The Multi-level marketing industry has shifted its focus away from moving products and services to the general public and toward a model that is destined to keep failing, time and time again.  In the mid 1990’s, the network marketing industry, as it originally was designed, was for all practical purposes destroyed by greed.  What do I mean by this?  Well, while the model was intended as a way for the average Joe to make some extra money by selling quality products to friends and family, by referral marketing, it became something totally different once the focus shifted solely to MLM recruiting.  The industry was ‘corrupted’ by an insidious culprit, spurred on by company greed, that forever changed the landscape of what was once an honorable profession and industry.

MLM companies began to realize many years back that the traditional way of moving their products and services, that was originally pioneered by companies like Shakley, Amway, Fuller Brush, etc. was not the most profitable way of doing business.  Companies originally used to pay a healthy commission on individual product sales, and would also then pay a smaller percentage on the sales of people that you would train.  Sounds logical, right?  In fact, the model is explained beautifully in videos like Brilliant Compensation.  It’s the model I fell in love with many years back.  But, MLM companies were limited by this setup – at least, they felt they were.  So they began to shift their focus away from rewarding individual achievement and towards MLM Recruiting, opting for an “internal consumption” model, instead of a sales model.

This new model focused solely on MLM Recruiting is what today drives most MLM companies and what, I believe, will ultimately be the downfall of most of these companies, in the long run.  The reason is simple –the industry shift toward MLM Recruiting has made it virtually impossible for the average person to make any substantial, long-term income in the industry.  Instead, the majority of the wealth is being had by the company itself, along with a select group of talented public speakers and motivational gurus, who have figured out that they can make more money on stage at your company convention than they can on the speaking tour.  REAL, sustainable wealth is created by product sales, OUTSIDE the company, and by subsequent ongoing consumption by those OUTSIDE the company.  If your MLM company is not set up this way, in my opinion, you’re wasting your time.

There are a few good companies out there that have structured their training and their comp plans to make it worth your time– they are doing it the RIGHT way, and they are at the forefront of what I believe is a huge industry shift that’s underway.  I, for one, am avoiding traditional MLM Recruiting and instead am placing my focus on promoting the products and services of one of these companies. If you’d like more information on what I’m involved with, you can learn more about it at www.MLMRescuePlan.com.