Small Business Forums - Question about Quixtar.

Small Business Forums - Question about Quixtar.

Great advice there. A must read. My favourite part of orion_joel post is:

This is where the first problem arises you greatly decrease your target market because there is a great number of people who cannot afford it. So back comes the MLM company stating but they are every day products you can buy our product instead of what you would buy at the supermarket. Yes this may be true but i am not aware of to many supermarkets that make enough profit on their goods that they could pay a commission to 6 or 7 people above you and still make money on their products. This leaves you with the problem that the products you are buying from your MLM company are now costing you more then if you were buying them from the supermarket.

This is where many people get caught up, yes it is great they you have this MLM business you can now make some money with but you are spending more to buy the same products you buy at the supermarket. Now how many people actually go into a MLM business thinking about they have to sign people up to benefit, they all do of course but how many actually can find enough if any people to join up so they are making money.

I have seen one recently that does the same thing with phones. The stats that they are working on is that you need to find 100 people who spend on average of $100 a month on their phone and if you have that many people you will make $800 a month. I don’t know about you but i can think of no less then a dozen ways that i could make $800 a month without having to go out and try to convince 100 people to sign up to use a MLM phone company. I could go and find 20 people who will pay me $40 to mow their lawn once a month a lot easier and make the same money for maybe working every saturday.