What is Network Marketing? Why are there over 15 million Americans involved in this industry? Why are people like Robert Kiyosaki, Brian Tracey, Bill Bartmann, Donald Trump, Bill Clinton, Warren Buffett, and even Maya Angelou strong advocates of the Network Marketing/MLM industry? And most importantly what could be in it for YOU!
I’ll keep this brief and do a Q and A format on several of my most asked questions….
Q: Is MLM a pyramid scheme?
A: This is my favorite question I’ve gotten from educated, critical people so I know it’s a legitimate concern. Most peopleusually thinks MLM is a pyramid, a scam, or a ponzi scheme. I’m always fascinated to know what this particular person thinks a pyramid is to begin with…I’ll usually ask them just that, and often times the person asking the question doesn’t even know what a pyramid is…Go figure. In short, a pyramid is illegal. And refers to a way to make money without the exchange of a substantial product. People invest money in the hopes and dreams that others will do the same and in some way they’ll get their money back plus a enormous bonus. On another note, often times, people see the triangle like structure of a MLM or Network Marketing pay plan and because it looks like a pyramid or a triangle, assume it’s an against the law pyramid. Every company structure looks like a pyramid. For example, Microsoft. Bill Gates would be at the top, then under him, VP’s, beneath those people middle managers, and at the base staff employees. Can you picture it?
The government sued Amway in 1979, they spent 4 years trying to prove that Amway was a pyramid…and LOST! If you get rewarded for solely bringing in new team members, that’s illegal. However, if you get compensated when you bring in a new team member and he/she buys product, that is 100% legal. Because you would be getting compensated on the product, not the person. Bottom line is that you must be rewarded for helping your company bring a product to the marketplace that is legitimate and that people want. Then be able to recruit and coachnew people to do the same.
Q: Is recruiting the main source of income in Network Marketing??
A: It’s not a secret that recruiting successful entrepreneurs is the fastest way to a six figure income, but it’s not the only way. A distributors compensation must be based on sales of products or services and not on how many people they have in their team, also known as, a downline. I like to use the paradigm of an Agent-Broker association in a Real Estate environment.
A Real Estate company like Century 21, for example, will partner with Brokers. Brokers are then able to use that companies name, though each office is owned and operated independently. Which is the same as a distributor in an MLM company. A associate owns her own business and operates independently. A Real Estate Broker will need to recruit other agents to help sell homes.. Agents are not like employees, they only get paid if they sell something. Similar too a network marketer. the Broker will retain a percentage of the Agents commission in exchange for providing a place to do business.. Most Network Marketers work at home and take care of their own office and advertising, but are offered tremendous on going training. There are some Real Estate companies that will also offer an existing agent an extra commission if they are able to recruit a new agent into the company. Interesting right?!
No ones writing articles about whether or not Real Estate brokers are a scam….
No one’s prancing around the city saying…”Did you hear about XYZ Broker, she’s running a pyramid over there, recruiting all those agents..”
And this where it gets interesting. Would a Broker have any good reason, except that she’s a really great person, to teach all her agents to become profitable Brokers. If she wants to stay in profit that probably wouldn’t be the best idea. Would a Broker let you in on all her secret weapons and share her pricey leads with you? I never got that help, you see creating other Brokers would be adding competition to an already intense marketplace.
In Network Marketing/MLM a TEAM atmosphere is crucial for success. You are compensated on individual results and the efforts of others by selling products or services, it’s called leverage. You partner with a reputable company who has a product you love, and would buy on its own. Then you’d get instruction and attain some customers. After you’ve done that you’ll recognize that it’s time you get some help…it’s time to grow. Just like any other business would. You’ll teach your new associates, teach them everything you know and when their success builds they’ll do the same for the people they know and what to help.
Contrary to popular belief there is no rank system is MLM. Your earnings is not based on where you got in. Nothing like a Broker, who will more times than not be making WAY more than his agents. Because in MLM compensation is based on sales, someone I bring into my downline has every chance to make more money than myself, by simply out selling me and teaching more people to do the same. Pay attention here…This is the beautiful part! Can you see it?
If you were to sponsor someone that produces more than you, GREAT! This is the beauty of this business you’re one person away from a 7 figure year
So you can see how recruiting becomes an easy progression. It is vital, but not the only part of your business. You can also see how Multilevel Marketing is a perfect business modelfor the person that desires to help and motivate others. What better environment than to be able to be sizably rewarded for the people that you coach to be better than you. Zig Ziglar said it best, “You can have everything in life you want if you will just help enough people get what they want.” I know this is the foundation of Multilevel Marketing and why I am so proud to be a leader in this amazing industry. The network marketing industry has allowed an ordinary girl, that came from a countrytown, who was pregnant at 16, abused and lost in the world, the capability to transform her life and build an empire that will last for generations.
If you’re serious about being an entrepreneur and taking back the reins in your life. I’d highly recommend the learning all about Network Marketing/MLM industry. There’s is no other business opportunity, where you can make “sit on a beach everyday” kind of money! Get proper training that will put your MLM business into profit quickly and learn everything that I’ve done to go from ZERO-HERO in less than 2 months, visit my site, and click here to register to learn how to prosper in whatever MLM business you’re in.