I think it's safe to say that MLM still has a powerful presence in the network marketing industry. However, many MLM distributors are growing their frustrations because of certain things that are happening to the industry.

Here's what I am talking about:

Most MLM's are about health products, pills, lotions and household products. With the growing number of "new" companies being brought into the network marketing industry, saturation of these products tend to increase.

So here's what happens: the common person getting pitched these different opportunities in people's homes or at hotel really don't know the difference between Company A and Company B. In their eyes all these products are the same. "What's different about these products and how will it help me?"

Many people end up labeling these companies a scam because of the lack of knowledge presented to them about the products and compensation plan. I know this word gets tossed around too much. But later I will discuss what my definition of a scam is.

Many MLM companies still are using old school methods of acquiring new members, the dropout rates are increasing because of the lack of marketing skills taught, high up sponsors moving to something more lucrative because they maybe getting tired of babysitting a downline, and small commissions that are made that aren't meeting financial goals.

Let's look at the MLM company Monavie. (Sorry Monavie distributors or potential members, you won't like these numbers). This company is very popular and has been around for a few years now.

• According to a sponsor in this company, it was stated that Monavie has a dropout rate of 70%!

• Less that 10% of distributors were making more that $100 per week!

• Less that 1% qualified for commisions and the ones that did made money off themselves for purchasing their own product!

• The average YEARLY income for a Monavie distributor is $2,918.22! A YEAR, not a month or a week! This is according to their income disclosure statements from July 2008 to July 2009.

• Many MLM companies will tell you that it may take 3-5 years to make a 6 figure income. Are you willing to wait that long?

Now, I'm pretty sure other MLM companies are going to have similar numbers to this company. This is why MLM's are dying! Working your tail off for $2,900 a year? Having 70% of your downline quit? In my opinion, this is why MLM's are being labeled as a scam.

People aren't achieving their own goals in MLM, they are acieving the MLM companies' goals. How much sense does that make?

But there are some things that can be done to have a profitable newtork marketing business. People are going to have to roll up their sleeves and do some research to figure out if a certain company is right for themselves and their families.

Having a past in 3 MLM companies myself has taught me alot. I hope this article brings you the knowledge and understanding for you to make the right choice in finding a home business for yourself.

I appreciate the opportunity to educate you today,

Greg Schmidt

Click the link to read more about the MLM industry and why many People are getting OUT!!!