SuccessNet Online » Blog Archive » BNI and MLM Companies

BNI and MLM Companies – The Real Scoop

It’s about farming—not hunting.

By Dr. Ivan Misner

A version of this article was recently published in Networking Times Magazine – a journal for MLM businesses.

For decades, many people in multi-level marketing (MLM) businesses have been using BNI to help grow their business. Below, Jordan Adler, a successful SendOutCards® representative, talks about his experience using the BNI program:

A large percentage of my business income comes from my involvement with BNI. For 14 years, I have promoted BNI as a great opportunity to connect with other business professionals, build quality relationships, and learn the art of networking. There is nothing better.

My team is involved in BNI all across the United States, Canada, and Australia. We do not share our opportunity in BNI meetings. We always do our best to practice Givers Gain. We look for opportunities to give business to others, and when sharing our services with other BNI Members, we focus on the benefits of our services. Once someone uses our product and loves it, at times there are specific individuals who want to share it with others and ultimately get paid to do it.

We have not found a need to promote our opportunities in a BNI meeting that tends to be geared around exchanging referrals for services offered and giving referrals to others.

The energy of recruiting at BNI meetings is inconsistent with the cultural context of the organization.

This is one positive example of an MLM representative using BNI successfully. But many MLM representatives don’t know how to harness BNI to build their business. In fact, as the founder and chairman of BNI, I am often asked about the relationship between the organization and MLMs.

Just recently, I was asked by a BNI member whose business is based on an MLM model, “Why is it that BNI does not allow people in MLM professions the opportunity to share both our products and the business plan?”

First, let me say that reputable MLM companies are welcome in BNI. As a matter of fact, we have one or more MLM members in almost all of our 6,000 groups in more than 47 countries around the world. Furthermore, BNI members representing MLM businesses have been active in the organization going back to our very first chapter in 1985.

I personally approved that MLM representative to become a member at the first-ever meeting of BNI (this was prior to BNI having membership committees). He and his wife retained their BNI membership for almost two decades.

Know the BNI Culture

To answer the often asked question about promoting both the products and the business opportunity aspects of MLM-based businesses, it is important to first have an understanding of the cultural of BNI.

We believe that networking is more about farming than it is about hunting. It’s about cultivating long-term relationships with other business people.

Also – and this is critical– each BNI chapter is comprised of members from a variety of professions but there is only one available membership spot open for any given business or profession in an individual chapter. Once a member has filled an open business category, nobody else in the same business or profession is allowed to become a member of that particular chapter.

Also, one of our guidelines states that members need to represent their products and/or services in BNI and not its business opportunity. There are a couple of reasons for this.

First, BNI is about promoting the products and services that people represent. That is our mission. More importantly, each BNI chapter is permitted to have only one person per profession in their chapter. Though it is not a problem if multiple members in a particular chapter represent MLM businesses which sell non-competing products and services, it can become a problem if one or more of those members begins advertising and offering the business opportunity side of their business.

It creates competition among all of the MLM-affiliated members as they are ultimately now selling the same thing—a business opportunity. This then creates a conflict in business categories because they have competing professional classifications.

Learning the Hard Way

Over the years, we have learned the hard way that when one BNI member pitches the business opportunity side of their business during a meeting and a fellow chapter member who sells a non-competing product or service for a different MLM company witnesses this, it does not go well.

The member witnessing the opportunity pitch gets upset because they feel the potential no longer exists for them to attract other chapter members to take an interest in the opportunity of their business. In fact, in the past, many verbal knock-down, drag-out arguments have occurred at meetings as a result of MLM representatives publicly stepping on each other’s toes.

Consequently, many years ago, our Board of Advisors (made up exclusively of BNI members) decided that members representing an MLM company must solely represent their products and services when attending and participating in BNI meetings and refrain from sharing the business opportunities. Note that this decision was made by the membership of the organization, not the management of the organization, for the overall benefit of BNI members everywhere.

