The way you explain things in your videos is very effective, I like how business minded you are, very detailed and precise.
Like I said when I first joined 6ZEROS, I was impressed by how clean and professional the board looked and was being ran. It takes a sharp dude to pull off what you're doing.
Keep it up Jay 👌🏾✊🏾
And yet… people keep falling for these schemes….sigh…View: https://www.youtube.com/watch?v=H5E1COGt8AE
Today we’re talking about the 6 Reasons Why You Won’t Make Money in MLM.
Have any of you ever been in an MLM? What level of success did you reach?
- You’re Competing Against Your Up and Down Line
- There’s No Demand for the Products You’re Selling @4:00
- Your Product is Too Expensive @5:15
- You’re Too Far Down the Pyramid @7:00
- The Compensation Plan Rewards Recruiting @8:00
- The Entire System is a Facade @10:50
Yup they play on people’s desire to succeed and their lack of common sense. I tried to come at this in a practical way to show them how it’s impossible for them to succeed in it by selling, only by screwing others.And yet… people keep falling for these schemes….sigh…
My aunt been in Avon for 40 years it still ain’t sank in that the shit ain’t gonna work out. No wonder she can’t keep a man being that damn stubborn.And yet… people keep falling for these schemes….sigh…
Exactly! Loved how you broke it down and made it simple. Excellent video!!Yup they play on people’s desire to succeed and their lack of common sense. I tried to come at this in a practical way to show them how it’s impossible for them to succeed in it by selling, only by screwing others.
Thank you GA!Exactly! Loved how you broke it down and made it simple. Excellent video!!
I was hoping the humor was coming through, I’m glad to hear that it did.I couldnt stop laughing during this one. Somethings gotta be broke down like that.
Traveling Vineyard sounds like the same MLM structure but with a product people actually were willing to buy. But then I have to ask you why deal with Traveling Vineyard at all? Why not throw those same wine parties with your own supply from a wholesaler and then keeping more of the money. What benefit did the MLM structure provide? Because Traveling Vineyard got a 100% commission sales rep out of you, what did you get from them?Watched it earlier, today. Good content.
I got caught briefly in a pyramid scheme back in 2007 for a supplemental drink called Bazi. I was 21 almost 22 and a co-worker introduced me to it. As most pyramid schemes go, recruiting was where the real money was because no one really wanted a supplemental drink and even if they did, they could go to GNC or some local store to get what they needed. If by chance someone purchased a bottle EVERYONE in the upline got a little something which, at the time made a little sense, if you look at it from the perspective that the Upline is looked at as a team. For example, if Lebron James hits a game winning shot, Lebron James isn't the winner of the game, the LA Lakers are the winners. So even though he hit the shot, the whole team celebrates that victory. And from that perspective I could understand how everyone benefits from a sale. Quickly however, it started to become more trouble than it was worth because you have to be purchasing a case of Bazi (6 bottles) every month which is expensive for a college kid and as the video mentioned, when you don't have a target for the product, you either have to create one or you realize there isn't one and you're getting played. Needless to say I spent way more money than I made doing that.
In my mid-late 20s I joined an MLM with an actual plan. A rare-bird. It's called The Traveling Vineyard. Still in business I believe. This company brought the wine tasting experience to the comfort of your own home. This was in the early 2010s so this is obviously in a non-pandemic world. I think now things have transferred over to zoom parties now. Anyway, I signed up with a local rep who was very successful with her wine business and I shadowed her to 2 or 3 of her parties. I learned a lot and felt ready to start doing my own. My first party was a hit. I sold about $400 worth of wine. The way the pay works is everyone is responsible for their own sales. No one in your grapevine (that's what they called the upline teams) was making money off your work. You DID however receive bonuses for certain things. For example, the woman who I signed up with, received a bonus for signing a new rep. But that's not really any different than a typical company referral program. Just in case someone is unfamiliar, here's the process: Bob the employee refers their friend Frank. Frank interviews and then gets the job at the company Bob works. Bob gets an employee referral bonus for the company's new hire Frank. An example for Traveling Vineyard: would be If I had recruited someone, then I would have gotten a bonus for bringing in a new rep. The person who recruited me would NOT have earned any bonus because that wasn't her recruit. In a pyramid scheme she would have gotten paid and that pay would have cut into my payout.
I recall bonus payouts if you sold a certain amount worth of wine, I don't remember the number, but I'll say $2000 worth, in a month. Then I get a bonus for hitting a high benchmark. The company's way of saying "hey attaway! Nice job kid!" Also, the person who recruited me would get a bonus from the company as a way of saying to her, "Hey! Nice job bringing this kid on board, they're killing it!" Her bonus wasn't cutting into my bonus. It wasn't like that which is how a pyramid scheme usually operates. It was a payout from the company and whatever the pay-schedule based on your promotion level dictated how much bonus you got. This was similar with promotions, you got promoted based on the wine volume(number of bottles) sold or wine sales you sold and promotions were awarded quarterly, I think. So let's say to go from level 1 to level 2 you had to do either $3000 worth of wine sold(earned from doing parties and from your online wine cellar) or sell 6 cases of wine (each case was 5 bottles at no more than $15 each) primarily earned from parties. Promotions just meant you get more money from the parties you do, the online sales you get and recruits if you recruit anyone. So essentially like many of you, when you get a promotion, that comes with a raise. When you get promoted, you do get a promotion bonus and if you were recruited the person who recruited you gets a bonus also. Again that money isn't being cut into from anyone else, everyone is getting paid their respective amounts by the company. So for example: I made it to level 2 or 3 so I made a nice little extra slice of money. So I got my promotion bonus based on that level's bonus pay out schedule and my recruiter got a bonus based on whatever level she was. And my bonus was nothing different than the company saying "hey congrats and fantastic job" and the recruiter's bonus was nothing different than say "DAMN THIS KID YOU GOT IS A BEAST!!! WAY TO PICK 'EM!!!
