Do people jump from MLM to Internet Marketing?

Last week, Andrea asked an uncomfortable and provactive question in the betternetworker forum.

And I must admit, for a long time, I dodged this particular question whenever anyone else asked. Mainly because I didn’t know the answer. And now I know. So, here’s her question below and my response:

Hey there!

Last week, Andrea asked an uncomfortable and provactive question in the betternetworker forum.

And I must admit, for a long time, I dodged this particular question whenever anyone else asked. Mainly because I didn’t know the answer. And now I know. So, here’s her question below and my response:

Do people jump from MLM to IM?

Postby AndreaVahl on 21 Dec 2008 14:41

Does it seem like people who start bringing their MLM business to the internet get pulled into Internet Marketing and affiliate marketing? Is IM easier than MLM? Are people having more success selling an e-book than selling their MLM opportunity? Just some questions I’ve been kicking around and curious what others thought….
To Your Success,    

Andrea Vahl
http://www.bestliquidvitamin.biz
http://www.mlmwebresources.com

User avatar
AndreaVahl

 

 

Could it be true?

Do network marketers who get online looking for better ways to market their business end up getting sucked into Internet Marketing?

Of course, the answer is YES. But not just because it’s somehow inherintly “easier”.

Below is a copy of my response to Andrea, directly from the forum:

 

Andrea,    

The simple answer is “Yes”….

Oh, yah i had more. But I hesitate to say because it’s controversial. We’re all grown ups here, no one’s gonna get cry because of this, right? 

The True Story of How Stuff Happened

MLM is how we’ve come to label those marketing opportunities stuck in the stone age. They don’t have systems suitable for online and they don’t train people to use online lead generation methods.

The reason is that no one has bothered to tell those company founders about this strange new invention called”The Internet”. 

I discovered it a few years ago, and it’s really good. 

Apparently, as it turns out, it lets you educate customers and sell your products lightning fast, for a fraction of the cost of doing it using television ads and celebrity endorsements–it lets you cut out the middle man and sell direct to the customer. (Oooohh exciting!)

And you can get an army of entrepreneurs and “wannabe” entrepreneurs to go market your stuff for you with money from their own pocket and time out of their own day. Then you pay them on the sales they make.

Anyway, what happened is that members of these archaic MLM companies are people who never heard of affiliate programs (nor the internet). They went around telling their friends and family who also never heard of affiliate programs about their stone age opportunity. Some of their friends and family jumped on board because they wanted to make more money in their lives. 

Poor unsuspecting people. They didn’t know any better. Money didn’t rain from the sky for them. Lucky for them, another friend came and told them about the latest innovation in technology called “The Internet”where they can go and learn opportunity-selling skills.

OMGGGG, suddenly they were exposed to modern marketing companies that sell products, design training, build tools, and create systems suited for reaching, educating, and selling to an infinite supply of customers with the world as their audience. This “The Internet” thing is rather useful! Holy Smoke!

And the entrepreneur-in-the-making suddenly realised–that instead of having to build systems and tools and training from scratch for their backward company, he/she can start a business positioned for the 21 century. Not the stone age. (As we all know, that passed long ago).

So, that, Andrea is the true story of why people leave “MLM” and become “IM” instead. Thank you for your deep and probing question–i thought no one would ever ask it.

Jim Yaghi

Think 1,000 MLM Leads / Day using PPC ads is impossible?
Guess again! Jim’s on a mission to generate 30,000 leads a month for Magnetic Sponsoring .    

Watch the chronicles Jim’s Coffee Adventures on Video and see how “PPC Domination” is done!

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Affiliate Marketing and Internet Marketing are the new age of Direct Selling (Multi level marketing, Network Marketing, Home Business).

“What about the residual income? You can’t get that in affiliate marketing!”

Umm….actually, you can. And you don’t have to train or recruit any reps to do it either.

Before I show you some examples, let’s agree on a definition of “residual income”: Money earned and collected many times from a past effort.

