Saturday, May 22, 2010

MLM again?







I really don't know should i suited to a selling profession? can i makes a good sales boy? Am i able to have the weet mouth to persuade others for a certain products? i really wonder. it is not that i am not confident enough to be a sales boy, furthermore, who know, i might end up as a sales boy in future, if there is really no other job for me T.T

Okay, stop it! Why i am ought to post here is i have seen and heard a lots of friends from introducing me A company is good, then comes another B company has a potential bussiness market to grow, then again C company has environmental friendly products worth to be shared to consumers, etc... This kind of scenario, i really have experienced it thoroughly.From Amway to Score A Programme then to Melaleuca.

Today, my formal school headmistress introduce me about Melaleuca, she said the products are really good la, environmental friendly la, very efective la and so on. Well, what i think is, people often have to experience themselves first, if they feel that they are good, then only come a time where they are able to promote and to share it woth others , seriously, it is not an easy bussiness So, why i think like that?



1. How to convince people to switch from other products to ur products...??? for eg.. spirulina.. we know one mlm company selling it.. it was their hottest products a few years back... but now... u c in any pharmacy.. even dozens of other company produces spirulina.. how do we tell other other people that my company A spirulina is better then company B spirulina...just a thought...

2.Of course MLM products are more expensive. They have to be to support the expensive sales channel approach they use. Secondly, MLM products are not the type of high demand product that sell themselves. MLM products would never sell in significant volumes at stores or online without the "in-your-face" sales people pleading to your weaknesses and emotions.You don't see very much MLM in N.America. People prefer to shop at high-volume stores like Walmart, etc. or factory outlet stores which have very little overhead such that they can provide the lowest prices. Another reason that MLM is not very popular in N. America is that people are more skeptical of "get-rich-quick" schemes. Malaysians are still quite "undeveloped" in this sense and have dreams of getting rich quick through MLM or the stock-market or some other scheme.

Thus, I believe that Malaysian's are in general very naive or greedy. If something sounds too good to be true, it almost always is. Yet we see people invest in crazy schemes and respond to emails such as "forward this email and Bill Gates will send you some money." Malaysian's need to learn that it is very rare to get rich quick and that money needs to be earned honestly with hard work and brains.



3.MLM considers itself a BUSINESS, with the caveat that YOU MUST bear losses initially through consumption of their products. Why is that necessary? Because someone needs to feed the ones at the top, who apparently wants to make all the money in the world by doing absolutely nothing.




I've also come across some useful links :

http://www.mlmsurvivor.com/ - has very good articles and information regarding the fallacy and sheer deviousness of the MLM industry.

http://www.merchantsofdeception.com/-the ebook offered here is free, and full of information and the tragic story of a certain high level MLMer for Amways.

http://www.mlm-thetruth.com/tax_study.htm - another fantastic informative sites with facts


I don't wish to touch anything else but the business because no matter what this is it is still a business.McDonalds restaurants are locally operated in Malaysia by Golden Arches Sdn. Bhd which directly operates many stores and also sells franchise licenses to qualified entrepreneurs. An entrepreneur with a franchise license can only operate the store in the license and cannot sell the franchise "downline".

According to McDonald's Malaysia web site, only two franchanisee exist in East
Malaysia and only 3 out of the 250 stores in Malaysia are franchised. McDonald's
franchise system is very different than a network marketing scheme. McDonalds is
the normal structure organization that has a HQ and then local office in each
country or region with "branch offices" or in the case of McDonalds directly run
restaurants or francise owned restaurants.


Unlike MLM/network marketing the franchisee of McDonalds doesn't sell or sponsor to any other franchisee, they sell products (e.g. Burgers) to the end customer. McDonalds corporation will receive royalties directly from the regional/country operator of the franchises. A franchise owner collects only profit sold from their store and nothing from any other franchisee. There is no downline. There is only a regional company operator which takes care of issues relating to all the franchisees in that country. A McDonalds franchisee is not a distributor. They are a retailer of products and do not have any downlines. I think you are confusing the generic term "network" with the more specific "network marketing" that is used by MLM. You could call the street roads a network, the railway a network and all your contacts as your network. Network marketing is when you start to use a network of people as the principal way of selling a product AND expanding the network through various forms of renumeration in which "downline" parts of the network fund commissions/bonuses/discounts to higher parts of the network. A distinguishing characteristic of network marketing is that participants are encourage to not only sell products but also are financially awarded to expand the network.McDonalds doesn't fit the criteria for network marketing/MLM in any way. I would guess that most/all of McDonalds franchise outlets have no relationship to any other outlet and are only related to the McDonalds HQ. That could be called a star-topology network in computer architecture sense but has nothing to do with "network marketing".



Thus, I would suggest us to stop comparing MLM to McDonald's.
MLM is only good from the perspective of those doing the selling. MLM is terrible for the customer since the products have so much sales overhead. Products can be bought much more efficiently and cheaply directly from a company or even buying from a direct salesperson who reaps the majority of the commission and not sharing with his upline.

I am not against MLM when they are legal, but I do find that too often MLM are giving too many people the dream of easy money. I further dislike associating MLM to the likes of a company like McDonalds where I see no commonality in the sales approach. Both are valid approaches depending on the product and situation. MLM lends itself well to overpriced unique exclusive products that need lots and lots of people to sell personally. McDonald's business on the other hand is better served by strategically located outlets with well operated management combined with a strong corporate and brand relationship.

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