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Cheryl0305
Member
Joined: 20 Jun 2008
Posts: 4
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# Posted: 25 Jul 2008 14:32
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Just wondered how the current economy has affected your network marketing business. Has it helped you because there are more people looking for a second source of income or has it been more difficult to find people that aren't broke. Also, how has affected your organizational volume and current commission checks?
Cheryl
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Escalade
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# Posted: 1 Aug 2008 00:48
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Network Marketing is recession-proof since this is a people's business. It is actually helping out since gas prices keeps on rising and people are really eager to start building a long-term business and start earning residual income. The key here is to start a foundation once, then you get paid over and over throughout your lifetime.
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unselfishguy
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# Posted: 1 Aug 2008 08:26
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I agree with Escalade. Network Marketing is recession-proof. No matter how the economy is like, people are still looking for ways to change their lifestyle and become financially free from home
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getagrip
Joined: 20 Feb 2006
Posts: 1881
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# Posted: 1 Aug 2008 13:26
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Escalade: Network Marketing is recession-proof since this is a people's business. It is actually helping out since gas prices keeps on rising and people are really eager to start building a long-term business and start earning residual income.
This is actually both true and false. On the one hand, more people may join MLMs because they are looking for ways to supplement their incomes. On the other hand, consumers in a resession - with sky high gas prices - are less likely to spend money on things they don't need, so even though you might be able to get more people to join your MLM, the chances of you making product sales are diminished, which hampers your ability to earn money.
Ultimately, the ability to make money in any business depends on how much demand there is for the product you are selling, and whether or not people are willing to shell out money to buy that product. When consumers hold on to more of their money because they don't have a lot of disposable income to spend, you are much more likely to succeed when the product you are offering is seen as a need, compared to a want.
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itsjoanne
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Joined: 9 Apr 2007
Posts: 23
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# Posted: 19 Aug 2008 04:13
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So much depends on our attitude.
We can see the current economic conditions as a great opportunity to build our business.
There is no question the economy is hurting many people, and some of them will be open to network marketing.
I do believe in sharing what we have to offer to people. Whether or not they respond of course is up to them. But we have a wonderful thing to offer people.... a chance for financial security if they are willing to take action.
I really believe network marketing can thrive in these economic times.
Joanne
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annadenise
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Joined: 9 Mar 2008
Posts: 300
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# Posted: 19 Aug 2008 08:02
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It depends on the product and the company. Ex.: Baby boomers are concerned about health issues and as people get older they tend to take some nutritional supplements. So health related products geared toward baby boomers are not affected as heavily as some other products might be. In fact the particular co I work with has had unprecedented growth in the last 3 months, and it has been around for 9 years.
Also as others have stated here, this is a time when people are looking for either supplemental or replacement income due to the economy in the USA.
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luvtravel
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Joined: 11 Dec 2006
Posts: 808
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# Posted: 9 Sep 2008 07:21
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There is ALWAYS a need to earn a good income
Families need more money to buy food pay for gas and the business I promote is booming
It's a Mom-friendly business especially for the busy Mom!
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alexa
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Joined: 8 Sep 2008
Posts: 95
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# Posted: 11 Sep 2008 14:16
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I don't agree at all that network marketing is recession-proof, and I think the historical evidence is overwhelmingly against that point of view, too. In recessionary times, worldwide, more network marketing companies get into trouble than in non-recessionary times. That was well observed in the 1980's.
Looking at it superficially, you might think that in bad economic climates more people are looking for additional income sources. I think that's true in so far as it goes, but many of the people who are looking, especially in the early stages of a recession, are those who aren't all that well equipped to set up a run a business, don't do their due diligence, and make many mistakes, so the newbies probably don't do so well, overall, in a recession as at other times.
The pricing of the company's products is also highly relevant. If they're universally perceived as "overpriced", that will have more of a negative impact than the need to earn extra money has a positive impact, because people will find themselves thinking "How am I going to manage to sell this, at that price, when people are so short of money?" And that saps confidence and makes prospecting really difficult.
