) are extremely sensitive to Spam complaints and they don't care about your rights. If you generate complaints for UMS you are jeopardizing every member... not just yourself!

If you believe Spam is the answer to free advertising then be sure never to mention UMS and NEVER send emails that have links back to UMS. You'll get terminated quickly if you do so.I believe Spam makes people look unprofessional. People who do Spam want the quick short path to money but they fail to realize it's just that... short term. Those they bring in will attempt to do the same and it's a BAD virus that quickly spreads. If you are willing to learn how to market by getting traffic the right way, you will never have to rely on Spamming.

The knowledge learned to market correctly is far more valuable in the long run and can be easily taught to others who follow you.One method to get free traffic is to do this... You have tons of reprint and resell rights reports. You can place these reports (one report at a time to gain the highest relevancy so you get a top rating in the search engines) on free sites... sites that offer free Web space like Tripod.com. Just submit these sites to the search engines and you will get a lot of traffic. It will take several weeks before the search engines list your sites, but it's a great way to get traffic. Post at least one report a week and in 6 months you may never have to worry about traffic again.To learn how to get free traffic download the free software on your UMS website and read it. There are plenty of other ways to get free traffic.

If you want to quickly build your down line you should introduce your UMS opportunity to your warm market. You don't have to sell them. Just point out your new website and tell them to take advantage of the freebies. Offer to walk them through your members area and AGAIN, turn into the pro tour guide. Don't ask them to sign up... just point out all the benefits to those who are members.At this point I want to summarize this entire tutorial as a guide to your success.

1. Know your product first before you market it.

2. Introduce yourself to your upline sponsors who you can find on your UMS website.

3. Learn and follow the directions of being a pro tour guide.

4. Advertise to bring people to your free offers and gather leads.

5. Follow-up with your leads and set appointments to call them by phone.

6. Set at least 2 appointments per day it won't take more than an hour of your time.If you follow this guideline you will succeed. I'm not saying there isn't a better way, I'm saying I know this works. If you find a better way, do share with your downline. But, if you are struggling, then you should apply this right now. You can't fail if you just follow these directions.

STEP 4
Tips For Success Here are some tips that will help you.It's important you understand, we are NOT the end all experts or know everything there is to bringing traffic to your website. The Net changes virtually everyday. What works today will give way to better ideas and techniques tomorrow. You should learn all you can about this subject and think of new ways you can use to bring people to your website.

THIS TIP CAN BRING YOU MILLIONS OF HITS EVERY YEAR!
If you really want to have a site that gets millions of hits per year you MUST get yourself linked to as many sites as possible. This is by far the oldest, yet most reliable strategy to get traffic. Here is how you should do this.First determine what sites would work best for your offer. In the case of UMS, that would be MLM sites, sites that help webmasters get traffic, sites that offer free software or just sites that have freebies, opportunity sites, etc. Anything that relates to a group of people that would want our free offers or membership offer.In order to get another site to list your link you must follow a strategy.

First, research who owns the site. Get their full name and email address. In most cases you can look up the information by going to whois.wsNext, send a personalized email to them. It should contain their full name and the URL to their site... DON'T SHORT CUT THIS or you will be accused of Spam.Now, the important part. The ONLY way someone will agree to your request to be linked on their home page, is to give them a good enough reason to do so. Why else would they link you if there wasn't something in it for them?With the UMS offer you should point out the benefits of the free software.


How it will benefit their visitors. Or, the free vacation. Again, how will it benefit their customers. You should consider offering the owner a free membership so they too can make an additional income. Who better to have on your first level anyway? They can place a banner or better yet, a text link on their home page and work UMS passively and your second level will grow beyond your wildest dreams! Imagine getting just 10 sites that get over 100,000 visitors per month and just 1/2% comes aboard your downline. That's 500 people per month!When you send your personalized email make certain all your contact information is listed.

You should have your full name, address, email address, and phone number and URL. Many people will call you or ask you to call them. Plus, you add credibility to your offer when all your information is included and you will never get a Spam complaint when you include all their information (their name URL etc.) when you write them.When sending your personalized email, be sure to start by complimenting them on their website. Everyone likes compliments and it will get them to read your entire message.

Point out where, on their home page, your link would fit best... or in the case you buy their way into UMS, tell them where their link will fit best on their home page.Remember this, text links get 10 times the click through than banner ads do. Always encourage them to place a text link rather than a banner ad and your click through percentage will go through the roof.Make certain you don't have ANY misspelled words and your thoughts are completely written out when sending your emails. Be clear, concise and professional and your acceptance rate will be much better.Offer to take them on a tour of UMS.

This will also help you get more people to link to you.You should spend all your free time applying this strategy. It could make you more money than your present job does.

Next Tip A simple way to get people to visit your website is by implementing a signature file to your emails. A signature file (called a sign file), is nothing more than a small text file you create so it automatically appears in every email you send. It can be just your personal information or as elaborate as you want it to be.Virtually every email client (software you use to send email) has this capability today.

Here is a suggested signature file for UMS members.Free Marketing Software That EXPLODES Traffic To Your Website![enter your URL here]Get A Free Vacation! Select from 26 fabulous resort destinations![enter your URL here]See the power of having a signature file? Think about how many emails you respond to every week or month! This is just a slick way to get your ads in front of those who email you. If your emails are going out without a sign file you are throwing away money!If you don't know how to set up a sign file click the "Help" link on your email client to see how this is done. It's just one more trick of the trade that will get you even more sales!