Simple Truths About MLM

Network marketing or MLM, as it is sometimes called, has so much potential for so many people, but we need to clear up some misunderstanding that have given it a black eye. By simply focusing on what network marketing really is -- not what your uncle or your coworkers say it is -- you can make it work for you.

Okay, where should I start? How about with a Definition of what MLM is?

* Network marketing is a system for distributing various products, leaving the marketing function up to individuals (distributors) who are paid commissions and bonuses based on how much product sales they are responsible for.

* Network marketing removes a lot of inefficiencies and expenses in the process of distributing products from the manufacturer to the end user. This frees up large sums which are paid by most corporations to professional sales staffs, advertising agencies, warehousers, rack jobbers, and the profit margins of 50-100% typically required by retail outlets like WalMart, GNC, etc.

* By saving millions of dollars on all the above functions, MLM companies can afford to pay those savings out in commissions to multiple levels of sales associates. So, the average Jane or Joe earn much more than they could earn in almost any other occupation IF they know what they are doing, work at it, and enlist many others to help them.

Sounds great, doesn't it? Well, in principle it is, but there are many preventable mistakes and misconceptions that can get in the way of a new distributor's success. Let's consider just a few of those:

* Perhaps the biggest mental hurdle is the notion that MLM does not require work. Unfortunately, it is frequently promoted by less-than-ethical recruiters and companies in this way. Face it, folks: Work is at the heart of the name Net-WORK-Marketing! You are not buying a guaranteed winning Lottery ticket; you are buying what is essentially a franchise, but for a bargain price. You must figure out many things to make that franchise successful and only then will you get paid.

* Choosing the wrong company. Many network marketing companies go out of business for many of the same reasons most business start-ups fail: they are undercapitalized, they don't have an experienced management team, they choose the wrong product to market. The wisest course is to research the company you are considering, just as you would research any major investment. Go visit with the founders, if possible. Look at the financial records. If nothing else, read every legitimate 3rd-party report on the company and its products.

One of the easiest safety criteria is to never join a company that is less than five years old. That gives the company time to work out any bugs before you invest your time and money into building a business based on their ability to hold up their end of the deal.

Read the book How To Choose A Network Marketing Company, advertised over to the right of this post. That will give you a good foundation for comparing companies, hot products, compensation plans, etc.

* This last point is really important: You will need education in state-of-the-art marketing -- and most likely, you're going to need to find this on your own. This is an area most MLM companies are still in the Dark Ages about.

The best system I have found that explains everything from the mental attitude you will need to actually providing you with a free turnkey software package is called Magnetic Sponsoring, by Mike Dillard. It will show you how the Top Dogs got to the top in this business -- and, conversely, why the little people frequently get wiped out. If you want to succeed in this phenomenal business, you need to get this inexpensive, brilliantly written, package of education and tools.

There are many imitators, but Mike Dillard's Magnetic Sponsoring is the original. With this information and funded-proposal recruiting system, Mike went from waiting tables in his mid-twenties to earning a 7-figure-income in 18 months! Click on the Magnetic Sponsoring banner to the right of this post to get your copy.

And, yes, I will be compensated by Mike Dillard if you buy any of his products. I am grateful to the person who brought this dandy little book to my attention, so I'm thinking you will be, too.

What's Your Backup Plan?

The newspapers are telling us the Great Recession is over. They say it ended a year ago! What do you think?

Judging by all the Community Garage Sale signs I see, it doesn't look like it from where I sit. I think the public has just not accepted the fact that our U.S. economy has fundamentally changed. Many of the jobs available during the Housing and Financial Boom are never coming back.

I have made my living by being an entrepreneur most of my life. That means I had to accurately predict what businesses would succeed in the future, when I decided where to invest my time and money. An entrepreneur, to be successful, needs to be good at predicting where the future is heading. I've done well over the course of the 40+ years I've been choosing businesses.

Assuming you have a good job now, having a back-up plan is a very smart idea. As it dawns on the public that the economy is not going to suddenly take wings and begin to prosper again, we're going to see more jobs eliminated.

It wouldn't hurt -- and actually, it would be a smart move -- to create a back-up plan, a part-time second income source you can fall back on if anything happens to your regular income source.

Network Marketing is the ideal business model for this purpose. But learning the new rules of MLM are critical if you don't want to go out and do the old-fashioned routine of talking to everyone you know about your new business venture.

There is a time to talk to the people you know about your business, but it's best to get some success and knowledge under your belt before you do.

To learn the new, online, way to build your MLM business, check out the banner to the right of this post, entitled "Building On A Budget". Learn how to make money, starting today, as people pay you to tell them about your new business!