One of the most common ways people get lured into making money online is by discovering an affiliate or MLM (multi-level marketing) “make-money-online” program.
Usually, they promise lucrative profits if you promote a pre-created, turnkey website and get other people to join the program and/or buy certain products.
YTB.com and SixFigureIncome.com are two programs that come to mind, but there are many more.
One major flaw with these programs is they don’t tell you that in order to make money you are going to have to drive thousands of targeted visitors to your site per day.
Not an easy task for someone who has never marketed anything online before.
Also, it’s difficult to convince total strangers to pay their money for a program that does not guarantee a return on their investment.
People are incredibly skeptical about programs that ask for upfront money in order to make money (and they should be), so immediately the cards are stacked against you.
Just because the company has provided you with your own turnkey website, that doesn’t mean you are any closer to striking gold. In fact, they are leading you into a false sense of hope and security.
Here are more reasons to avoid the “Make Money Online” niche…
How can you expect people to trust you if you aren’t making money yourself?
People who make a lot of money online have spent years building credibility from an audience who trusts them.
They do that by providing useful advice that actually helps their audience. Over time, they develop large mailing lists, faithful blog subscribers and/or loyal website visitors.
When you do this, it’s much easier to make money online because when you recommend a product or service, that credibility you’ve earned now works in your favor.
Your audience trusts you and they are more likely to buy something you recommend.
People often believe that the best way to make money online is to join a program that teaches others how to make money. When that’s probably one of the worst niches (unless you are really making a lot yourself and you can help others succeed.)
The reality is, you begin living a lie. You’re encouraging people to fork over money for a chance at making money when you don’t fully believe or know how to master this program yourself.
So you end up recruiting more people who recruit more people who recruit more people on the hopes of getting rich someday.
The replicated, turnkey website you receive does you no favors.
The problem with those pre-created websites that you receive is they are not unique.
Search engines like Google, Yahoo, etc. are now smart enough to realize it’s just a duplicate of the other 180,000+ member sites in the program.
So reeling in all that free, targeted traffic like Webmasters who have their own domains with unique content will be next to impossible.
The money making niche is too saturated.
Type make money in Google and look at the total number of results on the top right-hand side. That number right there should be enough to scare you away.
The topic is saturated to no end so getting found, even if you had your own domain name, is a very tall task.
It can’t be any fun.
How boring it must be to promote a program on how to make money when your income is $0. Suddenly this is turning into a discouraging task with no reward.
People who are successful online enjoy themselves. They know a lot about their niche and it’s evident by reading their sites that they know what they’re talking about.
Their sites have personality and appear to have a real person behind them who is engaged in the topic.
Compare that to your anonymous, money making site, with its impersonal, over-hyped content written by the creator of the company (who, by the way, is the real beneficiary of programs like this.)
One of the joys of owning 2CreateAWebSite.com is when I learn how to do something new, I write content to help my audience learn too. Knowing I am helping thousands of people all over the world is quite fulfilling.
It’s also clear to my audience I am living what I write about so it helps build credibility.
Your income often depends on the success of others
One of the traps with these programs is the multi-level or tiered factor. If you sign up people who then sign up people who then sign up even more people, etc. multiplies your income.
Sounds great right?
The problem is 99.99% of people who join these programs never sign up a single soul. So don’t get too comfortable, expecting your downline to make you rich because chances are, they are running into the same roadblocks as you.
There Are Always Exceptions
I don’t want to imply that no one ever makes money from these kinds of programs. A few people do, but they are the exception more than the
rule.
Some people are extremely marketing savvy and/or have the initial income to advertise and compete. So of course there are always going to be those select few who do well.
But you should still proceed with caution. Often times companies add fake testimonials to make it look as if there are more successful people than there really are.
Isn’t it funny that no one ever knows any of these people personally? And if that many people are making so much money, why aren’t they featured on the national news more?
Who are those people smiling on the site with the six-figure income totals under their pictures?
And why don’t they ever provide an email address so you can contact them and ask questions?
Hmmmmm……
The Bottom Line
If you want to increase your chance of success online, choose a topic that interests you and build a useful website on that.
Go to www.associateprograms.com and find affiliate programs that match your subject-matter.
While you’re there, subscribe to Allan’s free newsletter and read his archives. There are some very encouraging stories and great lessons.
You don’t have to promote “how to make money” programs to make money online. You could create a site on cooking and recommend kitchen gadgets and other products related to your topic.
Yes, that means there is work involved and you probably are going to have to learn how to build and manage your own website. Making money takes work, and there’s no way around that, I promise.
– If you’re allergic to the concept of work, this is not for you.
– If you need money immediately, this is not for you.
– If you are constantly looking for shortcuts to success, this is not for you.
– If you cannot accept the fact it may take months before you see any money, this is not for you.
Are You Incredibly Desperate For Money?
I often get emails from people who are in desperate need of an income. The problem with many of these people is they are so hungry for instant gratification, they want to somehow bypass the learning and work involved.