The Right Time to Share an MLM Business Opportunity

However, with that said, I’d like to be crystal clear in saying that there is nothing wrong with representing the business opportunity side of a MLM business with another BNI member during a 1-to-1 meeting that takes place apart from the weekly chapter meeting. In fact, most strong MLM representatives in BNI will tell you that speaking to someone in a personal setting is much better than trying to pitch a group on a business opportunity in only 60 seconds.

In addition, members representing MLM-based businesses can effectively lay the groundwork for effectively sharing their business opportunity during future 1-to-1 meetings by focusing on relaying the quality and usefulness of their products and services at the weekly networking meetings.

By first becoming recognized as having credible products and services, members are able to broach the subject of any business opportunity much more easily when they are meeting with other members in a personal setting. The bottom line is that the business networking environment has to work for the whole group; not just certain members of a networking group.

If one’s personal network is a mile wide and an inch deep, it won’t be a strong network. If, on the other hand, a person has a network that is both broad and deep, they are much more likely to have a powerfully effective personal network.

Strong contact networking groups like BNI are about going deep in our professional relationships. First and foremost, fellow members of a group should be viewed as referral partners—not just clients. If a BNI member views their BNI chapter as a room full of clients – their reach is limited to the number of people in the room.

Conversely, if they view their BNI group as valued referral partners, then they can consider the chapter in terms of the opportunity they have to reach the hundreds of additional people their referral partners know. This is a much larger potential source of business—and it is one that is ever changing as people grow their personal networks.

Hunting vs. farming is the perfect analogy to explain BNI and our approach to marketing and sales. For anyone interested in participating in BNI to market their products and services, whether they’re representing an MLM company or not, it boils down to this: People who cultivate their referral relationships will do great in BNI; people who hunt to close deals simply will not do well.

Called the "father of modern networking" by CNN, Dr. Ivan Misner is a New York Times bestselling author. His latest book, Networking Like a Pro, was a #1 bestseller on Amazon.com. He is the Founder and Chairman of BNI, the world's largest business networking organization and is also the Sr. Partner for the Referral Institute, an international referral training company. For more of Dr. Misner’s writing visit his blog at: www.BusinessNetworking.com

Tags: August 2011 Edition, givers gain, Multi-level marketing, referral marketing

