Recently the company BAZI/xcelr8 gave up using a network marketing business model and just yesterday iLearningGlobal made the same announcement. I had read the policies and procedures of iLearningGlobal a few months ago because I was mentoring someone in that company, and I knew then that this would probably happen.
How did I know? Because of bazinga this clause, which they quoted in the letter to their distributors about the announcement:
iLG reserves the right to terminate all Marketer Agreements upon 30 days notice if the Company elects to: (1) cease business operations; (2) dissolve as a business entity; or (3) terminate distribution of its products and/or services via direct selling channels.
When the policies and procedures were written, the company owners already had it in their heads that this business model might not work. So how dedicated were they, really, to making this company work for their distributors?
Henry Ford is often quoted as saying that whether you think you can do something, or you think you can’t, you’re right! The Law of Attraction backs this up. By believing MLM might not work, and focusing on it enough to put it in the policies and procedures, they set the company up for failure!
I always advise people that before joining a MLM company they should:
Do their homework on the people running the company
Read the policies and procedures
Know how long the company has been in business
I am not sure who was running these two companies but I would guess it wasn’t people who had been highly successful distributors for MLM companies in the past. Someone who had already excelled in this type of company would know that it works, and would not want such language in the policies and procedures. Also, knowing what it’s like to be a distributor, they would have wanted to take care of the people who became distributors for them rather than yanking their business out from under them with 30 days notice!
This clause or one very similar is actually in the policies of many MLM companies. You just need to read those policies to see this type of problem coming! And if you are investigating a company and they do not have their policies and procedures in writing, (preferably available on their website) or they won’t let you see them until after you join, RUN!
I never recommend that anyone join a company that is less than 2 years old, because of the high failure rate for new businesses. If the opportunity is good now, it will be even better when they’ve been in business a couple of years and have the kinks worked out. A proven track record of success makes it very unlikely that they will feel the need to change what they are doing, or close the company. On the other hand of course, if the company has been around too long then they are past their momentum phase and it will be difficult to achieve great success with them if you are new.
In retail marketing, companies advertise to get customers. Those advertising budgets can be huge! Have you ever heard how much it costs to get a spot during the Super Bowl? MLM works by letting ordinary people do the advertising (which is human nature anyway) and giving them the money instead of paying an advertising company. It’s that simple. You’ve been recommending products or services to people since you were a kid, you just never got paid for it!
Who believes in MLM?
T. Harv Ecker
So those of us who believe, are in good company! Why get involved with the people who don’t?
Success is a decision. Decide today!