When you are so focused on how long it will take to make money, then it’s nearly impossible for you to remain patient and enjoy the learning process.
Even though money is your ultimate destination, you must enjoy the ride. So you might as well choose a niche you enjoy and allows you to appear credible.
I’ve personally invested hundreds of hours and thousands of dollars to learn how to earn money online. I can honestly say that, until you’ve learned the ropes, it’s not easy. And, you have to keep learning. It’s a journey, not a destination. Thanks for sharing this great post!
I think this is a really good post, Lisa. I think one thing that is also worth mentioning is the fact that people think that marketing online and growing an online business should be easy. So when they don’t get the results the want in 2 weeks they quit and give up. When the fact is that you need to give anything you do 90 days of pure hard focus on dedication.
The strategies that are taught on your website are simple. And simplicity is not a replacement for something being easy. They are two different things.
It takes hard work and dedication, even on “simple” tasks.
Just because someone does not get results in a short amount of time does not mean affiliate marketing or, it’s step-sister MLM does not work. Anyone with the mindset that this this type of business does not work is absolutely – wrong.
Guys, working online takes hard work… It is not for the faint of heart, but the skills you build are simple – once you understand the mind of a successful marketer.
Go visit this successful lady. CaroletteWright.com, who has helped in in this area and gives great information for free.
Well if you have special skill, I think it is absolutely alright but I agreed with you, most peoples are not able to drive so many visitors.
I feel so lucky that I found your site…I just started with SBI and there are some wonderful people there who are so super helpful. I found one of your CSS videos and I’m super new and they were so easy to follow. I literally just told so many friends about you! Thanks for the most well organized articles/videos — they are a lifesaver!
Exactly..unless we know about the niche !! How can we blog about it ? and how do others believe without proof
Really informative article. I am glad that i didn’t do this mistake 🙂
Thanks Lisa
I must say this is probably the most impactful post I have read in some time. When I first started with IM I thought it would be easy to make money. I thought I was set. I quickly realized how wrong I was. This stuff takes lots of work, patience and continuous learning.
But I like it this way. I like the fact that its not easy. I know there are tons of people out there thinking this is a get-rich quick scheme. They won’t be around for too long. They don’t understand that this is a long term thing. And I plan to be here for the long term.
Thanks for the great information.
“The problem is 99.99% of people who join these programs never sign up a single soul. So don’t get too comfortable, expecting your downline to make you rich because chances are, they are running into the same roadblocks as you.”
Absolutely. It is the single biggest problem (among others) with MLM. You have to constantly push people to get out there and get those pivotal first “five people” to help kick start your “commission of sales people” empire.
That’s why there is a “bevy” of tapes and seminars (I was once in Amway) to keep you motivated. You can’t even mention Amway when you approach a prospect.
Too many people know about Amway and MLM in general and reject it out of hand. I think ranking for a term like “credit cards” is probably easier then trying to start just about any MLM – lol.
Just sayin..
Robert C – The Wholesale Products Guy
Sonny…
Sorry this is so late. I can’t send you my 1099’s. If you don’t wish to believe me, that’s OK. My wife and my accountant know what I made.
MLM is like a lot of other industries that pay well. 1000’s of actors move to Hollywood every year to get into the movies. Less than 1% of them make it. Does that make the movies an illegitimate career choice?
A much higher percentage of MLMers make it than actors. And there are countless MLMers, like me, who never got rich but made a decent full-time living with residual income.
Like any career choice, it may or may not be right for you. But if it isn’t right for you, that doesn’t mean it isn’t right for anyone.
Totally agree..
When I applied for work with New York Life, I was told it would cost me hundreds of dollars to get started. I had to pay them a hefty fee, plus pay for insurance school, the exam and licensing. I’ve heard that less than 10% of those who pay the money and start are able to make a living at it. Should we bad-mouth New York Life too?
MLM is no different. It’s a job. If you’re not willing to learn the skills and go to work, don’t join. It’s a business. If you’re not willing to take a small risk, don’t join.
I’ve made $500,000 in MLM over the past few years, and I DO know a number of MLM millionaires. If you can’t afford to hang out where they hang out, you’ll probably never meet them.
In my experience, less than 10% of the people who join are willing to complete the training, master the skills and go to work 7-10 hours a week getting prospects and making presentations. Most will not make a commitment to keep doing it until they succeed. Of course they’re going to fail.
Many of the people in my organization who diligently followed our training have gone on to make residual incomes of $1,000 a month to as much as $15,000 a month.
When I recruit, I explain to people exactly what they will have to do to make money in my business, and I ask them if they are really willing to do it. If they’re not willing to train and work, they should forget MLM. It’s not easy (but it’s the easiest $500,000 I’ve ever made in my life).
Success is simple, but it isn’t easy. The steps are easy to learn. They take hard work and perseverance to pay off.
That’s the difference between MLM professionals and MLM wannabes.
