MLM: Figures Don’t Lie, But Liars Do Figure

by Robert Peil

MLM Liar

Advertising copywriters and marketers are trained to give specific numbers in order to increase credibility.

And that’s great, if those numbers have any basis in reality. In network marketing, they often don’t.

For example:

MLM companies say, “We keep 93% of Our people!”

They lie.

Truth: There was an MLM phone company a few years back that had to publicize their retention rate, because they were publicly traded. They’re out of business now, so we’ll go ahead and mention their name – Excel.

Take a guess. Out of every 100 people Excel signed up, how many were still in the business a year later?

50%? HAH!

25%? As they say in the Hertz commercial, “Not exactly!”

10%? You’re getting warm -

Excel’s public record showed 6% to 7% retention. That’s not 67% – it’s 6 to 7% retention!

So you build your network marketing business for a year:

  1. You buy advertising.
  2. You do 3-way calls.
  3. You go to meetings.
  4. You talk to all your friends & relatives.

And you wind up recruiting 100 people!

Yippee! You’re almost rich.

Well, not exactly. Why? Because what you have left is 6 to 7 people out of 100 (!) still building the MLM.

Ooops – wait – that’s not all you’ve got. You also have:

  1. Smashed dreams.
  2. Maxed-out credit cards.
  3. And probably a LARGE bunch of people who hide when they see you coming!

Whatever you do in network marketing must be duplicatable for the masses. Six to 7% retention is not smart business.

Results like this make it obvious why we coach people to:

  • first find a “5 Pillar” company,
  • and then to build relationships with prospects.

And what is Bad Business?

  • It is bad business to recruit someone into an unstable company.
  • It is bad business to recruit someone before you have built a relationship with them.

When you recruit a person who is your friend into a “5 Pillar” company, the two of you have a commitment to each other and a strong chance for success.

When you try a business relationship without that personal, mutual commitment, or with an unstable company, your chances of failure skyrocket.

It is the truth. No brag. Just fact.

Yours In Success,

Robert

{ 6 comments… read them below or add one }

Oliver Tausend

Hi Robert,

I couldn’t agree more. Numbers don’t lie but what about those who set up the numbers ?

There’s an old saying in Germany that goes: You should believe only in statistics that were faked by yourself.

Thanks for sharing your insights.

Take care

Oliver
Oliver Tausend recently posted..Think And Grow Rich – The Devil’s Workshop Pt 1My ComLuv Profile

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Robert Peil

Good German Proverb Oliver!

Yes, and sadly, many new (and even old) MLM’ers don’t see through the “Smoke, Mirrors And Snake Oil” numbers set up by some “Heavy Companies”

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Marcus Baker

Hi Robert,

I enjoyed your post. Having done Statistics at University, I soon learned you can make numbers tell whatever story you want them to tell.

You are spot in thought when you say success lies in creating long term relationships.

May I add that our job as sponsors is to actively work with our people until they are successful not just hope they will somehow fall into the success ratio.

~Marcus
Marcus Baker recently posted..How to Help Your Network Marketing Associates to SuccessMy ComLuv Profile

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Robert Peil

Thank you for your comment Marcus, and I’m glad you enjoyed this post.

I couldn’t agree more with your point that we mentors should do all we can to help our team succeed. (The pay plan makes this our success)

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Brock Blohm

Nice post. Completely agree.

Unfortunately this industry gets it bad reputation by those who quit. Those who are trying to start a marketing business before even understanding the basic concepts of marketing.

That’s why it is so important for a newbie to fall in the hands of a leader who knows what they are doing. And not just a brother or cousin or next door neighbor. :)
Brock Blohm recently posted..Why Network Marketing?My ComLuv Profile

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Robert Peil

Thanks for sharing your point, Brock!

Very true – any business needs good marketing to succeed, including MLM…

~Robert

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