It was 1985 and I was only 20 when I first engaged in Network Marketing. It has been a blessing for me because N.M. allowed me to have a life that I can only be grateful for.
My first trip back to Korea was in 2004 to speak at NuSkin Korea Convention. Since then, I have been deeply involved with MLM industry in Korea. With my education and experiences, I have been consulting many different types of companies including mlm companies and began to teach leadership and organizational behavior at different colleges and graduate schools as visiting professor.
During all these years, I have seen many MLM companies come and go. AVON, Mary Kay, Q Science, Neways, Modere, Isagenix, APLGO and many other globally established companies launched in Korea and left after only a few glorious months. And, many other foreign companies are in a position where they cannot be proud of.
Year 2022, about 5 foreign companies launched new but we cannot say that they are showing any positive momentum. Recently one company launched, had about USD $5 million in tehri first month and about USD $2 million in second month, and their future remains in question now. Another company, going into their 7th months in Korea, is going through their 3rd GM.
What is more interesting is that it is repeating from one company to another year after year. Being in the industry for many years and having relationships with many companies, organizations and leaders, I could hear and recognize patterns of failures in which many good companies get trapped in. I summarized below a few patterns that I often see. I hope it will help you to recognized potential hazards and break the patterns.
Pattern 1. Becoming a same old story.
Hiring GMs and recruiting partners who are in 1st MLM Korea generation do not help creating positive image in the industry. It makes the newly launching company look same old story. It just look same organization under same leadership with same category of products, just with new company name. It is like an old book with new cover.
Certainly, they can bring their people in from their own tribe, creating initial spikes in revenue, but usually it last only about 6~12 months. These type of leaders will not attract good quality leaders and new crowd because of their reputation for being jumpers and their business style.
If you are a newly launching company, you must avoid becoming a same old story. Opening new doors requires new set of keys. Don’t take easy way by just looking at resumes. Do some ground work and spend some time to investigate them before you get too excited.
Pattern 2. Fail to get people onboard with your philosophy.
Newly launching itself can be exciting and initial spike of revenue can be feel like a history in making. But it also can be a trap especially when it was created by Pattern 1 above. I have seen companies falling into this trap. With initial momentum being so exciting and making them too busy with people and revenue coming in, company and leaders forget to sell their philosophy. After only a few months, organization began to lose people, revenue began to drop, and company is left with no clue on what happened.
Network marketing is building community based on shared philosophy – vision, mission and values. Only when you have your people onboard with your philosophy, you can expect their participation, focus, and loyalty. And, it is the foundation of building positive culture that will support and sustain future of the organization.
Momentum is good, initial spike of revenue is good. You need them for sure. But you also need to remember to create good culture based on shared philosophy to bring long and stable success.
Pattern 3. Shoving in products and comPlan.
Some cases, there are companies so proud of their products and comPlan, and act like they are the answer to all the needs of MLM Korea. Just remember what is great to you can be only fair to some one, working behaviors are different in different cultures.
S. Korea is the 2nd largest market in the world, and I hope that you build a successful mlm business in Korea without making same mistakes. Bad history do not have to repeat!
Success achieved right is good for the community!
Gateway to MLM Korea 