In traditional Network Marketing (offline), recruiting new people and putting customers on autoship is the only way to create “residual income”.

Internet Marketing allows you to skip the recruiting aspect of Home Business so you can focus on what actually matters–the selling of the company’s product:

Here are some ways that I personally earn a residual income through Internet marketing:

 

1.  Sales Letters (or Pre-sales letters)

When I create a sales presentation in writing or video and place it on the web, I never give the same presentation again.

  • The letter may be read/viewed hundreds, thousands, or millions of times with no additional effort.
  • The letter may sell hundreds, thousands, or millions of times forever with no additional effort.

 

2.  Forum Posts

I generate hundreds of leads every day from forum posts I made in September, 2007.

 

3. Blog Posting / Twitter / Facebook

I recruit tens of reps from posts I wrote over two years ago. They never get wiped away, and the search engines index them so new people discover them all the time!

 

4. Email/Autoresponder lists

The email messages you load into your autoresponder continue to be sent out automatically every day, to every subscriber that signs up.

I put over 5,000 NEW people every month through the same messages I wrote two years ago.

 

5. Product Launches and Affiliate Products

If you maintain your list of email subscribers carefully, you can make money from the SAME people many times over.

Last month, we launched a new training product to our email list. With one short email in about 4 hours, we  grossed over $160,000 in sales without spending a single bit of extra effort (or money) to bring new leads.

 

6. PPC Advertising

Pay Per Click ads are one of the easiest ways i know to generate traffic on autopilot. It takes a bit of skill initially to set them up, but once you push the button they keep working.

Me and my business partner (between us) bring in 10,000 leads per month using PPC–and we pushed that button nearly a year ago.

 

Now you tell me, if the internet were to give you THAT much leverage, what do you need to sign up new distributors for?

I don’t tell you this to suggest you turn all your applicants away. Only weaklings.

Once in a while, you’ll see someone who has the potential and dedication to learn what you know. And in those instances, allow yourself to invest in training them so they add power to your team. 

The rest are leaches. They steal time and add little value.

In the new age of Network Marketing, the internet replaces them.

Jim Yaghi

 

Author: Jim Yaghi

Jim Yaghi is an advertising consultant and traffic expert, with a background in Artificial Intelligence.

37 thoughts on “Do people jump from MLM to Internet Marketing?”

  1. Brilliant Jim! I am proof not that I gave up my stone age MLM I still have it I'm just trying to work out how to advertise it to the few countries it is available to because it is funded proposal I have not been able to find any where as good on the net.

    There is no way I will go back to it on its own though because there is a vast education out there all for free. There is some very good stuff available that you pay for too. The variety is the main thing.

    Thanks Jim look forward to hearing more.

  2. Brilliant Jim! I am proof not that I gave up my stone age MLM I still have it I'm just trying to work out how to advertise it to the few countries it is available to because it is funded proposal I have not been able to find any where as good on the net.

    There is no way I will go back to it on its own though because there is a vast education out there all for free. There is some very good stuff available that you pay for too. The variety is the main thing.

    Thanks Jim look forward to hearing more.

  3. Hey Jim. There are still staunch network marketers that do not intend to “reinvent the wheel” with what they’re doing though they claim to have embraced the Internet.

    I think Internet = Email in their definition. :)

    Good for some, Not for others.

    Cheers!

  4. marriage of int mark and mlm will open up more biz opportunities

    All successful mlm leaders had to go through the # just like in listbuilding

    All "sales" is in the #– the internet can provide the #

    Best success to all of us in 2009

  5. marriage of int mark and mlm will open up more biz opportunities
    All successful mlm leaders had to go through the # just like in listbuilding
    All “sales” is in the #– the internet can provide the #
    Best success to all of us in 2009

  6. Thanks to Andrea for her question and Thanks to Jim for clearing up so much of the confusion in my mind about IM and MLM. I think I actually 'get it' now.

