WHY Multi Level Marketing (MLM) FAILS

The Toughest Challenge of MLM

There are many challenges faced by MLM company and MLM player in the market. The toughest in my opinion is to keep the growth of the group.

I had ask this question to many MLM players regardless of their type of marketing plan, be it binary, double binary, multiple legs, star shape, conventional etc but none have manage to give me a satisfactory answer except Single Level Marketing people.

The issue is this... Let's take an example of binary system or 2 leg system marketing plan. You do not have to be a Math genius to understand this. A a company start, it start for with 1 person and duplicate to 2, 4, 8, 16, 32, 64...

Let's see how it goes


Level qty total
1 1 1
2 2 3
3 4 7
4 8 15
5 16 31
6 32 63
7 64 127
8 128 255
9 256 511
10 512 1023
11 1024 2047
12 2048 4095
13 4096 8191
14 8192 16383
15 16384 32767
16 32768 65535
17 65536 131071
18 131072 262143
19 262144 524287
20 524288 1048575
21 1048576 2097151
22 2097152 4194303
23 4194304 8388607
24 8388608 16777215
25 16777216 33554431
26 33554432 67108863
27 67108864 134217727
28 134217728 268435455
29 268435456 536870911
30 536870912 1073741823
31 1073741824 2147483647
32 2,147,483,648 4,294,967,295
33 4,294,967,296 8,589,934,591
34 8,589,934,592 17,179,869,183
35 17,179,869,184 34,359,738,367
36 34,359,738,368 68,719,476,735
,
Can someone tell me the total population of the world including the African country and the South America?



The above number carry a simple explanation, if the group of distributor multiply themselves to the next level in 1 month. It will take only 35 months for the whole world to be the member of the company. Got it? Including the babies and all the old man and women in the hospital that is waiting to die.

To those who haven't got my point, if the system requires you to get only 2 members as your downline, partner, or whatever you call them, the company will be stuck in the next 35 months that is 3 years.

I assume 100% movement. Ok I will give you the benefit of the doubt that not 100% will move. So what is the percentage you want to factor? just get your excel and start to put the figure in.

I am just talking about 2 leg system and everybody knows that MLM growth is exponential and not linear. So what happen to company with 3, 4, 5, 8 legs system. The answer is it will get stuck faster.

That is the reason Matrix system hardly survived in the world because to get it moving it will need the whole world to join and yet it will still stuck.

Some friend of mine argued that they practice reentry saying that the same person can join with many accounts. Say a person will sign up with 3 or 7 accounts. My answer is it will just make the life of the company a little bit longer than what stated because when almost 30% of the people around you have join don't think that the reentry people want to join under your group.

Is that enough for now. I leave it to all of you and see if there is anyone who can answer me for this matter before I move to the next item.

Till then work hard to earn and do not spend the hard earn money wastefully.


Ghazali Haji Abu

MY INTRODUCTION

As an introduction, I was involved with MLM for many years and have earn thousands and spent thousands too. There are many sweet memories and the bad memories too. In this blog, I will share with you some of the information that your upline / sponsor / partner (whatever you call them) will not tell you. Ask any highest position person in your company or network and he will not reveal the answer. it's either he doesn't know about it or simply he do not want to tell you the answer.

Some people told me that I hated MLM because I didn't make it. My simple answer is I made it but then it turn against me. So, I will tell my experience which you can pick a lesson from them. For the neutral people you may want to know what have gone wrong. That's why I initiated this blog so I can share my experience. At least you won't fall into the same hole that I fall in or it could be a similar type of hole with different name or from different location/country.

It will be a very long article. So I decided to split them into a few Part. So you can read them part by part.

Generally, in order to be successful in any line of business you need to know the right things which you need to do and the wrong things which you need to avoid. Then there are things that is good to do and not that good to practice.

Thank you for reading.....