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New 0MLM - Why The Paid MLM Systems Dont Work
Total posts: 1
Joined: 10 year(s) ago
Posted 11:46 AM Wed 13 April 2011

The MLM theory

The idea of multi level marketing is fantastic. You tell 5 people who tell 5 people for 5 levels and if you do the maths you get 3,905 people working for you. Then you want to make a small amount of money from each person every month. Just $1 from each person each month would pay you a huge $46,860 per year. Sounds amazing right? I'm afraid it just doesn't work like that. Most MLM systems are paid which means to get someone new to sign up you have to convince them to spend $10 (or more) per month. As soon as you charge the effort in getting new sign ups becomes immense. Your MLM system should explode like a nuclear device, put instead it splutters like a 50 year old diesel engine!

My Experience

I know you don't know me but I hope just from looking at this site and what I offer that you agree I know about the internet business? 2 years ago I joined one of the leading MLM systems, 1000s of people claimed to be making a lot of money. I always had my doubts but I had mailing lists of 50,000+ people and many large websites with 1,000s of visitors per day. If anyone would win with paid MLM, I could!

I paid my $10 and set about getting new sign ups. I used my mailing lists and sites and I generated 20 sign ups in the first month. Amazing! But that was it, my new sign ups were not internet sales experts, most didn't know HTML. They had no way of keeping the downline growing. I tried my best to help them but look at the maths. If I ever did get 3,905 people there was no way that I could support them all. Below is what my final downline looked like after 2 years.

Another 86 people joined under me and quit. You can see the 'pyramid' effect didn't work for me, in fact it was reverse. Not to sound big headed but if everyone was as good as me then I would have made $$$$$ but instead $27 - $10 = $17 profit per month, which is $204 per year. However in business you should always learn from your mistakes and even better if you can learn from other peoples! I went back to my computer and decided to make my own MLM system that fixed all the problems that I saw. I loved the business model of 5 telling 5 telling 5 and there had to be a better way.

#1: Make sure people don't quit

If no one had quit with the paid MLM system I joined I would have 113 people and that would have been the minimum, that would have made me a profit of $1,236 per year. That's good, it's a ski holiday in Colorado every year. My idea to stop people quitting was a free MLM system. Why would anyone quit if it costs them nothing to join. Even if they only made $100 per year they would never leave, it's free money!

#2: Make it easy to get sign ups

The paid MLM system needed approximately 1000 visitors to get 1 sign up. People think MLMs are scams so the conversion rate is incredibly low. I could generate the traffic due to all of my existing sites but 1000 hits to make $1 was a joke, I could make $200 from 1000 advert clicks with Pay Per Click. Also, as my downline grew the selling skills of the new members were very poor so their conversion rate was even worse. The solution again is a free MLM system. The sign up rate is much higher, in fact only 10 visitors are needed to get 1 sign up, that is 100 times more powerful!

#3: Ensure everyone makes money

The paid MLM system resulted in most people loosing money, this negative feeling doesn't help people expand their business, it's much simpler to just quit. A free MLM system makes it simple to make a profit. Even one advert click would make profit. As soon as you see that first bit of money in your account you are empowered to focus on making more.

#4: Nobody needs to help you

No one should need any help and support to grow their own downline. The paid MLM system didn't provide people with the right sales tools. Everyone had some web space but were left on their own to design their sites and sales messages. What a mess! 1000s of sites with poor messages and sites that looked like they where made at home. 0mlm handles this for you. The sites are very strict, you cannot alter the core messages and layout, I have written these all for you so everyone will make sales and grow their downlines. It's not about making your own personal style, it's about making money. The 0mlm manager lets you set up your sites with out any HTML and every setting is explained with ideas and suggestions to maximise your earnings. This means that everyone, no matter where in the downline they exist are mentored by me personally.

#5: Big sales

The final lesson I learnt from the failings of the paid MLM system was the order value. I had to put so much effort in to make $1. You could make more in less time by simply asking someone to give you $1! 0mlm uses affiliate systems and product sales that can make you up to $55 per sale. 1 order per month would make more profit than my 2 years of effort with paid MLM.

Putting it all together

5 people tell 5 for 5 levels and if you make just $1 per month from each person:

5 + (5 x 5) + (5 x 5 x 5) + (5 x 5 x 5 x 5) + (5 x 5 x 5 x 5 x 5) x $1 x 12 months

= $46,860 per year Thanks to David Minns

So Join 0mlm today There is no risk and no cost!

Total posts: 17
Joined: 10 year(s) ago
Posted 8:55 PM Thu 14 April 2011
I happen to agree with your synopsis of many mlm's, but believe that it is possible to make some people amazing money while building a strong team.

To simply run ads or cold call people leave out the relationship part of the equation.

The real trick is getting your people into at least cash flow if not profit before they join. Yes, it is possible, that is the way I set up my marketing system prior to building my team, but you must be willing to tell new prospects that they cannot join.

I anticipate setting up an event to explain further. There are way to many details to explain in a forum post.