Comments on: Why did Warren Buffett buy half a dozen MLM companies last year?

By: Justice Matshili

Justice Matshili — Sat, 31 Dec 2011 03:22:07 +0000

There are more people failing in conventional businesses all over the world, after borrowing lots of money from banks, than those who succeed. It is therefore wrong and inconsistent for any person to demonise MLM and consider it an industry hard to succeed in. Which business has ever been easy to do? The truth is business in general is tough and it is not for everyone, else every person would be a business owner. The reality is every business demands TIME, EFFORT and MONEY, but most people who join MLM businesses (no matter how good their compensation plans may be)hope to make millions from just taking care of the MONEY part of the equation and then doing nothing after that… neglecting both TIME and EFFORT. These three have to be consistently and consciously pursued for any business, especially MLM, to succeed.

By: Jim Britt

Jim Britt — Wed, 02 Nov 2011 16:27:26 +0000

I have been involved with network marketing for over 35 years. I have build four very large businesses and trained over a million people in this industry. I think this is the BEST business model for the average person with a low investment. The reason people fail is not the business model but either lack of effort or wrong effort. I have earned several million from the business. I am doing it again now after researching 27 companies to find the right one.

By: benjamas suter

benjamas suter — Sun, 16 Oct 2011 13:45:32 +0000

It is very easy to be rich through network marketing if u understand the concept of building human asset

By: Steve

Steve — Tue, 12 Jul 2011 03:00:04 +0000

Steve is obviously not smart and probably not a business owner at all. Please, learn proper grammar.
MLM is what it is. You can make money working it, but you can make even more letting it work for you…aka (owning MLM).

That said, use your time wisely!

By: Emily

Emily — Mon, 04 Apr 2011 16:19:18 +0000

I agree for the most part. Yes, of course it takes time to dig the ditch and to occassionally coddle your downline, but the crucial thing to consider is does your networking marketing company have the right compensation plan?

I also come from a traditional business background, but have since tried 2 different NMs. One has been around since the dawn of time and the other is a newcomer. Both are amazing companies with fantastic leadership, but with the former I understood from their annual convention that it could take me 20-30 years to hit the top rank within an overdeveloped industry, whereas with the latter it could take as few as 2-5 years because it was wide-open territory. Furthermore, the latter company’s compensation plan has added benefits that other NM company’s don’t account for!

So my advice is to choose your battle wisely. All NMs have their ups and downs, so pick one that fits your personality and lifestyle best and not just the first opportunity that comes along!

By: Adrian

Adrian — Thu, 17 Mar 2011 13:37:08 +0000

“I’ve been a traditional biz owner and I loved it except for the customers, employees and long hours.”

@ Steve – I sit very much on the fence with MLM … like everything, it works for some but not for others. But, I am happy when it does work

But, I’m not sure that you eliminate the customers (even in MLM, you should have LOTS of those), employees (you have worse: downlines … to be trained, supported, cajoled, etc., etc.) … and, if you want to REALLY succeed, you have no choice but to put in the hard yards (including long hours). Sorry. But, success in any endeavor requires those three (or, similar) …

By: Steve

Steve — Thu, 17 Mar 2011 06:20:54 +0000

I’ve been a traditional biz owner and I loved it except for the customers, employees and long hours. About 2 yrs ago I was introduced to an awesome network marketing company and decided to go for it. Within 6 months my plan b had doubled my income from plan a. Time to spend more time with plan b less time with my adult day care center. Network marketing is great but it’s not for wimps. You have to put your big boy pants on and go to work. Problem is you have to talk to all kinds of people and everybody’s not smart or motivated. Most folk will live their entire life in their small little comfort zone. I am glad that network marketing is becoming more excepted.

By: Sean Malone

Sean Malone — Wed, 09 Mar 2011 05:14:52 +0000

Hi Adrian,
I enjoyed reading your spot about MLM’s. I have, over the years, lost roughly $15K in different MLM endeavors. However, just recently I found a newer MLM company with [sales message removed]

Thanks
Sean

By: MKK

MKK — Fri, 07 Jan 2011 00:58:08 +0000

In 2002 Berkshire Hathaway purchased The Pampered Chef.

By: Doo Dilly

Doo Dilly — Thu, 08 Jul 2010 17:52:46 +0000

MLMers are the same no matter where I stumble upon them. Steinmetz was an Associate Professor back in the late 60’s who now makes a living peddling books, DVDs, seminars and the like. Klyosaki is a favorite at MLM conventions or call-ins, and his book has been criticized:
http://johntreed.com/Kiyosaki.html
http://www.sequenceinc.com/fraudfiles/2010/06/13/rich-dad-education-buyer-beware/

Small businesses do not have a 90% failure rate:
http://www.entrepreneur.com/magazine/entrepreneur/2007/february/173214.html

Those of you on the fence should read the works of Tracy Coenen, Robert FitzPatrick, Jon Taylor, and Dean & Laura Vandruff. They are MLM educators, derisively scorned as anti-MLM zealots by the Kool-aid drinking crowd.

So we have the” lazy loser” argument, the “you didn’t work your business” argument, etc., ad nauseum.
The only thing missing from the false comparison to small business owners or franchises is the false comparison that all businesses are pyramids—obfuscating the endless chain recruitment that is MLM with the pyramidal shape of corporations.

“IBO’s” –Independent business owners of MLMs own nothing—they are merely independent contractors—and the longer they stay in, the odds increase that they will end up owing.

As was previously stated, the only folks making money in MLMs are the owners and the TOPPs (top of the pyramid promoters).
MLMs can and do create financial hardship and damage to relationships.