Some online business gurus are starting to express a belief that MLM opportunities are no longer a viable home business option.

The attractive lure of MLM, residual income, is no longer a reality. People are leaving MLM downlines right and left, seeking newer and more profitable opportunities.

Are these statements true? Let’s look at two of the things we hear.

– attrition from existing MLM downlines, caused in part by opportunity hopping, is going to continue to increase

– more and more emphasis will be placed on recruiting as existing downline members jump to „better“ opportunities

Why is this happening? Consider the reality here. We live in a day and time where the dynamics of finding and retaining new associates for our MLM opportunities is becoming more challenging.

Consider how MLM businesses were built before the Internet. You had small local groups. Information was presented at meetings near your home, and if you signed up you would often know other people in the business personally.

In that environment, you had closer connections because most everyone was local and knew who you were. There was often more of a bond between distributors and the group leaders. Exposure to competing MLM opportunities was minimal.

In MLM today, distributors are exposed to more new opportunities and greater temptation to switch to something else than ever before. It must be considered and dealt with.

Two things to help you address this:

– contact your downline people often, and get to know them and what they are wanting from their business

– plug them into your training and help them start making money quickly

What would you think is the top reason people leave one business to join another? It’s often frustration from not making enough money. If a person gets started fast and makes some decent income in the first couple of months, they are more likely to stick and not jump ship.

Keep this in mind as a priority – help your new people to start making money right away. Most MLM opportunities have „fast start“ bonuses for doing certain things. Focus on helping your new downline team members capitalize on those opportunities and start making some money as quickly as possible.

If you’re considering a network marketing opportunity, you’ve probably read a lot of opinions about the pros and cons of this type of business. Some heated discussions take place between those who are pro-MLM and those who are totally against the concept.

There are two issues that seem to come up over and over, and you almost always find these brought up anytime network marketing and MLM is discussed. While there are many interesting points on both sides of these issues, here is a balanced look at both.

The Recruiting Explosion vs Product Sales

The question of recruiting vs product sales is often discussed. Here is the typical basis for the argument. „New network marketing recruits get very excited about the idea of sponsoring people and seeing a geometric growth explosion in their business. However, at some point, someone will have to sell products to someone, or else the whole scheme will collapse and nobody will make money.“

I believe it’s better to look at it this way. Product will need to be bought and consumed by someone down the line. This can be personal consumption by the distributors themselves, or sales to customers. In a decent network marketing opportunity, you’ll have products that people want to use. Just spreading the word will create sales to consumers, as not everyone will want to participate in the business opportunity.

If people try to start a network marketing business without using the products, or referring them to others, this will tend to create the negative situation that MLM critics often bring up. Unfortunately, this can indeed happen if there is strong incentive to recruit based on commissions from purchases of start up packages, in the absence of any real focus on an actual ongoing product or service of value provided by the business.

When you have a situation where the business is built around making money mostly by recruiting and earning bonuses on sign up packages, with little thought of a real ongoing product of true value, you have a recipe for trouble. A good MLM or network marketing business opportunity will not have this problem. While recruiting will be emphasized as necessary for building a profitable business (after all, this is NETWORK marketing), there will be a product or service of value to drive the business and create income for everyone who desires to build the business.

Recruiting Friends, Relatives, and Acquaintances

When discussing MLM recruiting, this point often comes up. „All of us have a certain number of people we know, to whom we have the opportunity to pitch our business. Be prepared to sell all your friends, relatives, and acquaintances a business opportunity they may have no interest in. After you contact all of them, who do you talk to then?“

This was a problem for many in years past, and still can be when new distributors are shown only the traditional „warm market“ approach to recruiting and sponsoring. It sounds really good, and in theory you sponsor many of these people and they in turn contact their entire warm market and duplicate the process. The net result is that you get a big downline and make a lot of money.

Unfortunately, most people aren’t able to build a strong business solely through warm market prospecting. In most cases, it will require moving beyond their warm market list. We have greater opportunity to do that today, thanks to the Internet and evolving technologies for connecting with people worldwide.

Success in network marketing and MLM is no longer confined to who you know and how well you can work that local warm market of friends, relatives, and acquaintances. Anyone now has the opportunity, with the proper coaching and support, to tap into a virtually unlimited pool of prospects who are actively seeking ways to work from home or start home based businesses.

MLM and network marketing as a business continues to evolve. Things are different now, and old perceptions are becoming less and less accurate. Once a function of how many people you know and your selling skills, today the key to success is attracting home business prospects to your opportunity when they are serious and ready to take action. This will continue to be the key to success in the future.