43 Responses to “BNI and MLM Companies – The Real Scoop”

Bruce Kirby Says:
August 1st, 2011 at 7:00 pm
I’ve been a member of different networking groups and I find that what makes BNI special is this policy. Networking is about referring – I know someone who needs …. It’s not presenting a business opportunity. In my opinion, I attend BNI meetings (I’ve missed only one in six months) is to develop my VCP and possibly get a referral to a potential client. Great post!
Siddarth Rajsekar Says:
August 3rd, 2011 at 4:17 am
Wonderful post. It’s a very thin line actually, and as Ivan rightly said, the focus must be on the product/service during a BNI meeting, and how it can help an individuals’ business. The Business Opportunity side is ONLY an option when one’s built a personal relationship with a person or taking it on a 1-to-1 meeting. Hunting Vs Farming… a brilliant analogy! Thanks.
Mark Lackie Says:
August 3rd, 2011 at 9:24 am
I personally think that allowing someone to talk about the business opportunity in a 1-2-1 is still not very good. If you have 2 MLMs in a chapter, it becomes a race to do 1-2-1s to pitch the business opporunity. I have always worked on the premise that if a member asks the MLM person about the opportunity, then they are free to talk about the business opportunity. But, a person needs to inquire about it. Every chapter I am associated with has at least 1 MLM and we all know them. And there are some out there that will say that they are not an MLM and when you find out more info it really is. I always go to “If it sounds like a duck, it is a duck.” Anyway, I have found that having someone ask about the business opportunity, it really seems to a lot of the stress of the situation out. I am definitely saving this article though for future discussions with MLM members. Just my 2 cents.
Val Adaway Says:
August 3rd, 2011 at 9:34 am
I could not agree more. Great explanation.
Stacy Ryan Says:
August 3rd, 2011 at 9:41 am
I don’t think one can fully appreciate this policy until they have attended a networking event that did NOT have this policy in place! Promoting the product/service attracts potential clients, referrals, and potential reps; while promoting the business opportunity right off the bat -without establishing credibility and trust – immediately puts people on the defensive.
Rocky Clark Says:
August 3rd, 2011 at 9:52 am
Ivan, great article and very logical. Good products and services sell themselves. Your MLM customer will want to represent and be involved with the product or service if it truly full fills their own needs, no need to “pitch it”. We have “farmed” our whole business career and never have had to ask for the order.
Jim Nork Says:
August 3rd, 2011 at 9:52 am
I agree 100% with EVERYTHING Mr. Misner has said in this article. I have been a member of BNI for about 5 months. I go EVERY week to promote only the services my company offers. My focus on BNI is to grow my customer base and honestly, it has been the BEST thing I have done to build personal customer relationships that last. I am teaching this to my team in the US, Canada and Europe as well… Thanks for your leadership Mr. Misner.
Zoe Morris Says:
August 3rd, 2011 at 9:56 am
Thank you Mr. Misner for this great post. BNI was a great introduction into the world of business for me. I was a RN for years and after becoming an Ind. Distributor for a MLM Company, was the perfect fit to learn about the Referral Marketing World and building relationships. It has been the BEST possible thing I have done for my business. Through BNI comes 80% of my business. My last promotion to Executive in my company was !00% BNI Referral driven. As far as promoting the Business Plan at the BNI meetings it is absolutely not necessary. I can also say that my most successful Distributors came from Referrals from my BNI members, that I visited primarily for the service. It all starts with the relationships you build, and after you have a strong relationship you can share your Business Overview at a 1-2-1. I love BNI!
Carola Broaddus Says:
August 3rd, 2011 at 9:57 am
I agree with Ivan. My business is close to MLM model in reality it is not. However, it has been completely rewarding and a true joy to build the relationships, look for opportunities to refer, and give back to the chapter thru participating in leadership opportunites. The result has been the ability to educate on our products and create lifetime customers. Great post!
Sandra Bandfield Says:
August 3rd, 2011 at 10:04 am
Jordan is a mentor of mine and I so appreciate him sharing his views. I have been extremely successful sharing my product and obtaining distributors for my business through BNI. The product is always the lead for me. I help businesses appreciate their clients and market their businesses, resulting in greater referral based growth!

Thanks for the great article!
Gwen Says:
August 3rd, 2011 at 10:06 am
This is the most concise, easy to read/understand explanation of how BNI and an MLM business can work together. Thank you for this; it will become a reference for me in working with my BNI groups.
Andy Sawers Says:
August 3rd, 2011 at 10:08 am
This article hits the mark perfectly. I have built a great MLM business through BNI by using the guidelines here – it was tricky at times when other MLM-ers wanted to come in and promote their opportunities, but it has taken years for me to become an overnight success…
Jeff Donovan Says:
August 3rd, 2011 at 10:16 am
This post by Ivan regarding MLM’s and BNI is helpful and informative. As a chapter president and founder of a new core group, the analogy of farming vs hunting is what I teach and anyone who truly understands and implements the farming model will be successful in BNI. I did not read it in Ivan’s article, but my understanding is that whether an MLM or standard business, you have to be full time engaged in that business to represent the same in a BNI chapter. Many people do MLM’s part time and my understanding is that in order to be approved in a BNI chapter, the company/product/service you represent must be full time. Being full time is a good thing because with the right people, it lends towards attracting people who want to be farmers instead of hunters.
Jan-Evert Zondag Says:
August 3rd, 2011 at 10:25 am
The above post does not mention the wise principle to avoid any hierarchical relationships between members.
This applies to employer-employee relationships but, in my opinion, also to relationships within a MLM structure.

Here in Holland, a few years ago, one of our neighboring chapters crashed and had to be dismantled, partly due to the emergence of an internal MLM hierarchy (=MLM relations between fellow chapter members).

Currently, we are witnessing several other variants, including openly mentioned efforts to establish a multi-chapter MLM pyramid: MLM relations between BNI members of neighboring chapters.