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alexa
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DHL
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Joined: 27 Aug 2008
Posts: 7
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# Posted: 11 Sep 2008 23:08
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I think it's a double edged sword. People are looking for a second income because their hours were either cut back because of the economy or cut out all together. That should make people want to give alternate incomes a shot right? WRONG!!!! The first question i always get when telling them about an opportunity is "Do i have to put up any money up front"? They say "Well i don't have any money to invest". That's the reason you should do it in the first place!! It goes around in a vicous circle. I've been in multi level for many years, and always made sure i picked GOOD QUALITY PRODUCTS OR SERVICES to promote, and never really had a problem promoting them, and i definitely feel the punch of the economy. MLM's are hard work, but they should also be fun, and motivating. Sometimes i feel guilty about taking someone's last dollar, (as they put it) The problem is people would rather sit around and complain about being miserable instead of getting out and changing their lives for the better. Believe me, the economy has hurt my family as well, but i refuse to sit around and watch it get worse. I try to use my knowledge to the best of my ability, and try to invest in opportunities that can truly be something great!
DHL
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alexa
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Joined: 8 Sep 2008
Posts: 95
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# Posted: 12 Sep 2008 07:23
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DHL: The first question i always get when telling them about an opportunity is "Do i have to put up any money up front"? They say "Well i don't have any money to invest".
I think we all hear you there.
But that's one of the reasons why MLM companies which require their distributors to pay a sign-up fee and then make a regular monthly purchase themselves, just in order to "qualify" to get paid, are coming in for some trouble in this economic climate. Exactly as they have done in the past in recessionary times.
People are looking for something they can set up and get running with almost no cost at all, and no monthly outgoings, precisely because they "don't have any money to invest".
In difficult economic times, the people who get rich are the ones able to offer what people already want and need - not the ones who have to re-educate people and try to persuade them to want and need different things! 
MLM-ers like to tell themselves, and each othe,r that when people are feeling the pinch, that's the time they want to earn extra income so they "ought" to be more willing to look at business opportunities, and sponsoring "ought" to be easier. The reality, however, has always been exactly the opposite and for exactly the reason you mention above, DHL: their two prime requirements are not needing to spend much to get started, and not needing to pay out money every month to "run their business".
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alexa
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DHL
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Joined: 27 Aug 2008
Posts: 7
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# Posted: 12 Sep 2008 21:07
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Alexa,
I hear what you're saying.....Believe me, i hear it every day! But in reality if someone were to go into business for themselves, whether it be a MLM or something else, there is always going to be some sort of start up costs especially in the beginning. Of course there are some exceptions to the rules, but most of the time this is the case. It could take hundreds, even thousands of dollars to start up your own company, and there is NO GUARANTEE it's going to be successful, and most people don't even take a paycheck for sometimes 2-3 years and even more! So when you look at it like that, if people have the opportunity to possibly make a very nice income for the rest of their lives, a few hundred dollars seems like a small price to pay. Not everyone thinks like that, and that is the sad reality. A lot of times it's just finding the right people, and that can take some time. I've got some people in my business, that just take the bull by the horns, and just run with it. Others it's like pulling teeth to get them to do something! But like you said in a previous post, I think people have to be in the right mindset, and really be looking. You can get lucky with people who aren't, but you just have to catch them at the right time.
DHL
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promlmer
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Joined: 11 Oct 2008
Posts: 8
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# Posted: 19 Oct 2008 21:42
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What if your products are food, delivered to your front door? More convenient, less gas and time to go grocery shopping. "Will work for food" takes on a whole new meaning. What if you could show people how to eat for free? Now we're talking.
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Check out http://www.whymenageinnovations.com/
If you like my business opportunity, call me at 901.428.7007.
We are a real opportunity because we are food, we're first and it's a lot of money. I provide full disclosure on the above website.
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promlmer
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Joined: 11 Oct 2008
Posts: 8
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# Posted: 19 Oct 2008 21:44
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What if your products are food, delivered to your front door? More convenient, less gas and time to go grocery shopping. "Will work for food" takes on a whole new meaning. What if you could show people how to eat for free? Now we're talking.
__________________
Check out http://www.whymenageinnovations.com/
If you like my business opportunity, call me at 901.428.7007.
We are a real opportunity because we are food, we're first and it's a lot of money. I provide full disclosure on the above website.
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promlmer
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Joined: 11 Oct 2008
Posts: 8
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# Posted: 19 Oct 2008 21:47
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My product sales have gone up an average of 10% monthly. I believe we are successful in this way since our product is food. I won't live without it.
