To Be Successful In MLM, You Must Avoid Vampire Networks

Like the majority of people in network marketing, you are probably wondering how to be successful in Multi-Level Marketing (MLM). With such a high attrition rate, it is indeed difficult to be really successful. There is however one simple question that you can ask yourself to increase the likelihood of success. This question is: “Are you in a vampire network?” If you don’t know what a vampire network is, keep reading.

What is a vampire network? Like vampires, vampire networks are always looking for new blood. The distributors are strongly urged to build enormous downlines and the products or services associated with these companies are not particularly useful or interesting. If it weren’t for the business opportunity, nobody would consider joining. Although legitimate MLM companies also focus on recruiting, it should never be the primary and only focus.

Another sign that you are part of a vampire network is when nobody is retailing products. They’re simply garage qualified. When people only focus on recruiting new leaders and don’t sell products, the right balance isn’t in place. Where does your MLM company focus all of its energy? If you’re paid only to recruit, you’re part of a vampire network.

How much do the products cost? When compared to similar products, are the prices competitive or are they inflated? If your products (or very similar products) can be found at Walmart, Safeway, Costco or even eBay at a better price, you likely won’t succeed. After all, would you pay extra for no reason at all? Do you want to compete with giants such as Walmart? You should keep in mind that most MLM company products are manufactured by a few companies so products should be in a same price range.

What kind of profit are people making? A profit is defined as the difference between the product wholesale price and retail price. If you only get a small percentage of the wholesale profit (e.g., 3% to 7%) of inexpensive items, you will need a lot of people to build a good income. And by a lot, I don’t mean 20 people…. I mean at least a thousand people… Talk about vampire networking….

How large are the company overhead expenses? Although it seems trivial to some, the lower the expenses, the more money is left for profit sharing so your compensation plan would be higher with lower overhead expenses. Does your company give bonuses? Is it easy to qualify or do you have to go through lots of hoops to finally make it to the final 1% of applicants? A lot of MLM distributors do it on a part-time basis, so it’s important to know where this bonus money goes if no one gets it…

Be honest with yourself. Would you buy the products you are selling if you weren’t in it for the business opportunity? If nobody were actively recruiting, would the company survive based on product sales alone? If there is no true product but plenty of recruiting going on, it’s most likely an illegal pyramid scheme. Get out now!

Look at all these factors and think about your answers carefully. If you discover that you are in a vampire network, get out now if you want to succeed. Instead, find a legitimate company where you can be successful and build your mlm home business for you, your children and your grandchildren.

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