What's REALLY Wrong with Network Marketing?

Multilevel or "network" marketing (MLM) is a way of organizing people who buy a product. Networking has worked in place of conventional advertising for over 60 years--- for such well-known companies as Shaklee, Watkins, Fuller Brush, Amway, Mary Kay, Avon, Herbalife and others--- and has created many millionaires who would never have been rich otherwise. So why have you never made money?

Either you've never done any real network marketing, or you've spent too much time talking with the WRONG people. You've either been involved in illegal pyramid schemes, or tried to show the real deal to negative dream-killers who sucked the enthusiasm out of you--- telling you "those things never work". But those things DO work, if you find a legal one and build a group of customers who pay off for you.

How to pick a winner
Here's the way REAL network marketing works:

You buy product from a company at below retail cost. You get the discount because you're making the purchase directly from the company; no middleman or advertising costs are involved.

You also become a member of the company's network of customers. You help spread the word and build a group of other customers. You earn a profit from your direct sales, plus a percentage of the sales of other customers in your group. As your group grows, your income increases, because there are people working under you and you're also earning profits from their sales.

The concept is simple enough, but misunderstanding keeps most people from ever making any money.

If someone approaches you with a network marketing deal, ask the following questions:

1. What is the product? There must be a real product involved.

2. Do I like it? Would you buy it even if there was no money-making opportunity involved?

3. Do I have to buy product to participate in the business plan? The ONLY reason to buy any product is because YOU WANT TO. Don't let anybody talk you into buying something just to make money. Only buy what you can afford to sell, give as samples, or keep for your personal use.

4. Can I make money without recruiting other members? There must be a product that people want and are willing to pay for so you can earn money. You don't have to be a customer to be a member. You don't have to be a member to be a customer. You can be a customer, a member, or BOTH.

What NOT to ask:

1. Where is the company located? A non-issue. Anywhere in the continental U.S. is fine, as long as they can ship product and mail checks in a timely manner.

2. How long have they been in business? Who cares? 80% of ALL companies in this country will be GONE or changed in 5 years--- including the one YOU work for at your job right now.

3. Are they debt-free? No company is. Anything that's not paid for in advance is a debt--- including utility bills and commission checks. "Can they pay their debts?" is a better question.

4. Who's running the company? It doesn't matter. You can tell a tree by the fruit it bears. People come and go, but you can judge a company by its products. If you love the company but hate their products, you're not going to use them, let alone recommend them to others. Promote the products, not the company. You'll probably never see the corporate headquarters, anyway.

If you're looking for a "red hot" MLM opportunity, you really only need 3 things:

1. A product that people want and are willing to pay for;

2. A FAIR, LEGAL, and ETHICAL compensation plan;

3. A way for you to get money when you earn it.

What people are willing to pay for is up to them. $30 for a bottle of shampoo is legal as long as people are willingly buying it, just like $130,000 is a legal price for an auto even though there are $30,000 models available that will pretty much do the same thing. But a dealer can't sell a particular car for $130,000 that normally sells for $30,000; likewise, you probably wouldn't get away with selling a store-bought bottle of shampoo for $30, but you can sell your own brand for as much your customers will allow. So you don't have to worry about what an MLM company charges for its products, because if people don't want them, they won't buy them.

Beware of a pay plan in which no product is received for a purchase. And avoid a plan where someone else gets paid on your sales before you do.

Talk only to the RIGHT people
Imagine you're walking past a hospital and a doctor meets you on the sidewalk. He hands you a scalpel and invites you inside to perform an appendectomy. "I can't," you say. "I don't have any medical training." "No problem," the doctor says. "Anybody can do it."

Think you would botch it?

Unfortunately, this is what happens most of the time in network marketing. People tell you how easy it is, but remember, MLM is a business. Something must be sold to make a profit, yet people are telling you there's no selling involved.

No sales equals no profits. And no commissions either.

To make money in MLM, you must refer paying customers who refer others. To do this, only talk to people who understand and know what's required. The key is to spend as little time as possible with the WRONG people, and as much time as possible with the RIGHT people.

You must qualify people for your time and effort.

There are only so many hours you can spend working a part-time business. Even if you could work 100 hours a week, that's all it would be. But if you can build a group of 500 customers who work 1 hour a week each, that's a 500 hour work week on your behalf.

The key is identifying those workers yourself and showing others how to find them.