What Is MLM?>


Over the "years the terms "Multi Level Marketing" or Network Marketing" have become synonymous. I could use a stack of space and give you a history of MLM and how it has evolved over the years, however, for the purpose of brevity I prefer to give you a bottom line explanation.

MLM is a method of bringing to the consumer a variety of products or services through a network of independent representatives who refer customers to MLM company that provides those products or services.

It is in human nature to boast the good things we have come across.
For instance, you do refer your friends to the restaurant you have recently visited, or to the hair dresser, grocery store and so on.

( Do they pay you when you refer customers to them?)


All companies have their advertising budgets. Non MLM companies pay literally millions of dollars for TV, glossy paper and other forms of media advertising to promote their goods to consumers. MLM companies have their advertisement budgets too, but they pay those dollars in commissions and override bonuses to those who refer customers to MLM company.

For instance, you refer Tom to the company and Tom refers Nicole. Nicole will not have been referred unless you referred Tom. So the MLM company pays you on both, Tom's and Nicole's purchase. It is much as a family tree where as a result of your efforts a family multiplies and develops generation after generation, (level after level) and you receive the reward when they purchase products. These multiple generations (levels) is where term "Multi-level" comes from.

IS MLM A PYRAMID SCHEME?

Multi Level Marketing is not a pyramid scheme.
Pyramid schemes have been illegal for years. This is really a non - issue nowadays.

However, every now and then unscrupulous individuals start a pyramid or "ponzy" scheme cleverly disguised as MLM even though the penalties are severe. Here are a few basic ways to recognise a pyramid.
There is no product or service offered for resale.
There is a requirement to pay a fee to participate in program (Membership fees, computer and bookkeeping fees etc.) in order to receive the right to be paid bonuses or recruit others.
There are huge inventory requirements.
Bonuses are paid to your sponsor from your entry fee.
Incentive offered to buy product bulk. Product or service offered generally have no perceived value except for those who are investing for the purpose of getting others to invest.
The focus is on selling initiation fees rather than moving real goods to real customers for realistic prices.

IS MLM A LEGITIMATE AND CREDIBLE BUSINESS?


Multi Level Marketing is definitely a legitimate and credible business. It's just like any other business, the people running it make it credible and legitimate. As to the question of legality,

" ALL BUSINESS ARE CONSIDERED INNOCENT UNTIL PROVEN GUILTY"

There are Commonwealth, Federal, State and local laws which regulate MLM and non MLM business. Contrary to popular belief, Trade practice and Consumer affairs Commissioner and other government officials do not approve of any company's business plan. These authorities do investigate complaints and administer laws governing companies in their jurisdiction and they do pronounce their disapproval. But just because a company is under scrutiny, it doesn't mean it's product or business is bad. All the major MLM companies have survived painful legal trials to become respected names in the industry. There are literally hundreds of legitimate MLM companies, some who have been operating for more than two decades; i.e., "Amway", "Marry Kay", "Shaklee" and many more. You don't create business empires like these, with billions of dollars in annual sales, based on some sort of scum.
You do it by providing unique, high quality products to clientele you've educated to the unique marginal differences of your products.
And you do it by paying generous rewards to independent representatives, proportional to their efforts.

IS MLM A "GET-RICH-QUICK" RAGS TO RICHES BUSINESS?


Although thousands of people have become wealthy in a relatively short time, due to the power of multiplication, MLM is not a "get-rich-quick" business. It is a 'GET-RICH-SLOW" business for most people. (Is Alan Bond and Mr. Scase doing it?)
It takes a lot of hard work, patience, a strong desire to succeed and a NEVER-EVER-QUIT attitude. No business is easy and MLM is certainly no exception.


WHY MLM?

Multi Level Marketing offers an average person (95 % of us who desperately need financial security) the opportunity to start from scratch, with no money, no experience, no training and begin their own home based business that can start producing an income within a matter of days. Companies have fewer start-up costs and fewer employees required in both the short and long term.

But the bottom-line opportunity that exists for you is that you can receive a financial reward based on the principle that it's better for you to have 1% of efforts of 100 people than to have 100% of your own efforts.

DOES MLM MAKE EVERYONE SUCCESSFUL?



Most definitely not. The mistakes are being made in any business, including MLM. Choosing the wrong company, for instance, can be a mistake but never a fatal one. However, the following mistakes are the major pitfalls.

  1. Falling for the hype of overnight riches.
    Most people think they are going to get rich quick in MLM. It's the answer to all their financial problems and dreams. But getting rich just does not happen to 95% of people who get into MLM. When it doesn't happen quickly, they get discouraged and quit. For the remaining 5% it will take 6 - 15 weeks of hard work to have a sizable income from just one program.
  2. Reinventing the wheel.
    Most people do not promote their business in a way that others can duplicate. They want to be creative, inventing new ways of recruiting, new brochures, new advertising etc...
    What a waste, especially when they could be busy referring customers and making money.
    Furthermore, duplication is one of the major keys of success in MLM. If other people can not use your methods for themselves, they will not be successful, and the group you started will dwindle in numbers and eventually disappear.
    For example, many people rent offices with good furniture, fax, several phones etc. , and bring their prospects to their office to recruit them. Then they wonder why their prospects do not sign-up or do not stick with the program. The prospect believes they have to do the same thing to be successful and the average person just can't do it.
  3. Lack of patience and persistence.
    After joining a program most people are so enthusiastic and exited the first few days, they believe everyone they talk to will join their program. I mean, if they joined it, it's got to be good. Right? And if they joined it, everyone will want to join it. Right?