  7. Thanks to Andrea for her question and Thanks to Jim for clearing up so much of the confusion in my mind about IM and MLM. I think I actually 'get it' now.

  8. Thanks Jim for unselfishly sharing your game plan on how to truly use this new tool called the internet.MLM will never be the same since the introduction of online internet network marketing.

    And for those of us who are astute enough to recognize that this is the new way of doing business,there's nothing but good things to come and huge fortunes to be made.

    This is just the tip of the iceberg,there's a wave of people coming who are going to need eduction and training on how this stuff is done.So right now is the time to position ourselves to offer support while monetizing in the process.

  9. Thanks Jim for unselfishly sharing your game plan on how to truly use this new tool called the internet.MLM will never be the same since the introduction of online internet network marketing.

    And for those of us who are astute enough to recognize that this is the new way of doing business,there's nothing but good things to come and huge fortunes to be made.

    This is just the tip of the iceberg,there's a wave of people coming who are going to need eduction and training on how this stuff is done.So right now is the time to position ourselves to offer support while monetizing in the process.

  10. Great answer Jim. And I couldn't agree more or say it any better. I noticed that when I started putting my network marketing business on the internet, I started getting more into internet marketing and affiliate marketing. It seems when you get to that point, your mind and business opens to many possibilites. Your now not just an XYZ associate. You start focusing more on You, Inc.

    Thanks again Jim

    [img ]http://myresidualbiz.net/blog/uploaded/Pictures of Me/Tim Largent 5.jpg[/img]

  11. Great answer Jim. And I couldn't agree more or say it any better. I noticed that when I started putting my network marketing business on the internet, I started getting more into internet marketing and affiliate marketing. It seems when you get to that point, your mind and business opens to many possibilites. Your now not just an XYZ associate. You start focusing more on You, Inc.

    Thanks again Jim
    [img <a href="http:// <a href="http:// ]http://myresidualbiz.net/blog/uploaded/Pictures”” target=”_blank” rel=”nofollow”> <a href="http://]http://myresidualbiz.net/blog/uploaded/Pictures&quot;” target=”_blank”>]http://myresidualbiz.net/blog/uploaded/Pictures” target=”_blank”> <a href="http:// <a href="http://]http://myresidualbiz.net/blog/uploaded/Pictures]http://myresidualbiz.net/blog/uploaded/Pictures</a rel=”nofollow”>” target=”_blank”> <a href="http://]http://myresidualbiz.net/blog/uploaded/Pictures” target=”_blank”>]http://myresidualbiz.net/blog/uploaded/Pictures of Me/Tim Largent 5.jpg[/img]

  12. True, so True Jim. This one depicts the Story of mine and Sophia's transition from old school MLM to what we are doing now. Left a weak $4,100 income to have months as high as 84K in just 30 days. Love your writing man. Keep telling it like it is.

  13. True, so True Jim. This one depicts the Story of mine and Sophia's transition from old school MLM to what we are doing now. Left a weak $4,100 income to have months as high as 84K in just 30 days. Love your writing man. Keep telling it like it is.

  14. Interesting post, although you may have misunderstood the question slightly. I think Andrea was asking how common it is for people to quit MLM altogether when they find out about affiliate marketing, which is arguably much simpler. I would certainly be an example of that. In my case, I didn't know about MLM, looked into making money online, got involved in a direct-sales biz opp advertised online, then a traditional offline MLM company through my upline, THEN finally decided that I just wanted to make money online without having to recruit anyone. This cycle took me a year. The irony is, now I'm looking into marketing consulting, where phone skills certainly will come in handy 😉

    I think people need to spend a certain amount of time exploring different business models before they find something that's a great fit for them, without getting hooked on the thrill of chasing "the next big thing."

