The MLM Whole Truth, Network Marketing Super-Site
Some say that all MLMs (aka multilevel or network marketing companies) are nothing more than endless chain pyramid schemes.
They are wrong.
Others say that that all MLMs are good, moral, and legitimate businesses that are the last best hope for the average person without huge capital to achieve the American Dream.
They are wrong too.
As in most areas of life, the whole truth lies somewhere in the middle.
Welcome.
I am Lou Abbott, founder of this site and a 12 year veteran of the network marketing profession. Believe me when I say that I’ve seen the very best of multi-level marketing and I have seen the very worst of it. I’ve been in the top 1 percent of distributors.
I have also experienced the train wrecks.
My mission here?
I want you to be well informed because ignorance in the MLM profession can cost you a lot more than money. It can also cost you your friends, family, hopes and dreams.
You need the whole truth about MLM, the companies, the industry, and what it really takes to make significant income with a network marketing business! Our goal here is to bring it to you as effectively and objectively as is humanly possible.
This free solution from Mark Joyner teaches valuable success concepts in such a delightful way. More than that, I use the free system it teaches to stay focused, productive, and on target for my most important goals... 
{ 17 comments… read them below or add one }
Hi Lou,
Wow…what a wonderfully sharp & captivating video introduction you created with Animoto. I absolutely love that service.
Network Marketing or as some people know it MLM is an industry which has come of age. No longer is the Network Marketer selling soap door to door or needing to hound their family and friends to build a thriving online business.
Today’s Professional Network Marketer has a very specific skill set which includes Social Media & Direct Marketing Strategies, Blogging, Pay Per Click Advertising, and a steady stream of positive reaffirming Self Development. This specific skill set allows the participant to actually put the MARKETING in network marketing.
Network Marketing is a business first and foremost. It is the only vehicle of which I know on a personal basis the average person who has the self discipline to acquire the requisite skill base can within a relatively short period of time (2-3 years) create a multiple six-figure annual income.
This is the only industry of which I am aware that lends itself to not only being the method of choice for today’s active lifestyle but in fact has become the separator between the New Rich and the masses.
The New Rich understand leverage and why not being bound to any one geographic location allows them greater freedom in designing their lifestyle and in turn enjoying a greater quality of life.
I invite all those professionals who will read this message to closely examine this industry on its own merits. Study how by taking the time to learn and apply proper marketing principles you can step away from the corporate ball & chain to a life of freedom, friendship, and adventure.
To Our Massive Success,
John Chatman
Thanks for the nice comment, John. Good points all.
I would caution folks about thinking that an “average” person can make a multiple 6 figure income in 2 to 3 years. In my 12 years in the business, I have not met one average person that has accomplished that. I have met a couple of extraordinary people that have done so.
Part of my goal for this site is to tone down any type of exaggerations that lead to expectations that lead to disillusionment with the industry. One of the common exaggerations, in my opinion, is how easy it is is to make huge money and how quickly it can be done.
That said, I love your point about not being bound to “one geographic location.” That is one of the huge reasons I started in network marketing!
In my research on those who have made it, the ‘numbers’ are nearly all the same for those at the top. One in a thousand really makes it big. This is a six to eight year plan if you want to reach $100K/month or more. It is a minimum one year to just figure out if you want to pursue that dream or not. It will take four to five years to change who you are enough to make the final climb.
I spent a year in Amway ‘core’ in the early 90′s and recently found Bill Britt’s numbers. Do a search and you will discover a ton of info about him. Bill saw the opportunity while a City Manager and came into contact with a lot of people. He was not shy and had the skill of self assurance. Still he didn’t expect to show this to 10 people and wait for the money.
His plan, as I have backed it out from his numbers was to invite 40 people a week to look at his opportunity. That is 10 people a day, four days a week. He also took a break one week every quarter. There was no internet in the 70′s and 80′s either. In ten years he invited over 18,500 people to look at the opportunity.
Only one in five took a look. He showed the ‘plan’ on average to 27 people every month for 10 years. The industry has improved immensely since then too. Then it was a personal one on one or a meeting. Now you can provide the best quality CD/DVD’s to as many as are willing to look.