WRONG!

All too often people make these sort of assumptions, immediately go out and talk to everybody they know. After about a dozen rejections, they give up and quit. For most people it is very difficult to maintain enthusiasm for a long period of time. But if you get to know the benefits of the products or services the company is offering first, and develop a personal attachment to it, then you can always have something to talk about and you will know the facts rather than be enthused by hype and false hope of getting rich quick. Over a period of time you should build your business to the point where cheques you are getting regularly, generate a real enthusiasm and excitement necessary to carry you on to the BIG BUCKS.

And remember, duplication is the key factor. Do only the things your people can duplicate. If you use the products, they will. If you talk to people at every opportunity, they will. If you are regular at the meetings with guests, they will be. And if at first do not succeed try again. Thomas Edison once said:


"I have not failed 10,000 times. I have successfully discovered 10,000 ways that did not work"


SOME FACTS ABOUT MLM


I have always been a strong advocate of MLM. I firmly believe that if it is done ethically it can be, for many people, the only way they can ever become wealthy.
Just how many other vehicles can you think of that involve less than $0.00 start up capital, can be pursued part time, involve no major financial or emotional risk, and require little or no experience or special skills? Perhaps a lottery or something like that.
However, when it comes to the numbers that are presented in far too many opportunity meetings and promotional videos I have seen, there are some assumptions made that are blatantly false!
Not to say the information itself is false, for it rarely is but it leads unknowing prospects into accepting certain theories that do not apply in real life.

SOME FACTS ABOUT MLM, For Example


You have probably heard the "If get five and they get five...." demonstration.
It proposes that all you have to do to be successful in MLM is recruit "only" five people who get "just" five others who also get five and so on.
By the sixth level you will have 15,625 people they say. But of course everybody realises that it sounds impossible so they bring in a high attrition rate of, say 90% so it leaves you with 1,562 people who, let's say do only $100.00 a month.
Even if you are paid a relatively low 10% commission you will still be making over $15,000.00 per month!
Then they tell the unwitting prospect that many people will sign up dozens of people and some will sale hundreds of dollars worth of products per month so this all will seem conservative.

So, you ask, what is wrong with this picture?

First of all, it assumes that all 15,625 people will get in before even one gets out , then all 90% drop out at once. If you are going to assume a 90% drop out rate, you must assume it from the beginning. That means that at least four of your original people are going to drop out! In reality, the average "active" percentage of most MLMs is about 25% with 25% pursuing it on a limited basis, and the other 50% dabble and drop out quickly.

Please, do not misunderstand. I do not question the monthly income figure, for it is quite realistic for someone working the business full time who's been doing it a while. It is the fact that so few recruiters ever tell you that you may have to sponsor 20 people to find five that will go out and find five others. And they'll have to do the same.

Another BIG with this, or any, downline projection, is that it assumes that your group's hierarchy is PYRAMID shaped. Here is a surprise. Not only are legitimate MLM companies not pyramid schemes, their structure is not even pyramids.

THEY ARE DIAMONDS!!!


Think about it. When you get your very first distributor on level seven you will probably have, who knows, 35 or so on your level four and probably more than that on level three.
To confirm this "theory" as some people still like to call it, we of YES Company have asked our (very sophisticated) computer to print out a hypothetical genealogy report where each distributor signed up one person per month, for 12 months. Sure enough, the moment you get your very first on level seven, our seven level genealogy contained most distributors on level four and three.

(PLEASE SEE THE TABLE)

Of course, as your organisation grows, and your diamond expands, the widest point could eventually fall on the bottom level of the compensation structure. But there will still be a "keel" tapering off several levels below the last level of the pay plan.

But this is not the end of "funny stuff" that goes on.

Some MLM companies load up the highest bonus rates on bottom levels. You are supposed to think you are getting the greater bonuses on the most number of people.
Actually, for most people the greatest number of distributors will be somewhere in the middle levels. Also, watch out for programs that pay out on more than seven levels. The more levels, the less commission is paid on each level, including the ones where realistically you will have the biggest number of people, between levels three & four.

The company can only pay out so much in commission.

The misconception here is that a pay structure paying 5% down 10 levels would be more lucrative by way of extra levels of geometric progression, than one paying 10% down five levels.

In reality, for the vast majority of distributors the latter pay structure would benefit them more.


Most distributors never even see level eight.

By the same token, a six level pay plan of 5% 5% 5% 5% 5% 30% would not be, again for the average distributor, as rewarding as the one that pays 30% on level four.
As for you big heavy hitters out there, with downline 50 levels deep, let's face it. If you fill out a downline of seven levels deep to the extent of losing any significant commission on level eight, or lower, you are going to be so filthy rich anyway that it should not make a lot of difference, should it?? As Charlie Sheen said to Michael Douglas in "Wall Street": "How many yachts can you ski behind"?
Besides, I believe that compensation bonus structure should be designed for the other 99% of MLM participants.

