I get it, it's the recruiting that makes the difference. One other question, what if I throw a party and then someone who comes and buys from my party wants to have a party of their own? Would I make money on the other person's party? If "yes", does that make it an MLM or does the continuing of a "downline" make it an MLM? I'm just trying to understand the difference and why people would be more open to one versus the other. By the way, thanks for your patience. I don't mean to be a pain, I'm just trying to understand the difference and pros/cons.

Hi Heather; ====== I get it, it's the recruiting that makes the difference..... (snipped) .... I'm just trying to understand the difference and why people would be more open to one versus the other. By the way, thanks for your patience. I don't mean to be a pain, I'm just trying to understand the difference and pros/cons. ====== You're not a pain. You and a bazillion other people are trying to understand the difference. lol. The whole issue of "multi level" is very confusing. That's why so many people get fooled into joining illegal pyramids. They look a lot like MLM, too. MLM, tiered affiliates, tiered commissions and pyramids all look a lot the same. Part 1: Your Party Let's tackle the issue of you having a party first. So, you have a party. And, one of your friends says "Hey, I'd like to have a party." The questions becomes... does she want to have a party? Or does she want to start a home business? If she just wants to have a party, the best solution would be for her to act as a hostess for YOUR parties. You go over and show the candles to her guests, and you can give her a thank you gift, or product - depending on what you want to offer for the opportunity to reach her friends - and based on her sales, too. If her friends buy $500 in stock and you're making $125 in those two hours, you might give her more than if her friends buy $200 in product. On a $200 order, your take is only $50. Still not bad for 2 hours work - but not as much leeway to give thank you gifts. For that matter, if you have friends that have GOOD parties (lots of stock moving) you might even want to offer them a cut of the night because the friends become your customers to resell to. Now... if your friend wants to start her own home business and go into competition with you... (lol)... then what we do is give you 5% of her sales -- but it stops there. We don't do 3, 5 or 10 levels like traditional MLMs do. Part 2: What makes an MLM an MLM? It's not *really* the recruiting, although that's a big part of it. An illegal pyramid requires recruiting, too. The simplest way to explain the difference, as I see it, is this.... An illegal pyramid; Requires new members to join in order to pay older members. Classic "rob Peter to pay Paul" When there are not enough new members to continue to pay everyone, the pyramid collapses. Multi Level Marketing; In a traditional MLM, the "strength" of the program is that you get paid small bits for the efforts of people that "join" into several levels below you. 3 levels, 5 levels and even 7 levels are quite common. Tiered Sales & Tiered Affiliate Programs; In a tiered sale, the focus is on the selling, not the recruiting. There are usually fewer tiers Part 3: Problematic areas? The business structure of MLM is actually brilliant. Imagine that I was selling boatloads of product every day. So I recruit you and teach you how to do what I do. And then I teach 5, 10 or 20 more people. So you're all selling boatloads. Then I teach you how to recruit and train, too. So... I'm making a boatload on my sales. And, you are making a ton, too. And I'm getting a cut of all your sales. You don't mind, because I keep teaching you how to make more. So, the small bit I get of your sales is well compensated by what I've taught you and continue to teach. And so on, down the line. You get a cut of the sales of everyone you recruit. Etc. Brilliant, hey? Except that's not what happens. People join MLMs thinking they don't *need* to know how to sell, because if they recruit enough people, they'll make money from their downline's sales. Except - their downline joined for the same reason and they can't sell, either. So, you end up with 95% of people making no money and bitter about it. After a few experiences with it, they come to the conclusion that MLMs suck. And one more thought... I'd actually love to see Soy-Simple.com become a multi level business one day. But not right away. We do NOT want to attract the kind of people that just want to recruit, hoping to make "easy money" off their downline's sales. I want to, initially, attract sellers. People who aren't afraid to "show and smell and sell." We'll take it from there. If we do find some people that can move product, we'll grow as needed to offer them financial incentive to keep doing it and to make more by training others to replicate what they do. But - we haven't found any of those people yet. When we do, we'll tailor our growth to be beneficial to them. Hope that helps.... sorry it was such a book. : ) Linda

