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PMHayes
Member
Joined: 23 Apr 2008
Posts: 129
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# Posted: 12 May 2008 01:53
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What's Right with MLM?
I get so sick and tired of hearing all the negative press associated with our industry. Let's see, MLM is Dead, MLM is a Scam, MLM is a Pyramid Scheme, etc. etc. etc. I'm working on an article about MLM to submit, not just online, but to some of the many offline publications that continue to bash us. People need to know the truth, and these websites, trade magazines, and others need to stop lying to the public.
They (the MLM bashers) don't like us, that's plain, but they don't understand us, either, that's obvious. Just the other day i was looking at different venues to do some advertising, and in more than one there was the phrase "MLM or Pyramid Shemes not allowed." I wrote one of them, submitted a support ticket, and
"WENT OFF" on them.
Anyway, as i said, i'm working on putting together an article to get it out there to the public, to tell the truth about MLM. So, i would like you folks to do me a favor. Reply to this post with your stories, anecdotes, ideas, etc. Tell me what you think is RIGHT with our industry, and why. It doesn't have to be perfectly researched, or meticulously worded. Just in your own words, your own thoughts, what's right with MLM and why people wanting to be in business for themselves should consider this industry over a brick and mortar business, or an online store.
Now there is nothing wrong with either of those, traditional businesses or online stores, in fact i have an online store. I just want some input on, "why MLM?" Tell me your pet peaves, your gripes, as well as your success stories, i want to hear it all. I have lots of ideas, and stories to tell, but i want to hear from you front liners, the grunts in the trenches, if you will. I'm one of you, and we have to stand up and defend our territory. No one else will, i can promise you that. They all want to see us disappear into a big black bottomless pit never to resurface again! So, bring it on, let me hear what you have to say.
Thanks.........Philip Mitchell Hayes
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Seashell
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Joined: 11 May 2008
Posts: 23
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# Posted: 12 May 2008 10:43
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This is what is all about !!
Leveraged Income
A related concept to residual income is leveraged income. Leveraged income is similar in that it can be residual. More importantly, leveraged income is money that you make from other people's efforts.
For example, if you make widgets on an assembly line for your job, you have to do that to get paid. But if you were the one who patented the widget or the
technology to make the widget, you would continually receive income every time someone made or bought one of your widgets.
Imagine that in addition to you working on the assembly line, you could train others to do the same work and make a percentage of each person's income that you trained?
For example, you work the assembly line and earn $1,000 each month. What if you could earn 10% of the income for each person you trained to do the same assembly-line work? You would do the work (training) one time and be paid over and over again (residual income that is leveraged via other people's work).
Suppose you trained ten new people each month, for three months. Your monthly income would begin to look like this:
� 1st month: You make $1,000 and each of the ten people you train earn $1,000. In addition, you earn 10% of their monthly income (10% of $1,000 = $100 x 10 people = $1,000 + your $1,000 = $2,000 total).
� 2nd month: You still make your $1,000, but now you have 20 people who each make $1,000. Your income is thus: 10% of $1000 = $100 x 20 people = $2000 + your $1,000 = $3,000 total).
� 3rd month: You still make your $1,000, but now you have 30 people who each make $1,000. Your income is thus: 10% of $1,000 = $100 x 30 people = $3,000 + your $1,000 = $4,000 total).
But wait, there's more!
Say in your fourth month, you go on vacation. While you're gone, 10 of the thirty that you trained each trained 5 more people. Another part of your business agreement said that you would receive 3% of the income of anyone that was trained by someone you trained. So, you have 50 more people each earning $1,000, and you earn 3% of that (3% of $1,000 = $30 x 50 people = $1,500), + 10% of the 30 people you personally trained (10% of 30 x 1,000 = $3,000), + your salary, which is $0 because you didn't work. That comes out to $4,500 in income and you didn't even work that month!
This is the beauty of leveraged and residual income. By your one act of training someone to do the work, you will get paid over and over again from their efforts, and again if they train someone else to do the work.
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opendomain
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Joined: 19 Aug 2007
Posts: 528
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# Posted: 12 May 2008 11:22
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[Put on war paint]
I can appreciate your frustrations MLM have a horrible reputation with most people simply because a few programs have taken advantage of some people.