  15. Interesting post, although you may have misunderstood the question slightly. I think Andrea was asking how common it is for people to quit MLM altogether when they find out about affiliate marketing, which is arguably much simpler. I would certainly be an example of that. In my case, I didn't know about MLM, looked into making money online, got involved in a direct-sales biz opp advertised online, then a traditional offline MLM company through my upline, THEN finally decided that I just wanted to make money online without having to recruit anyone. This cycle took me a year. The irony is, now I'm looking into marketing consulting, where phone skills certainly will come in handy 😉

    I think people need to spend a certain amount of time exploring different business models before they find something that's a great fit for them, without getting hooked on the thrill of chasing “the next big thing.”

  16. Archaic, Jim? Last year this archaic industry did more than $60 billion in sales. Top earners in trad MLM continue to blitz the internet marketers.

    I like IM, but nothing beats one on one marketing. Nothing. The sad fact is that IM marketers sometimes masquerade as MLM gurus, yet their actual earnings from MLM is invariably pathetic.

    I use IM to generate leads, but am under no illusions that my earnings will ever equate to top traditional MLM folk. Why? IM methods don't duplicate nearly as well as trad methods.

    That said, I love IM (including PPC – and I bought your PPC Domination product – great stuff) and am prepared to accept a lower income so I can do what I love. Isn't that what it's really all about?

  17. Archaic, Jim? Last year this archaic industry did more than $60 billion in sales. Top earners in trad MLM continue to blitz the internet marketers.

    I like IM, but nothing beats one on one marketing. Nothing. The sad fact is that IM marketers sometimes masquerade as MLM gurus, yet their actual earnings from MLM is invariably pathetic.

    I use IM to generate leads, but am under no illusions that my earnings will ever equate to top traditional MLM folk. Why? IM methods don't duplicate nearly as well as trad methods.

    That said, I love IM (including PPC – and I bought your PPC Domination product – great stuff) and am prepared to accept a lower income so I can do what I love. Isn't that what it's really all about?

  18. Interesting read Jim, I've neever been in the MLM niche but am a full time IM'r so it was nice to hear from the other side :-)

  19. Interesting read Jim, I've neever been in the MLM niche but am a full time IM'r so it was nice to hear from the other side :-)

  20. Hit the nail right on the head… again!

    This is EXACTLY the transition that Rosemary and I took when we joined our first MLM many years ago, and then a very good friend introduced us to "the rest of the story" — the Internet, and how we could use it to double or triple (or more) our results while leveraging our time much more effectively.

    Thanks for putting this out there, Jim.

  21. Hit the nail right on the head… again!

    This is EXACTLY the transition that Rosemary and I took when we joined our first MLM many years ago, and then a very good friend introduced us to “the rest of the story” — the Internet, and how we could use it to double or triple (or more) our results while leveraging our time much more effectively.

    Thanks for putting this out there, Jim.

  22. That's the can of worm I want to open on the Internet. I disagree. Affiliate marketing, top-tear marketing and Network Marketing are three completely different models and have their own followers. They are “separate cultures.” MLM companies are now modernizing and more reps generate leads online. Now more than ever affiliate marketers are coming to network marketing. There's more money in it and better lifestyle. Excuse me, but classic network marketers (building a real autoship business online or offline) kick affiliate and top tear marketers in the ass as far as income and lifestyle is concerned.
    For every millionaire you show me in IM I will show 40 in the real MLM model. MLM is a 120 billion industry paying 60 billion in commissions and growing. Affiliate marketing is barely 4 billion paying 2 billion in one tear. By admission of Perry Marshall affiliate marketing is now a suffering industry because of Google turning on it. MLM is the way to go to right now. MLM companies are not archaic as you make believe. Jim I respect you and want to learn more from you. But let's tell the truth!

    I love the Internet and I stick to meeting people online, but I bring them offline for bonding, training and masterminding. Without that the downline will splinter and retention will suffer. Personally I don't want o sell e-books and manage campaigns the rest of my life. You are talking to a guy that has stable high multiple six figure checks because of auto ship reorders. No blog posts, SEO, PPC, Article Press Release and YouTube required!
    I can trow my computer in the toilet and nothing happens to my income. Can you say the same? Hope you publish this.

