What is MLM? – Part 4

What is MLM?What is MLM? – Part 4

This is part 4 in my  series What is MLM?  In each part of this series I have addressed the benefits of MLM as a business model as well as some of the pitfalls that come with it.  In this video I discuss:

  • Minimum start up capital – both a blessing and a pitfall. A blessing because you do not need a lot of money to commence and a pitfall because then too often it is not treated like a business.
  • Sweat equity – you need to put in work and effort to build a business.
  • The small start up cost means you do not have to put other assets at risk to get started.


If you have not caught the other posts in this series  they can be found at:

Please leave me your comments below. I love hearing what you have to say. And please share this post on What is MLM? – Part 4 with your Twitter and FB friends by clicking on the share buttons. I appreciate you telling others.

15 thoughts on “What is MLM? – Part 4

  1. Oliver Tausend

    Hi Sue,

    thanks for sharing this. You are right that low start-up costs can be a disadvantage as well when people treat their business like a hobby.

    And sometimes it’s a bit over-stressed with advertisements like pay 25 $ one time and make 5,000 $ a month.

    How should this work ?

    The best thing is treating our MLM business as if we had paid 500,000 $ for a franchise.

    Take care

    Oliver Tausend recently posted..MLM- Learning The Skills From Tom ‘Big Al’ Schreiter Pt 4My Profile

    1. Sue Post author

      Thanks for your comment Oliver. I have not seen the advertisements you refer to – well not that one anyway.

      I have seen many inflated promises though. I agree with your comment on treating it like we had paid $500K for a franchise. That would be different for sure.

      Have a great day.


    1. Sue Post author

      Hi Linda
      I agree and I think the low start up cost makes it available to everyone. It really does level the playing field.

      I certainly have been blessed with great support from my upline. I think even if you do not get support from the person who enrolled you the companies usually have good training.

      Take care


  2. Don Enck

    You have hit on the key things that open the door for many people to start their own business in Network Marketing. Starting a traditional business can be too cost prohibitive for most people. Yet, most people understand and see the benefit to having their own business. So, as you said the minimal start cost can be a double edge sword. I’ve seen too many people not take their business seriously because they really don’t have much invested in it. They give it a “try”. If it doesn’t work, well they haven’t lost too much. People have to understand that any business in Network Marketing takes hard work and effort. Overnight success and instant riches don’t materialize in a month. However, with hard work, persistence and time a business in Network Marketing can be life changing.

    Thanks for your post and the information you are providing in this series.
    Don Enck recently posted..How to Grow your Network Marketing Business Using WebinarsMy Profile

    1. Sue Post author

      I agree with your comments Don. Especially in today’s economic times I think very few people would have the capital to start a traditional business. I know also that lenders are very wary about lending for start ups or even purchases of businesses at the moment.
      And yes a double edged sword is correct with the low entry into Network Marketing. I think the word try should be cut from our language. It leaves commitment out of the equation and the door open to leave.
      Here is to our hard work and getting there.

  3. Michaelé Harrington

    Hi Sue,

    Thanks for sharing such a powerful personal story. It’s so true that the majority of people starting a traditional business usually do so with a certain amount of risk via personal assets or a loan. As you’ve said, the low start up costs in Network Marketing can be both a blessing or a pitfall.

    I love how you drove home the need for a marketing budget, as this is one of the primary areas that many people aren’t up front about. No matter what business you’re starting, you absolutely must have a budget for marketing and promotion. It can be as small as allowing for a monthly order of brochures or DVD’s or factoring in one of the systems that you’ve mentioned in your video.

    Either way, you’ve done a great job in highlighting what it really takes to have ongoing success!
    Michaelé Harrington recently posted..How to Bring Your Team Online Without The Overwhelm – Part 4My Profile

    1. Sue Post author

      Hi Michaelé
      It is one of those things that makes me mad when I hear people saying there are no costs associated with building a MLM business. At best often they just talk about what the company monthly or annual fee is and forget marketing. As you say it can be small but you need something.
      Thanks for your comments. I am going over now to read your post. I have been trying to get my head around how to bring people online without wasting a year like I did.

  4. Mason

    Hi Sue!

    My two preferred reasons for MLMs would be the lower launch cost which make it easy for the newbie, along with the training available. Holds are willing to teach as well as my expertise has been they will stick by way of a novice till good results may be experienced.
    Mason recently posted..Natural Remedies For HeartburnMy Profile