Hey there, I’m back!
I’ve had some serious writers block over the last 2 weeks. That has all changed, at least for the next 45 minutes or so.
I wanted to do this post because Forex MLM’s seem to be all the topic on Facebook these days.
Now, before I begin, I want to warn you ahead of time I’m going to state some points arguing why current Forex MLM’s won’t work, and how to fix it for the future.
My ONLY stipulation to this article is this:
If you like this post, share it.
If you don’t like this post, talk shit, and then share it.
Now, where to begin..
I want to start by mentioning the multiple reasons Forex MLMs are a shitty idea.
First of all, forex was something that NOBODY for the most part in the mlm niche was actually involved with before they could build a downline.
What do I mean by this?
Simply, that Forex wasn’t a popular industry for most people in this industry before it became a network marketing opportunity. This is a problem because this is a clear indication that customer acquisition will be hard to come by.
In network marketing, you want to have a product or service that the majority of the population (or as much as possible) is already using without a business opportunity attached. This needs to be the case, as well as having access to the product or service at a competitive price point.
This is why health and wellness products, as well as skin care, dominate the industry. Because, for the most part, everyone bathes and everyone has tried to live healthier lifestyles at one point in their life.
Forex, like stated before, is new to network marketing. It has huge appeal because of the opportunity to make money from the services these companies provide. I’ll mention why this isn’t so glamorous here in just a second.
To sum up the first point, if you want longevity, you need people wanting to become customers without wanting to do the business. At some point, every company loses timing.
So, if you don’t have a strong customer base, and then you stop getting people wanting to take advantage of the timing, you lose momentum and usually fizzle out.
Side note to all of this: A customer is a customer, NOT a distributor who doesn’t want to build the business. Please stop confusing the two.
Now, reason number two is this whole “Forex can make you money” pitch.
Instantaneously, two things come to mind when I hear this——->
Any product or service that you get at wholesale in MLM and flip for retail, is a profit.
It’s ROI. This instantly trumps the “forex is the only service that can make you money without recruiting” argument.
The second reason is that it’s also a service that can lose you money.
Network marketing is a revolving door.
Most of your organization is split up into the 80/20 rule.
This means that 80% of your organization are the unmotivated and motivatibles, while 20% is the self motivated.
The majority of the people who quit inside your organization, are in that 80% group.
This happens ALL the time in any company.
It’s kind of like throwing shit against the wall and seeing what sticks.
Now, imagine if your service loses you money.
Yes, I know it can make you money.
But imagine, for the skiddish 80% of your team, who put their last dimes into their account, and have it blown because of a random signal.
Do you think they’re staying?
We just mentioned that no matter what the company, the revolving door is a reality.
That’s even when the people are pushing creams and energy drinks.
That’s even when they aren’t having their accounts blown.
Yes, I’m aware that you, the reader, feel you would stick it out(for a decent amount of time anyway).
But you aren’t average, are you? You aren’t in the 80%. This is why the revolving door is magnified tenfold with Forex MLM.
This is why retention will always be a bitch with your company.
Ok, ok, ok. I’ve shit on Forex MLM’s long enough. Now, it’s time to fix their issues.
Some of the solutions I have are simple.
Can an existent company implement these changes?
But, if you’re planning on joining a company, or planning on starting one, here are my recommendations for you or your company’s leadership.
Make a legit customer program.
Make the customer program affordable, and different than the opportunity aspect.
If the customer program looks appealing and different from the business building side, then you will actually get legit customers in your organization.
This not only gets the FTC off your back, but gives you potential for long term growth.
Make your company a direct sales model.
What I mean by this, is make it more expensive to be involved with, but make it just a one time payment.
Get rid of auto ships. This will make the company profitable, but also keep the rep/customers continuing on with the company.
They will feel like they’ve “already paid” and might as well get the most out of it, regardless of the losses.
Another option, is contracts.
If the service is good, you can add mandatory contracts as a qualification to be involved.
Even if it’s a soft pull of each reps credit with the contract, the idea of being locked in from 6 months-2 years can combat the lack of stability when it comes to standard retention.
I know you don’t see this concept a lot, but speaking from experience in my current company, this can work.
This way, even if someone gets discouraged and wants to go into hiding for a while, it won’t hurt your business at all.
The last suggestion, would be more of a Wealth Generators approach.
See, WG has more products than just standard Forex trading.
They’ve got money managing services, Taxbot, Algo pack, and other stuff that customers and distributors could find appealing, regardless if they were taking losses in the market place.
This is why I think the current, best model for Forex, is affiliate marketing.
Facebook groups, affiliate commissions, and one time payments to be involved are the way to go.
I’m not affiliated with any company whatsoever, but to me, a strong membership site would be the way to go.
Do something where people can make money off of referring, take the downlines out of it, and have it be a one time payment to join.
Now, that I got that out of the way, let me know what you think.
Remember, this isn’t a post about Forex being bad. This is just an opinion of someone that’s been in network marketing for 5 years.
I’ve seen every kind of company, ones that failed and ones that succeeded.
To this day I’ve yet to see that Forex MLM that blew me away.
A guy can dream right?
Alright, with that said, we’ll talk to you all soon. Belvin out!
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