Home Based MLM Business Opportunity
Are you interested in a home based business opportunity? There are many things you have to consider when you are searching for the right opportunity.
Generally the distribution of goods is characterized by a chain of brokers and distributors, the middlemen. This style of operation dominates many of the world’s great economies.
Products must pass through this chain before reaching consumers. Since each of these middlemen makes a profit from passing goods along, prices are driven up and profit from their sale is divided among many.
Multilevel marketing (MLM) is an alternative style of operation that streamlines the distribution chain, enabling the market to function more efficiently. MLM moves the product from manufacturer to seller to customer directly, eliminating the middlemen who divide profit and raise prices. Our motor oil, for example, is made in Superior, Wis. and distributed by the company to Dealers, who sell the product to customers. This reduces the customer’s end cost and increases the profit of the seller. In addition, our commercial and retail on the shelf programs are factory direct programs, with commissions going to Dealers.
Another difference between conventional marketing and multilevel marketing is the relationship between buyer and seller. In conventional marketing, the relationship ends with a business transaction. MLM allows the relationship to be extended, since an opportunity as well as a product is offered. The word-of-mouth advertising that is mostly ignored by conventional businesses can be handsomely rewarded in MLM. Few grocery stores (conventional businesses) reward customers for telling friends about the great heads of lettuce they bought at the store, but our customers can become Dealers and make money simply by sharing the products with friends.
History of MLM
MLM began in the 1940s with a vitamin company in California. Two distributors from this company took the ideas from this business and formed Amway, now a multi-billion dollar business.
Over the next few decades, the MLM industry progressed steadily until the great boom of the 1970s. Many new MLM businesses, including us, were founded during this decade, and MLM saw unprecedented growth. Unfortunately, the factors that made the climate favorable for legitimate MLM companies also encouraged the development of unethical companies that masqueraded as MLM. Their get-rich-quick marketing plans came to be known as pyramid schemes.
Pyramid schemes make money by charging large registration fees and inflated prices for products. Distributors are rewarded more for the act of sponsoring than for sales. The companies took some principles of MLM and twisted them so they could profit at the expense of innocent “distributors.”
The existence of companies like these forced regulatory organizations like the Federal Trade Commission to step in and clean up the industry. After a great deal of struggle, definitive laws were adopted and applied, but honest businesses continued to suffer from the industry’s tarnished reputation.
During the ’80s, the MLM industry reasserted itself and positioned itself for another boom in the 1990s and beyond. The strength of AMSOIL is demonstrated by the fact that it not only survived this trying period, but continued to grow.
Identifying Good and Bad MLM Companies
Although most pyramid schemes have been eliminated, our Dealers occasionally find residual confusion and mistrust among potential customers and recruits. For this reason, it is important that our Dealers understand the differences between MLM and pyramid schemes.
Pyramid schemes pay distributors for recruiting. This means that exorbitant registration fees or training fees are charged. Legitimate MLM companies pay distributors for their group sales. Registration and training fees cover only the cost of materials and processing, and since a new distributor’s success has a direct impact on that of the sponsoring distributor, new distributors are
usually trained eagerly.
Many pyramid schemes don’t have a legitimate or marketable product or service to sell. They have inflated prices and reap profit by taking advantage of unsuspecting new recruits. Legitimate MLM companies sell some of the most innovative, effective products on the market.
Real Life Experience
Curley O’Dell of Richmond, Va. has been involved in several MLM companies. His success in with us is a testament to the quality of our products and the profitability of an our business.
O’Dell made his first attempt at MLM success in 1974. A few weeks after O’Dell was released from active duty in the Army a friend presented him with a business opportunity: Amway. O’Dell listed several problems with the Amway opportunity, such as long thin legs of sponsorship and a great deal of pressure from sponsoring distributors.
“When the plan is shown to prospects they are told they can devote the amount of time to their business that they want to,” said O’Dell. “But once in, they are pressured to attend meetings for upline, downline, training, seminars, conventions, product pick-up night and so on.”
O’Dell said that the demands for their time, and pressure to buy training tapes and books caused his complete leg of distributors to drop out after two years.
In 1979 O’Dell and his wife were operating some laundry facilities. Some new friends invited them to join Amway again, and since Amway had good laundry detergent, the O’Dells decided to try again.