Over 10 years Bill sponsored 621 people. That is about one out of five who looked and 5 every month for 10 years. Persistence pays huge dividends. This is where who you are will tell the tale. The more you invest in personal growth the better this set of numbers becomes.
Over half quit with only 304 sticking long term. This appears to be common to other industries as well. How many people go through all the trouble to acquire a real estate license, a law degree, an insurance license and in one year… disappear to something else? Yet no one claims there is anything wrong with those professions.
61 of those who stayed, or about 10% of those he sponsored, worked it to $500/month profit or more every month. Again do some research on other industries and this is not out of line. How many people pursue a medical degree and never make it?
From the 61, 14 are very special. 11 made him a very rich man. 3 made him millions. Looking for someone to make you a millionaire? You will have to talk to at least 6000+ people. NOT send them an email but actually talk to them. I suggest you get started right now.
Hey Lou:
Love your new site (Blog) + Video (wish I had some of your ‘technica’ skills :>)
I’d like to share a few thoughts with you on this, your first issue of your Web-02 format…
First, I greatly appreciate the VALUE you provide our industry with ‘MLM-The Whole Truth’.
MLM Industry news, and continuing education, are essential for all of us in order to be well informed and to grow – both personally and with our Home Businesses.
INDUSTRY – As a 23-year veteran in this great industry – I too, feel I’ve seen the good, the bad and the ugly of Network Marketing.
DRA – It’s one of the reasons I’ve proudly served for almost 4-years on the Board Of Directors of our Distributor Rights Association, representing my country of Canada. Our DRA is the “only” organization in the world that serves to educate, protect and preserve the ‘rights’ of Distributors and Direct Sales Reps everywhere. This is a non-profit organization, and we all contribute on the Board voluntarily, without remuneration ( http://www.OurDRA.com ).
Our main mission in the DRA is to bring about a much better, and fairer, “business partnership” between Distributors and Companies – because of the ‘carnage’ we see (sadly) between Companies and Distributors, on a weekly basis (wrongful terminations / bad Policies & Procedures (P&Ps) / lawsuits / companies ‘hitting the wall’, etc, etc). As well, we are tirelessly working ‘behind the scenes’ interacting with government regulators, like the FDA and FTC, etc – to protect, and to advance, our cause within this industry.
BEGINNINGS – Like Michael Eisbriner above, I was associated with Amway back in the mid-1980′s. I was with the Yager Group, and have been in one of Dexter Yager’s many homes in NC (where I believe Bill Britt lives as well). My early training came from Amway – and man! – “have we come a long way since then”! :>)
‘BALANCE’ In BUILDING – There’s a lot of debate raging out there right now about – OLD School -vs- NEW School marketing strategies – about ATTRACTION MARKETING – about SOCIAL MEDIA NETWORKING – PPC – SEO, etc, etc. Even though I was brought up under (so-called) OLD methodology – I do both old AND new TODAY – I believe strongly, that the healthiest approach is to apply (and to promote) a “balance” between ALL marketing strategies, as each of us will have different skills, interests, time constraints, finances, technical abilities, etc.
MLM – Personally, I have a deep respect for the MLM-Network Marketing business model – and I say that, both as a professional Financial Advisor and as a Network Marketer and a Coach in this industry.
But there are indeed “realities” that we must face in this industry – as know, only too well, Lou. I do believe the future is very promising for our industry – and that currently, given the grim economy – we will continue to see a surge in its growth. I also believe that the INTERNET will be the major driver for MLM – but that we need to treat it respectfully, as a TOOL only.
REWARDS – Where else today can one find – wrapped up in ONE business, the opportunity for – leverage – residual income – self development – friendships – tax incentives – recognition – travel – leadership growth – a sense of belonging – more fun – the chance for a better life — to name only a few?
CHALLENGES – Yes, the challenges are out there – they always will be – we cannot hide from them. But knowlege + human ingenuity will empower us. Resolve + positioning will cause us to win – big. The opportunities will be there, for those of us who are ready to CHANGE, as we enter 2010.
