Thursday, September 11, 2008

Why People Hate Internet Marketing and MLM

"I hate MLM and internet marketing stuff!"
This is a more than common reaction to what most people consider internet marketing and MLM. This is in spite of the fact that it can be started with little or even no money upfront. With so little money invested to begin with, it is extremely puzzeling as to why 97% of the internet marketing fails as opposed to 90% for the traditional business. The answer is simple.
Internet Marketing and MLM business is very complex business.
There are so many links in the chain and if any of it fails, the entire business will fail. Just think about this for a second. Why would a company want to market their product for service through multi level format instead of hiring its own marketing team, which will cost them less money? Most internet marketing guru will explain that the company chooses to use word of mouth channel as opposed to traditional cold calling or lead generating method.
The real answer why any company chooses MLM format is because this business is more than about selling the product. There are three fundamental things that every successful MLM organization must have. It must have:
  1. Right product or service that is recession proof
  2. Systematic prospecting system to bring web traffic to the site
  3. Downline Builder with duplicable training and downline support

In short, one must find the right internet business opportunity that services recession proof product or services and join it, hoping that we have signed with the right sponsor that can provide the prospecting system and the downline builder and support to keep one in the business long term.

So, choosing the right company to work with is just one third of the equation as we must still market this product to make money. We can see why operating a profitable internet marketing and MLM is so complex and most people find it very uncomfortable that we can't see our sponsor from the internet. This is where finding a business opportunity that allows free trial period is so important as we can use this period to feel out our sponsor as well as our business.

Subsequent article will discuss finding the correct business opportunity for your situation.

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