I hope I don’t sound like I’m boasting. I just want to set the record straight. I paid the price. I spent a lot of time learning, practicing and making presentations. I followed the directions, and it began paying off within a few months. After 2 years I was making more than I had ever made in my life, and it was residual income.
@Mr Sharpe – were can we verify what you’ve typed (e.g. your income)?
Wise words from a wise woman! I wish I had stumbled across your common-sense approach years ago, when I too went down the MLM road. I did make money, but never felt good about what I was doing so I quit and I’m so thankful that my next (very cautious) venture was with SBI!
I’ve bookmarked your brilliant site – I’ll be back!
.-= Coralie ´s last blog … Beautiful Maternity Wedding Outfits on a Tiny Budget! =-.
First, I think people chase mlm because it’s available,.a dream and that sounds easy , I know I did for some years, On the other hand,I now run a web site, but I think there is a big hole to be filled here still, So joined sbi, under you just over a week ago, yes its as you say,
but hard work for me, maybe I am dumb. but I don’t give up on things, So just wanted to say thank you,and do look after your self
Yours Faithfully
ed Nottingham uk
Wow it all sounds so logical so nice and tight. But it is very absent from the truth. I do agree there are no get rich quick schemes anything that is long lasting takes work. People buy stuff all the time from people they don’t know even businesses. They check the business itself, the value, the truth on it. What does the BBB say about it etc.. With a little home work, with a true level of research, you will find a MLM Business that is real. Just because people don’t understand something doesn’t make it wrong. No offense but your article is wrong. Go visit this successful lady. MLMiseasyonline.com, who by the way has nothing to do with my company but gives great information for free.
Nothing wrong with MLM and perhaps I should have clarified this. There are a LOT of people making good money from “how to make money” sites. Heck, look at me! It’s just not the avenue I would suggest that most people start with.
TOTALLY agree with RyanT – and my eBooks go in depth about how it’s not get rich quick and not overnight either – FAR FROM IT – IT TAKES LOTS OF TIME AND HARD WORK – and Lisa if people look at everything you’ve done at your sites and vids etc etc and don’t believe that – then I don’t know what to say except they may need to learn the hard way. Then they’ll be back and actually listen?!
.-= Michael Erik´s last blog … Twitter Weekly Updates for 2010-02-21 =-.
I don’t think this is a niche that you absolutely should avoid but I think this niche DOES need special attention. The profits can be HUGE but the work required is just as HUGE. If you take this leap of faith; the best of luck to you but don’t expect much return for YEARS. I still love the info! Thanks Lisa!
.-= RyanT´s last blog … Online Money Making Theories =-.
Hey, I don’t know how I stumbled upon your video online about makining money with adsense. So, I decided to check out your website. I really like this article and hope I had found it before even starting anything. One of your video stated that don’t try to do everything, there’s yahoo and others for that. My site is about all the things we usually discuss and talk about. Thank you so much for this article.
.-= DrG1´s last blog … Adorama: refurb Nikon D5000 DX-Format 12.3MP Digital SLR Camera Kit $525 shipped =-.
Lisa,
As always, thank you for your brutal honesty and recommendations to guide us to success. Free information can have value and that’s why I love your site and http://www.creatingawebsitebusiness.com. Tons of great content for anyone and everyone…ultimately it is what we all decide to actually do with it and how deeply we commit!
Thanks again!
And will it affect my traffic ?
Lisa,
I’m a big fan. I’m glad I came across you. I have a question.
I am an MLMer and I’m not going to mention the name of the company. I did not like the the site that this company supplied and decided to make my own site based on the products involved and to refer people to their site. Sort of a catch site.
I did everything right as far a SEO and have at least 2 of the site’s pages on most of the first page of Google keyword searches creating a lot of targeted traffic.
I received an email from the company telling me that I must change my site to a “blind format” as per their policy. They told me not to use any product names, only an image and a brief description. What’s a “blind format” ?
Hey Chris I feel for you!
The trouble with MLM companies and an independent distributorship with them is we do not control the company. Many companies place strict polices on what can me said or displayed on a distributors site because frankly of law suits.
If a distributor starts to make even true claims about a product but cannot be backed up by a case study or some other form of legal evidence, then it leaves the company open for all kinds of problems.
It is justifiable on the companies part to protect themselves from wild claims made by careless distributors.
It also protects you. The last thing you want is to spend 5 years building a great business only to lose it to a financially drained company trying to defend itself in court.
Make your site generic, if it is health, weight loss, or some other concern, address that. That way if you change companies, all your work can be transferred to a new product. So while it may look bad, it really could be better for you in the long run.
Finally some companies do allow you to put up your own site, they just want to OK it before you post it on the net. Your company may have such a review before posting policy.
I wish you well
.-= Bruce Cagle´s last blog … Great Way to Kick this Off =-.
hi lisa your tips is realy helped me alot thanks for that
i have question for you i have wordpress blog and i downloaded free thems called render magazine i wnat to customize it how can i do that plz plz get back to me as soon as you can