Understanding MLM
54Why MLM?
Charisse Jones recently published an article in the Money Section, page B. 1, of the May 14th, 2009 issue of USA Today titled "Want a recession-proof job? Think direct sales". To view the article click here. The essence of the article is that more and more people are turning to home based opportunities than ever before. Why? Basically, there are two reasons. One reason is that people are beginning to see that in today's economic crises folks need to take charge of their own future. Relying on 401's, Social Security, and other related retirement programs are not all that secure as we once thought they were. And the other is that there is a never ending demand for Independent Marketers. Your submitting an application for distributorship won't be turned down. Anyone who is of legal age, and in most states that would be 18 years old, can apply for a distributorship that will be accepted. The demand for supplement incomes has never been greater, and in most cases, the supplement income is becoming the main income in most households. This being the case, then there are a few things that should be brought to light to enable you in making a healthy decision. Thus the decision for writing this hub.
Living Your Life To The Fullest
I feel it is only fair for me to begin by stating that I'm actively
engaged in the Multi-Level-Marketing Industry. Have been most of my life. I love the industry.
Why? I have not found many joys greater in life than helping some one else
achieve their dreams, and out of all of the multitude of opportunities that exist
MLM is the most viable vehicle of them all. Why do I make that
statement? The Multi-Level-Marketing Industry has produced more
millionaires in America than any other industry in America. And that statistic does not include the millions of folks who supplement their income through network markerting. Adding a personal note here, when you love what you are doing then it isn't really work, it's living your life to the fullest.
First Things First
With the air cleared between the difference of a pyramid scheme and a viable opportunity in the MLM industry perhaps we should take a look at where does one begin in setting up their home based business. First things first, if you are going to do business on the Internet then perhaps you should prepare yourself so that folks can find you on the Internet
The Internet has
made the world a much smaller place, and you do not have to go out and
sign up your neighbors, friends, and family. That is old school stuff. Think out side of the box.
It's a new world, with new technologies. Your business does not have to
be domestic; it can be international, right from your home. However, you will need the Internet to do that.
In your quest
for financial freedom the tool you will be using the most is the
Internet. In fact, it is the most powerful resource you have available
to you. The question you should ask yourself is do you control the
Internet, or does the Internet control you? Find out how to control
this valuable asset by clicking here.
The Difference Between a Pyramid and MLM
Unfortunately, the general population of the United States commonly links MLM to being a pyramid scheme and therefore turn away from the opportunity to change their life. The common misconception develops because both a pyramid scheme and a MLM venture are structured the same thus making it easy for a pyramid scheme to appear as a MLM venture. Folks, there is a huge difference between a pyramid scheme and MLM. The Federal Trade Commission (FTC) has clearly set the standard that enables us to distinguish the difference between the two. First, let us understand that the Federal Trade Commission (FTC) issued a
decision in 1979, In re Amway Corp., in which it
indicated that multi-level marketing was not illegal
per se in the United States. Multi-level-marketing is a viable alternative in supplementing your income. Distinguishing the difference between a pyramid scheme (also referred to as a ponzi scheme) and a legitimate MLM venture can be discovered in how the commissions are paid. If you are being paid to recruit someone else then you have entered into a pyramid scheme. Multi-level-marketing companies do not pay for recruiting. In multi-level-marketing the commissions you earn are paid on the products and/or services that are purchased by those whom you have recruited, not on the entry fee to obtain the right to become an independent distrubutor of a company. To fully understand this concept please follow the link: pyramid scheme
The 4 "C's" of Business
There
are an abundance of business opportunities on the Internet and most of
them are viable vehicles towards your success. So, how does one go about picking out the right company?
There is a measuring stick available and it is called the 4"C's" of business. Allow me to share it with you.
- The first "C" - Consumer Demand. Does the product and/or service have a demand? Is it something that the consumers will purchase on a continuous bases? Does it fit in today's market? Does the product have any longevity, or is it a "here today gone tomorrow" type product? Is it a product you can enjoy introducing to some one else? Are you willing to put your name and reputation on the line for it?
- The Second "C" - Compensation Return. What type of compensation plan do they offer? Does it give a fair return for your time and energy spent? Can you see yourself feeling comfortable presenting that income opportunity to someone else? Do you believe it will work for you?
- The Third "C" - Corporate Structure. Who's running the show? What experience do they have? How long have they been in the marketing industry? What type of reputation do they have? Do they have a visible headquarters, or is it a mom and pop store run out of someone's basement? Where are they headquartered?
- The Fourth "C" - Cash Flow. How long have they been on the market? What assets do they have? What is the company worth? If they have stock, what is it's market value compared to last year's? What was their annual sales last year compared to the year before? And the year before that?
When it comes time to pick your company remember this: Your reputation and your name will be on the line. The people you bring on board will be working with you for a long time and they will be counting on you for your support and expertise. You are getting ready to make a commitment that will effect lots of other folks and their future as well. Make sure you feel comfortable about that when you choose which company you want to go with.
Now that you have picked the right car, now what?
Just picking a
viable vehicle does not ensure your success.. You can have the most
expensive car in the world, but unless you fill up the gas tank, put
oil under the hood, start the car up, and have a destination, the car
is of little value. What does all of this mean? You need to have a business plan. And the best advise I can give you is don't re-invent the wheel. Be creative, be genuine, and be yourself, but don't spend a lot of money experimenting on how to market your opportunity. Prepare a business plan and stick to it. Most companies have a support system in place to help ensure your success. If they don't have one then you should be looking for another company.
The Perfect Timing
The saying on wall street is when the market is down buy, and when it is up sell. Take that same theory and apply to the networking industry. When the economy is down build, and when it is up reap the rewards. Right now is the perfect time to set up your own home based business. People all across our world are looking to establish secondary incomes. One could not ask for a better time to build their own business on the Internet. And MLM is the best answer out there. While other business are failing, ones we thought were pillars, like our banks, the auto industry, just to name a few, the MLM industry is growing each and every day. Do yourself a favor and check it out. And be aware of those who are attempting to promote their "new" concepts in marketing by stating that the MLM industry is dying. Folks, the MLM industry is a multi billion dollar industry, and it is legal, and it is here to stay.
Need Help?
Folks, as I stated in the beginning, helping people to help others is what life is all about. There a few joys greater than helping someone else finding a happy place in their world. And that is the essence of Multi-level-martketing. It does work, and it is not for every one. But if this hub has sparked a little light and you want to see how it is done then simply click here I have put together my entire Internet business for less than what it cost me to take my family out to dinner.
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