Another peeve we have is with companies claiming extremely low attrition rates.
I have even seen claims of less than 7%. Even if it was correct, notice they rarely tell you over what period this figure is based on. Is this 7% a month? A year? Over the life of the company? Also, many companies will include wholesale product users who are on minimum automatic bank debit system as "active". I really do not think that someone who never retails product or recruits even a single person should be considered an active distributor .

This may be a good example of why Mark Twain once made a comment,

"There are three kinds of liars - liars,
damn liars and statisticians.!"

If you torture the data long enough, you can make it say anything.

I am not suggesting here that you go out and find a program that does not present itself in this manner, or switch from one that did. Many of this tactics are perpetuated by independent distributors, not the company. And many are doing it unwittingly. They are simply passing on what their sponsor told them.
But please, do not call up your sponsors who got you into your present program using the "five get five" scenario and call them dirty names. Do what needs to be done far more often in this industry.

EDUCATE THEM!
And when the time comes for you to present your MLM opportunity to your prospects, present the numbers in a more realistic fashion. They will respect and trust you for it.

Now, take a look at our logo. It represents a DIAMOND TREE.

Prosperity and a true representation of MLM business.

IS NETWORK MARKETING THE BUSINESS FOR YOU?

Did you ever ask yourself this 100,000 dollars question?
Well, If you're looking for a simple-to-operate and highly profitable home-based business, you bet it is...

How so ?

According to Professor Stanley, (I don't know who he is) there are more than 900,000 millionaires in America today: 80% of whom are self-made. Almost all of them, he says, are involved in one way or another in networking, and many of them are earning significant six-figure incomes from Network Marketing. While the US household population is growing at a rate of only 2% each year, according to Professor Stanley's research, the millionaire household population is bolting along at an astounding 20%.
Today, he says, one in every 75 households has reached millionaire status.
(In America that is)
At that rate, there will be an estimated 18,000 new millionaires in the next 100 days!
If at least 20% of them come from Network Marketing, that means we're right in the middle of the most explosive era ever in Networking History!

YES! Network Marketing is one of the most promising income opportunities in the world today! It's an opportunity that has been tested and proven for more than 40 years, and today it represents a multi-billion dollar industry which is successfully providing income for tens of thousands of Australians from all walks of life. Almost anyone who has a true desire to be successful can do so in network marketing. Some of the biggest money earners have been relatively unsophisticated, non business people.

In fact, some of the most successful distributors in the industry never even finished high school. And most of today's successful distributors had little or no money for investment when they began.

Many people have gone on to become totally financially independent in five years or less and some of them have actually been able to completely retire in as little as 1 to 3 years with incomes of $50,000.00 per year .
Even though this industry is more than 40 years old and already distributes several billion dollars of goods and services every year, because of the growth explosion that is now under way and the fact that the vast majority of people don't even know what the terms Networking of MLM stands for.

I'm convinced that the time to get started in a network marketing career has never been better than it is right now! As an independent distributor, you have an unparalleled opportunity to build a marketing organization by simply sharing the opportunity with a few committed people who are willing to go out and reproduce themselves by sharing the same opportunity with another generation of equally committed people.
As this process continues, through five, six or seven generation (levels) in some companies, you'll be earning commissions and bonuses from the efforts of everyone in your entire organization. Soon you'll have many hundreds of dedicated people in your organization. This is why some people in the Network Marketing industry today are earning as much as $10,000 to $100,000 per month!

YES! I said per month, and even more!
In many cases distributors have been able to earn five figure monthly incomes within one year of joining a network marketing company.
I personally do not know of any other income opportunity which offers that kind of potential.
Do you?...

Now, think for a moment.
A Doctor studies for eight years to gain knowledge of his profession and then serves as an intern prior to practising on his own. It's the same for a Lawyer, an Engineer, a Computer Scientist, or most any other profession you can name.
Even a brick layer or carpenter must serve an apprenticeship before he begins earning a full wage if he can find a job. Yet, not one of these professions offers the possibility of retirement in one to three years, or of financial independence in five years or less. Is it any wonder why so many Doctors, Lawyers, Computer Programmers, Teachers, Housewives and people from all walks of life are discovering Network Marketing?

It is the only business I know that lets you multiply your efforts so that your income does not depend entirely on what you do, but is enhanced by the efforts of every member of your marketing organization.
Each of us has only so many hours in a day.
Therefore, the only alternatives which most people recognise for increasing their incomes are
(1) to work more hours (including a second job) or
(2) switching jobs to earn more money per hour.

We in the Network Marketing industry have the wonderful option of the ultimate in time leverage through the principle of duplication of efforts. Network Marketing is a proven system that utilises the power and resources of many people by exchanging concepts and directing the talents and abilities of these individuals toward a single worthwhile goal. What other business do you know that is legal, ethical, and you are paid exactly what you have earned.

I think you'll agree with me that there is no business on earth like the Network Marketing business.

So let's go and sell network
like it has never been sold before!!!
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