As an active networker, I have succesfully encouraged many network contacts to explore and join various kinds of networks, including BNI.
But I strongly advise all networkers not to allow any hidden or published MLM hierarchy to threaten their multi-year network investment, including BNI.

Therefore, if and when you discover any of your networks, including your BNI network, to be infected or threatened by MLM hierarchies, please expose those hierarchies and, if necessary, pull the plug by leaving that network and ceasing to enourage your relations to join that network.
Dawn Lolla Says:
August 3rd, 2011 at 10:32 am
“It creates competition among all of the MLM-affiliated members as they are ultimately now selling the same thing—a business opportunity.”

This says it all. Great post!
daphne wynne Says:
August 3rd, 2011 at 10:40 am
Thank you for clarifying this Ivan, it makes it easier to explain to people. Having said that, Sendout Cards is a perfect adjunct to our BNI membership, and used wisely enhances our ‘givers gain’ ethos.
Jordan Adler is incredibly successful, and rightly so. We don’t, especially in this country, thank people often and sincerely enough, and it’s a perfect vehicle to do it. So much so that a ‘thanker’ immediately raises their visibility with little effort, so long as the appreciation comes from the heart. This is, of course, absolutely critical.
best,
daf, BNI 40ft, Dunlaoghaire, Dublin, Ireland.
Chris Largioll Says:
August 3rd, 2011 at 10:43 am
I’ve been a member of BNI for 5 years, The MSP training, and all the education one receives is so worth the time and effort to promote and network one’s Business. I’ve been to different networking groups and the BNI meetings are by far the most complete educational, and business building groups one can attend. When Mr.Kanak comes for a visit he keeps us focussed,and informed He’s a great informative speaker,and leader. Everyone who has a business or is starting up a business should visit a BNI meeting they are world wide. Networking and Word of Mouth is the most resourceful way to go. Giver’s Gain.
Jairam Gopalan Aiyer Says:
August 3rd, 2011 at 10:44 am
Very true; give to receive. What you sow is what you reap!!
Joe Davis Says:
August 3rd, 2011 at 10:46 am
I agree 100% with this message. I have been a BNI member for 4 years and I get very uncomfortable when a MLM member includes their opportunity message in their 60 sec and I usually take them aside and quietly tell them about this rule. This normally ends there. My business is Synthetic Lubricants and I have 5 ways to move product one of which is franchising to another individual with the business opportunity. The BNI meeting is not the place for offering the business opportunity. Products & services yes, and who do you know is the message. Givers gain works every time.
Monique Hodgkinson Says:
August 3rd, 2011 at 10:55 am
Even if someone has an MLM business, they still have a business that they are growing. Friends that I have that are part of MLMs tend to focus on building their relationships.I see that BNI can help owners of these businesses by giving them more opportunities to build longer term relationships and refine how they present their businesses.
Bob Pattavina Says:
August 3rd, 2011 at 11:05 am
I have read a number of these comments & they all ring the same bell for BNI, networking, givers gain equal success
Chris Sheldon Says:
August 3rd, 2011 at 11:40 am
This is why Mr. Misner is Dr. Misner, thank you Doc. This technique is truly how to build successful networks. The growth of any network being built is always contingent on it’s foundation which are derived of 2 very important ingredients which are relationships and products or services. Any network being built without one or the other simply will not last very long and will collapse.
Dr. Misner I want to thank you personally for teaching me this philosophy which ultimately made the difference of long term successful vs. having short term successful. Thank you sir dearly from the bottom of my heart.
Roy Says:
August 3rd, 2011 at 11:40 am
Unfortunately, completely missing is the bugaboo that chapter members are faced with: referring to an MLM their best customer (or worst, but their paying customer nonetheless), who, if like most, yes, most, folks, have an aversion to the MLM “pitch.” You know the rest. Maybe they like the vitamins, maybe they bought them, but the damage done by the “pitch” is assessed against the referring chapter member, with a changed relationship at best, the loss of their business at worst. Hurt feelings hurt. Hat tip to the earlier poster who noted the (no-longer-in-effect?) rule that MLMs had to be full time, also not mentioned in the article, and to the fellow from Holland who gave readers a cautionary look at the old rule of unintended consequences.
Rhonda Bolich-Lampo Says:
August 3rd, 2011 at 11:50 am
I’ve been in the Network Marketing industry for 43 years with the same company I might add. I’ve also been a BNI member for 9 years. By the way, MLM is old terminology and gives a negative connotation to the industry. Many network marketing companies have stellar reputations and unparalleled products or services. I think it is imperative for the Membership Committees to really take a close look at the company/person joining the BNI chapter. A lot of mishaps in chapters I would bet are due to “getting another member on the roster” vs. “protecting the current membership”. The Membership Committee really needs to check out the potential member and not get caught up in the hype of some companies and people who represent them. For those of us who are serious about our Network Marketing businesses we understand the givers gain philosophy and the hunting vs. farming mentality. It’s up to the Membership Committee to protect its current membership and uphold the BNI policies on every member.
Erica Says:
August 3rd, 2011 at 12:15 pm
I too have been a member of BNI for several years. This is a great article for members whom represent the MLM business. I will share this.
Phil Goodge Says:
August 3rd, 2011 at 12:16 pm
Thanks for addressing an important topic for every chapter. My only disagreement is encouraging a chapter member to use a 1-1 to pitch the business opportunity. I actually resented this when a member did this with me. I am in BNI because I am growing a small business and giving it all the time and resources I can to make it a success. I definitely don’t have time or money to invest in a side business. However, I think if someone is curious about the business opportunity of another member’s MLM business opportunity, it is perfectly acceptablet to ask about it.
Jan Seiffert Says:
August 3rd, 2011 at 12:41 pm
I joined BNI 4 years ago, shortly after becoming a Representative for a Direct Marking Company and I can attest that BNI’s philosophy, “Givers Gain” holds true. We build relationships which ultimately provides wonderful business opportunities for each of the members. We do business with people we like and trust one person at a time. Thank you for allowing me to participate in a wonderful Networking Group!
Ivan Misner Says:
August 3rd, 2011 at 12:55 pm
Thanks for all the great comments. Let me address a couple points that came up.