Hi Linda, I have been watching this and had to comment on one thing. _________________________________ Except that's not what happens. People join MLMs thinking they don't *need* to know how to sell, because if they recruit enough people, they'll make money from their downline's sales. Except - their downline joined for the same reason and they can't sell, either. _________________________________ You are soooo right. that is exactly what happens! Please, I am not trying to advertise my company. This just "fits". I have been watching a company since December. I KNEW it was going to be big. And it is. I finally joined under the guy that showed it to me in January. Well, I didn't really get started until February when I met a wonderful affiliate (not even in my line) from Rochester NY. That showed me literally tons of information and tutorials that set me on the right track. Before this I was completely "lost". But determined not to give up. Now, I spend all my time each and everyday corresponding with my affiliates. My goal is to get them started one by one. I don't care if it takes me years to get where I want to be. My team will be right there with me. Now, that's the key to success! Just my opinion, Angela

Hi Angela; I have been watching this and had to comment on one thing. _________________________________ Except that's not what happens. People join MLMs thinking they don't *need* to know how to sell, because if they recruit enough people, they'll make money from their downline's sales. Except - their downline joined for the same reason and they can't sell, either. _________________________________ You are soooo right. that is exactly what happens! LOL. Yup. Over and over and over again. There's a little phrase that I read in Linda Miller's forum. I can't recall if she said it, or if it's a quote from one of the people she reads and studies. It goes something like this; Life doesn't happen TO you, it happens THROUGH you. And it's so true. And THAT - bar nothing - is why 95% of people fail. Not just at MLM, but at almost anything. - 98% of affiliates don't make money - 95% of people fail at MLM - The majority of small businesses fail - Most people have no savings - Most people have no time Why? Because nothing happens TO them - it happens THROUGH them. Sadly, they'd rather point the finger elsewhere. MLM sucks. The Internet sucks. Internet marketing sucks. Affiliate programs suck. Their ex sucks. And so on, and so on. And, of course, all the people that "fall for" that stuff are the "suckers" because they've learned that those things suck. Just my humble opinion, of course. : ) L

Hi Linda, There was one thing that you said in your recent posts on this MLM dilemma that I identified with very much. Here it is: ==================== "The business structure of MLM is actually brilliant. Imagine that I was selling boatloads of product every day. So I recruit you and teach you how to do what I do. And then I teach 5, 10 or 20 more people. So you're all selling boatloads. Then I teach you how to recruit and train, too." ==================== Yep. I, too, believe that the MLM structure is theoretically brilliant. When I was making my first foray into MLM some 16 years ago I analysed it from every angle. On paper I could not fault the plan. Then, I signed up and soon realised that what you see on paper and what happens in reality are poles apart. The reality is that MOST people are bone lazy - sorry, but it's true. They join only for the "free" ride. They want eveybody below them and above them to make them rich. Their eyes are filled with $$$ signs. The heirarchy structure that I have reproduced below looks technically feasible. ==================== ---------- Heather ---------- ----- Cheri ---------- Deb ----- Winston -- Dave ----- Martha -- Kathy ==================== But (and I am only using the "names" not the people who they represent here!)... *** Kathy doesn't like Heather because, in her mind, Heather's too bossy.*** *** Deb and Cheri bait each other with false information in their little "crossline" activities.*** *** Winston can't sell a "tinker's cuss" and so goes on a sponsoring extravaganza.*** *** Martha is having personal problems and has now found that her sponsor "Deb" will listen to her every whinge.*** *** Dave is going through a messy divorce*** Tra-la-tra-la-tra-la... In reality this is exactly what happens. Now, I know... the proponents and virgins of network/MLM marketing are gonna come in and say that I am casting a long shadow over the whole industry. However, I had 10 years of experience in Amway, Omegatrend and Advantage International. They were all the same. Like I said - the "compensation" plans are brilliant. It's just those pesky people who mess them up. If you want to be successful then you need to find your niche in life and work hard and smart at it. Don't expect other people to make you successful. That is the biggest mistake that people make in MLM. I await the avalanche. Gary PS: I was telephoned about a week ago by a person who was my upline Emerald in Amway. He was all "excited" about a new MLM "opportunity" (allstarsallgell - I think it was called). This is a person who has spent 20 years in networking and has finally realised that the organisation that he has been promoting all that time is NOT going to fulfill his dreams. I thought that was sad.