    1. Toni,

      thank you for writing in. your points are all valid and you are obviously a person has made offline selling work for you. i do not believe either of us is wrong or right…we have both just related our own experiences and it is clear we are both clearly passionate about what worked for us.

      i admit that the reason i like marketing online better is that i get to automate a lot of things. particularly the part where i have to ask for money…which even now i am not comfortable doing. i think the way i've been doing it is a perfect way for everyone who has the same challenges with traditional network marketing.

      don't you think everyone should work with their strengths instead of against their weaknesses?

      jim

  23. That's the can of worm I want to open on the Internet. I disagree. Affiliate marketing, top-tear marketing and Network Marketing are three completely different models and have their own followers. They are "separate cultures." MLM companies are now modernizing and more reps generate leads online. Now more than ever affiliate marketers are coming to network marketing. There's more money in it and better lifestyle. Excuse me, but classic network marketers (building a real autoship business online or offline) kick affiliate and top tear marketers in the ass as far as income and lifestyle is concerned.
    For every millionaire you show me in IM I will show 40 in the real MLM model. MLM is a 120 billion industry paying 60 billion in commissions and growing. Affiliate marketing is barely 4 billion paying 2 billion in one tear. By admission of Perry Marshall affiliate marketing is now a suffering industry because of Google turning on it. MLM is the way to go to right now. MLM companies are not archaic as you make believe. Jim I respect you and want to learn more from you. But let's tell the truth!

    I love the Internet and I stick to meeting people online, but I bring them offline for bonding, training and masterminding. Without that the downline will splinter and retention will suffer. Personally I don't want o sell e-books and manage campaigns the rest of my life. You are talking to a guy that has stable high multiple six figure checks because of auto ship reorders. No blog posts, SEO, PPC, Article Press Release and YouTube required!
    I can trow my computer in the toilet and nothing happens to my income. Can you say the same? Hope you publish this.

    1. Toni,

      thank you for writing in. your points are all valid and you are obviously a person has made offline selling work for you. i do not believe either of us is wrong or right…we have both just related our own experiences and it is clear we are both clearly passionate about what worked for us.

      i admit that the reason i like marketing online better is that i get to automate a lot of things. particularly the part where i have to ask for money…which even now i am not comfortable doing. i think the way i've been doing it is a perfect way for everyone who has the same challenges with traditional network marketing.

      don't you think everyone should work with their strengths instead of against their weaknesses?

      jim

  24. My Comment…part 1

    First of all…Jim…thanks! You are amazing!

    Hi guys. My name is Paulo Fradiano and after reading all this comments, i found that all of them are correct….but maybe incomplete. I built 7 traditional companies before 32 years of age…from lower than scratch. Daammm difficult, stressing and risky! Then i jumped into Network Marketing and Direct Sales on a search for better life quality. Still today, 16th of Dec 2010, after more than 6 years struggling, i still haven't found “my way”.

    But you know what? I found a gentleman name Mike Dillard that i believe all of you know that opened my eyes wiiiideeee. And it took me a bunch of time to get the right connection to my business. I was passionate since day one after reading magnetic sponsoring, but couldn't figure it out how to link it to a very traditional MLM company like mine.

  25. my comment…part 2 (sorry, i am like a story teller :) )

    But you know what? Like they say in the movie “Wallstreet”….”good things take time”. I believe i finally got it. And, at the end of the day, like in anything in human history, is not fighting and dividing that we can reach full strength and excellence. Team work makes the dream work…always. 1+1 is always greater than 2 in human relations.

    By saying that, what i believe is that traditional network marketers can't ignore anymore the 21st century! True! Can't ignore this giant called “internet”, bringing along this cyber social revolution that is social media. Can't ignore giant advertising platforms like Google, can't ignore watching the world market as ONE…not just the “kids around the block”.