All businesses (including MLM) should be the primary business of the person in a Chapter. Nothing has changed with this.

I recognize that most people don’t like being pitched a business opportunity (MLM or not). However, the reason it was brought up in this article is that BNI can control what is done at a meeting. The truth is, it is almost impossible to control what is done in a 1-2-1 meeting between two individuals. That is the reality of the situation. Therefore, I strongly advise members to focus on the product first – THEN, if appropriate, discuss any opportunity once there is a business relationship with the company.

Last point – MLM is “old school”. Yes, I agree. I use that term instead of “network marketing” because BNI is sometimes confused with that phrase. BNI is not an MLM company. We are however a company that is based on networking with other businesses. I don’t like using the term “network marketing” because people who don’t understand the difference – often think that BNI is “network marketing” company (or MLM). We are not.

Keep the comments coming. This is good.

Ivan
Annie Sires Says:
August 3rd, 2011 at 3:18 pm
I have found that, in a well oiled and outgoing BNI chapter, one doesn’t want to share the business opportunity because that would damage the relationships that are engendered in the chapter.

Having been in both a very good and a very bad chapter, one that allowed this prospecting, and one that does not, and I will say that when I WAS in an MLM, one grew a “shark-like” (prey being stalked or the necessity of stalking other members just to get business builders) feeling and the other trust and respect.

I would much rather have the trust and respect and maybe some great customers than get the one POSSIBLE business builder and cause issues. Our chapter is one of the best (there are many) in RI and I am glad they have stuck to their guns about this.
Tim Houston Says:
August 3rd, 2011 at 5:13 pm
Ivan’s podcast (Episode 215) on this subject was great and this article is even better. As I just read this article, I received another request from someone in MLM looking to use BNI meetings to build their downline. In my reply I also redirected them to this aricle for further understanding of why we have the restriction in place.

