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A wise man said, ‘If you do not know where were heading, you will need longer time to reach the destination’. This case is also happening in the business DS / MLM. Success and failure of a person in his journey in the MLM business is strongly influenced by the behavior and future visison. Jeffrey Babener, leading MLM consultants in the U.S. pointed to 10 major mistakes MLM distributors who are often led to failure. The following article is a free adaptation of the writings in the magazine Network Marketing Babener Life Styles 2000/Januari Edition December 2001, entitled “Networking Dos and Don’ts: Ten Common Mistakes and How to Avoid Them.”

This article is very interesting because it can be used as an afterthought by both distributors and MLM companies. If a distributor can synergize with the company, it is likely that primary kesalahankesalahan could have been avoided. Thus the actors MLM opportunity to reach their destination-that is success-more quickly.

Following the discussion:

1. Do not expect too much with the potential income
Exaggerate the income potential of making people expect too much. True, many millionaires were born by the MLM business. But in fact, less than 10 percent of distributors who have undergone a full time business. The majority of people running the MLM as a sideline business. Thus, the expectation of income from the MLM business should be made realistic as possible an amount not much different with work income. The assumption, this income is used in addition to the permanent labor income. Facts on the ground, many distributors who initially excessive expect big money, for a moment and then get upset and ran away from MLM. Sponsors are recruited with the promise that turgid income often lose credibility in a short time. So give hope, be positive, and at the same time realistic.

2. Do not just rely on the system
Recruitment activities tend ditumpukan on compensation systems (marketing plan) is considered the most superior and ensure success. However, historical facts clearly states that no one had a successful MLM company with solely rely on the compensation system. Of course having the compensation system that provides attractive incentives were necessary. However, the compensation system ‘too tempting’ is often a ‘patch’ for the product that is less good and poor management. Such systems usually do not preserve the continuity of business enterprise or the distributor. Thus, the main requirement remains a quality product, strong management, and shared vision that can be good. So, MLM participants should pay more attention to these elements rather than concentrating on the magic system.

3. Do not just follow trends
People love smitten with certain products of more trendy low. But stories like that only brief. Sometimes an MLM company can succeed by the momentum of the right products and support a solid product line. However true this is rare. MLM history is filled with products that are based on trends in an instant, but not all the successful course. So, look for products which solid and sensible, especially once the product has its market and customers really needed.

4. Do not think in a short term
Just as other businesses, MLM need time to grow and develop. If you are looking for short term success, it means you’re planting the seeds of failure. Do not expect fast results at least in the first six months you’re in business. Those who succeed in MLM generally have enough to work hard to build networks and have long-term vision. Economist Milton Friedman said, “The future is longer than the present”.

5. It’s not a money machine
Often we hear the business plan which is recognized as a money machine. Prospect indoctrinated, “You do not need to sell anything. Simply create a list of prospects and the money will come in person to your account! “MLM is not the money machine and not a recruiting machine. MLM is a serious business. Successful distributor must master the product, consumers know very well, knew the company visions, and ready to work hard to achieve goals. So, concentrate on the strong business foundation and forget the engines
money, and your business opportunity to be sustainable.

6. High profit margins
Distributors also often seduced by the compensation system to exaggerate the potential income, which it is intended to promote a product being offered. Companies with legitimate products of good quality to price is more expensive, and thus can pay higher sales commissions. Experiences noted, large MLM companies can survive by focusing on good quality products, reliable quality, consumed and consumer needs, such as nutritional products, personal care and household maintenance. If the MLM products are easy to find at retail for comparison, it is rather difficult for the company achieve enough profit margin to pay high commissions.
A number of service or services appear to have a future in this industry. But the marketing of services such as telecom and internet seems to only generate a small profit margin. Both are good and needed. But the distributors who move the product like this should find a larger number of consumers to compete with the results obtained by the high profit-margin products.

7. Do not ignore the company’s reputation
The ratio of success in MLM not much different with other small-scale businesses. Inevitably, there is a significant failure rate. If you are looking for greater opportunities for success, choose a MLM with a track record (reputation) is tested. Better if the company has been in operation a year and tested with a minimum qualification of the company management. But, really the odds of success can be achieved by those who joined earlier? Well, sometimes does have a point. But the “ground floor opportunity” or an opportunity for the beginning of no value if foundations fragile business. If you’re the type who have the guts to take risks and be ready – both financially and psychologically-if for example a new MLM that you select is closed, at least do examine carefully the people behind the company (the founders and top management). Kaji also note their success in previous business and talk with other distributors who also went early.

8. Avoid loading inventory
Companies that want a ‘front-load’ in a large number of distributors obviously requires a large cash investment as well. Avoid! With all the ease of communication and the distribution date, the distributor should not be asked to invest too big. Loading inventory practices intended solely to amass a large fund to pay high commissions to its heavy hitters. The heavy hitters of this focus on recruiting new members. Such programs are usually disguised pyramid schemes. When hiring slowing, business opportunities were fading. So, join with a company that sets the investment habits of moderate and rational order. The latter dimension is more long term than the compelling large front load.

9. Be consistent, one system at a time
He says that if one is good, then two and so on would be better, right? Wrong! Whatever myths you hear, very, very few distributors who can succeed by holding at the same time some MLM program. MLM history record, a row of more success stories filled our distributors and loyal customers who commit to a program than the psyllid. Although it’s not easy to focus on a particular product or program. But the majority of successful distributors pursue this business full-time, be careful in choosing the right company, and persevere in that company.

10. Do not stand idly
It’s not enough to just choosing the right company, calling your friends to join, and looking forward to a big income. Successful distributors are those who consistently recruit, sell, and reinvest the results for business development. People often discuss financial freedom in this business. But financial freedom is not going to happen if you just stand idle. Just like any other serious business, success in MLM needed investment, hard work and consistency. So, do the habits that support your business development from now on. Do not forget, avoid all the mistakes that you recognize the shape .*

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