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Check out http://www.whymenageinnovations.com/
If you like my business opportunity, call me at 901.428.7007.
We are a real opportunity because we are food, we're first and it's a lot of money. I provide full disclosure on the above website.
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jaynen
Member
Joined: 27 Nov 2008
Posts: 21
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# Posted: 29 Nov 2008 15:21
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I'm kind of in the same position as promlmer. With ACN, it's a product that everybody needs, has, and is going to keep no matter what, so product sales aren't affected at all. As far as signing people up, many don't have the "extra" 500 bucks laying around, but they do have $500; they just need to know that if they invest that $500 they will see results, so the concern for success is much greater. All of this is why it's been a bit easier, people are really taking the business seriously now, because they need to make something happen and cannot afford to lose.
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- Jaynen
It's not what you do, not too much of how you do it, more so the support/leadership you have, and mostly your attitude and drive to succeed.
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bestlifeinfl
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Joined: 26 Jun 2009
Posts: 3
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# Posted: 26 Jun 2009 15:19
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I have to say both helping and hurting.
We have more prospects now and they are open to looking, but less of them have the cash to start.
It simply means going through the num,bers.
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I practice, teach and enjoy network marketing. I have started many traditional businesses. When I found and understood network marketing I found my life's true calling. Network Marketing Quotes |
RICH4NURICHE
Member
Joined: 6 May 2009
Posts: 61
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# Posted: 26 Jun 2009 19:26
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INTERESTINGLY AND UNFORTUNATELY IT WAS STATED THAT ILLEGAL NARCOTICS WERE THE LEAST AFFECTED BY THE ECONOMIC SLUMP.
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donanddeexxx
Member
Joined: 30 Jun 2009
Posts: 2
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# Posted: 30 Jun 2009 00:13
Reply
DHL: I think it's a double edged sword. People are looking for a second income because their hours were either cut back because of the economy or cut out all together. That should make people want to give alternate incomes a shot right? WRONG!!!! The first question i always get when telling them about an opportunity is "Do i have to put up any money up front"? They say "Well i don't have any money to invest". That's the reason you should do it in the first place!! It goes around in a vicous circle. I've been in multi level for many years, and always made sure i picked GOOD QUALITY PRODUCTS OR SERVICES to promote, and never really had a problem promoting them, and i definitely feel the punch of the economy. MLM's are hard work, but they should also be fun, and motivating. Sometimes i feel guilty about taking someone's last dollar, (as they put it) The problem is people would rather sit around and complain about being miserable instead of getting out and changing their lives for the better. Believe me, the economy has hurt my family as well, but i refuse to sit around and watch it get worse. I try to use my knowledge to the best of my ability, and try to invest in opportunities that can truly be something great
That hit the nail right on the head!
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Mark_Worthen
Member
Joined: 20 Mar 2007
Posts: 84
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# Posted: 5 Jul 2009 17:24 · Edited by: Mark_Worthen
Reply
My personal sales and the sales of our company overall are UP since the recession began. I would think that people recognize that their jobs (if they still have them) are vulnerable and they're looking for a second source of income.
However, overall statistics show a different trend. Google Trends data shows that interest in home business, as reflected in searches for such keywords, has decreased slightly since last year and both 2008 and 2009 demonstrate much less interest compared to 2006.
There does appear to be an annual pattern in that interest in home business, work at home, and make money online opportunities will be at its highest in December and January.
The Google Trends graph I'm referring to is here:
http://www.google.com/trends?q=home+business,+work+at+home,+make+money+online&ctab=0& geo=all&date=all&sort=0
All the Best,
Mark
P.S. There could be other explanations for the trend shown in that graph. For example, maybe in previous years people searched for "home business" but now they search for more specific terms such as "home business Internet" or "work at home online business".
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Gcmaupin
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# Posted: 11 Aug 2009 09:15
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I am still taking my baby steps in MLM so maybe its my approach but i am running into alot of the money isnt right at this time kinda situations. i Market bolth online and face to face so I know i have a lot to learn
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GaryCameron
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Joined: 23 Aug 2009
Posts: 37
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# Posted: 23 Aug 2009 23:20
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I have chosen to not participate in any sort of recession.
In August of 2008 I officially retired as a computer professional in favor of Network Marketing. It is now one year later. My monthly income now is slightly more than it was this time last year.