Below are my comments from the podcast which are also applicable to this article:

Last week, someone emailed me asking about BNI chapters in our region. The person was in a well-known MLM company, I referred them to a chapter that a) there was an opening and b) it was the closest chapter to where they lived/worked. I also advised the potential visitor about the restriction on promoting the business opportunity as many times, it has been our chapters’ experience in our region that some people who belong to MLMs, when visiting, do not disclose in advance or when asked, that their business is MLM. During a Sales Manager Moment, they begin to promote the business opportunity, much to the chagrin of the other MLM members in the chapter.

Here’s what the visitor wrote me:

“Thank you but we were looking to get involved for the purpose of promoting the business opportunity. We are long past getting customers from our warm market. I don’t understand why BNI would not allow us to promote the business just because you have other MLM companies. This one is very different then most.”

I replied by citing the MLM guideline that Ivan referenced.

Like Ivan points out, sometimes people think BNI is an MLM itself (and this may have been the case with this potential visitor) or they believe it’s a forum like many non-structured, casual contact organizations that are proliferating in many major US metropolitan areas, that do not restrict membership to one per profession or do not restrict what people can say in these events when they are allowed to give a “pitch” or “elevator speech” (two phrases I absolutely loathe!)

I ended my reply with the following: “BNI is not your typical business networking activity. (i.e like a business card exchange). We are very structured and we are category specific in terms of our membership. Because of this and because our members hold each other accountable through our program, we are the largest and most successful business networking and referral organization in the world.”

The visitor followed up with a reply that said “Thanks but we need to grow our downline so I guess we won’t be coming to BNI as we see no value in an organization that won’t allow us to grow our business.”

Talk about hunting vs. farming and not getting it!

It’s my prediction that this individual will soon be out of the MLM business and will be proclaiming to the world that “networking doesn’t work.” It’s unfortunate that they couldn’t see the bigger picture and operated out of desperation. We have some amazing members who belong to MLMs in our chapters who do see the bigger picture and are having a fantastic BNI experience. The truth is, their downlines DO grow — in time — because of the reasons and circumstances that Ivan points out.

People like this potential visitor need to move on and members and chapters shouldn’t feel bad when they do! By passing them up or turning them down if they apply for membership with the wrong attitude, you are preventing a big mistake and avoiding a lot of headaches for everyone.

Tim Houston
Area Director, NYC Outer Boroughs Region
Best Selling Author of The World’s Worst Networker
Vaughan de Riggs Says:
August 3rd, 2011 at 8:36 pm
Hi
I have been a member of BNI in Melbourne, Australia since March 2000.
Over the years we have had a variety of MLM members. They have given very few (if any) outside referrals and have either transferred to other chapters and then stopped attending or have just complained that BNI members cannot see the business opportunity that they offer and stopped attending.
Encouraging MLM distributors will, I think, reduce the number of referrals given in a chapter.
Regards
Vaughan de Riggs BNI Melbourne South East
Richard Ong Says:
August 4th, 2011 at 1:30 am
I have indeed picked up several good pointers from the article
including comments from other BNI members..I am in the MLM business & have been a BNI member for a little over 5 years.
Over this period I have never present any business opportunities during the meeting proper.Having said that,like to seek clarification whether we can mention occasionally there is a business opportunity available without elaborating
on it after focusing on the range of products marketed by the Company concerned.External referrals (business owners)may like to consider a second business or (non-business owners) may like to start a business of their own..Your views please.
Sauren Ghosh Says:
August 4th, 2011 at 2:30 am
I have been a member of BNI Viking in Cheshire for 8 months now.

Initially, I refused to join for the very reasons that I later did join, that is for the weekely meeting and the committment to tap into the system.

Tapping into the system has enabled me to grow my Multi Level Marketing business significantly. Why? Well firstly you are meeting like minded people. Secondly, the constant flow of visitors are a constant opportunity for retail customers as well as potential partners.

BNI is enabling me to head for the highest level in our compensation plan.

Rock and Roll BNI.

Sauren Ghosh
Group Leader
The Utility Warehouse Discount Club
Steve Wiegert Says:
August 4th, 2011 at 3:26 pm
Hi Ivan,

You are so right! When I first joined BNI, I represented a Multi-Level Marketing company that sold air purifiers.