PASSION – We are a resourceful industry. We should have a ‘passion’ for its purpose. We need to believe in our dreams. We need to act on our vision. We will build even greater successes in future, together. I truly believe this.
WHY do I believe this?
INDUSTRY MISSION – Because of what we DO in our Network Marketing world — because of the CAUSE we represent — because of the HUMANITY we serve.
We in this industry — reach out to more people — we touch more lives — we bring more good — we spread more WELLNESS (personal / financial / business / legal / spiritual / + +) — than just about any other calling on this earth.
I believe that we should RECOGNIZE this — that we should be PROUD of this — and that we should do whatever is absolutely necessary to PRESERVE this heritage, as it is an awesome responsibility we hold in our hands.
Thanks Lou, for all that YOU do for our industry.
Warmly / Peter A.
Peter Arnold, CLU, CFC / Founder
Business Achievers Academy / Canada
Is Market America the best MLM system?
Hey Michael,
I am sorry to break it to you my friend but there is no “best” MLM System. There are several out there which are being used quite effectively to produce some outstanding results.
The bottom line is that the “Best” MLM System is the one you use daily. It’s the one that you enables you to create leverage through a specific set of daily actions taken on your own behalf to create the desired outcome.
To Your Massive Success,
John
Hi All . . .
I just had the pleasure of meeting Deb Bixler and reviewing some of her excellent blogs and websites. If you are looking to increase your online presence and branding, you would do well to check our her sites.
But most of all, Deb seems to be a real expert in Direct Sales Marketing.
Check out her site and work at the link above.
Lou, you are always right on target about MLM. There are many companies out there wanting you to sign up with them. The type company you need is a company that will give you long term reoccuring residual income. This company must have a long term plan in place and keeping that long term in mind if any changes need to made.
They must ask themselves the question, Will this change help or hurt the representatives that are making this happen? If the representatives are not first in mind when making this plan, it will soon fall apart. The representative/distributors are the backbone of any company. The management will be nothing without them. They must be their number one focus.
For a representative to know if the company has a long term plan, you must Ask. Read the Compensation Plan, Ask questions, Read the Policy and Procedures, Ask questions. Read Terms and Conditions, Ask questions.
If you do not get the answers you want, then move on. Remember Business Model drives the behavior in the field. That means if everything is compensation for the management and not the representatives, you are just making money for them and not you.
MLM is a good direction to go if you are informed and know how to choose the one that fits you best. I can help you find the information determination and give you a way to find out the information you need. There is no cost, it is just my way of giving back. If you help others find success, you will find success.
Thanks and God Bless
Maggie Kress
417-426-5931
Hello Lou,
I bought and read MLM the Whole Truth and I like it. I will have to read it a couple of times though in order to print it in my mind. It’s clear, its realistic, and now we finally know what can go wrong with MLM and why. It’s not MLM in itself it how the distributors deal with it or work with it.
I have a question Lou, I am finishing my website and on one of my pages I talk about MLM, in general, can I refer to you book and do I have a commission for that ?
thanks !
You provide excellent common sense advice-thank you. My son gave me MLM the Whole Truth and told me to learn from your site and materials. And, I have. I don’t make anywhere near what so many people dream of–but I love the product I distribute, have had personal success (http://lifemax.net/milahealthyliving/) and I think that is one of the best pieces of advice I can give someone. If you like something and the company is sound-it is worth the investment in time. Thank you so much for all your advice and honest information. MEL
I just signed up for your Insider’s Club. You are my voice of reason in a world where too many are trying to out-hype each other vying for our attention.
Thanks for being there,
Alan
Hi Lou,
Great site. Heard you on Mark Hoverson’s call on Friday. Keep up the great work!
Steve Hawk
Hey Lou,
Great words of wisdom. We’re actually hoping to teach more people the old methods of marketing and direct sales that were so effective back in the day. When something works – you don’t change it. The problem we see today is the introduction of the computer and the Internet in the mid 80′s has created an entire generation of socially inept and indolent people who aren’t interested in doing the work required and who have developed a belief in a system or another person who would do a percentage of or all the work for them inadvertently causing a level of success where none exists based on their own merits.
