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The Next Billion Dollar MLM? Bah Humbug!

I cannot believe the crap these mlm spruikers come out withNext time you are approached by someone telling you he has found the next billion dollar company, run a mile.  You don’t need to associate yourself with clowns like that.
New companies start up all the time – many with a bunch of hype that can’t be substantiated.
The chances of these companies surviving beyond a year or two is small.  And the chances of them becoming a billion dollar a year business is remote.
Look at the facts:
The last mlm to break the billion dollars a year barrier was Nu Skin International.  And they started business in 1984.
The mlm company that did it before them was Herbalife, and they kicked off in 1980.
So it’s been more than 20 years since a new company reached the billion dollars a year sales figure.
Frankly the performance of companies since then has been abysmal.
Don’t get mislead by people when they say that a company is NOW a billion dollar company.   What they’re referring to is a billion dollars in cumulative sales.  There’s a big difference between that and a company that does a billion in a single year.
So why is that not one company since Nu Skin has reached billion dollars a year in sales?  One reason could be due to higher rep attrition rates.  Another could be due to the type of product line (hard to build to a billion a year on a juice product alone).
Another reason could be regulatory issues, or simply poor or lackluster leadership.  There is no doubt that all of the giants of our industry distinguished themselves by having awesome leaders.  And even if those companies had a challenge such as bad publicity, or law suits, or regulatory intrusion (which most have experienced), they got through it.  Their organisation and sales may have dipped a bit, but because of the leadership, enough people held firm till the storm passed.
Contrast that to most of the new companies operating today.  Their organisations are essentially weak, and when a major problem occurs their reps desert them in droves.  End of story, end of company.
Tell me what you think – make a comment below
 

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