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BobFirestone
Member
Joined: 1 Jul 2009
Posts: 125
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# Posted: 24 Aug 2009 10:34
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alexa: I don't agree at all that network marketing is recession-proof, and I think the historical evidence is overwhelmingly against that point of view, too. In recessionary times, worldwide, more network marketing companies get into trouble than in non-recessionary times. That was well observed in the 1980's.
I think the number of companies getting in trouble in the 80's was a direct result of many of the same things we are seeing right now. A lot of new weak "me too" companies are jumping into the market. These companies are not strong or well positioned but they are cheap to start (outsourced R&D & production) and have a large upside if they work out. All you have to do is look at the number of Monavie knockoffs in the market right now. Some of them don't even have the decency to design their own packaging.
In a recession the strong network marketing companies get stronger and the weak companies suffer like everyone else.
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BobFirestone
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Joined: 1 Jul 2009
Posts: 125
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# Posted: 24 Aug 2009 11:17
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getagrip: Ultimately, the ability to make money in any business depends on how much demand there is for the product you are selling, and whether or not people are willing to shell out money to buy that product. When consumers hold on to more of their money because they don't have a lot of disposable income to spend, you are much more likely to succeed when the product you are offering is seen as a need, compared to a want.
Amen. Just because a company is a MLM doesn't suspend the mathematical realities of business.
Right now there are entire sectors of MLM's that I wouldn't join if you were paying all the costs. The underlying sales volume just simply doesn't exist.
Look at what is happening to YTB. There is no travel being booked so no retail sales commission is being generated and the company is slowly breaking up.
I am sure there are many people who would disagree with me on this but retail sales are the real savior for every MLM company with long term aspirations.
For anyone who is looking at a MLM and can't confidently say they can develop a viable retail market they should move on to the next company. The people you recruit follow your lead, if you build a direct sales volume your team will do the same.
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WARRANTIES4LESS
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Joined: 20 Feb 2008
Posts: 350
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# Posted: 7 Sep 2009 23:47
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Interesting Subject,
In my opinion, as many have mentioned, it depends on business, and unless you choose a recession proof business, you will be impacted by economy just like you would be in any business which is not recession proof.
Yes, there are businesses which are recession proof, but MLM is general is far from being recession proof if you are trying to sell the usual overpriced products or services. As example, with travel off almost 40% in recesssion, I wouldn't want to be in the MLM travel business.
There are many examples of MLM companies who are feeling the recession just as traditional businesses are. What does help is the almost 10% unemployment, so you naturally have more people looking at MLM since it is the lowest cost home businesses to start compared to conventional businesses.
In conclusion, choose wisely just as you should in a good economy, but in a recession, extra care must be taken. Start by asking yourself what you are cutting back on in your lives. I know many will say they don't eat out as much. People switch to no name brands or generic products. Many didn't take vacations, or stayed local, so airlines and hotels in many areas are way off last year. Even Vegas is off almost 30%, and that is amazing.
Simply put, people are looking to save money more than ever in my lifetime, so focus on MLM businesses that offer true verifiable savings on what people are already purchasing elsewhere. Transfer buying is the easiest of all MLM opportunities, so find value before you waste time and money on typical over priced MLM programs is secret to success in a recession or not.
Success to all,
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ibuzzmentor
Member
Joined: 23 Jun 2008
Posts: 76
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# Posted: 10 Sep 2009 10:53
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For sure the amount of leads we create from people dying to make big money in this industry has gone through the roof. People in this economy though care just about two things. Making money and saving money. They dont care about your juices, or your cash gifting, or your ebooks. They want a leader who can lay out a game plan on what it takes to make money. Listen to why they want to make money and then continue to hone in on that point.
Chris
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apbenefits
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Joined: 10 Sep 2009
Posts: 8
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# Posted: 11 Sep 2009 22:30
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I feel that it has helped me quite a bit. Alot of people are now looking to own their own business and work from home. The start up cost with the company that I am with is very minimal of only $50, so really it is hard for anybody to say they don't have that. That is the price of a dinner and a movie. I feel that if anybody really wants it, they will find away to do it. With a start up cost of only $50, it is hard not to get started immediately.
Thank God, I own my own business, I do not have to worry about the effects of the recession!
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