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MLM Idea Bank
Good ideas from over the rainbow.


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"U.S. Monolith: Right Question, Wrong Answer"

Q. What is one apparent reason that multi-level marketing often fails?

A. People who sign up will drop out too often and too soon.

The answer of "U.S. Monolith" seems to be to sign people up to an "automatic mailorder" recruitment program which supposedly "recruits a down-line for them," and then as income is generated, progressively signs them up with not one but an entire series of multi-level schemes.

This is wrong for the following reasons:

(1) As everyone knows, L.L. Bean and Land's End do not generously allow you to pay them to mail a catalog for you----because they are making money from selling products, not from bilking desperate "opportunity seekers." I.e., "automatic mailorder" does not work.

(2) As any "relatively reputable" MLM representive will tell you, mailorder recruitment of any kind especially does not work for MLM.

(3) It is either a mistake or a snow job to sign people up for an MLM unless they are excited about the product and happy to buy it regularly.

(4) There is a much more simple, honest, and practical solution to the problem of premature drop-outs: that is, for MLM companies to offer the options of quarterly or at least bi-monthly "auto-shipments." (Currently the usual minimum is 1 automatic order per month.)

(5) Until such a plan exists, I suggest that serious networkers try to implement a "partnership program" whereby each new member is assigned to a legal partnership with another new member----whereby they agree to jointly cover the "auto-shipments" and to split all MLM commissions forever. (The partnership, not the individual, signs for the MLM----and if one partner stops paying, a new partner is assigned.) Each "less than energetic" new member thus halves the cost of staying in, and doubles the chance to "get lucky" with a runaway downline.

Conclusion. If you are an "MLM Junkie" who is eager to pull a snow job on other "MLM Junkies," then the U.S. Monolith program may be just right for you. But if what you really want is a "good pyramid scheme," then be slightly more honest about it and go for "Money Masters." (Or whatever will soon replace that.) Or if you are a "serious networker"---then by all means, sign up for a series of serious MLM's (each with a product that you really use) and maybe one will take off.

Why go for a compromise that is neither here nor there? This can only succeed by seeking to take "even more than usual" advantage of desperate "opportunity seekers," and removing yourself one more step from reality.

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"Jackpot Multi-Level"

Think very hard----way back.

What was the original excuse for "multi-level marketing"? Believe it or not, it was to "cut out the middle man" and thus get "a better value for the product." This was of course always hypocritical and today, many programs do not even bother to evade the fact that they are designed only to "make somebody money for selling outrageously overpriced products or for doing nothing."

Is it possible to have a "real" multi-level scheme? One that really offers you a substantial discount on superior products, plus a chance for a substantial windfall if your downline happens to take off? Yes, of course. All this requires is for someone with both the desire and the backing to start one. That is, someone who cares a little more about ethics and longevity than making millions of dollars as fast as possible.

I have the desire and the idea but not the backing. I call my idea "Jackpot Multi-Level." In many ways it is the exact opposite of either traditional or passive multi-level.

1) Focus on all members receiving a real discount on a quality product which everyone can use----i.e., a multivitamin equivalent to Twinlab's "Daily One."

2) Add a few dollars to the manufacturing cost, thus giving people a real discount off of shelf prices, while slating a certain amount per sale to a "jackpot fund."

3) Save tens of thousands of dollars in operating costs by not maintaining permanent downlines, not giving free cruises to the people who are already making the most money, etc.

4) Net effect: if you use vitamins (or whatever) you will get a good value and if your downline takes off now and then, you will get a "jackpot" check in the mail for $5,000.00. Win-win situation.

I am good at vitamins and good at ideas. What I am not good at is raising the capital, working out the legalities, and putting into operation a serious corporation.

Well... you now have the opportunity to take my idea and run with it, or you can get in touch with me. I am betting that anyone ethical enough to like this idea will be ethical enough to get in touch with me. I do have a number of refinements and I am a good partner.


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This page and every page in MoneyData: copyright 1999 by Christopher Oey, all rights reserved.




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