Do people jump from MLM to Internet Marketing?

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….
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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

 

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10 Comments

  1. Jean Grainger

    31st Dec, 08 06:12pm

    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. Phil Wong

    1st Jan, 09 04:01pm

    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!

  3. Carol Ford

    1st Jan, 09 06:01pm

    This was and interesting piece. I really had not given much thought to how the internet could really work until I read this article.

  4. john krajewski

    2nd Jan, 09 01:01am

    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. Isobel

    2nd Jan, 09 02:01pm

    Once again you hit the nail on the Head!! I also went from MLM to IM and it has opened up an ever expanding opportunity!

  6. Linda

    5th Jan, 09 06:01am

    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. kevin

    17th Jan, 09 08:01pm

    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.

  8. Tim Largent

    29th Jan, 09 05:01am

    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
    Tim Largent 5.jpg

  9. Aaron Rashkin

    11th May, 09 04:05pm

    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.

  10. Rob Weekes

    1st Oct, 09 06:10am

    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.”

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