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Old 11-12-2010, 02:52 PM
Yuliya Mironova's Avatar
Yuliya Mironova Yuliya Mironova is offline
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Join Date: Dec 2006
Location: Saint Petersburg, Russia
Posts: 4,790
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Quote:
Originally Posted by Mama Typist View Post
Seriously, what do you guys think about the concept of home business being the answer for the millions of unemployed individuals in America?
I've never been to America and my understanding of the economic situation there (and all that it entails) is necessarily second-hand, however well and widely informed my sources of information are, so take anything I say under that disclaimer, please.

I have grave misgivings about this idea.

I (and hundreds of others involved in the same MLM as me, in Europe) have become extremely successful by concentrating to the exclusion of everything else, in my business-building efforts over the last 8 years, on showing my business opportunity only to business-minded people who are already actively looking for a business opportunity.

The current economic climate (in Europe, as well as in America) has been making that harder to do, because there are so many unemployed and underemployed people looking for additional income sources.

That makes "sorting people" increasingly difficult for us.

What always made us completely different from the "average MLM person" was our selectivity in whom we sponsored, worked with, spent time and energy on supporting, and so on. This led to our super-high retention-rates. It still does, but it's become harder for us because too many people are interested. We have too many leads from the same marketing efforts, and that's a problem for us. We have to put extra effort into not wasting our time sponsoring people who aren't still going to be there a year later.

We're doing what we can, both collectively and individually, to set the entry barrier a little higher. (I just wish we could persuade the company to increase the joining fee significantly, in the interests of protecting those people who really aren't ready to set up their own businesses. But we can't).

Without wishing to sound in any way judgmental about it, my distributorship is my business and I don't want people joining it who are "not quite going to get started" or "get started and find it's not for them". We can, generally, tell who those people are. And generally, unemployed people are very high risk to us (and to themselves, in MLM).

Of course, I'm generalizing.

Of course, there are unemployed people for whom MLM is a perfect solution.

But not very many of them, and they're hard to identify.

It seems to me to be quite inescapable that a significant proportion of those unemployed/underemployed people in something of a financial crisis (often through very little fault of their own) are not well placed to be setting up their own business. Many of them are not business-minded, self-motivating, highly organised people likely to be successful at setting up their own business.

At the best of times, there are far, far more business failures than business successes. In this sort of economy, that becomes overwhelming, and if you're not very careful whom you sponsor, your business expansion becomes self-defeating as you find yourself struggling just to maintain numbers.

In short, I suspect that setting up their own businesses isn't the answer for huge numbers of unemployed people.

I think it's a hugely laudable and enterprising idea, and would be wonderful if it came off, but on a societal level, I just don't see it having a lot of chance, I'm afraid.

Experience has taught us that from our perspective, unemployed people in a financial crisis (and these days, a lot of unemployed people are in a financial crisis!) are comparatively poor prospects. They do much worse than average at self-employment. Not because it's MLM, but because it's "self-employment" and "business management". And that means, of course, that from their perspective, it's not a great solution to anything.

Quote:
Originally Posted by Yogi View Post
Unemployed people seem to be the WORST people to bring into an MLM business. They nearly always fail, for the same reasons they are unemployed.
You've just summed up in a couple of little sentences- while I was typing - what (typically) took me 20 minutes to say. You're right!
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