It's Time For A Change

As a Direct Sales Professional, I frequently encounter a very negative opinion of  direct sales (often referred to as MLM - Mulit-Level Marketing). It seems that the majority of people see this business model as a scam or a racket or some kind of "Get-Rich-Quick" scheme.

I would really like to see some discussion on this topic. I believe that most people think this way because they had a bad experience with Direct Sales or they know someone who did.

I think it is time that we change our pre-conceived notion that Direct Sales equates to bad business.

If I mention Avon, do you think of a scam or a pyramid scheme? I doubt it. Avon has proven the direct sales business model to be viable, legitimate and honorable. How about Mary Kay Cosmetics? Again, they have moved beyond that notion of scam, yet they are an MLM and use direct sales. Look at Tupperware. They started in 1948 as a direct sales company. most baby boomers remember Tupperware parties. One last example...Amway. Founded in 1959 and currently generating over 11 BILLION dollars annually in sales. Even thought most people still see Amway as an MLM company, I think the majority know it is not a pyramid scheme..

Donald Trump stated that if he had to start over again, he would embrace the direct sales model. It is the only business model that allows average people to make above average incomes. 

You should note that "Pyramid Schemes" are illegal. By definition A pyramid scheme is a non-sustainable business model that involves promising participants payment or services, primarily for enrolling other people into the scheme, rather than supplying any real investment or sale of products or services to the public. Now the fact that MLM/Direct Sales uses a model that also rewards you for bringing others into your business, does not make it a pyramid scheme. Actually every business does that. Most every business employs sales people who are compensated for selling products or services. AND, most sales managers are compensated on the sales of the people that they manage. What really makes a model a pyramid scheme is that fact that  the financial reward is mainly in bringing people in rather than selling a product of value.

Let's look at my company since I am familiar with it. We sell a tangible product, actually about 80 such products. Products that have value. Products that have a benefit to the buyer. Products that are worth the price they cost. As a consumer you can buy and use our products (And I hope you do). Again, think of my examples above...products with an appropriate value. Just as you have to buy Avon from an independent rep, our products are sold by independent distributors. 

What I can do as a distributor is sell product and find others to sell product. Those that I recruit to sell product can do the same as I do...sell and recruit. The key is that we only make money when we sell product. We have a cost (less than $100) to become a distributor. For that cost you get some sample product and a 20% discount. It is similar to joining a place like Sam's to get a lower price on product. My company offers a 100% money back guarantee on all unopened product and you can even surrender your distributorship within a year and get your enrollment fee returned.  Higher discount levels are reached based on purchase volume. We require no minimum purchases and no autoships. We do not want people stocking product in their garage, we want people selling product.

People that I sell a "membership" to, I get a commission on their purchases. If they decide they want to sell product to others, I get a commission on that as well. If they sign up people, again I benefit...but only if product is being moved!! There is no financial benefit to me to just signing up people. They must be selling product. All commisions and overrides on anyone in my organization is bases solely on sales volume. If you have a large structure with lots of sales, you make lots of money. Pretty simple.

In a pyramid scheme, you will never make more than the person who signed you up. For me, if I develop and grow my organization, if I put in the effort to help people succeed I can easily move past my "sponsor". Likewise, those who I signed up could move past me. I have to keep selling and building to achieve financial success.

I could continue, but the point is that if do not work, I make no money...just like any other business. So, why do we (society) continue to frown upon, shy away from and actually avoid, direct sales. People do no want to give the product consideration and if you mention becoming part of the company as a distributor they run!!

We need to get our facts straight. In every areas of business there are companies with bad business ethics, poor products, lousy service and lack of concern for employees and consumers. Don't run from a product marketed with a direct sales model for that fact alone. You might be missing out on something that could make a difference in your life.