Why Most MLM’s Suck & Fail

Dramatic title eh?

I feel the need to write about Multi-Level Marketing companies because I’ve seen my parents join and leave a few growing up (and been scammed), and I’ve become a part of one now called Jamberry Nails.

I’ve attempted to look objectively at the differences between failed MLMs and Jamberry Nails. This should also answer questions for those that think Jamberry is a scam.

Studies show that most people will fail and not make money with MLMs. Let’s dissect the reasons why.

Why Most MLM Companies and Individuals Fail

  • The product is not something people need 

Think about some of the MLMs you’ve heard about (or go look some up) and think about if it’s a product that people inherently need. I know it’s really easy to convince ourselves that because we’re selling something, that everyone needs it. 

Would you family and friends buy it if you weren’t selling it? How big is the industry revenue-wise? Is the product solving a problem? Can it be bought cheaper somewhere else? Who is the demographic? Do they search for it online? What do they find important about the product?

All important questions to have answered beforehand.

  • The product doesn’t have a recurring need (jewelry, handbags)

Luxury items aren’t a recurring need for 99% of the world because well, they’re expensive. Energy drinks and vitamins and creams last a while, and some would argue they aren’t a need at all because there are better, cheaper and more natural solutions.

  • The product costs too much to buy over and over

So many MLM products cost $40, $50 and higher. Psychologically, that’s spending a lot. And no chance will people spend that much consistently unless they’re wealthy. There’s just not many things you can convince people that they need that they don’t already have that costs that much.

  • The product isn’t visual, sharable or social

Many MLM products just aren’t that fun to talk about, look at images of, share online. Household products aren’t being pinned or re-tweeted about all that often are they? I don’t see many hashtags and organic shares about body cremes and energy drinks. (Yes there is a segment sharing and talking about everything, I’m talking masses here)

  • Upfront costs are too much and monthly fees are $50+/mo 

Monthly fees puts pressure on people. You’re constantly feeling like you need to “push” product and play catch up. And people get a whiff of that quickly and get turned off.

When you can make back your initial investment fairly quickly, that ups your chances of both feeling good about what you’re doing and being financially successful.

  • Storing and shipping product 

Speaking of pressure, I first hand saw my parents stacking juice bottles in our basement. Storing product is just not efficient, desirable or doable for most people.

  • It just always feels like you’re joining a damn cult

Didn’t it always seem like the person telling you about this “amazing opportunity” was the only person that damn excited about it? And weird how they no numbers to substantiate the demand for what it was they were selling? And no straight-forward answers about the comp plan?

So I Assume You’re Telling Me This For a Reason…

Well of course I want you to know that I think Jamberry is a different product, market and MLM company. Of Course I want youscrooge-skiing-460x250 to sign up with us, we’ll both sell millions of nail wraps, and ski together on piles of money like Scrooge McDuck on Duck Tales.  But I think it’s important to understand the WHY.

Why Jamberry Doesn’t Seem Like a Scam and Why You Have a Chance to Succeed

So I’ll address the reasons listed above and why according to my research, that I think Jamberry gives a higher chance to succeed than typical Multi-Level Companies.

If revenue is any indication, I’d say bringing in over 10 million dollars a year is a good start.

  • I truly feel girls and women need to get their nails done

Not all, but a large enough amount to support spending 768 million on nail polish in 2012. That sounds like a need to me. I also feel it’s just part of our culture and society. It’s a form of expression. It’s like make up, it helps girls and women feel good.

I’m not naive to the fact that some girls need nails or make-up to feel good or pretty, I certainly don’t like or agree with that. I’m just saying let’s not ignore the reality that it’s a need for lots of women, whether it defines them or not.

  • Ask a few girls or women how often they do their nails

I think this one answers itself. My wife and I spoke to a girl today that said he sister changes her nails daily. Yes that is extreme, but my anecdotal experience has shown me that women like to change things up constantly, possibly for occasions, moods, events, etc.

  • Most sheets of Jamberry nails cost $15

I feel this is low enough to not feel like a major purchase, and it feels like even less when you consider 1 sheet does 2 manicures and 2 pedicures.

Now compare that to the average cost of a mani/pedi, then it suddenly seems like a deal. Same goes for the cost of nail polish.

  • Social, visual and viral nature of the product

Go to Pinterest, Instagram, or Twitter and search for nails, nail art or nail designs. Does that give an indication of demand or what people are talking about and sharing? Looks like an endless market in which to sell your product.

  • Upfront fees for Jamberry are $99 and website costs $10/month after the first 3 free months

So to break even, you just need to sell 30 nail wraps. Given that you get help setting up your first “Facebook Party” and can use other social media sites, this is generally attainable in a couple weeks if not sooner. Not bad for re-couping upfront investment.

When you think that you make 30% of your own sales, it seems pretty reasonable to be able to come out ahead every month. Just sell 2 Nail Wraps a month. Easy right?

  • You don’t have to store or ship the nail wraps

It’s all done by Jamberry. That’s my favorite part. No storing boxes or pamphlets (unless you want to pursue the home party route, which can work if your network of friends lends itself to that).

  • The people that got us involved just seemed oddly down-to-earth, non-cult-y and let us come to them

This may be the most important part. The women that are making a couple grand and higher a month didn’t really push this on us. We had to ask them. 

There’s something to be said for the people selling you on something not really selling you on it. It makes you almost sense their confidence in the marketplace or want in on it more because they’re killing it and you might just be competition.

So if you were on the fence just like we were about joining Jamberry as an Independent Consultant, I hope I gave you some clear facts along with my high horse take on economics, supply and demand, blah blah blah.

If you’re wanting to try them out first, you can shop here.

If you’re ready to rock n roll as a consultant and think we’d be a good team to work with, then start here!

As always, send any questions to info@notnailpolish and we’ll get back to you!

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