1. Is this one of those pyramid things?
First of all, let’s be clear about one thing, simply stated MLM is an efficient means of getting the most products to the most people with the least amount of effort. It’s a method of distribution that dates back to the 1940’s – so it has stood the test of time. It is not a “get rich quick” scheme or one of those “pyramid things.” In fact, if you examine the business structure of a traditional corporation, what do you see? A pyramid. You have your CEO at the top, then the President; beneath him the Vice-president, then middle management and finally the general employees.
What does your family tree look like? What is the structure of all governments? In a true pyramid scheme you are usually compensated for the number of people you recruit rather than for the movement of product. And usually there is no product involved in a pyramid scheme.
2. Who makes the money?
Some people think that it is just the people at the top that make all the money. While that may be true, ask yourself this question: Who always makes the most money in a corporation?
The opportunity to earn significant income is the same for everyone in MLM, and each person gets paid according to his or her effort. (Isn’t that refreshing?) If a person works hard at developing a solid organization of distributors and customers, they will be compensated for that. Those who don’t work as hard will make less money, but they will be paid on the same basis as everyone else in the company. Here’s a true-life example: I brought (or “sponsored”) my sister into the business so she is “under” me. Two months in a row recently, she received a larger compensation check than I did.
In a corporate situation, meeting objectives and staying within budget aren’t necessarily the only criteria for how one gets paid. There is also a subjective aspect to it. I like to call it “company politics.” What does your boss really think of you and your effort? Someone else gets to determine who get the extra bonus and why. My husband worked in corporate for 35 years, and I saw many times when his team got passed over for the extra bucks even though they met all their objectives. Somebody higher up decided it should go to someone else. In NM it is strictly objective.
3. Who can get involved in MLM?
Here is one of my favorite aspects of Multilevel Marketing: A person isn’t required to have any prescribed amount of education, be a certain age or of a certain ethnic background. Anyone who so desires can start their own business at any time.
I was at a regional conference once and heard a woman speak about her business. She did not have a college education, she was the wife of a farmer in the Midwest and raised several children...and had a very successful MLM business. I just loved that!
4. What will it cost me?
Another great aspect is that Network Marketing is the only entrepreneurial home business with literally no downside risk – especially when compared to a franchise or store front operation which take lots of money up front. A minimal invested gets you started in most network marketing companies.
5. MLM vs. a job
One of the unique features of MLM is something called “residual income” (also called passive, or recurring income). It is income that continues to be generated after the initial effort has been expended. In other words, you sign up a new distributor and show them how to set up their business. You do this once but continue to earn a commission on their effort. For every distributor you enroll the process is the same. Compare this to what most people focus on earning: linear income, which is "one-shot" compensation or payment in the form of a fee, wage, commission or salary.
Why do business people like Robert and Kim Kiyosaki, Warren Buffet, and Donald Trump tout MLM? Because they see the beauty of the model. Hear what President Clinton has to say.
So, that’s why I love MLM. What do you think?
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