I never promoted the opportunity part of my business at BNI meetings.

I did well, marketing the products, and I also sponsored new dealers from the help of my BNI team.

Great article!

Steve Wiegert
Jean-Michel STEBER Says:
August 5th, 2011 at 5:56 am
Hello Ivan from BNI France.

This is a great article providing a good and clear vision on how to handle MLM members trying to breach the BNI regulation. Even if it the participation of MLM professionals is clearly explained in the internal rules signed by each members during application it was necessary to explain it.
Furthermore the fact that BNI US has officially endorsed SendOutCards as a partner Company was a little difficult to understand from here. Now it is clear and thank you so much for sharing this with us.
Wishing you all the best and hopefully see you soon in France.
Jean-Michel STEBER
BNI Regional Director
Paris France
Gary Guillon Says:
August 5th, 2011 at 6:09 am
I think this is a fair approach. I can see the problem if the business pitch is in the 60 secs. I agree that the 1-2-1 is a good platform for presenting a business opportunity, if the prospect is a business person, they should take some time to evaluate the opportunity (and any others being offered in a chapter) prior to committing to anything.
Patrick Roche Says:
August 5th, 2011 at 6:54 am
I’m glad I read this most informative article. I have promoted Juice Plus Health capsules through my membership which is part of what I do in a Clinical practice situation.I promote the clinical activities and the products to help to maintain wellness. I agree that BNI is a relationship business and any business that is not built on this foundation is doomed to failure. Unfortunately I have learned this over the years of experience. In Ireland today we all suffer from recession and scarcity of spending but BNI is a great lifeline. Patrick Roche – Ireland
Mac Says:
August 6th, 2011 at 4:33 pm
My BNI group had an aggressive MLMer (who was one of the founders of that group). He was ostensibly offering weight-loss products and counseling, but would invariably keep visiting new members until he could drop the MLM-bomb on them (no, not the first visit, but it was creepy how he would keep showing up). One new member bolted from the group and said she felt like he was stalking her (which is how it felt to me, too, in retrospect).
If someone is going to stick to their product/service, that’s fine, but most of the MLMs I’ve seen emphasize the “opportunity” and push building down-lines to make the promised income appear. The ends up with the MLMer mining the networks for new meat: first their friends/family, then work, the they start joining networking groups like BNI to mine their networks.

I suppose that it’s inevitable that MLM people will show up at any business networking opportunity, especially one with people who are just getting started in the business world. Perhaps it would be wise to include some education of new members on some fundamentals of MLMs so they can identify when someone is pitching joining one and make an informed decision about whether to join.

To date, I’ve seen precious little honest marketing from MLMs, and having new members stalked by wolves in sheep’s clothing (“independent business owners” who are just trying to build their downlines) drives away new members.
Suzi Buzzee Says:
August 9th, 2011 at 5:05 am
Any policy that makes a BNI meeting run smoothly gets my support. In-fighting can ruin a chapter, and recovery is very difficult.
Tristan Says:
August 9th, 2011 at 7:55 am
I see no problem in presenting a business opportunity in a 121. There should not be a conflict of interest as the ‘recruit’ already has a business to promote within BNI and that should remain his/her primary focus.

If they were to use BNI to then push the new MLM, then they should be questioning themselves about the level of commitment they are putting into their own business in the first place! That is not the responsibility of the original MLM member.
laina Says:
August 15th, 2011 at 3:00 pm
Message from the Editor:

There have been a couple attempted posts stating that BNI is an MLM company. This information is false. BNI is in fact a franchise that must meet all the same franchise regulations of any franchisor operating in dozens of countries around the world. An MLM model is substantially different than a franchise model (both legally and operationally). BNI has members who represent some MLM companies however, BNI is not now, nor has ever been a multi-level marketing company.