“Most of the same old problems resurfaced,” said O’Dell. “The entire local group was required to drive about 60 miles once a week just for product pick-up night.”
O’Dell cites broken promises, pressure to buy and sell the books and tapes and other reasons for leaving Amway again after two years.
From 1983 to 1985 O’Dell and his wife, Nancy, were involved in a couple of different nutritional diet product companies, both of which had problems with either product quality or internal corruption. In 1985 O’Dell was involved in NSA, a water and air filtration product company. He still has a couple of cases of product in his garage.
In 1986 O’Dell and his wife joined Excel, a telephone long distance service. It was a competitive time in the long distance phone market, and other companies would solicit O’Dell’s customers, getting them to switch and negating any long-term income.
“The percentages of the long distance bills were very low, so it took hundreds and hundreds of customers before you made any decent money,” said O’Dell.
In 1987 O’Dell got involved in UNIMAX, a buyer’s club that charged a monthly membership fee. UNIMAX was ruled to be an illegal pyramid and forced to shut down because commissions were paid from the monthly membership fees. After that, O’Dell joined Network 2000, the MLM arm of Sprint. After experiencing the same lack of income from that business, the O’Dells joined yet another long distance MLM company, ITT. By this time people were wary of long distance companies from past problems, and O’Dell dropped out of that program as well.
In 1994, a 21-year-old silver producer in Amway talked O’Dell into joining once again.
“We missed the Amway laundry detergent and liked the idea of being sponsored by someone with a large organization,” said O’Dell.
Eventually Amway stopped packaging the detergent in 100-pound boxes, and the O’Dells learned that their sponsor’s group actually wasn’t very large.
“We learned that he only had one other leg of sponsorship and they dropped out,” said O’Dell. “He qualified for silver producer with one industrial sale and never repeated that success.”
In 1998 the O’Dells got out of the laundry and dry cleaning business and started a small freight and courier business.
“We had three vehicles and I became quite tired of changing oil every 5,000 miles. Then I remembered this particular companies synthetic motor oil products would provide extended oil drain intervals and make things last a lot longer,” said O’Dell.
O’Dell had been using the synthetic grease in his laundries with no bearing failures for about 15 years. “The salesman often mused why I never needed any bearings,” said O’Dell. “Now I know.”
The O’Dells did a lot of freight work near our Richmond, Va. Distribution Center, so one day O’Dell decided to stop and talk to them about starting a synthetic oil business. That’s where he met Gerry Reid, who signed O’Dell as a Dealer. Ironically, O’Dell had been shown the this business opportunity before.
“Around 1978 I was shown the synthetic motor oil opportunity,” said O’Dell. “At the time we had three laundry and dry cleaning plants, four small children, didn’t think much of synthetic products and had lingering memories of Amway problems, so I ignored the business.”
Trial and Error
In the past 29 years the O’Dells have owned and operated three laundry and dry cleaning plants, a recreation center, a used car lot, a florist business and a freight company. They have been involved in Amway three different times and tried two different nutritional MLM companies. They sold water and air filtration products, were in a MLM buyer’s club and tried three different MLM long distance phone service companies. O’Dell became a synthetic motor oil Dealer in 2001 and has
been full-time since June 2005.
“This oil company is different than other MLM companies,” said O’Dell. “...is a rock-solid company that has stood the test of time; They treat their Dealers with respect and appreciation; This company clearly has a product of superior quality that is not duplicated elsewhere in the business world.”
Five Reasons This Synthetic Motor Oil Company Is Superior
The differences O’Dell cites are the keys to a good MLM company: quality products, company support, stability, legitimate claims and a dedicated Dealer force.
A company must have quality products. The product must perform as intended, and the better it is, the easier it is to sell.
Company support is a necessity. Good MLM companies put great effort into Dealer training. This company provides company periodicals, newsletters and home study courses to keep Dealers informed. They also provides direct access for Dealers and yearly training at a special corporate University and training event.
Stability is common to all successful MLM companies. This synthetic motor oil company has worked hard to establish a solid reputation and looks to the future with a commitment to quality and long-term goals.
Good MLM companies make legitimate claims. This company doesn’t rely on outrageous testimonials or false product claims to make sales. Dealers are not promised instant riches, only opportunity.
Finally, good MLM companies must have a dedicated distribution force. The company has an extremely loyal and dedicated team of Dealers.
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