The news flash that came out of Numis Network a few days ago is that they are merging with another MLM called WorldVentures. So what’s up with that, or rather what does a gold and silver coin MLM have in common with a travel deal like World Ventures, and what we would really like to know is….
Is the Numis Network merger a good or a bad thing?
Well I guess that depends on whether you want to look at the illusion or the reality of what is really happening when two MLM’ merge.
Now after looking at all the glossy brochures and reading the glowing biographies of the company founder and corporate staff, most people tend to buy into the illusion of this powerful company driven by unstoppable market forces that cannot be stopped, blasting all obstacles away in their explosive growth curve, and then there is the truth,
Sometimes they fail…..
But sometimes the fate of a faltering company is not quite so clear cut, especially when they merge with another MLM.
Such is the case with the troubling recent merger of Numis Network with World Ventures
Numis Network Merges With World Ventures
Now mergers in the world of MLM are always spun to look like a synergy of powerhouse forces combining to form a new entity that is now greater than the sum of its parts. However the truth is that mergers in MLM business world are never, in my opinion, done from a position of strength, they are done in a last desperate attempt to salvage the only remaining asset of a failing company, its downline distributors.
Well let’s stop and examine that for a minute, what is Numis Network a collectible coin MLM doing merging with a travel company?
Wow, that seems like a good fit to me!
I am sorry, but I see no market synergy here at all.
Numis Network & World Ventures – Product Mismatch
So what are they going to sell commemorative limited edition vacation coins?
Limited edition collector vacation programs
Now the failure of any MLM is a sad thing to me because of the dislocation of its distributor force and that sad fact that hundreds of thousands of distributors, many of whom may be counting on their checks to pay the bills are now in limbo or worse.
Now from all reports it looks as if WorldVentures is absorbing Numis Network in this merger so it’s obviously curtains for Numis Network.
Now in all fairness to Numis Network, I have seen instances where the absorbed distributors transition to the new company and do well, however it is generally the leaders with the most to loose who tend to embrace the new company business model and do well, however for the distributors who were in the deal because they loved the product, there is usually a mass exodus.
So will there now be a mass exodus of distributors from Numis Network?
Well that remains to be seen
This always brings me back to the discussion of picking your business model first before you decide to let yourself get wooed by the glamour of some new MLM to make sure the business model you are picking is one that has the ability to get you to your financial goal within your time frame, and that you understand the risk.
Now when I say MLM business models, I am not talking about standard MLM compensation plans here, it matters little if it’s a binary or a binary with a directors check match or a unilevel, or any one of a hundred different variations of the standard MLM compensation plan, it all boils down to one thing. Standard MLM’s compensation plans are very powerful in their ability to generate huge incomes however they do not do it overnight.
It constantly amazes me when I do coaching and mentoring sessions, the number of people working an MLM program that say they want to be making $10,000 per month in six months when I ask what their 6 month income goal is. Which by the way, is not a realistic business goal for a standard MLM. Now with a different business model such as a Top Tier MLM, or or other Hybrid-Top Tier Business Models (see business models webinar), then yes, but with a standard MLM, no.
Standard MLM compensation plans were never designed to give you huge incomes in a short period of time, they were designed to pay the big dollars over the long term as you develop a larger and larger organization.
In a standard MLM business model, once you take away all the special perks for sponsoring, etc, you are basically playing a 5% ballgame. So on average it will take a minimum of 2000 distributors in your downline to even make an average residual commission of $5,000 a month and in reality probably more like 4000 distributors since not everyone is active every month.
Now of course if you get some good coaching on high volume lead generation, and learn to use the internet as a marketing resource using online lead generation systems such as My Lead System Pro, then of course you can sponsor 10 or 20 people every month, however, unless you know of some magical way to sponsor 3000 or 4000 distributors into your team in a month or two, you are pretty much not going to get there in that time frame.
That means you have to rely on duplication, and that is what slows the process down.
Now if you stretch your time frame to 18 to 36 months then you have a shot at your $10,000 per month goal. However that’s where the risk comes in. It takes a few years to develop your downline large enough to pay the big dollars, and if anything happens in the meantime, such as the company going broke, or regulators shutting your company down, or your main distributor leaving for greener pastures, or any one of a zillion other factors ( I call them X factors), then you have done a lot of missionary work (unpaid or paid very little) for nothing.
Now if you are willing to shoulder that risk then go for it, but it’s important to know that in advance when you decide your business model.
Now there are business models in the home based business industry that have the ability to get you to that goal within the 6 month timeframe so that’s why it’s so important to look at your business model first before you your love affair with some MLM WOW product and then just assume the comp plan is going to get you there.
For a detailed look at home based and MLM business models and what you need to know to protect yourself in today’s market…