Small Business Start Up

Can YOU make money as a MLM distributor?there is very little to lose, most people do not give a
The real question is, can YOU make money in any100% and do not tend to treat an online MLM
type of business?distributorship as a real business, Big Mistake! The
The answer, it is entirely up to YOU! Even if you spendother major problem is that upon joining an online MLM
a ton of money buying a profitable establishedcompany, new distributors are told to create a list of
business, providing you keep doing what the pasteveryone they know, call and present the opportunity
owner established and improve upon it, it is possible forto them. The new distributors that follow this advice
YOU to bankrupt that business. True, it is harder toare doomed right off the bat. The fact is that unless
destroy a well-established business, but not impossible,you have financial creditability such as a CEO of a
just have to look the Detroit big three.corporation, it is highly unlikely that any of your family or
We will compare the cost of purchasing a franchisefriends will join you in your new venture; at this point, it
and a MLM distributorship. To start a brick and muteris just a matter of time before the distributor quits and
franchise, cost usually begin at approximatelybelieves that an online MLM is bunk. How many
$150,000.00 and can run into the millions. The cost forlawyers, accountants, mortgage agents, real estate
home based franchises usually start at $15,000.00 andagents..... (you get the point) do you think would be
can run up into hundreds of thousands of dollars. Insuccessful if they only relied on a list of people they
either case, you have invested a large sum of money,knew to grow their business? This holds true for MLM
more than likely, you Mortgaged the family home todistributors as well.
secure the financing required for the start up, butWhat is a distributor to do in order to be successful
unless you invest more money in prospecting andwith any of the online MLM companies out there?
advertising, YOUR new business will not generate aThey will need to invest both time and money
dime. Can YOU make this work? The advantage ofpromoting their new venture if they want it to succeed,
purchasing an established franchise is that there isjust as they would in any other new start up business.
revenue being generated from day one, but in mostChoose an online MLM company that offers products
cases an established franchise will cost anywherethat you would be proud to use yourself has a
from two to fives times the price of a new operation.payment plan that you can understand offering residual
Let us briefly examine at some of the difficulties ofwithout having to continuously having to sell products
running a small mom and pop franchise store. You willor recruit distributors. More importantly choose a MLM
be working all the time; you will not have time to getsystem where your up-line is genuinely committed to
sick. ROI is usually 10 to a very maximum of 20% thathelping you succeed. Be weary of MLM companies
is providing you run a real tight ship. Purchase a largerand up-lines that are constantly trying to sell you
store where you are able to hire employees, (nowover-priced products and information, insisting that you
your thinking, wow! I have time to get sick) maybe youneed to make the purchase if you want to succeed.
are even thinking of taking time off to spend withOnce you have chosen a MLM company, ask your
family! Wrong again, from my experience the day thatsponsor and up-line how to best promote your new
you planned to spend with your family, is the sameventure. If they give you the same old song and dance
day that one or two employees will call in sick. Theabout putting together a list of everyone you know
truth is that you become a slave to your business.and nothing more, take control, educated yourself and
There may be nothing wrong with being a slave toseek professional advice from experts that will help
YOUR OWN business for a few years, if there was ayou succeed.
light at the end of the tunnel, there usually is no light. AsBottom line, if the online MLM opportunity is run like a
a franchisee, you are a glorified manager; you have allreal business, it will provide an excellent residual income.
of the risks of being the OWNER and none of theLook it this way, any type of business you start up in
benefits. Not a good life solution.reality is MLM. Say, you open a coffee shop, if your
With all the pit falls of owning a franchise, why are socoffee is good and more importantly you provide
many people rushing to invest such large sums ofexcellent customer service, word of mouth will spread,
money? They are sold a dream a dream of being innot only that you provide a good cup of coffee, but it
business for themselves (The American Dream) foralso is a fun place to go for coffee. Is that not MLM
most this seems like a good life solution. Think Again,other people selling other people on your product and
once in the system most people find it difficult to getservice. All businesses are about building relationships
out, they have invested too much time and money towith clients, keep in mind that your employees or
let go. A savvy franchisee will run a very tight ship,down-line are also clients, treat them with respect and
save as much money as possible and re-invest inthey will help your business grow. If your sole propose
another store. Once a franchisee owns two or morefor starting a business or meeting clients is $$$$
stores, their income will rise up dramatically,STOP! Do not precede any further, you are bound to
unfortunately the investment and risk go up as well.fail miserably. Providing excellent service and great
An MLM business on the other hand requires very littleproducts is the simple recipe for success for any
start up costs (you will NOT have to Mortgage thebusiness and of course, you will need to Promote
family home) and ROI can be substantial. This beingwisely.
the case why is it that 99% of distributors fail withinNow that you know the simple secret to operating a
the first 2 years, where as the failure rate for newsuccessful business, MLM is a great way to start
businesses is 80%. The blessing of a low investmentworking for yourself, especially if you have very little
to start an online MLM distributorship is also a curse. Itcapital to invest.
really boils down to this "Low Risk, Low Effort", when