July 12, 2009

Network Marketing and MLMs

I am working full time on my income and part time on my fortune.

-Jim Rohn

My deepest apologies for missing Friday's blog. I was so very busy I don't think I slowed down until 3pm on Sunday. I thought to make up for it, I'd give you a bonus business round.

Above is one of my favorite quotes for Network Marketers. Multi-Level Network Marketing businesses has opened up the door to financial success to anyone who puts forth the effort to work for it. We can work part time on a residual, secure income without giving up the day job (or night job) that pays the bills. But many of these businesses are often scoffed at by many. I'm here today to reconcile a few misconceptions of MLMs.

The pay structure often takes the form of a pyramid, but it is not, not, NOT a pyramid scheme. A pyramid scheme is defined as " a non-sustainable business model that involves the exchange of money primarily for enrolling other people into the scheme, often without any product or service being delivered" Pyramid schemes are illegal and are usually busted within the first few months of being started. MLMs are legitimate companies offering legitimate products.

Having cleared that up the next issue I hear a lot about is that Network Marketers have to constantly hound their friends and family to join their company. Not true. If you like a product or service you sometimes will tell your friends and family about it. Ever recommend a shampoo, restaurant or household cleaner? That is exactly what they are trying to do, only they get paid if you act on their recommendation. They have found a product that they really enjoy and believe in. They primarily want to share a product with you and secondly want to share a way for you to make money, too. All that they ask is for you to give them a little bit of your time to listen and then if you are interested to let them know. How would you like it if your best friend found a way to make an extra $500 a month by working 5 hours a week, and didn't share it with you? How about if they ended up making $1000 or $5000? You would be upset. All I ask of you is to listen, you never know what opportunity may pop up!

Now onto the fun parts. We all know how a regular job works. You get paid X amount of work for X amount of hours. Period. You work, you get paid, you don't work, you don't get paid. Jobs are a secure source of income. You could own a traditional business and offer a goods or services. You make X amount of money for X goods or X amount of service. Once an item or service is sold, you get paid and that's the end. With MLM's you usually get paid X amount for selling goods or services that are needed on a regular basis, then you get paid Y amount for items or services that are used throughout the year. Amount Y will grow and grow as you sell more of the initial item or service.

It's like if I asked you to work 10 hours a week for $1 and hour. Then for each week you work I will pay you $1 a week forever, and I'll compound it (1st month $1, 2nd month $2, etc). I'll even give you a raise, after the first year I'll give you $2 each week, $3 for your third year. and so forth. At the end of the first year you would be making $92, 2nd year would be $144, 5 years $768, 10 years $3316. You are still only working 10 hours a week, but now you are earning $3316 a month, best of all, when you stop working you will still get a check each month for $3276. That is the wonder of residual income and building income levels. You may have to work for next to nothing for the first few years, but when you apply yourself consistently over time, you can yield great, long term results.

Going back to my favorite quote, there are many, many reasons for dedicating some of your time each week to building a solid residual income, taxes, security, independence. Everyone has their own reasons. There is hardly anything that you currently use and enjoy that you can't build a business with coffee (http://www.markethealthycoffee.com/), non-toxic home products (http://www.wealthandwellnessteam.com/celticblessings ), personal fitness (http://www.teambeachbody.com/healthymoms) , scrap booking, make-up, etc. You should find something that you really believe in and enjoy, then go for it! Nothing beats having the money and freedom to pursue your dreams.

You can always contact me and we can talk about what your strengths and interests are, if I can't help you, I can point you in the right direction.

Thanks for listening and....

Have a Blessed Day,

Brandy Deming


1 comment:

  1. Very well said and so true. I have never had to ask anyone to join my Scentsy team. Once people see Scentsy's quality product, they either want to buy or join. If you have a quality product, the product sells itself and your business will grow from there. Katie Jones ~ www.Addicted2scents.com