Why Do Intelligent People Choose MLM?

Why Do Intelligent People Choose MLM? I have never really figured this question out myself. I have run into a few people who have had limited financial success in MLM, but the entire program just does not ad up.

First, most MLM's lead you to believe that a low start up of $50 to $100 investment can make you rich, really rich in little to no time at all! Come on, aren't most of you smart enough to realize that is a pipe dream. How many millionaires claim they started up in a MLM program for $50 and made their fortune? I have never, to date ran across one person who fits this category. If $50 can make you rich, then why haven't you started? Or, if you did start in an MLM program, you probably did not achieve financial freedom, did you?

Second problem that I see is the compensation plan. I do not think that most people understand how the money is made, or more exactly, not made. MLM's have down legs, up legs, branches, you name it. It's like a tree, roots going down, trunk and branches going up. Now let's think about that for a minute. The buds and leaves are the beauty of a tree; this is what I consider the original group who started the company. The branches are the close friend of the people who start the business, so they do OK. Then there is the trunk, this is the main support for the branches and leaves correct? To me, this is the majority of the workers who buy into the MLM. They do most of the work while the branches and leaves strive and get all the glory. Then, the roots are the few people who join so late, they never see the light of day, hidden under the dirt, but still feeding the truck, branches and leaves. For example, I meet a lady who bought a few thousand dollars of products, worked her butt off for six months and got her first check in the amount of $4.00. We spoke because she was very interested in what I do, even though it is a world of difference, she is sticking with the MLM company so she can sell off the garage full of junk she bought. Just like I said, hidden under the dirt and never see the light of day!

Why would someone choose to do all the work and make pennies on the dollar? There is no financial freedom in MLM. MLM is worse than a job. At least with a job you collect a paycheck that is mandated by the Federal Government to be at least a minimum wage per hour, not less than minimum wage for over six months worth of work!

What most people don't know, especially MLM'ers, is there is a totally different compensation plan that can offer financial freedom. I am talking about a home base business sector that really offers financial freedom from working at home, does require some work; some investment (usually less then buying all the MLM junk products) is easily duplicated and best of all, pays only one person. Yes, one product that pays one person! This is known as Direct Sales. No up line, no down line, just money in your pocket the day you make the sale! You don't even wait for the parent company to pay you, the client pays you direct, and then you forward the balance to the company. Best of all, you do not stock or ship the product, the company does all this for you. How refreshing!

Let's look at one program that I know of for a second. One sale generates $1,000 in profit. If one sale is made per week, that is $50K per year. In this program, your first two sales are passed up for qualification purposes. This offers you massive leverage, as each person who start will give you two training sales. Lets suppose that only 40% of the people actually get started, that's 20 people passing up two sales, or a total of 40 sales at $1K each is another $40K profit that you did not have to work for. In addition, there are two more products. The next product offers a $5K profit to the qualified advisor. Company history proves that 1/3 of each base line product buys the second product. So, you have 50 sales plus 40 sales passed up equals 90 total sales. 90 total sales multiplied by 33% equals 30 sales in the second product that is repeat business from your client base with no additional work. That equals 30 people multiplied by $5k equals $150K in repeat business in the same year! Now, the third product this company offers pays an incredible $8K in profit to the qualified advisor. Again, company history shows that half of the people who by the second product will buy the third and final product. So, 15 repeat sales at $8K equal another $120K in revenue! To sum this up, $50K + $40K + $150K + $120K = $360K in one year!

Again, I must ask, why do " Intelligent People" choose MLM as a path to financial freedom? I do not know!