Laina Stilwell
BNI SuccessNet Editor
Darryl Greensill Says:
November 2nd, 2011 at 11:12 pm
Most of this should be covered during the new member interview, ideally before that while the person is still considering joining. A new member should have no illusions as to exactly what is expected of them in terms of infomercials, and any intersections they might have with other members’ businesses. There may be misunderstandings, as naturally happens from time to time when dealing with human beings, however something as fundamental as presenting products rather than opportunity should not be among them. Someone who can’t grasp that–and grasp *why* it’s the rule–shouldn’t be in BNI at all.

“Primary source of income” is another good selection point. Someone who has put in the hours to build a serious and sustainable MLM business, to the point where it *consistently* returns them profit equal to at least an average household income, is going to be a lot better MLM member and BNI member, than a newbie who thinks “BNI? Awesome, 30 people to pitch to every week!” They have credibility, they have sales and people-management skills, and they will understand that members are not there to be prospected, they are there to be *impressed*. The easiest way to impress fellow BNI members is to bring them quality referrals. (Ever notice that everything you “get points” for in BNI is something that helps fellow members get business?)

A retiree, housewife, student etc may show only their MLM income on their tax return, however this is *not* their primary source of income. Their primary source of income is respectively pension, husband’s job, and student allowance.

That does open up a grey area – some members are independently wealthy to the point where their business isn’t actually their primary income, however it is still “their job” as such, and as long as they have a valuable good or service to provide to BNI members’ clients I think it’s fine for them to be members even if, from a financial perspective, they don’t actually “need” to be in BNI. People like that are probably a net benefit to the chapter, even if they gained their wealth through MLMs.

Some members are just starting up businesses that are probably perfectly viable and in the natural course of things will become good businesses – in these cases though these people can show significant experience in the area of expertise or in related areas. This may apply to MLM-ers too, however statistically the odds are against it.

As others have said, the sort of person that causes problems for a BNI chapter as an MLM member is the same sort of person who causes the same sort of problems for their friends and family, and for their fellow distributors in that system as well. They will create a whole lot of noise and in a few months they quit anyway and say “it doesn’t work”, and will probably say “BNI doesn’t work” for good measure. They’re also the sort of person who would cause problems as a member representing any conventional retail or service delivery category. Better to set up the gates to keep that sort of person out, whatever their business.

MLM is definitely a business model that the MC ought to scrutinize more sharply than they would a retailer or professional service provider or something similar, however the person and their business model may be able to sustain that scrutiny and follow the rules, and if so they should be welcomed. I think it’s a red flag, not a stop sign.
Roseanne Dolan Says:
February 5th, 2012 at 5:43 pm
I think that a professional in the Network Marketing industry knows when to ‘pitch’ the opportunity in a one-to-one and when not to. It doesn’t take much to spot whether someone would have an interest and it certainly does not have to be the hard sell as implied above. When talking to others about your products or services we are taught in BNI that you should not sell to the room – this applies to one-to-ones as well, in my opinion. You are not trying to get someone to buy what you are selling but you want to help them to get you referrals. They cannot do that if they are not aware of what you do. I recently got an excellent referral from a member in my BNI to someone he knew that might be interested in the opportunity. It turned out that she was and a few weeks later she had a successful new business. The member says he knows it was a good referral as both I and this person are thanking him!

Personally I have reached the conclusion that I will not sign up fellow BNI members as distributors in my business – the simple reason for this is that if they do not do anything with the business and therefore obviously they don’t succeed with it then it becomes a negative. So I mainly promote our services and I so sometimes talk about the opportunity in one-to-ones but the info about the opportunity is aimed solely at people they know that may be interested.

Re Darryl’s point where he says that the income from MLM should be the persons main source of income – I honestly think that this is no-ones business but their own! We don’t scrutinise where other members get their income. In addition the fee to join BNI is far more that it typically costs to get involved in a network marketing business so if the person is willing to pay this it already shows they are serious about it.

Checking whether a network marketing company is a reputable one is very simple – check if the company is a member of the DSA (Direct Selling Association). It is an international organisation that regulates the industry.

Personally I think the same rules as regards making sure the person is professional, has integrity and buys into the givers gain mentality should apply to all members whether it is a network marketing model or not.

43 Responses to “BNI and MLM Companies – The Real Scoop”

Leave a Reply