My biggest problem is that most people who join an MLM don't quite undestand what it is they are getting involved with, namely a business venture. As with all business ventures there are successes and failures. Those people who fail tend to think ALL MLM's are scams after their failure.
The problem I have with people like that is that generally they didn't do the due diligence they should have and want to blame their lack of research into their investment on the investment not being sound.
On the flip side of that coin there are still many programs otu there that promote the emotional sale, rather than the factual one.
Imagine you've gone to McDonalds and decided to invest the 750,00 or so into a MCDonalds. You're obviously gong to do some research into the success and failure, the way to market, etc.
People who join MLM"s should do the same. ...Alas they do not and for every failed MLMer there is a new "horror" story about MLMs.
MLMs are in theory an AWESOME business model. They promote both growth and income, which is what attracts most people, and they are a viable marketing solutions for business both big and small. Once you can get around the term MLM you can generally promote any program with success (hence teh creation of the term "Network Marketing", "Social Marketing", and a several others)
I wish you the best of luck on your mission PMHayes
Gilbert.
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mountainmom5
Joined: 30 Aug 2007
Posts: 1139
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# Posted: 12 May 2008 11:24
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Seashell: � 1st month: You make $1,000 and each of the ten people you train earn $1,000. In addition, you earn 10% of their monthly income (10% of $1,000 = $100 x 10 people = $1,000 + your $1,000 = $2,000 total). � 2nd month: You still make your $1,000, but now you have 20 people who each make $1,000. Your income is thus: 10% of $1000 = $100 x 20 people = $2000 + your $1,000 = $3,000 total). � 3rd month: You still make your $1,000, but now you have 30 people who each make $1,000. Your income is thus: 10% of $1,000 = $100 x 30 people = $3,000 + your $1,000 = $4,000 total). But wait, there's more! Say in your fourth month, you go on vacation. While you're gone, 10 of the thirty that you trained each trained 5 more people. Another part of your business agreement said that you would receive 3% of the income of anyone that was trained by someone you trained. So, you have 50 more people each earning $1,000, and you earn 3% of that (3% of $1,000 = $30 x 50 people = $1,500), + 10% of the 30 people you personally trained (10% of 30 x 1,000 = $3,000), + your salary, which is $0 because you didn't work. That comes out to $4,500 in income and you didn't even work that month
That may all be cool and looks really nice on paper - but the reason mlm has a bad name is because people are promised the pie in the sky and then when it doesn't happen in the first few months - they get frustrated and call it a scam...
NEVER promise that the above will happen in the time frame you mentioned - as in MOST cases it will not happen that fast - just hard honest truth, my friend!
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Seashell
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Joined: 11 May 2008
Posts: 23
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# Posted: 12 May 2008 17:14
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That was more of an illustration of how & why leveraging yourself is the way to go.
I never make any promises, but face it - most people join for the money and showing them the possiblities is part of MLM.
The downfall of MLM is people want everything yesterday for little or no effort.
Look at how many people dream of owning a quaint lil restaurant / pub. The failure rate in that business is huge.
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stcajo
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Joined: 13 May 2008
Posts: 1
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# Posted: 13 May 2008 09:42
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If people cant realize that they are not going to make money over night then they should just stay away.
I work hard at MLM. Im not rich but I stick with it and get a paycheck every month
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Dale Mazurek
http://www.work-at-home-business.us/
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PMHayes
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Joined: 23 Apr 2008
Posts: 129
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# Posted: 16 May 2008 01:41
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Thanks for the input so far, guys. Actualy i think i can use the widget's and training others to make them idea in my article, thanks. What i want here is what's RIGHT with our industry. What makes this business model viable, and in my personal opinion, superior to the traditional employee/employer business model.
I can think of one word right off the bat, OWNERSHIP. Many companies, Saturn (the car manufacturer) for one, have bought into the ownership idea. Every employee is also a part owner of the company. That's going part of the way, but MLM makes EVERYONE an owner. Ownership produces dedication, excellence, etc. or should, anyway.
Anyhow, please continue, tell me what is good about our industry, what makes it the best way to do business, etc. I will give the whole forum credit when i write the article. We will have done this together. Maybe my goal is too lofty, but i want to tell the world the truth about MLM, whether they want to hear it or not. So, keep it coming. Great responses so far.
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