In the end, I ended up quitting because parties started to run cold and my day job was becoming more strenuous. I was getting more responsibilities to the point I was too tired to work on my wine business when I got home. My day job burned me out that much. To a lesser degree, my success with my wine business was starting to scare me a little bit, too. I was afraid of failing back then and didn't want to quit a stable job(the day job) by risking it all to make a go of it as a In Home Wine Tasting Guide, but as I type all this I definitely regret not sticking with it. I really would have been a fkn rockstar if I had just stepped out on faith and trusted myself a little more.
In my mid-late 20s I joined an MLM with an actual plan. A rare-bird. It's called The Traveling Vineyard. Still in business I believe. This company brought the wine tasting experience to the comfort of your own home. This was in the early 2010s so this is obviously in a non-pandemic world. I think now things have transferred over to zoom parties now. Anyway, I signed up with a local rep who was very successful with her wine business and I shadowed her to 2 or 3 of her parties. I learned a lot and felt ready to start doing my own. My first party was a hit. I sold about $400 worth of wine. The way the pay works is everyone is responsible for their own sales. No one in your grapevine (that's what they called the upline teams) was making money off your work. You DID however receive bonuses for certain things. For example, the woman who I signed up with, received a bonus for signing a new rep. But that's not really any different than a typical company referral program. Just in case someone is unfamiliar, here's the process: Bob the employee refers their friend Frank. Frank interviews and then gets the job at the company Bob works. Bob gets an employee referral bonus for the company's new hire Frank. An example for Traveling Vineyard: would be If I had recruited someone, then I would have gotten a bonus for bringing in a new rep. The person who recruited me would NOT have earned any bonus because that wasn't her recruit. In a pyramid scheme she would have gotten paid and that pay would have cut into my payout.
There are 14 levels of our Career Plan; each is based on building active, strong teams. The best part is that when your team members succeed, get paid, and grow teams of their own, we reward you not only for your personal volume, but for managing and motivating them as part of a successful team!
Wine Guides aren’t paid on their own personal orders (the wine they buy for their own use); however, they do receive a 20% discount—and the volume from personal orders can help move a Wine Guide into a different Personal Bonus category!
A lot of the times they be so caught up in the cult that they can't see the damage they are causing. Think of it like when you are in the Jehovah Witnesses and you quit, everyone disassociates from you. To many people, MLM is a religion, it's their ticket to freedom and to your buddy you weren't just a disillusioned friend, you were a pariah. You were looking to stop him from getting to the light he has been waiting his whole life for. MLM is deep and the leaders of them prey upon weak peopleI watched this video. It's so damn true it hurts. Some years back a friend I met when we were in the Army recruited me into Legal Shield after we were each discharged from service. It went nowhere, for the reason aforementioned in the video. Then, he chose to disassociate himself from me, since the jig was up. I went through cognitive dissonance, no way this brother in arms would pull this stunt? What did I do wrong? Nah, the jig was up, so he jettisoned out of my life. Peace.
That sounds real cool and dazzling in theory, however, there are things to consider when you embark on the business journey of selling and marketing products.But then I have to ask you why deal with Traveling Vineyard at all? Why not throw those same wine parties with your own supply from a wholesaler and then keeping more of the money.
Benefits: No operating costs, Super low start up and marketing costs, paid to drink and talk about wine, transparent pay schedule, transparent promotion schedule.What benefit did the MLM structure provide? Because Traveling Vineyard got a 100% commission sales rep out of you, what did you get from them?
This could be resolved with drop shipping of the wines. I just found this site in 5 minutes.I'd have to build relationships with vendor suppliers. I didn't have the money for that. If I DID purchase directly from a wine seller distributor, I have to work out shipping and then where am I supposed to store all this wine? So now there's shipping and storage I have to pay for, too? Then you have to know how much of the product to buy
So, yes you're right in theory a person COULD do it on their own provided they have the operating/start up cost money to do all that and make more money but there are massive start up costs associated with something like that. In my situation at the time, I'll take working for a company already handling all those things and basically saying I just need you to buy a case of wine and then sell it. I'll pay you for what you sell.
you will, please forgive me as I'm not sure I understand what you mean by they got a 100% commission sales rep. Are you suggesting I didn't get paid from TTV? Because I definitely did receive payment from the parties I did. As a matter of fact, due to my success, I got promoted twice during my tenure with the company.
I get it which is why we have to have these types of conversations. We need to challenge each other to think entrepreneurially and not let the easy route lead us to predators. Not saying the wine MLM was that but MLM in general has screwed a bunch of us FBAs.Ohhhhh ok I see what you're saying. Yeah drop ship probably coulda worked. But I really wasn't thinking all like that back then. I saw an opportunity to drink wine and get paid for it so I took it. I enjoyed it for the time that I did it, I made a nice chunk of change and then I gave it up. Today I would consider all those things you're suggesting. A decade ago, I wasn't thinking on that level yet.
Did you ever watch it?Just subbed. Gonna watch later.
I personally don’t wanna be in any pyramid scheme unless I’m at the top
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