David Ledoux's Internet Marketing Confessions

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April 16, 2005

My MLM Predictions for 2009

Are Impatient Parasites Killing Network Marketing? My MLM Predictions for 2009.

by David Ledoux

Oh, hello! I didn't know you were coming over. Come on in, let's eat something. I have a bag of those blue tortilla chips, and a bottle of hotsauce. It may hurt a little tomorrow, but it will taste great now! You munch, I'll tell you a story about multi-level madness.

When I got started "in the bidness" back in '88, we didn't have them fancy dvd's, the internet or even tapes. We did everything face to face. It was cheaper. Long distance was nearly a buck a minute in those days.

I remember standing on a busy street corner freezing my butt off in February in Toronto. It was minus 20 and people would sprint past me like speed walkers, trying to catch their subway or get indoors before they got frostbite and their nose turned blue and fell off. And there I was handing little sizzle cards to anyone that would take one. About every 4th person would snatch it, jam it into their pocket and keep moving.

If I dressed really warm, and stamped my feet, I could last about 45 minutes. Enough time to get 300 cards handed out. I'd then head for the subway. It was always the most depressing time. I'd see about 280 of my 300 cards lying on the ground getting mashed into paste with the road salt, snow and mud.

I'd shiver my way back to my little dorm room, keeping my fingers crossed. And sure enough, by the time I got home I'd have 3 or 4 leads on my answering machine. I'd call them back, and invite them to the opportunity meeting at the hotel every Tuesday and Thursday.

That's the way "the bidness" was done. For every 1000 cards or fliers you handed out, you sponsored about 2 people. And then you taught them to do the same thing. You'd help your people with their people. If your people's people got people, you'd help their people. A good recruiter might sponsor 10 people a year personally, but hundreds in depth.

But anytime you sponsored people, you'd help them get people. Depth was everything. You disciplined yourself for 2-5 years in order to build a long-term residual income.

Come forward in time with me 17 years. Make your hands wave in front of your face like Garth in Wayne's World. Make the noise if you like... "Dooladooooo! Doooladoooo! Doooladoo!". Okay, right on, welcome to 2005.

Today an entire crop of networkers have never left the house. They sit in their home office with a headset on in front of a computer. They buy dead genealogy lists of defunct companies with the ease of a single phone call and their visa. They "pound" the phones trolling for their next sucker, er victim, er I mean recruit. They learn the "attack phase" and 101 "closing" techniques.

For many, gone are the days of investing 2 or 3 years to build depth in order to tap residual income. These parasites have latched onto the networking industry like lamprey eels, sucking the life out of it. They use quasi-legal compensation plans and dubious digital product bundles to portray legitimacy. Their paradigm is sell a $1500 or $5000 bundle now, make the quick 80%, and move on. If your new customer sells one or two themselves, you get them anyhow with the good old "2-up rollup".

I watched this whole breed birthed about a decade ago. Burned-out mlmers were looking for a way to make some fast cash and paydown their visas. Anyone remember Commonwealth, Delphin, Passport To Adventure or Fortune in Motion? The tickets got bigger, the cash faster, the addiction more insidious.

A very wise business mentor of mine explained it to me this way: if you work hard on a business for 18-36 months, then took a year off and moved to a tropical island for 6 months, would you still have a business when you came back? Would your income continue to flow? If yes, then you had a business. If no, then you had a job.

You see these guys all over the web, spewing their "wisdom" and boasting about their $5000 weeks in their first 90 days.
They brag about how they don't do meetings, don't draw circles, don't do 3-way calls, don't sell anything and how easy it all is. They warn that if aren't recruting 20 people a month, then YOU are the problem...and they'll gladly teach you how to fix your problem for a few grand.

How do I know? I got sucked into their world more than once. I believed the hype and drank the un-kool-aid. I used the faxes, email, flash movies and conference calls like a crack addict uses the pipe. I know of what I speak. Technology has created a massive illusion in network marketing over the last decade.

But more and more people are pulling back the curtain. More and more networkers are realizing that conference calls, email blasts, and cold calling lead lists are not working. They are missing the fun, the friendship, and the associations that this industry was built on.

Here's my predictions for the second half of the decade. Check back in 2009 and see how I did:

1.) Retail will drive MLM. Companies with real products and real customers will flourish. Training that teaches basic direct sales skills will be in vogue. Companies with massive customer bases will outlast and outgrow the hype-driven ones.

2.) People to people will return. The world of online chat rooms will be left for the socially disfunctional who play the fast money offshore games. Real companies with real products will grow through coffee-shops and kitchen tables, rallies and conventions.

3) Two-up money game deals will still be around. Just none of the ones that are around today. Fast money has always lurked around the fringes. But after the pool of suckers have all bought the $500 teleseminar, the $1500 personal development ebook bundle and the $5000 offshore seminar, then what? A lot of guys will disagree. But 2009 isn't that far off, we can just take a roll call and see the score then. If you're in a 2-up money game, then if I'm wrong, you'll still be on the phone working a sales job selling crap in 2009. If I'm right, then you'll be on the phone working a sales job selling crap, just different crap. Get off the pipe! Join a real company, work hard part time and build a real residual cashflow with loyal
lifetime customers.

4) Prelaunch startups will NOT be hot anymore. People know that joining a prelaunch deal only makes the company owners and the top heavy hitters rich. The prelaunch hype about 6 out of 7 mlm millionaires joining in the first 19 months is a fallacy. You'll see the exact opposite by 2009. Joining older, established companies that already have all the systems, tools, training and leadership in place to do the heavy lifting will be the ones seeing the growth.

5) Monster recruiting will be out, working depth will be in. As the technology to strip-mine lead lists and throw spagetti against the mlm wall loses its effectiveness, quality will replace quantity. Sponsoring 20 a month yourself will be uncool, driving a leg 20 levels deep in a month with 20 bonus check earners will be the mark of a real player.

6) If you're still with the same MLM company in 2009 as you are when you read this in April 2005, then you probably have a nice residual income. Congratulations. Keep growing it.

Whew! Predicting the future is hard work. These snacks are making me thirsty. I see you're nearly out of chips. Hope that hot sauce wasn't too hot. It's called "Your Mama!".

I appreciate you. Drop by next week and we'll talk MLM again...

David Ledoux
Author: You Can't Hit Your Downline

Posted by universalprofit at April 16, 2005 10:37 AM

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