    But in other hand…what if we find solutions to bring the power of human relations, bounding and traditional network marketing to the world of IM and vice versa? What if…..?

  26. my comment…part 3

    That is my quest. And i know it's possible….everything is, with imagination, hard work and willingness.

    If you think IM is powerful, or MLM is powerful….try to seriously and effectively combine both and then watch a miracle happen.

    The day that my sweet 60 years old Mom, with no internet sophisticated knowledge, be able to post an article, get readers, followers, touch their hot buttons, get them to meet her personally and then do her “traditional” networking activities…that will be the day i am dreaming with for some time.

  27. my comment….part 4 and…finally….final :):):)

    You know….if we build training systems offline that people can duplicate and learn to operate…why can’t we do the same with a Online Nerve Center? You know…i did many meetings in traditional MLM. But i never built the meeting room, or built the laptop to use in the training. Same way…my Mom doesn't need to know how to build a blog with wordpress or a fancy site or even a adwords campaign to be able to work with those tools. At the end of the day, the juice that fills all of these systems, online or offline, is human, and comes always from the same source…our brain and heart.

    So, the combination is possible….and that's the future…in my humble opinion. All of you are right…just incomplete :).

    Regards to all.

  28. My Comment…part 1

    First of all…Jim…thanks! You are amazing!

    Hi guys. My name is Paulo Fradiano and after reading all this comments, i found that all of them are correct….but maybe incomplete. I built 7 traditional companies before 32 years of age…from lower than scratch. Daammm difficult, stressing and risky! Then i jumped into Network Marketing and Direct Sales on a search for better life quality. Still today, 16th of Dec 2010, after more than 6 years struggling, i still haven't found "my way".

    But you know what? I found a gentleman name Mike Dillard that i believe all of you know that opened my eyes wiiiideeee. And it took me a bunch of time to get the right connection to my business. I was passionate since day one after reading magnetic sponsoring, but couldn't figure it out how to link it to a very traditional MLM company like mine.

  29. my comment…part 2 (sorry, i am like a story teller :) )

    But you know what? Like they say in the movie "Wallstreet"…."good things take time". I believe i finally got it. And, at the end of the day, like in anything in human history, is not fighting and dividing that we can reach full strength and excellence. Team work makes the dream work…always. 1+1 is always greater than 2 in human relations.

    By saying that, what i believe is that traditional network marketers can't ignore anymore the 21st century! True! Can't ignore this giant called "internet", bringing along this cyber social revolution that is social media. Can't ignore giant advertising platforms like Google, can't ignore watching the world market as ONE…not just the "kids around the block".

    But in other hand…what if we find solutions to bring the power of human relations, bounding and traditional network marketing to the world of IM and vice versa? What if…..?

  30. my comment…part 3

    That is my quest. And i know it's possible….everything is, with imagination, hard work and willingness.

    If you think IM is powerful, or MLM is powerful….try to seriously and effectively combine both and then watch a miracle happen.

    The day that my sweet 60 years old Mom, with no internet sophisticated knowledge, be able to post an article, get readers, followers, touch their hot buttons, get them to meet her personally and then do her "traditional" networking activities…that will be the day i am dreaming with for some time.

  31. my comment….part 4 and…finally….final :):):)

    You know….if we build training systems offline that people can duplicate and learn to operate…why can’t we do the same with a Online Nerve Center? You know…i did many meetings in traditional MLM. But i never built the meeting room, or built the laptop to use in the training. Same way…my Mom doesn't need to know how to build a blog with wordpress or a fancy site or even a adwords campaign to be able to work with those tools. At the end of the day, the juice that fills all of these systems, online or offline, is human, and comes always from the same source…our brain and heart.

    So, the combination is possible….and that's the future…in my humble opinion. All of you are right…just incomplete :).

    Regards to all.

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