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Multi-Level Marketing (MLM) is a popular way to be in business and make money. Some work well but others can be a scam.

Network Marketing

What is Network Marketing

A Network Marketing Business, also known as Multi-Level Marketing (MLM), is a profitable business forum to move products and services by "word-of-mouth".  The stability and success of a Network Marketing Business is dependent on the loyalty of the distributorships and consumers:

  • Loyalty comes with belief in the product line and the company's satisfaction guarantee; 
  • Loyalty comes when people have an ability to duplicate themselves and their upline--the key principle to success. 
  • Loyalty comes with people who are wanting to change situations in their life AND HAVE THE OPPORTUNITY DO IT. 
  • Loyalty comes with people who earn a lot of capital and can be their own boss. However, they may have little money now to start a business, they have little or no business experience, or they have not had much business successes in the past. In these situations, they can appreciate the benefits of MLM.
  • Loyalty comes when people make money; period.  Honestly, the only way to make good money in MLM (that is lasting) will be people consuming products and sponsor distributorships. 

What Happens to People Who Do Not Consume Products and Sponsor? Distributorships will not progress when they are not using the products and grow their business through new sponsorships.  They will not progress, they will not make much money, and they will not achieve the higher levels of bonuses and rewards if they do not actively promote their business. 


It's a shame too, because working smart and being honest in your dealings create good money.  People will want to know more about your business and will work with you.  When you instill "goodwill" in your associations and make people want to know more about you and what you do, the easier it is to get people to listen to what you offer.  

Why Do Network Marketing

People join MLM because they believe they can make a lot of money and become financially secure.  However, what sometimes happens is people don't want to sell products (not understanding that a happy consumer sells the products) and just want to sponsor, sponsor, sponsor.


MLM works best and people stay within FTC regulations when they personally consume the product and sell to at least ten retail customers. 


There is NO success in Network Marketing (MLM) without sponsoring, without selling products, and without selling the plan. If people do not use the products, they will not know how the products work or understand the benefits of the product.  

  • How can you ask people to use your product if you don't?
  • How can you ask people to get a customer membership and go online to shop for themselves if you do not use the products?
  • How can you ask people to join you in a distributorship if you do not use the products, and if you do not have faith in the company or the products?

 Mistakes are made in Network Marketing just as mistakes are made  in any business that offers rewards and/or failure.


Success and failure are both part of the nature of the beast.  However, it does not mean failure and disappointment have to be defeating to you; especially when you follow someone who knows how to do it correctly.


I am personally proof that MLM works but I am also proof that it fails. This is why I can be a good mentor for anyone who is doing MLM, no matter the Network Marketing Company you join.


In my opinion, I believe the Amway business is the best and most rewarding MLM opportunity (WHEN DONE CORRECTLY).  Amway has been around since the 1950's so they must be doing something right.  They've weathered the storms that plagued them in the 70's and 80's and have kept up with the demands of our times; as such, many MLMs have prospered. We can discuss this later in person.


Click on these links to watch a few great videos explaining why people do Network Marketing:


 HOW TO GET RICH-Rich Dad Poor Dad by Robert Kiosaki-Animated Book Review.  


How to Create Passive Income-Rich Dad Poor Dad by Robert Kiosaki-animated Book Review


Financial Choices / Cashflow Quadrant-Rich Dad Poor Dad by Robert Kiosaki-animated Book Review

 

 I would love to hear from you about your experiences with MLM's.

Network Marketing Failure

First of all, you must recognize that you are joining a Network Marketing or Multi-Level Marketing (MLM) business; demanding you sell products that people use, need, and want, that you must use yourself, and that require you to recruit others. Not staying within the FTC guidelines is asking for trouble and failure.


Second, you recognize MLM also offers the ability to attain higher levels of achievement and rewards through duplication by promoting the business plan and product line.  


Third, you must recognize the key to succeeding in Network Marketing is how well you stay in compliance with FTC standards, which is spelled out on my blog.  This is crucial or you will fail quickly and quit.  This is what gives a MLM company a black eye when it is so unnecessary. 


The correct type of people you want to attract and sponsor into your business will NOT be impressed with flashing cash around and driving expensive cars. They WILL NOT WANT TO BE associated with people who are false in the way they represent success. People know who is really successful and who is faking it. They are impressed with people who dress neat and are professional. They are attracted to people they like and want to follow.


FTC wants to see product users and capital coming from there and not mainly from recruiting. People you talk to want to see that 

  • You offer value, 
  • You provide value,
  • You teach value and value pays well,
  • There is value in buying from you, 
  • There is value in your skillset. 


A GENERAL RULE IS THIS: PEOPLE  REJECT HYPED-UP ADVERTISING; ESPECIALLY WHEN THE FOCUS IS ON THE MONEY THAT IS  SUPPOSEDLY MADE:  "IF IT SOUNDS TOO GOOD TO BE TRUE OR TO BELIEVE, IT GENERALLY IS NOT TO BE BELIEVED.

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