Why Are Traditional MLM Methods Failing?

You don't often see anyone creating a huge MLM business offline anymore. 30 years ago offline MLM was untamed and developing and people were building downlines in the thousands. Building an offline MLM business was like taking an afternoon stroll. Doing it now is like running a marathon without preparing for it. Creating an MLM business through old school techniques is still achievable, but many are dying while trying.

So what is the real cause of this problem?

The internet.

This is why. Before the internet an excited MLM sponsor would contact their friends and family and referrals that they got. They would show the business plan to them and they were the final say-so on the information. Prospects could talk it over with their spouse, ask their friends about it, but there wasn't any real place to get information about the MLM business other than the distributor that gave them the information in the first place.

This was power for the MLM representative, they were holding all the cards because where else was a prospect going to get info about the business plan? There was an information bumper zone and the prospects knew only what the rep was telling them.

This allowed time for a relationship to build and the prospect to sign up in the business before they learned any of the pessimistic aspects that there might be. MLM reps were advertising a dream and appealing to the wants and desires of their prospects. Anything about hard work or difficulties could be discussed later.

The sponsor controlled what prospects heard before hand about the business opportunity. I'm not saying they were all a bunch of liars and deceivers. But anything they said about the business couldn't be second guessed, verified or found to be false because there was no other resource of information.

The decision to join a company or not was based only on the information that the rep gave to a prospect, therefore giving the distributor more control over the situation.

The internet changed all that. Google any MLM opportunity and you will find thousands of results. The information is overwhelming and some of it is contradicting.

Now after a business presentation for an MLM company is given, and a prospect says they need to think it over, the distributor giving the presentation can say goodbye to their prospect. They won't be back. They are going to google the MLM opportunity, find a wealth of information and they are gone.

If after seeing all of the info they still end up joining an MLM, it won't be with the person that gave them the presentation, it will be with someone they found on the internet that stood out above all the rest. The person that gave distinct truthful information. They might not even be in the same MLM company.

That is why traditional methods of MLM are dying. The information age brought on by the internet is killing it. It's also killing online methods.

That's because the little guys on the internet are putting out just enough info to spark an interest about MLM in people. Once their interest is peaked they begin to Google the MLM company. They run into the same information an offline prospect would find. They also find a leader in the industry and end up joining with them.

So how do we overcome this? One common solution that marketers offer is to present yourself as an expert. Problem is that everyone thinks they are the expert. It's no big deal anymore to present yourself as an expert because everyone else is doing it.

A better solution is not just being an expert, but to give full, up front disclosure about MLM and how the industry works. Tell prospects the truths that everyone else holds back. Give the good the bad and the ugly info all at once.

It is commonly thought that people are stupid and that they can't handle full disclosure about anything. Here's a news flash, people are smart, they need the right information to make a legitimate decision. I'd rather have someone say no to my MLM opportunity because they made an educated decision than to have someone say yes and not know what they are saying yes to.

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