Is MLM For Real? Here's a Brief Look at What This Industry Really Is

What is Network Marketing? Why are 15.2 million Americans and 59 million people worldwide involved in this industry? Why are people like Robert Kiyosaki, Brian Tracey, Bill Bartmann, Donald Trump, Bill Clinton, Warren Buffett, and even Maya Angelou strong advocates of the Network Marketing/MLM industry? And how could you benefit?For the sake of time, I'll keep this short, below are a few of my most popular questions...Here's the low down in a few simple Q and A's...Q: Is Network Marketing a pyramid scheme?A: This is my favorite question I've gotten from educated, sharp people so I know it's a honest concern. Most people usually think MLM is a pyramid, a scam, or a ponzi scheme. I'm always fascinated to know what this person thinks a pyramid is to begin with... Some people throw it out there to get a reaction, and possibly somewhere down the line someone they knew was involved in some kind of scam, or possibly they've been scammed before....Go figure. In short, a pyramid is unlawful. And refers to a way to make money without the exchange of a legitimate product. People invest money in the hopes and dreams that others will do the same and by hook or by crook they'll get their money back plus a massive bonus. On another note, often times, people see the triangle like arrangement of a MLM or Network Marketing pay plan and because it looks like a pyramid or a triangle, assume it's an prohibited pyramid. Every company organization looks like a pyramid. For example, Microsoft. Bill Gates would be at the highest, then under him, VP's, under those people middle managers, and at the bottom staff employees. Understand?The government sued Amway in 1979, for four years they fought to prove that Amway was a pyramid, they lost! If you get compensated for solely bringing in new distributors, that's illegal. However, if you get compensated when you bring in a new team member and he/she buys product, that is 100% legal. Because you would be getting paid on the product, not the person. It's easy, the you get rewarded for selling a product or service that has a demand in the marketplace.. Then be able to recruit and teach new people to do the same.Q: Is recruiting the main source of income in Network Marketing??A: There's no secret that recruiting will get you to your goals faster, but it's not the only way. A distributors pay plan must be based on sales of products or services and not on how many people they have in their organization, also known as, a downline. I like to use the example of an Agent-Broker relationship in a Real Estate environment.A Real Estate company like EXIT, for example, will partner with Brokers. Brokers are then able to use that companies name, though each office is independently owned and operated. Which is similar to a distributor in an Network Marketing company. A associate owns her own business and operates independently. A Broker will then need to sell homes and recruit other agents to sell homes as well. Agents are independent contractors, unlike employees they only receive compensation if they sell.. Just like a network marketer. the Broker will retain a percentage of the Agents commission in exchange for providing a place to do business.. Most Network Marketers work from home and supply their own office and marketing, but are offered tremendous on going training. There are some Real Estate companies that will also offer an existing agent an extra commission if they are able to recruit a new agent into the company. Interesting?!No ones writing articles about whether or not Real Estate brokers are a scam...No one's running around town saying..."Did you hear about XYZ Broker, she's running a pyramid over there, recruiting all those agents.."This is where it gets juicy. Would a Broker have any real reason, except that she's a really impressive person, to teach all her agents to become triumphant Brokers. If he wants to stay in business that probably wouldn't be the best idea. A Broker is not going to let you in on her real tips and tricks of the trade? Mine never did, you see creating other Brokers would be adding competition to an already intense marketplace.In multilevel marketing a TEAM environment is crucial for success. You are compensated on individual results and the results of others by selling products or services, it's called leverage. You partner with a trustworthy company who has a product you can be proud of, and would buy on its own. Then you'd get training and attain some customers. After you've done that you'll recognize that it's time you get some help...it's time to grow. LIke any other business in any other niche.. You'll teach your new associates, teach them everything you know and when their success builds they'll do the same for the people they know and what to help.The is no class system to Multilevel Marketing. Your pay is not based on where you got in. Nothing like a Broker, who will more times than not be making A LOT more than his agents. Because in Multilevel Marketing compensation is based on sales, someone I bring into my downline has every chance to make more money than myself, by simply out selling me and training more people to do the same. Pay attention here...This is the beautiful part! Can you see it?If you were to sponsor someone that produces more than you, GREAT! This is the beauty of this business you're one person away from a 7 figure yearSo you can see how recruiting becomes an easy progression. It is vital, but not the only part of your business. You can also see how MLM is a great choice for the person that desires to help and motivate others. What better environment than to be able to be handsomely rewarded for the people that you teach to be better than you. Zig Ziglar said it best, "You can have everything in life you want if you will just help enough people get what they want." I believe this is the foundation of Multilevel Marketing and why I am proud to be a leader in this amazing industry. The Multilevel Marketing industry has showed that an ordinary girl, that came from a country town, who was pregnant at 16, abused and lost in the world, the ability to transform her life and build an empire that will last for generations.