Today, more than a few marketers think of their business as a social club or hobby. They seem to have a mindset that comes with being taught the “fake it til you make it” attitude and don’t seem to be committed to the time, effort and hard work required to effectively manage a business – let alone achieve monetary success.
Returning to the “old school” methods of marketing and direct sales would require people engage in educating themselves and find a comfort zone in having concise conversations with people they do and don’t know. Such challenges require effort to develop confidence in what one’s doing. People need badly to develop healthy skills in building long term relationships and learning to close a deal without resistance. These are things all marketers and direct sales people need to accomplish first in order to achieve their goals and dreams while realizing a monetary return for their efforts.
We believe that this newer age of the Internet has people overturning their own abilities in lieu of beliefs they can achieve true success by following gurus and expecting something called “overspill” and a hefty pay check without in jecting their own time, effort and hard work into the equation.
More often than not, a lot of people end up terminating their business in a company promoted online or locally due to frustration in this new era of instant gratification. If they don’t earn monies in the first 30 to 90 days, they quit and move on to other programs only to do the exact same thing 30 to 90 days later. For most that never achieve what they set out to accomplish …they give up for a time and then start over again less any more skills than they had prior.
Granted there are some pretty good resources available online to help one learn, outsource and manage a business more effectively. However, the “old school” methods still work beautifully. We strongly encourage anyone in a home based business to learn effective marketing skills, implement them and watch how much more effective they become in succeeding in a home based business. Learn how to effectively communicate with others in business and you’ll have a gold mine waiting for you along with loyal and long term business relationships and desired monetary gain.
For those who fail, they must learn to market more effectively and work harder to succeed. If all attempts fail, one must find a more traditional method of earning income to survive. Residual income rises from experience and knowledge one must develop and continually work on accruing daily. With practice, some great skills, an influential mentor and attributed leverage in business, an average person, honest and ethical can in fact succeed in earning a 6 or 7 figure yearly income!
My thoughts while reading your excellent comment was that the principles, attitudes, and concepts needed to be successful in “old school” marketing are the same as in “new school” marketing. Online or offline, there are skills to learn, relationships to developed, leadership to that needs to be offered, etc., etc., etc.
The advantage with the Internet is that you can use the leverage of the technology to do it with 100 times more people, 1000 times more people, than ever possible offline. I am not saying that it’s easier, but it sure can be even more leveraged.
BTW, the finest, most concise while being the most complete and actionable training on how to do network marketing in the classic and proven way it the one by Todd Smith.
Very professional. Generic – so it works with any company. And, easy to duplicate in your team. See my review here.
The information was so enlightening.
I think that MLM or Network Marketing Companies are glorified pyramids. The only thing that makes some different from others is that they have a legitimate product or products. These companies have their benefits for the individuals at the top and the highly motivated “wannabe superstar” of the company. If you are highly motivated,have a connection with lots of people and have some marketing skills you can do well. If you’re a person who has never done anything like this before this may not be for you. It is true that we all must start some where, but this might not be the place unless you have a great coach and a vision. Some MLMs that have products are still shaky and can be considered a scam. When you join a MLM you need to read the fine print. When you make sell after sell and you receive little or no compensation then something is wrong. A red flag should go off when see or join a MLM that is not registered with the Better Business Bureau (BBB), associated with other business organization in the local area of the company or has no headquarters address. I have seen MLM pop-up and the HQ address that was listed was not the correct address. Some of these MLMs setup shop, get people to join and then disappear with all the money. I have seen companies claim all kinds of stuff over the years. MLMs that have “big name” endorsers are no different. You have to watch-out for those companies also. In some cases the “big name” endorser gets his money and is gone. Then the leaders of these companies “flip the script” after all the hype. They then get their money that they were aiming for and then their gone. I must admit that most that join MLM never make enough money to replace their income. It’s only about 10% that go above an beyond the norm. This may not be totally the fault of the MLM because there are a few good ones out there. If you are willing to work smart, do your research and find a legitimate MLM this could be the quickest way to achieve the “American Dream”.