This blog has been in my head for several weeks now. I have tussled with writing about it but wanted to approach from a different angle. It’s longer than most but one that will not only inform but liberate people. The design is to help reps still confused and guilty from jumping from company to compnay, finally stop this insanity and learn what the “right business” really looks like. If you have ever been bound by cyclical behavior or know someone who is, this blog will uncover thaat this behaviour is rooted in a lack of understanding the differences between the 5 types of mlm companies and which one is the most desirable to build.

First off, did you know that there are 5 types? Regardless of product, compensation, service or advertising, they all fall into one of these categories. Five distinguishing features separate all 5000 different mlm companies in existence today. Here they are in no particular order. Party Companies. Product Companies Technology Companies, Trend Companies and  Lifestyle Companies.

The Party Company These were made famous in the early 30′s and before. Names like Avon, Amway, Fuller Brush & Shaklee all built their billion enterprises predominantly in the homes. Primarily and successfully marketed by women the company taugt these distributors (reps) to share and expose products & the company mission inside the living rooms and dens of families across North America for decades. What’s more interesting than the where is the what. They not only sold products and recruited, but they impacted an entire generation doing business this way. For many that impact was not just financial but personal. The improved quality of life people received was best thing they earned. The money was secondary. Distributors pledged their loyalty and stay years with these party companies despite other newer competitive options. We’ll re-visit the reason why this is, later on.

The Product Company Sell sell sell. You want it, they got it. less is not actually more, more is more. The product company’s mission is to get you to stock up and buy as much of the stuff they sell as possible. Volume reigns supreme not strategy. There’s not much to it. Get the customers and reps to buy large quantities and the company does exceedingly well. Many refer to this as inventory front loading.  Increasesd sales means increased profits and of course the above average rep who performs can in fact build huge sales and amazing incomes. But the distributor who doesn’t in turn sell it is left with old merchandies, expired perishables and lost income. Not fun. Also you can imagine when sales drop or yearly growth declines due to recession or a poor economy, a shift in buying occurs casuing stagnation and inevitably, bankrupcies. Product that just sit on warehouse shelves and don’t get moved produce collapsing infrastructure due to non-sustainability. No buying means no business and doors close. You know you’re in a product driven company because you have to be very skilled in sales to truly succeed and constantly keep selling.

The Technology Company These types of visonaires develop ground breaking concepts, devices or ideas that make others obsolete. Because of cutting edge thinking, they surpass the competition like they’re standing still. While their competitors scramble these behemoths that chart new courses and boldly go where others fear to tread literally re-write the history books and are remembered for their stark innovation. People are and will always have attraction to tech companies because of the appeal and sexiness of being with leaders that are doing new things.The down side however is two-fold: competitiveness and improvement. With tech companies, if you are not staying sharp and ever improving, you won’t be able to keep up and  surpass your fierce competition.The technology becomes an double edges sword and can prove challenging proposition meanwhile trying to keep new customers engaged and reps motivated to stay for the journey. You know you’re in a technology company, because you must think long term and prepare for many changes.

The Trend Company Being ahead of the curve and by using timing to get a winning advantage in business is what every trend company does. Although it might be an average product, it’s really about an idea or concept whose time has come. The real success here is timing a product or idea before the masses figure it out and start demanding it. Examples of such industries are Computer, Travel, Financial Services, Telecommunications and my personal favourite Bottled Water. This turns average into the miraculous. A trending company really becomes wealthy fast not just because they are smart but more because their early. Right place right time. Like a major league baseball player strikes the ball at an optimum spot on his bat. What would have been a foul ball becomes a grand slam event. To fully grasp the power of a trend company is to learn the S-curve. Keeping it simple, there are three phases that comprise this. Infancy/Pioneering, Take-Off/ Critical mass and Acceptance /Maturity. Their secret is to be in at the early phase. But once phase two begins (Critical Mass) the momentum brings great with it historic success as the most money is earned & greatest amount of millionaires created. You know if you’re in a trend company because the faster you get to the future, the closer you are to critical mass and the less inclined you are to leave.

The Lifestyle Company This type of company is unique for several reasons. They have TWO products. One is their auto-ship or the item they sell. The other product though, is lifestyle. That obvious one is easy for any of the previously described companies to sell. Vitamins, cosmetics, coffee detergent, cell phones etc But the lifestyle company does things completely different and it works trememdously. They actually do not focus on selling only the obvious but seek to emphasize the un-obvious product- lifestyle their reps can create. You see lifestyle is actually not a physical item. It’s an idea, aconcept, way of living and one everyone relates to and connects with. Regardless of how extraordinary the product or complex and enticing the compensation. Here’s why it works. 100% of human beings are in love with it. 100% of individuals don’t have enough of it and 100% of people know someone who would want  more of it too.

It’s weaved into the very fibre of the marketing, mantra and mission statement and is what is used to glue what people want to the business they will build to get it. It is less theoretical and more pratical. While a message that $5000 extra a month is good and logical, for the lifestyle company, they ask “What would your life look like with an extra $5000 a month? Would you have more time with your family, travel more with your spouse. Pay off that mortgage debt early or retire your parents?” The difference is they paint a clear picture of lifestyle and continue to put it out in front of the product. Lifestyle companies evoke a strong and irrestsitable emotion among their reps and create a culture of passion. They inspire so well they get the best of their reps in the field to produce the best in their company’s growth. How? Not by pushing products but re-focusing average people on what really matters to average people.

The most fundamental philosophy the lifestyle company does to instill this into the core of their brand is they teach this relentlessly: If you build the person, they will build the business. Attach an emotion to the business that people cannot shake.They endorse this axiom of human psychology by affixing it to every marketing piece they produce, every opportunity they get.The lifestyle company knows that people make decisions emotionally to build their company but then after justify it with logic. You know if you’re in a lifestyle company because your wife, husband, kids are the reason you’re there building it and you cannot walk away from that.

So if you had to choose a company that gives you the greatest odds of long term success keeping you engaged and others in your down-line stimulated for decades, which would you choose? Here’s what I suggest for you to rank them. A Lifestyle and Trend company utilizing a party style methodology, is the best blend. Technology is risky and I certainly would never choose a product-driven one and for the reasons I covered above.

The mlm junkies among us have a tough decison to make today after reading this, but one that should be a whole lot clearer. Even if you’e not a junkie but been slightly confused as to the type of company you’re in regarding viabilty and sustainabilty, just ask yourself  ”Am I in a “_________” company? and you’ll now be able to tell.

Erwin & Eva Mcken
(If this blog assisted you please comment and share. You may also reply and tell me whcih company you think youre in.)