Monday, October 28, 2013

MLM - "You mean that pyramid scheme thing"

If you are like me living in the Caribbean and are attempting to build an MLM (Multi-Level Marketing) business there are some experiences that I can guarantee you that are inevitable. One of the most persistent experiences that has become so typical on some Caribbean Islands is the response you get from people when you attempt to introduce your business to them. This I believe is due to the trust levels regarding the MLM industry which in many cases stem from ignorance about the business model.  At least four out of ten people will ask you the same question and your conversation with them would go something like this.

"Hi John what's up. I'm calling to invite you to take a look at a business idea a friend shared with me. We're having a meeting on Friday at 6:00 pm at "Happy Day Hotel" meet me there so you can get to check it out for yourself" The typical response that you are likely to get from "John" run mostly along the lines of:

"Hey buddy what is this about, I hope it's not one of those pyramid scheme things. Them things don't work. I know because I was in "such and such company" ten years ago and I ain't make any money."

Or "I hope it's not "such and such company" or one of those Pyramid scheme things. I don't like them things at all, people don't ever make any money in them things.

Or "I will come only because it's you that invite me, but I'm not really into them pyramid scheme business".

In many cases this is how the conversation evolves when you try to invite people to take a look at your MLM business presentation here in the Caribbean. This is not to say there are not folks out there who will accept your invitation with a genuine interest in what it is you want to share with them. The above example though, is a real and persisting scenario that you are likely to be faced with sooner or later.

How each individual deals with this issue is entirely up to them or based on the training they receive from their individual MLM company. Whether someone accepts your invitation to view your business or not will be determined by many varying factors. Some of which include - the level of trust between you two, how professional you present yourself, the person's prior experience with MLM businesses, the person's level of suspicion about the industry and the person's interest in being involved in any business at the moment. Ultimately I believe each contact is unique and comes down to the individuals and how they interact with each other.

What I will suggest is that you educate yourself about the difference between a legitimate Multi-level Marketing business and a "Pyramid Scheme", because you will be asked the questions I mentioned above. A good place to start is to familiarize yourself with what the DSA (Direct Selling Association) has to say about the difference between legal MLM companies or Direct Selling Companies and Pyramid Schemes. What I have found is that when the question arises, educating people about the difference is the best way forward. This allows them the opportunity to make a qualified decision about whether they want to be involved in your MLM business or not. To get more information about direct selling companies your can also go to Direct Selling 411.

What I have noticed is that many people in the MLM industry here in the Caribbean are totally unaware that there is a difference between a legal Multi-level Marketing business and a "Pyramid Scheme". Therefore when faced with the inevitable question "Is it one of those pyramid scheme things"? they become dodgy and uncomfortable thus adding to the other person's suspicion and ultimately hurting there business and even their relationship with that person.

With the the internet as a driving force in recent years in the MLM industry this is hopefully changing. With this change the hope is that more and more people in the industry are realizing that educating themselves is advantageous to growing a successful business. I have found that having the right mentor and team support also help in educating associates on pertinent issues and how to deal with them in a professional, open and honest manner. For instance in my case I am connected with a very supportive team of both Caribbean and International members of the company I am affiliated with. We have both public pages on Facebook like the links I shared above and also private groups for registered Independent Associates to interact and share ideas, goals and accomplishments.

As I said before and I will reiterate, the legal MLM business model is a business like any other. Individuals are free to participate or not participate, therefore, educating people about the industry and how it works is the best way of determining who will get involved and who would not. Misleading people into joining your business has one outcome; that is mass attrition added to that it also destroys some friendships and relationships.

Like everything else there are people who will see the MLM industry as the right fit for them and will approach it with positive intention. While on the other hand there will be people that want nothing to do with the industry and that to me is quite okay. There will of course also be people who will get involved for all manner of reasons, then decide along the way this is what they were looking for or it is not exactly what they wanted. That too should be respected.  It is my belief that peoples' right to choose, regardless of whether they choose to partner with you or not, should be respected at all times.

Here is an Audio by Jerry Clarke, one of the industry's most respected coaches and trainers, which gives a quick overview of the industry and discusses the difference between a legal MLM business and a "pyramid scheme".





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